By Davis Bushnell, Globe Correspondent, 8/4/02

Peter Jenkins, founder and chief executive of Boston Warehouse Trading Corp. of Norwood, was startled when he received his job performance report card. "I learned that I'm not as good as I had thought," he said.

Jenkins had taken part in a so-called 360-degree feedback program, one in which he rated his performance on matters ranging from trustworthiness to communications skills. At the same time, his managers and subordinates offered their assessments of how Jenkins performs as chief executive. So, observations were made about him from all corners, or 360 degrees, of his company.

Although this job appraisal concept has been around for about 25 years, it is now gaining ground for a number of reasons, according to human resources specialists. As many as 60 percent of the Fortune 500 use some kind of 360-degree review, according to a report in the San Francisco Business Times in May.

Specialists say the growing popularity of the tool reflects the fact that companies that thinned their executive ranks during the recession want to do everything possible to have the most cohesive management team in place.

"Lots of companies that have cut back are finding that 360s are needed for the senior executives who remain," said Richard Cusic, vice president and managing director of consulting in the Boston office of Right Management Consultants Inc.

For another, the coaching discipline, which has been fast emerging since the 1990s, is becoming more accepted in the corporate world. And many of these consultants are making a business of advising senior managers on how to try to correct some of their managerial deficiencies, based on 360 program data.

But their job, consultants say, is hardly routine because executives with big egos often don't take criticism lightly. For that reason, job performance reviews, modeled on the 360 concept, frequently strike a nerve.

"Sensitivity is always an issue," said Lucinda Doran, owner of The Corporate Advisory Group of Newton.

"Some senior managers think that acknowledging their shortcomings is risky," or begging questions about their ability to lead, added Edward Shulkin, owner of Meant2B Unlimited of Sudbury.

The 360 job review process, however, should not be done piecemeal, consultants said. In a June 2002 report based on a survey of human resources practices at 750 companies in North America and Europe, Watson Wyatt Worldwide, a human resources consulting firm, said the true value of the 360 can only be realized when assessments are followed up by coaching.

And sometimes there are no follow-ups, said Fred Foulkes, director of the Human Resources Policy Institute, part of Boston University's School of Management. "That's when there is no motivation to change" management styles, he said. "After going through the 360 process, a chief executive might say, 'Yes, I'm arrogant, but that's that,' and the program comes to a halt."

Indeed, several requests for interviews with senior executives who have been through the 360 process were rejected. Many large Boston companies — among them, FleetBoston Financial and Fidelity Investments — use 360 reviews "selectively," Foulkes said.

However, the experiences of Jenkins and the Cambridge office of Weber Shandwick Worldwide, a large public relations agency, reflect how the 360 job appraisal process can work.

Jenkins, his managers, and employees were given assessment forms by Shulkin of Meant2B Unlimited, which had consulted to Jenkins on leadership development issues. Managers were asked to rate themselves and Jenkins, on a scale of 1 to 5, with 5 being flawless. Employees were asked to assess the management capabilities of Jenkins. One-page forms were given to all participants, who did not sign their names. Only the performances of Jenkins and his four key senior managers were assessed.

"The goal is to identify convergences and divergences, or agreements and disagreements on job performances," said Shulkin, who consults to small and midsize companies. "Then a coach like me works with managers on closing the gaps."

And there are a few gaps to be closed, admitted Jenkins, whose company is an importer of gifts and housewares. It has 80 employees.

"I rated myself 4 out of 5 on all categories, but I was shocked to be confronted with lesser ratings from managers and employees," he said.

Managers and employees, he said, gave him some poor marks for his listening skills and trustworthiness. "People thought I only listened to one side of an argument. As a result, I'm now working on hearing all sides of an argument."

Questioning his trustworthiness was a big blow, he said. "I think I project trustworthiness because telling the truth always is an important value of mine. But some didn't think I was as good on this issue as I believed I was. So, this is another area I'm working hard on."

Jenkins said the reason for embarking on the 360-review process was to "build a better senior management team." A third phase of the 360 program, involving other managers, probably will get underway soon, he noted.

A lack of communications and people skills are typical shortcomings identified by 360-degree job performances of his clients' executives, said Shulkin.

Weber Shandwick's Cambridge operation, which has 150 employees, has been using the 360 program for four years, said Karen Bouchard, its director of human resources. She said the public relations agency will roll out the 360 process for all 3,000 employees in its 67 offices by next Jan. 1.

"At first, it was just used for senior managers," said Bouchard. "We're now rolling it out for all employees because it's a good development tool for everyone."

Jamie Parker, who heads up the agency's Eastern Region, added," Nothing particularly negative has come out of these job appraisals. Clearly, though, some of our people may want to refine some skills. It's important for us to develop the best talent."

Based on 360 program assessments, seminars are held monthly on subjects like communications and presentation skills, Bouchard said, adding that most of the tutorial work is geared to the public relations business.

Meantime, back in Norwood, Jenkins, the Boston Warehouse chief executive, said that despite digesting some contrary perceptions of his management style, the results of 360 job appraisals "are incredibly valuable. Having a healthy work environment is very important to me."

Davis Bushnell is a freelance writer and can be reached at davisbushnell@compuserv.com.