I loved reading Jack Welch's books on management. He is a charismatic and energizing leader.
One of his most controversial point of view is the "Differenciation" policy. And I have a big doubt on this one !
Very simply : the trick is to rank your people in 3 categories : Good/Average/Poor performers representing 20%/70%/10% of your staff.
You have a different treatment of each category. By getting rid of the 10% poor performers, you regularly get a better and better company.
The other trick is : you never stop this "selection" process, always getting rid of your 10% poor performers !
I would like to know your opinion on this system and hear about people who have experimented it.
- what kind of team spirit do you get with such a system ?
- how can you rank different people ? Allan may be good at this and bad at that, when Susie is bad at that and good at this. Together they make the perfect team ... Do you want to rank one against the other ?
- why rank people inside the group ? Isn't it better to ask them to get better than yesterday and not as good as tomorrow ?
- Ranking sales people may be simple. But it is more difficult with techs, finance people, admins, etc.
- How would it feel being in the 70% category ?