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Effectiveness in Performance and Potential
Aligning Pivotal Interactions and Actions Through Culture and Capacity
Recall our observation from chapter 1 that between 2001 and 2003, organizations spanning a vast array of sizes, industries, and maturities simultaneously adopted a performance management system that required leaders to rate their employees so that 20 percent were rated top performers, 70 percent were rated middle performers, and 10 percent were rated bottom performers. The reason? Jack Welch’s book (Jack: Straight From the Gut) appeared on the best-seller lists in 2001. Welch credited GE’s success to its “20-70-10” system. CEOs, board members, or heads of a division said to their HR leaders, “This performance management ...
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