If performance feedback is merely top down (from higher to lower in hierarchy), then people’s incentives change to prioritise actions and behaviors that please their superiors.
If, however, performance feedback included evaluations by junior staff, then people’s behaviors change completely.
“…could benefit from some kind of 360-degree evaluation during the promotion board process for officers.
Right now in our system the incentives are all one-sided.
To get promoted, an officer just has to please more senior officers.
The junior guys get no input.”
Source: Dan Senor, Start-Up Nation