Posts

Showing posts from December, 2013

Stack-ranking out now: How Microsoft lost a decade

Stack-ranking or forced rating or bell-curving are some of the pet words of HR leaders and Business leaders especially closer to appraisal time. Jack Welch used it to make GE competitive and fit to outperform their own benchmarks! GE had become fat and lazy and had businesses diversified from washing machines to Jet engines. Forced ranking or his 20/70/10 "differentiation" became mantra for weeding out bottom 10 percent of the stack.
The bell-curve ranking system was popularized by GE Chief Executive Jack Welch back in the 1980s being used by many companies, but some of them have dropped it in the last years, including Adobe and Expedia. The main idea of the system is that a company’s employees performance follows a bell-curve, having a small percentage of high performers, a large number of average performers and, at the lower end, another small percentage of underperformers. The system would be used to find and get rid of underperformers in order to improve the overall per…