Yes, this data can be used in performance management reviews, but as always when it comes to compensation and benefits – feedback processes should never be too tightly connected to compensation since that can take the honesty and development out of the process.
The main purpose of this data is aimed at helping the individual leader to be more effective and to create accountability for behavior change/development. A low score always indicates that there is an obstacle or problem that will make that team less effective. But it does not necessarily mean the individual leader is doing a bad job. We have seen low scores in unhappy teams, in teams that don’t fully agree with a change and in teams that are not competent enough to do their work independently. Some of these teams’ leaders wasn’t necessarily doing a bad job that meant that they shouldn’t get the same raise in salary as everyone else. But at the same time, the scores indicated that those leaders had things to deal to help the team/organization to be more effective.
These scores should never be used in a vacuum and when interpreting a single data point caution should be used. Talks needs to happen between the leader and the leaders leader, plans needs to be made and progress needs to be followed up. To to use these scores for comp & ben purposes, we strongly recommend looking also at how an individual leader is progressing and developing her or his team over time.