One way to improve leader effectiveness is to give leaders feedback regarding the frequency and skill with which they perform various types of leadership behaviors. A $200 million industry has developed over the past three decades to meet this need. This is the 360-degree, or multirater, feedback instrument industry, and it is difficult to overestimate its importance in management development both in the United States and overseas. Jack Welch, the former CEO of General Electric has stated that these tools have been critical to GE's success. Practically all of the Global 1000 companies are using some type of multirater feedback instrument for managers and key individual contributors. Multiratet feedback instruments have been translated into 16 different languages, and well over 5 million managers have now received feedback on their leadership skills and behaviors from these instruments. Because of the pervasiveness of multirater feedback in both the public and private sectors, it will be useful to examine some issues surrounding these instruments