Differentiation Framework Essay

1335 Words Nov 26th, 2013 6 Pages
Executive Summary
The purpose of this document is to present and discuss the strengths, pitfalls, and underlying assumptions of differentiating employees in the manner suggested in Jack Welch’s framework. The document will also present a framework I would use to assess my employees, why I will use it, and how it will be used to differentiate them. Finally, this document will discuss the values, cultural elements, and organizational processes that must be in place for differentiation of employees to be equitable and productive.

Introduction
Differentiation is one of the topics discuss by Jack Welch that is really polarizing. Some people love it, use it in their organizations and discuss it as the root of their success. Others
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One could argue this is cruel and unfair behavior and a lack of leadership.

As with most things, the 20-70-10 also has its risks, challenges and potential pitfalls. I believe one of the pitfalls of the framework is that as time goes on and people are continually getting better, you will undeniably start to cut into the muscle of the organization. In other words, as people continually get better you will rank people in the lower 10 percent that are very talented. But this could also be an indication that while talented, they may not have the passion, commitment and dedication to the organization that is needed to succeed. As Jack Welch points out, the individuals may leave the organization and go on to have successful careers in other companies were they belong and have the opportunity to excel .
As mentioned before, another pitfall is the risk of losing the 70 percent. Some people may also feel demoralized by being placed in the middle group. It is important to manage this risk, keeping them motivated by providing opportunities to grow and flourish through training and new, more challenging positions where their talents can be further polished and developed.

Differentiation at work
In my current organization I was hired to turn around the IT department. I inherited a workforce that had not been exposed to any differentiation framework. This has

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