Vitality curve
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Jack Welch introduced the vitality curve, also known as stack ranking, at GE to grade employees based on productivity. The model divides employees into top 20%, vital 70%, and bottom 10% based on performance reviews measuring characteristics like energy, decision-making, execution, and passion. Welch claimed using this "20-70-10" system contributed to GE's 28-fold increase in earnings. The approach ranks not just frontline workers but also managers as A, B, or C players according to their vision, drive, and ability to deliver results.
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CEOS APART
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involuntary, according to
the Conference Board. The
fallout from these dismissals
can be staggering: Forced
turnover at the top costs
shareholders an estimated
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daunting to any leader
aspiring to the C-suite.
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capable leaders and boards
are getting something wrong.
The question is, what?NUT
TA
PO
L
N
O
PR
U
JI
KU
L/
D
R
EA
M
ST
IM
E
MAY–JUNE 2017 HARVARD BUSINESS REVIEW 71
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Underline
Natalya.Watson
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Vitality curve
- 2. A vitality curve is a leadership construct where by a workforce is graded in accordance with the individual productivity of its members. It is also known as forced ranking, forced distribution, rank and yank, and stack ranking. it is popularly known is a performance review and measurement system as adopted by many leading MNCs all over the world
- 3. introduced by Jack welch the CEO of GE. straight from the gut Jack Welch’s vitality model has been described as a “20-70-10” system. Welch said that it was performed annually in GE and this increased 28-fold increase in earnings. It is a supplement to the normal appraisal system. It serve as a good check to evaluate employees annually
- 4. It basically measures the performance of the employees on 5 basic characteristics and/or attributes to rank them into 3 categories The “top 20” percent of the workforce is most productive 70% the “vital 70” work adequately or moderate performers . The other 10% “bottom 10” are non producers and should be fired.
- 6. with the 20-70-10 model the top executives were divided into “A”, “B”, and “C” players. A players are filled with passion committed to “making things happen” open to ideas from anywhere and blessed with lots of “runway” ahead of them
- 7. “B” players may not be visionary or the most driven They are “vital” because they make up the majority of the group. “C” players “C” players are non producers. They are likely to “enervate” rather than “energize” as well as failure to deliver on promises. These designations apply not only to workers at the bottom levels, but also managers.
- 8. Individual Energy Levels Ability to Energies the team, subordinates, co- workers or those around them Edge to make tough ‘Yes’ or ‘No’ decisions Ability to execute even the most complex or challenging tasks ‘X’ factor is Passion to perform.