As competition amongst legal service firms increases there is strong evidence that those using employee feedback effectively are likely to outperform those which do not.

Employee feedback constitutes information passed upwards through the organisation such as confirmation that instructions have been carried out, information for decision making and ideas and contributions from employees for improving performance.In a report I recently produced for City University Business School I examined the benefits of employee feedback and how it can be encouraged and collected.

A variety of business sectors were studied, including a large legal practice, and a survey of employees was carried out.Using employee feedback effectively may improve organisational performance by increasing both the quantity and quality of information for management decision making; by allowing managers to learn more effectively how to manage their - and the organisation's - performance; by encouraging employ ees to identify problems that reduce performance and by perhaps increasing their motivation.

All employees surveyed wanted to contribute more to their organisations and felt that, if given the opportunity, both they and the organisation would benefit.Initiatives such as total quality management, empowerment and team meetings show the potential of feedback to improve performance.

Hewlett Packard, Zeniza, Bosch, Nissan, Rover, Royal Mail and National & Provincial Building Society ar some of the organisations which are committed to, and have benefited from, effective use of feedback.

And it can save both time and money; Hewlett Packard saved £8m as a result of suggestions from warehouse staff.Few savings will be this large, but most organisations which have developed feedback systems say that improvements have been made as a result.

Frequently quoted benefits are reductions in absenteeism and employee turnover, increases in employee morale and commitment, improvements to working practices and reductions in costs.Management actions and attitudes are the main factor influencing whether or not employees give feedback, so management must therefore be visibly committed to encouraging employees.Further, there must be a collection system appropriate to the organisation.

Employees will only give feedback if they feel safe in using the system available and if they can see the potential benefits.

Building an effective feedback system in legal firms may be more difficult than other service organisations by virtue of their confidential and conservative nature.

However, given commitment, it is possible for legal firms to make significant advances in a relatively short time.Having obtained top management commitment the subsequent steps in the feedback process are: planning the system, collection of feedback, results, management response, action and further feedback.A variety of mechanisms can be used to build a feedback collection system.

The 'line' alters feedback as it passes upwards and thus can produce inaccurate information.

More effective mechanisms include attitude surveys, suggestion schemes, briefings/team meetings - daily, weekly or monthly as appropriate, telephone hotlines, representative forums or committees, regular 'one to one' sessions and upward appraisal systems.A combination of feedback systems is better than a single one.

For example, attitude surveys can provide a longer term strategic view, whilst daily or weekly team meetings can provide an immediate response to problems as they arise.The legal practice featured in the report, Clifford Chance, held its first attitude survey in 1992.

Prior to the survey, focus groups were used to identify areas of possible concern which were then specifically covered by the questions.

The survey results were published and further focus groups set up to consider them.

These groups put forward suggestions to management, who responded and took action as quickly as possible.

In addition to the attitude survey Clifford Chance has also encouraged regular group briefing sessions and an open editorial policy for the house journal.

Alistair Dawson, head of personnel, acknowledges that feedback is valuable: 'Although there is some way to go, staff are more prepared to offer ideas and views on how we can perform better.

Encouraging feedback has, without doubt, benefited both the employees and the organisation.'The survey showed that management and professional staff felt that it was part of their role to give feedback, but support staff did not.

Legal firms have a high percentage of suppo rt staff who must be encouraged to give feedback - their ideas and contributions are as valuable as those of professional and managerial staff.Most of the concerns that might be raised can be predicted, so responses can be planned in advance.

Be honest - publish even bad results, with proposals for improvement; employees respect honesty.

Effective feedback is a continuous process beginning with the feedback, followed by action, and then more feedback.

More than one feedback mechanism should be used, and managers should be trained to encourage and elicit feedback from their teams and tell employees which actions are a result of their feedback.

This proves to employees that giving feedback achieves results.Establishing a feedback system can also help an organisation achieve the investors in people award by providing an effective communication system and encouraging employees to contribute.

Further feedback can help with quality certifications, such as ISO 9000, by encouraging improvements to the systems and practice within the organisation.

In an increasingly fast-moving legal market, effective use of employee feedback allows the organisation to learn, develop and respond more flexibly to client demands.