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An increasingly important performance measurement tool, especially in the area of teams, is 360° feedback. This paper discusses the theories behind the system, and provides an in‐depth review of the techniques of implementing 360° feedback in an organization. Steps for implementation include selection of raters, questionnaire construction, feedback, presentation, and follow‐up. Additional considerations such as rater responsibility, cost, organizational change and support, benefits, and dangers of abuse or mis‐usage of the system are addressed. Special considerations are discussed for using the system in team settings and how the system can be built‐in to a developing team system or adapted for use in an existing one. More research is currently needed in areas such as quality of samples, process information, training effectiveness, and sustaining the process.

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