JWI 520, People Management, Week4 Summary, 7/28/12
**********************************************
This week I learned why differentiation of employees is important and how this concept helps to drive businesses continually to higher performance. I have a better understanding about the differences and similarities in ABC and 20-70-10 frameworks.
Here are my key takeaways.
(1) "Business is good, it is the engine of good", Jack Welch, video (Corporations are people)
******************************************************
Businesses are all about people - to hire, design and create new products, create life saving drugs to extend life's joys.
Capitalism is all about building great organizations.
You are always trying to get more competitive, better.
The goal is to constantly upgrade the organization and become truly competitive.
(2) Differentiation 20-70-10
*******************************
Leads to more competitive enterprises on earth.
Constantly upgrades the organization to be leaner, faster, more creative, more excited, more energetic and fun.
It is fair, creates competitive enterprises and helps come out of recessions stronger than you went in
In an organization you want to be constantly raising the bar through differentiation - no one should ever be surprised about where they stand.
If you are doing appraisal system right, it is rigorous & performance based - employees will know what they need to do.
Good appraisal system is rigorous - keeps and motivates your best, asks your weakest to move on.
Easier to accept if based on systematic, impartial process rather than subjective, political considerations.
Treating everybody the same does not work.
(2a) Bottom 10% - coach them out
*******************
Figure out who your weakest player is - then make a decision if you want to keep them or not.
These are the small group of people who either don't hit the numbers or don't have the values needed by the firm.
In a good system you coach them out and get them replaced with somebody better.
If you find yourself in the wrong job and in the wrong organization, move on.
Thank god it happened and go find a more rewarding job.
(2b) Middle 70% - motivate this heart and soul of the firm
*****************
need this group to carry out the direction that leadership wants
there is always a chance to get in top 20% - always show them the run way ie how to improve
energize this group - keep them excited, send them to courses
treat them as people on the move
(2c) Top 20% - love them; care for them; disproportionately reward them
***************
(3) What many CEOs get wrong - under valuing the role of HR
**************************************
(4) When is people change required
*******************************************
(i) To let go of C players
(ii) when there is a change in the business environment & industry
(iii) when there is a big organizational change
(iv) M&A
(v) when the business is underperforming
(vi) leaders relentlessly upgrade their teams (Welch, 2005)
(5) Change the line up
*****************************
Motivate the middle 70 & transfer, demote, terminate people who underperform
(6) When an employee is not performing satisfactorily
*************************************************************
Try coaching and training to provide the competencies needed to do the job
If there is no improvement, then terminate the position
Ensure there are no surprises; no humiliation (Jack Welch's two rules for letting go)Buld up his self confidence
- Build up employee's self confidence & coach him
- Let employee know there is a good job for him out there where his skills are a better match
- Help employee find that job
- enable soft landing wherever employee goes
(7) Honesty without brutality (Jim Collins, Good to Great)
*********************************
Practice rigor without ruthlessness.
Powerful forces work against successful people changes.
Make a special effort to act on what you know to be the truth, even when truth is unpopular.
Find in yourself the courage and discipline to implement the decisions you make and not back down.
(8) The difference between A,B,C & 20-70-10 frameworks
*****************************************************************
When time to perform is short, ABC framework can work better in some situations
When time to perform is longer, especially in steady state operation of a large company with a culture of candor, 20-70-10 can work better
Dr DP
**********************************************
This week I learned why differentiation of employees is important and how this concept helps to drive businesses continually to higher performance. I have a better understanding about the differences and similarities in ABC and 20-70-10 frameworks.
Here are my key takeaways.
(1) "Business is good, it is the engine of good", Jack Welch, video (Corporations are people)
******************************************************
Businesses are all about people - to hire, design and create new products, create life saving drugs to extend life's joys.
Capitalism is all about building great organizations.
You are always trying to get more competitive, better.
The goal is to constantly upgrade the organization and become truly competitive.
(2) Differentiation 20-70-10
*******************************
Leads to more competitive enterprises on earth.
Constantly upgrades the organization to be leaner, faster, more creative, more excited, more energetic and fun.
It is fair, creates competitive enterprises and helps come out of recessions stronger than you went in
In an organization you want to be constantly raising the bar through differentiation - no one should ever be surprised about where they stand.
If you are doing appraisal system right, it is rigorous & performance based - employees will know what they need to do.
Good appraisal system is rigorous - keeps and motivates your best, asks your weakest to move on.
Easier to accept if based on systematic, impartial process rather than subjective, political considerations.
Treating everybody the same does not work.
(2a) Bottom 10% - coach them out
*******************
Figure out who your weakest player is - then make a decision if you want to keep them or not.
These are the small group of people who either don't hit the numbers or don't have the values needed by the firm.
In a good system you coach them out and get them replaced with somebody better.
If you find yourself in the wrong job and in the wrong organization, move on.
Thank god it happened and go find a more rewarding job.
(2b) Middle 70% - motivate this heart and soul of the firm
*****************
need this group to carry out the direction that leadership wants
there is always a chance to get in top 20% - always show them the run way ie how to improve
energize this group - keep them excited, send them to courses
treat them as people on the move
(2c) Top 20% - love them; care for them; disproportionately reward them
***************
(3) What many CEOs get wrong - under valuing the role of HR
**************************************
(4) When is people change required
*******************************************
(i) To let go of C players
(ii) when there is a change in the business environment & industry
(iii) when there is a big organizational change
(iv) M&A
(v) when the business is underperforming
(vi) leaders relentlessly upgrade their teams (Welch, 2005)
(5) Change the line up
*****************************
Motivate the middle 70 & transfer, demote, terminate people who underperform
(6) When an employee is not performing satisfactorily
*************************************************************
Try coaching and training to provide the competencies needed to do the job
If there is no improvement, then terminate the position
Ensure there are no surprises; no humiliation (Jack Welch's two rules for letting go)Buld up his self confidence
- Build up employee's self confidence & coach him
- Let employee know there is a good job for him out there where his skills are a better match
- Help employee find that job
- enable soft landing wherever employee goes
(7) Honesty without brutality (Jim Collins, Good to Great)
*********************************
Practice rigor without ruthlessness.
Powerful forces work against successful people changes.
Make a special effort to act on what you know to be the truth, even when truth is unpopular.
Find in yourself the courage and discipline to implement the decisions you make and not back down.
(8) The difference between A,B,C & 20-70-10 frameworks
*****************************************************************
When time to perform is short, ABC framework can work better in some situations
When time to perform is longer, especially in steady state operation of a large company with a culture of candor, 20-70-10 can work better
Dr DP
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