Right Attitudes

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Managing People

Performance Management: What is Forced Ranking?

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Reader Sriram from Chennai (India) asks,

A multinational recently acquired our 35-employee software testing company. Our personnel department sent an email on how this purchase affects us. The email mentioned a new forced ranking system for performance evaluation. Can you describe this system?

Every organization needs a formal approach to track individual contributions and performance against organizational goals and to identify individual strengths and opportunities for improvement. Typically, this system involves placing employees along a performance curve or classifying employees into categories of percentiles for performance.

Bell curve for forced ranking / performance management

Jack Welch, General Electric’s former CEO, is often associated with a 20-70-10 distribution: the top 20 percent is rewarded for best performance, the middle 70 percent is rated ‘average’ and the bottom 10 percent is coached for improvement. The ‘rank-and-yank’ system, also associated with Jack Welch, automatically terminates employees in the bottom category, allowing organizations to purge the worst performers.

Although an individual’s supervisor conducts the formal performance review discussion, management higher-ups assign the individual’s ranking following debates on performances of comparable individuals from across the organization. Often, these higher-ups are not knowledgeable enough of an individual’s performance. An individual’s ranking then depends on the supervisor’s willingness to fight on behalf of the individual. The ranking is ‘forced’ because an individual may be ranked in a lower category regardless of whether the direct supervisor (and hence the most knowledgeable reviewer) would have rated the individual that way on his/her own.

In intent, the forced ranking system is an excellent method for rewarding top performers and setting specific deadlines for improvement for poor performers. Despite its appeal, the system has several drawbacks. For instance, the system promotes individual performance over teamwork and often leads to dissatisfaction among ‘average’ and poor performers. In my opinion, most of this dissatisfaction stems from poor administration of the system at the ground level. I will cover this in another blog article.

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Dissatisfied at Work? Are You Really a Square Peg in a Round Hole?

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If you are not happy at work, you may believe that your dissatisfaction is rooted in your position—in the relationships, the workflows and the demands of the role. You may feel that if you were in a different position or were associated with another organization, you would be more content.

However, there is a good chance that the problem is not with your position per se, but with your attitudes toward various elements of work-life: people you interact with, responsibilities, bureaucracy, office politics, etc. You may not have realized and/or capitalized on the various opportunities that the current position presents.

  • If you feel your work is not challenging enough or if you do not sense career progression, you can request additional responsibilities at work. You can analyze colleagues who have succeeded in similar positions and learn from them. If you want to be promoted, you could assume some of the responsibilities of the position you desire.
  • Even if you do not like your boss, colleagues, subordinates or customers, you still need to get along with them by being open-minded or by discovering common ground. In extreme cases, you need to accept that people will not change and just suck up, no matter how frustrating their actions are.
  • If you want to change to another line of work, you need to realize that the grass on the other side of the fence always looks greener until you jump over. There is no guarantee that the new position or the new organization will be any better. There will be a considerable lead-time to reestablish yourself in the new workplace before you can be eligible to move up. Organizations realize that there is a significant penalty to losing an experienced person and are likely to accommodate your needs and aspirations.

Professional success is often not simply a matter of choosing the right career path or the right company, although these are important factors. The attitudes you bring to your work-life define your career development and contentment. Change your attitudes, adjust, discover opportunities available and thrive in the given circumstances.

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Four Keys to an Excellent Relationship with Your Boss

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The relationship with your boss is a critical aspect of a favorable work atmosphere and your job satisfaction. The boss forms a vital link between you and the upper management and thus represents the entire organization to you. Below are four key principles to build and sustain an excellent relationship with your boss.

  1. The relationship between you and your boss is likely a circular relationship: if you like your boss, your boss likes you; if your boss likes you, you like your boss. Overlook actions of your boss that may disappoint you and be conscious of how you react to conflicts.
  2. Suit his/her work style. Understand your boss’s thought processes, preferences and pet-peeves. If your boss is hands-on, favors raw data for making decisions, resists confrontations or avoids risk, you must be sensitive and suit his/her style. You may be able to sell your boss on the merits of changes to his/her style; however, realize that change takes time and is not guaranteed.
  3. When your boss succeeds, you succeed. Understand your boss’s role, his/her strengths, weaknesses and goals. Ask how you can support his/her objectives and the organization’s goals. Do not assume his/her expectations of you. Communicate continually by detailing progress on your assignments and by giving prompt feedback on challenges you face and asking for support.
  4. Realize that one hand cannot clap. Fundamentally, people are different; their perspectives and work-styles are different. You are very lucky if you have a boss who is competent and supportive—somebody who is genuinely interested in your assignments and career advancement. Recognize early if things are not going well; be open and straight-forward in communicating your thoughts and if changes you made have not improved the situation appreciably, be prepared to leave.

Success in building relationships does not come easily. Co-operating with your boss involves being proactive and tolerant, making mistakes and learning from them. The onus is on you to effectively manage this key relationship and achieve the best results for yourself, your boss and the organization.

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The Skills-Attitudes Competence Model

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While poking around the internet, I recently bumped into a few articles that refer to a study by either Harvard or Stanford or both that concluded that 85% of one’s success at work is due to his/her attitudes and just 15% is due to technical skills [1, 2]. While most of us agree with this statement in principle, we could question how a survey could quantify attitudes and technical skills and the contributions of these traits to professional success.

The simple skills-attitudes competence model shown below will help quantify one’s talents and understand the relative contributions of skills and attitudes to professional success. This model is a graphical indication of one’s positioning with respect to technical skills (x-axis) and attitudes and behaviors (y-axis). Every job carries a certain level of expectation for both of these disciplines. A threshold line divides this landscape into the proficient and vulnerable zones. The position of the threshold line vis-à-vis the lines of expectation signifies a lower tolerance for poor attitudes in comparison to insufficient technical skills.

Consider six people, A to F, in the landscape. ‘A’ possesses lower than expected skills, but possesses the right attitudes to learn, grow and get things done. ‘B’ and ‘C’ possess the same level of skills as ‘A’, but possess worse attitudes and risk being labeled incompetent. ‘B’ could move into the secure zone by developing skills (transitioning along the x-axis) or by developing positive attitudes (transitioning along the y-axis) or by developing on both (transitioning along an inclined line). ‘D’ and ‘E’ may be extremely skilled; their skills may be critical to the success of the organization. However, if ‘D’ fails to fails to conform to the core values of the company or exhibits behavior that is difficult to tolerate, the organization may eliminate him from his position. ‘F’ possesses the best attitudes and skills and thrives in the organization. The farther away ‘F’ is from the threshold line, the more secure he or she is.

Use this skills-attitudes competence model to define tangible attributes of skills and attitudes expected of you in the context of your current position or your desired future position. Identify your position on this chart. Under the guidance of your supervisor and mentors, identify what skills and/or attitudes you can develop towards a successful and satisfying career.

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