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Creating a Feedback-Driven Culture in 2025

The Essential Guide to Effective Team Feedback

January 27, 2025 • Estimated Reading Time: 5 minutes

Co-Builder: Insights for Building the Next Big Company

Issue #005

Tagline: Building Success, One Company at a Time

Quick Start

Today’s Top Takeaways:

  • Effective feedback is a year-round activity. Don't wait for performance reviews to provide constructive feedback.

  • Avoid the sandwich method. It can dilute the impact of your feedback.

  • Use a structured framework. The SBI, PAGE, and COIN methods can help you deliver effective feedback.

Feature Article: Building a Culture of Feedback

Feedback is a powerful tool for growth and development. But to be effective, it needs to be delivered thoughtfully and constructively. Here's how to do it right.

Key Strategies:

  1. Be specific and timely. Clearly articulate the issue and provide feedback as soon as possible.

  2. Encourage two-way conversations. Make feedback a dialogue, not a monologue.

  3. Avoid the sandwich method. Focus on the core message and avoid burying it in positive fluff.

Effective Frameworks:

SBI (Situation-Behavior-Impact): enables clear identification of the situation, behavior, and impact, providing the employee with a comprehensive understanding of their actions.

  • Situation: "In the last month, specifically on the project due on October 10th and the one due on October 20th..."

  • Behavior: "...I noticed you submitted your work a few days late."

  • Impact: "...This caused delays in the project timeline and increased stress for the team, as we rely on timely submissions to meet our overall deadlines."

PAGE: encourages a conversational approach, facilitating dialogue while directly addressing the issue.

  • Permission: "Hey, do you have a moment to discuss your recent project deliverables?"

  • Accuracy: "I've observed that for both the project due on October 10th and the one due on October 20th, your submissions were a few days late."

  • Growth: "Submitting your work on time is crucial for maintaining the project schedule and keeping the team on track. Let's explore what challenges you faced and how we can address them."

  • Encouragement: "I know you have strong ideas, and your contributions are valuable to the team. With better time management, we can showcase your talents effectively."

COIN (Context-Observation-Impact-Next Steps): provides a structured pathway that not only highlights the problem but also focuses on actionable next steps for improvement.

  • Context: "In the last month, during our project timelines..."

  • Observation: "...I've noticed that you submitted your deliverables late on both October 10th and October 20th."

  • Impact: "...This not only affected the overall project timeline but also increased stress among the team members who were waiting on your input."

  • Next Steps: "Going forward, let's discuss any obstacles you might be facing in meeting deadlines and develop a plan to ensure timely submissions. Perhaps we could set weekly check-ins to help keep you on track."

Tip: These frameworks can be adapted to fit different situations and communication styles. The key is to be clear, specific, and supportive in your feedback. If appropriate, it can be helpful to have the person receiving feedback summarize it back to you at the end of the conversation.

Company Spotlight: Success in Action

Netflix has built a unique corporate culture that prioritizes radical honesty and direct feedback among employees. This approach has significantly contributed to their innovative success and employee engagement.

  • Employee Retention Rate: Netflix encourages regular feedback through one-on-one meetings and informal check-ins, which fosters a sense of belonging and engagement among employees. The company's turnover rates are lower than the industry average, indicating higher employee satisfaction and loyalty. In 2022, Netflix reported a turnover rate of approximately 24%, compared to 30-40% in many other tech companies.

  • Speed of Execution: Teams at Netflix report that continuous feedback reduces the time required to pivot on projects, with a noted decrease of 15-20% in project timelines due to faster decision-making.

  • Quality of Output: Netflix ensures that creative teams refine their work through iterative processes, leading to higher quality outputs in terms of programming. Shows developed under a continuous feedback model often receive higher viewer ratings. For example, Netflix reported that shows with iterative feedback cycles had an average viewer rating increase of 10%.

Key Takeaway:

  • Foster a Culture of Open Communication: Encourage employees to share their thoughts and ideas freely.

  • Prioritize Regular Feedback: Implement a system for regular feedback, both formal and informal.

  • Encourage Iterative Processes: Promote a culture of continuous improvement by encouraging teams to seek feedback throughout the development process and make necessary adjustments based on that feedback.

  • Measure and Analyze Feedback: Track feedback data to identify trends and areas for improvement.

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