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Be diplomatic in your delivery. He's your manager after all. But if he's asking for honest feedback, he probably knows there's a problem and trusts you to share your thoughts. If you don't share your thoughts, you can't really blame him for being a dick.
Deliver it from the POV of others so this doesn't have to feel like only your thoughts. Use "we" or "I think people on the team.."
You may gain a good ally out of this.
Yes, diplomacy with honesty.
I would also come prepared, what are the three things people dislike him for? Are there any specific examples that highlight any if these, if so bring one up and offer an alternative way that he could have acted
What others said + stick to business only!! With business examples. Like "direction should be more clear upfront so others can deliver correctly sooner, such as xyz project situation".. not "you suck at explaining what you want" . Good luck! And, do save about 25% of what you could have and wanted to say to yourself
I wouldn't couch your honest feedback as "some people think ______." Your manager will be better able to act on feedback if s/he knows the source and context. No need to muddy the waters by forcing them to have to speculate about who and how many these mythical "some people" are who weren't willing to take ownership of their own point of view.
Bombs away.
Give specific examples of times when he clearly should have been doing better. "In [month] when [project] was going on, you did _____ , but maybe you should have done _____"
Suggest implementing peer review and leave it to them. In my experience they always shoot the messenger
have had to do this a few times: good constructive upwards feedback always useful. if you've been asked there's a high chance your boss selected you, as generally with senior 360 you get feedback from all levels and you choose who they approach for it. if this is the case it can also be a sign of trust and respect.
Read Branson's "Thr Virgin Way" first