360 degree feedback deliberately generates data from a range of sources - it creates more data than a standard performance appraisal.  Annual performance appraisals are also starting to commonly seek information from a range of sources - it reflects a move to more networked organisations and less structured boss->subordinate relationships.

That all makes sense to me - it is a sensible growth in data.  But when it comes to the annual performance appraisal working out what is worth measuring is important.  I've been thinking about this a lot as I've been looking recently as my wife develops a new business promoting deals and discounts for days out in the UK.

Her website has Google analytics that tells her how many people visit the site, which pages are popular, etc.  The blog http://blog.topdogdays.com tells her how many people have subscribed to the blog.  Her twitter service http://www.twitter.com/topdogdays tells her how many people are following her.  Amazon tell her how many people have bought a book having visited the site, and google tell her how many people have clicked on an advert on the site.  Data, data, everywhere.  Eventually all of this data can distract from the purpose of the business and managing it.  But it is highly seductive and of course in the early days it is great feedback.

For all of us when reviewing performance - or setting the targets for next year - it is critical to boil down the measures to the key performance indicators.  A term that makes a lot of sense but is often abused.  We need to watch the key performance indicators - not all of them.  In a previous life, I ran a call centre operation.  We had stats coming at us from all directions - all that really mattered was 1) did we answer the calls and 2) did we provide a great service when we did.  Ring time, call duration, "not ready" time, and hundreds of other numbers were indicators but not key indicators.

Brendan