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    Case Study2013

    AlliedSignal, Inc. (Honeywell): 360° Assessments

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    The Challenge: Developing Leaders for Growth

    AlliedSignal, an advanced technology and manufacturing firm, initiated a comprehensive leadership development program based on 360° assessments. The goal was to create a system that worked with the organization’s strategic human resource plan and performance management process to cultivate leaders at all levels. Under the leadership of CEO Lawrence A. Bossidy, the company established a vision to become a premier global company, which required aggressive goals for people development to lead future growth.

    Integrating Talent Management with Business Strategy

    Talent development was one of three core processes at AlliedSignal, alongside Strategic Planning and Annual Operating Planning. The Management Resource Review (MRR) was the key management tool designed to systematically assess and develop the organization's people capability. The MRR process was fully integrated with the Integrated Performance Management and Development (IPMD) process, a semi-annual cycle focused on continuous employee development.

    Key Components of the IPMD Process

    1. Career Profile: A summary of an individual’s position, education, training, and work history, prepared by the employee.
    2. Continuous Improvement Summary (CIS): The core document for performance discussions between an employee and supervisor, summarizing results, behaviors, and developmental plans.
    3. Performance Objectives: A review of the four to five most important and measurable business objectives for the employee’s review period.

    Defining Success: Attributes and Behaviors

    AlliedSignal established a standard for success through its "Success Attributes and Behaviors," which were expected of all employees. These attributes formed the basis for recruitment, selection, development, and rewards. Each salaried employee was evaluated annually on these 11 behaviors:

    • Business Acumen
    • Customer Focus
    • Vision and Purpose
    • Values and Ethics
    • Bias for Action
    • Commitment
    • Teamwork
    • Innovation
    • Developing People
    • Performance
    • Technical Competence

    Designing the 360° Multi-Source Feedback (MSF) Program

    To address inconsistencies in how feedback was gathered and to improve the supervisor-employee relationship, AlliedSignal created a standardized MSF program. The initiative received strong endorsement from CEO Larry Bossidy, which was crucial for employee buy-in.

    Core Principles and Design

    A cross-functional team designed the program with a twofold vision:

    • To enhance the IPMD process by collecting performance feedback from multiple sources.
    • To foster an organizational environment that encourages trust, respect, and teamwork.

    The program was guided by several core values, including giving employees a role in choosing their raters, using data for development rather than discipline, and ensuring the anonymity of feedback providers.

    A Developmental Rating Scale

    The team developed a new, more descriptive rating scale for the MSF program to provide clearer feedback. It replaced a simple three-point scale with categories designed to differentiate between needing significant improvement and being ready for developmental coaching.

    MSF RatingDescription
    RM Role ModelConsistently outstanding performance; serves as an example to others.
    CE Capable & EffectiveConsistently meets high standards and expectations for the position.
    BD Could Benefit from DevelopmentMeets standards but needs development to perform better or advance.
    SI Needs Significant ImprovementDoes not meet standards; improved performance is required.

    The Importance of Written Comments

    The MSF instrument included six open-ended questions to gather specific, qualitative feedback. These questions, including what an individual should start, stop, and continue doing, provided rich, actionable details that were often more impactful than the quantitative ratings.

    The MSF process was rolled out systematically. Business units identified coordinators, trained participants, and managed the process with a vendor. The confidential feedback reports were then used by employees and their managers to create development plans.

    Crucially, the aggregated data from the MSF program fed directly into the Management Resource Review (MRR). This allowed leadership to move beyond individual feedback to analyze organizational strengths and weaknesses. For example, a composite summary might reveal that a whole department needed development in a specific attribute like "Developing People."

    This data was also used in the Leadership Assessment Summary, a matrix that evaluated employees on both performance and potential (rated as High Potential, Promotable, or Experienced Professional). This tool helped managers make informed decisions about promotions, reassignments, and succession planning.

    Outcomes and Lessons Learned

    The standardized MSF program provided individuals with specific, factual data on how they were perceived by others, improving the quality of developmental conversations. For the organization, it created more consistency and less variability in the assessment of behaviors, strengthening the entire talent review process.

    AlliedSignal learned several key lessons:

    • Business units must establish specific objectives for implementing the program.
    • Clear, repeated instructions are necessary, as people often don't read printed guides.
    • Training on how to interpret feedback reports is as important as training on how to give it.

    The initiative contributed to the company's recognition as a source of top talent and its positive business results. It helped supervisors become better leaders and solidified AlliedSignal's reputation as an employer of choice. '''

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