70-20-10!!!

What does that mean to you? Well, I don't know. But to me, it's the former CEO of GE, Jack Welch's differentiation principle. Basically, I like this principle of his, which makes more sense to me. After reading this in his book 'Winning', I thought of glimpsing through the web to see if there's any company that makes use of this principle and I did find out! Wow! It seems there are more than a dozen of CEOs who believe in this thumb rule.

Ok...What it's all about??? As I said in the opening lines of this post, it's all about differentiation. Differentiation by means of favouritism is not what I am talking about. It's about people and performance in lieu of company's growth. Perfomers are categorised into 70-20-10...Hmmm...the numerical figures might appear frequently in this post to make the term look less intricated. Although 70 appears first in 70-20-10, these are performers who are considered average, the mid level. 20 are those in the top level and 10 are those who are underperformers in the bottom level.

The top 20 always add value to the company and the company never want to get rid of them by any means because their growth is a fuel to the company's growth in turn. The average 70 are fair to be in the company and the company nurtures them to excel by three channels of 'tion' - compensation, recognition, motivation. The bottom 10 are underperformers which is a loss to the company. It's not only by their means of not performing well but their presence may discourage the 70's and 20's. Let us take an example - Consider that you are one among the 70s and there is someone out there who is one among the 10s in your team. When he/she comes and does nothing but get paid and enjoy all the luxuries that you get, won't you get demotivated, depreciated and depraved? Hence Jack Welch say's those underperformers should be ruled out keeping company's future aspects in mind. But I would think of giving them an opportunity to prove themselves and if not, rule them out as Jack Welch says...and that should be a doyen's job...

I believe in this strategy for a corporate success...

The ardent biz woman in me is peeping out and it has driven me to write a book. Not sure how long it tends to go...But got good reviews on the first chapter from two of my good friends who encouraged me to make a debut in writing a book! But no assurance on whether it's shaping well after that but no plagiarism for sure:):) I may not be great at writing but I always like to make an attempt and hence started it...

Signing off from this Biz talk and catch you all in my next post soon...