Exploiting Feedback to Improve Bottom-Line Performance

By ExecutiveBrief Staff

Feedback is a management tool that should be considered in every aspect of any business, regardless of industry, employees or customer base.

While feedback is vital to the growth and sustained success of any business, regardless of industry, employees or customer base, it may often be met with some level of resistance or uncertainty. For some, feedback seems to equate to—and therefore is received or delivered as – (negative) criticism, when in reality, this belief or response is unwarranted.

According to Merriam-Webster, the definition of feedback is: “the transmission of evaluative or corrective information about an action, event, or process to the original or controlling source; also, the information so transmitted.” Such information may be communicated about an employee or management personnel (e.g., as to their leadership abilities, presentation skills, aptitude for teaching, capabilities in performing a specific task), a service (e.g., as to how well it solves an identified problem or meets a specific need), or an organization (e.g., how well it is performing under market conditions, responding to changing customer needs, or keeping employees and management informed and equipped with the necessary information and tools to succeed). There are a number of methods that are commonly used for generating feedback, such as surveys (Web-based or via postal mail or e-mail), question-and-answer sessions, groups forums, one-on-one interviews, or even observation.

Feedback has historically been one of the most commonly misused management tools, especially when it comes to performance appraisals. Many people tend to associate the feedback element of the performance appraisal with reprimand for negative elements of one’s work or performance, without recognition of positive contributions and achievements, further fueling resistance to the process. However, when initiated and delivered appropriately, feedback can be very well-received and serves as an extremely valuable and effective management tool.

Both positive and negative types of feedback are necessary to the successful initial development and continual growth of a business entity or employee. Positive feedback identifies what is right about the subject of evaluation and can be communicated through verbal expressions of approval, formal commendation, or remuneration in the form of salary increases, bonuses, or potential opportunities for promotion.

On the contrary, negative feedback serves to indicate what is not working or is failing to achieve the desired result. There is an important difference, however, between negative feedback and criticism. While criticism is typically intended as an adverse judgment, the purpose of negative feedback is to help pinpoint what needs correcting. While the feedback itself may not be favorable, it is delivered in a constructive manner with the purpose of encouraging improvement.

Certain mechanisms must come into play in order for the feedback process to be successful. These can be external, internal, or both. Whatever the instruments or techniques used, the intended outcome is the betterment of employees, management, and by extension, the company and business with which they are associated. “Getting feedback is important at top management levels as well, as it indicates a desire to progress,” says Ben Decker, president of Decker Communications, Inc. “By using feedback effectively, managers learn what is wrong and therefore will know on which areas to focus improvement efforts.” This will happen, Decker says, only when: “CEOs, CFOs, and other top-level managers encourage a culture of feedback within their organizations.”

One important source through which feedback is derived is observation. This method necessitates the development of acute listening skills and also requires the ability to read and understand verbal and nonverbal cues. Feedback is therefore closely associated with effective communication. In addition, truly competent managers must be capable of understanding the unexpressed but implied meaning of the information communicated, interpreting nuances and having apprehension of the critical value of all feedback to the current and future success of the company.