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Performance Management: What is Forced Ranking?

September 27, 2006 By Nagesh Belludi 4 Comments

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.

Filed Under: Managing People Tagged With: Performance Management

Books I Read in 2020 & Recommend

December 29, 2020 By Nagesh Belludi Leave a Comment

The Coronavirus lockdown and travel restrictions gave me more time for bingeing on books this year:

  • Leadership: Simon Sinek’s Start with Why (2009) explains that great leaders motivate with the WHY (a deep-rooted purpose) before defining the WHAT (the product or service) and the HOW (the process.) ☍ My Summary
  • Conflict Management: Sarah Stewart Holland and Beth Silvers’ commendable I Think You’re Wrong (2019) proposes a framework for having productive conversations with those you love and yet disagree with. ☍ My Summary
  • Self-Management: Tony Schwartz and Jim Loehr’s The Power of Full Engagement (2003) is a persuasive reminder about pivoting to time-management to energy-management. ☍ My Summary
  • Customer Service: Joseph Michelli’s The New Gold Standard (2008) describes how the Ritz-Carlton brand has programmed its organization to foster customer-centric behavior in employees at all levels. ☍ My Summary
  • History & Leadership: Harvard historian Serhii Plokhy’s Chernobyl: History of a Tragedy (2019) is a gripping testimony to the perils of hubris and a poignant monument to the untold misery it imposed upon swathes of people. ☍ My Summary
  • History & Leadership: Captain Sully Sullenberger’s memoir Highest Duty (2009) as a supplement to Clint Eastwood’s Sully (2016,) the overrated drama about the US Airways Flight 1549 incident. Leading authentically starts with being in charge and understanding that your actions can make a difference. ☍ My Summary
  • Self-Care: Susan Jeffers’s self-help classic Feel the Fear … and Do It Anyway (1987, 2006) is a powerful reminder to get on with the things you want to do. The momentum of positive emotions builds up as soon as you start taking action. ☍ My Summary
  • Customer Service: Lee Cockerel’s The Customer Rules (2013) summarizes the many simple—but often overlooked—first principles of building a customer-oriented culture and delivering excellent customer service. ☍ My Summary
  • Customer Service: Tony Hsieh’s Delivering Happiness (2010) on how Zappos’s business model empowers employees, creates a sense of community, and fosters cult-like customer loyalty. Sadly, Hsieh died in an accident in November. ☍ My Summary
  • History: Mark Binelli’s The Last Days of Detroit (2013) is an extensive chronicle of Detroit from the initial days of the French settlers to Henry Ford’s arrival in 1913, the racial unrest in 1967, and the present-day hipster arrivistes who’re trying to resurrect the city. ☍ My Summary
  • Self-Care: Food historian Bee Wilson’s First Bite: How We Learn to Eat (2015) on why you eat what you eat and how you can be persuaded to eat better by changing your habits and removing barriers to change. ☍ My Summary
  • History: Israeli historian Yuval Noah Harari’s A Brief History of Humankind (2015) is a brilliant thesis on who we are and how we overcame the most extraordinary odds to dominate the world the way we do at present. ☍ My Summary
  • Self-Care: Buddhist nun Pema Chödrön’s bestselling The Wisdom of No Escape and the Path of Loving-Kindness (1991) is a poignant reminder that, whatever the circumstances of your life, you can become awake, more mindful, and bring your goodness to the world. ☍ My Summary
  • History & Leadership: Historian Doris Kearns Goodwin’s Team of Rivals (2005) is a fascinating account of how President Abraham Lincoln held the Union together through the Civil War, partially by bringing his political rivals into his cabinet and persuading them to work together. Complement with Steven Spielberg’s remarkable Lincoln (2012; Daniel Day-Lewis’s masterful portrayal of Lincoln.) ☍ My Summary
  • Self-Management: Brian Tracy’s Eat That Frog (2001) is a reminder that you must discover the one momentous task—the most dreaded task or the “frog”—that you need to do. ☍ My Summary
  • Leadership: Larry Bossidy and Ram Charan’s Execution: The Discipline of Getting Things Done (2002) on setting expectations, holding people accountable, and following through. ☍ My Summary
  • Leadership: Mel Robbins’s The 5 Second Rule (2017) reminds you to take action before your brain can make excuses—or justifications—and gets in the way of acting on that idea. ☍ My Summary
  • Inspiration: Oprah Winfrey’s The Path Made Clear (2019) is a fine-looking coffee table book with an assortment of think-positive sound bites. ☍ My Summary
  • 'Lights Out General Electric' by Thomas Gryta (ISBN 035856705X) Leadership: Wall Street Journal reporters Thomas Gryta and Ted Mann’s Lights Out: Pride, Delusion, and the Fall of General Electric (2020) is a revealing, reasonable, and accessible narrative of how the once-prolific company was humbled by sheer misfortune and poor leadership. ☍ My Summary

See also my book recommendations from 2019, 2018, 2017, 2016, 2015, and 2014.

My reading goals for 2021 are to be ruthless with the books that are not so good and to reread many books that have delighted me previously. The five books I reread every year are Benjamin Graham’s Security Analysis and The Intelligent Investor, Phil Fisher’s Common Stocks and Uncommon Profits, Dale Carnegie’s How to Win Friends and Influence People, and Peter Drucker’s The Effective Executive.

You may be interested in my article on how to process that pile of books you can’t seem to finish and my article on how to read faster and better.

I wish you enlightening reads in 2021. Recall the words of the American philosopher Mortimer J. Adler, who said, “In the case of good books, the point is not to see how many of them you can get through, but rather how many can get through to you.”

Filed Under: Leadership Reading, Sharpening Your Skills Tagged With: Books

Use The STAR Technique to Ace Your Behavioral Interview

July 15, 2008 By Nagesh Belludi 35 Comments

Introduction

Behavioral interviewing is a popular approach to assess a candidate’s past experiences and judge his/her response to similar situations on a future job. This variety of interviewing is based on the premise that past performance in comparable circumstances is the best predictor of future performance.

Rather than ask hypothetical questions (E.g., “How will you handle…,”) interviewers ask more specific, focused questions (E.g., “Describe a time when you had to…”) to elicit concrete examples of desired behaviors from the past. For example, instead of asking an interviewee, “How will you deal with a team member who is not pulling his weight on a project?” as in a traditional interview, an interviewer using the behavioral technique may ask, “Describe a project where one of your teammates was not pulling his weight. What did you do?” For further details and sample questions, see my earlier article on behavioral interviewing.

Prior to the interview, an interviewer identifies a set of behavioral traits he/she believes is essential for professional success on a particular job assignment. He/she then selects a series of questions:

  • “Describe a time when you had to …. What did you do?”
  • “Give me an example of a time when you had to …”
  • “Tell me about a situation in the past …”

Next, the interviewer may question the interviewee further:

  • “What was the outcome?”
  • “Did you consider …?”
  • “How did the other person react?”

Instead of allowing the interviewee to theorize or generalize about events, the interviewer expects the interviewee to narrate four details for each experience: (1) what the situation was, (2) what the challenges were, (3) how the interviewee dealt with the situation, and (3) what the outcome was.

6 Steps to Answer Behavioral Interview Questions

  1. Listen to the question carefully. Commonly, behavioral interview questions tend be long-winded and may sound vague (blame an overuse of adjectives, adverbs and trendy language.) Here is an example: “Good problem-solving often includes a careful review of the substantial facts and weighing of options before making a decision. Give me an instance when you reached a practical business decision by assessing the facts and weighing the options.”
  2. Make sure you understand the question before you start to answer. You may paraphrase the question and ask the interviewer if you understand it correctly. If necessary, ask the interviewer to repeat the question. Do not, however, ask the interviewer to repeat every question—the interviewer may doubt your ability to listen.
  3. Organize your answer. Allow yourself five to eight seconds to collect your thoughts and structure your response. Interviewers appreciate this break and could use the time to drink some water, review their notes, or rest their hands from note taking.
  4. State your answer. Try to limit your answer to about three minutes. Three minutes is long enough to relate a story completely and short enough to hold the interviewer’s attention.
  5. Do not digress from your plan. Resist the temptation to think of new details as you state the answer. By sticking to your planned details and structure, you can provide a consistent, concise, and well-reasoned answer.
  6. Answer follow-up questions. In response to your three-minute answer, the interviewer may pose additional questions. These questions may require simple ‘yes’ or ‘no’ answers or brief elaboration.

The 'STAR' Technique to Answer Behavioral Interview Questions

Answering a Question: Use the STAR Technique to Narrate an Experience

In behavioral interviewing, every answer should specifically address the skill in question. Your response should relate an experience from a previous job assignment, project, academic study, or community work.

Present a diverse set of experiences. Suppose you are asked six behavioral questions during a thirty-minute interview. Supplementing each question with a distinct experience will help you portray a wide range of skills and interests.

First, examine the question: what is its purpose; what specific skill is the question addressing? Next, choose an applicable experience. In your mind, recollect and reflect on specifics of that experience. You can structure your answer a using the four steps of the ‘STAR’ technique:

  • ‘S’ for Situation: Start your answer by providing the background of your experience. Describe the circumstances of your involvement. Provide enough detail to preface the rest of your narration.
  • ‘T’ for Task: Describe the challenge at hand and what needed to be done. Give the expected outcome and any conditions that needed to be satisfied.
  • ‘A’ for Action: Elaborate your specific action in response to the challenge. Specify analytical work, team effort or project coordination. Use ‘I’ and ‘we’ statements as appropriate.
  • ‘R’ for Results: Explain the results of your efforts: what you accomplished, what you learned, how your managers and team responded, and how your organization recognized you. Wherever possible, quantify your achievements and improvements—e. g., “20% improvement in …” or “reduced manufacturing costs by 1.5 million dollars per year …”

The 'STAR' Technique to Answer Behavioral Interview Questions

An Example: Using the STAR Technique to Narrate an Experience

Consider a question posed by authors Jack and Suzy Welch in a 2008 BusinessWeek article on recruiting for leadership positions: “Have you ever had to define yourself in the midst of criticism, and did you succeed?”

Below is a ‘STAR’ answer to this interview question. The interviewee’s response illustrates their ability to listen to feedback, adapt as a manager, and lead teams well.

  • ‘S’ for Situation: “My first job after business school was to lead a product development team at Acme Corporation. One of my responsibilities involved weekly product planning meetings that chose product features. After the meeting, I would meet with my staff and delegate programming tasks. Since I am an experienced programmer, I would explain the approach to each feature to be programmed. I expected my staff to write the programs in C++, then test and debug them. We seemed to work very well as a team.”
  • ‘T’ for Task: “Three months later, my manager collected feedback from my staff. In my performance review, my manager noted that I could improve my delegation skills. His comment surprised me. I thought I was good at delegating, as I would explain my expectations and all necessary steps to each staff member. I felt my staff was productive and consistently benefitted from my coaching. I thanked my manager for the feedback and promised to reflect on my delegating style and consider a change.”
  • ‘A’ for Action: “Upon reflection, I noticed two issues with my delegation approach. Firstly, in assigning tasks to my staff I only described the steps they needed to take. I had habitually failed to describe the background of product features we wanted to develop and explain how their work would contribute to and improve the overall product. My staff would just do what I had asked of them without understanding the context of their efforts. Secondly, while explaining how to complete each assignment, I was micromanaging. This may have limited my staff’s initiative and reduced opportunities to advance their programming skills. During the next staff meeting, I thanked them for the feedback and acknowledged I would change. from that point forward, Then, each week, I explained each product feature’s unique context, described the task in terms of outcomes and asked my staff how we could approach each task.”
  • ‘R’ for Results: “My staff was very excited by the opportunity to propose ideas, brainstorm, and choose their own preferred method of going about their work. They were no longer working on my idea alone: they shared in its conception and approached it their own way. They were more enthusiastic about their work and realized they were an integral part of something bigger than they were. During the next quarterly meeting, my manager praised me for empowering my team.”

The Significant Accomplishment Question

The single most important question that you will answer in every interview is the significant accomplishment question: “Tell me about the most significant accomplishment in your life. What challenges did you face? What did you do? How did it impact your organization?” An interviewer may pose this question as one of these variations: “Tell me something you are most proud of,” “Share the one thing you want me to know,” or, “Tell me something from your past that you are really excited about.”

If there’s one question that you should prepare for, it’s this significant accomplishment question. Here is a sample answer:

“The accomplishment that I am most proud of was being named ‘Consultant of the Year’ by Acme Medical Systems in 2002. When I worked as a product development consultant at Indigo, a team of Acme Medical Systems designers hired me to develop the plastic prototype of a new Computed Tomography (CT) scanner. Acme wanted to display their new cardiac scanner to their vice president who was visiting the following week. In preparation, I was asked to help develop the prototype of the CT-scanner’s new keyboard.

“The keyboard is a large, intricate device with plenty of keys, knobs, and styluses. One of the primary challenges with prototyping this keyboard was that it was too large to fit into any standard manufacturing machine. In addition, based on the design’s complexity, I originally estimated that developing the prototype would take at least two weeks. We had just eight days, including the weekend. For the next week, I worked from 10:00 AM until midnight every day and over the weekend. On the first day, after studying the design, I proposed a modified, simpler version, which my clients accepted. The next day, I used my advanced CAD skills to digitally split the complex design into smaller components that could be manufactured individually and then assembled. The new modular design, in fact, facilitated the assembly plan.

“Initially, my clients were concerned about the assembly process. I used a finite element model to reassure them and confirm that the assembly would be sufficiently robust. Since my clients were busy working on the rest of the CT-scanner, I offered to work with the suppliers. I visited five suppliers and prepared a manufacturing budget. After my budget was approved, I chose two suppliers and spent three days supervising the manufacturing process. Then, I worked with a third supplier to have the prototype carefully assembled, painted, and delivered the day before the vice president’s visit.

“The end-result was that the prototype was prepared in half the lead-time and 40% under budget, even after paying the suppliers overtime. In addition, my modular design lowered manufacturing costs by 20% when the CT-scanner went into production. In recognition of my hard work and cost savings, Acme honored me among sixteen contenders with the ‘Consultant of the Year’ award.

Behavioral Interview Questions for Practice

Consider the following questions. Practice your answers using the four-step ‘STAR’ technique. For more questions to practice with, see my compilation of job interview questions categorized by personal attributes, career performance, communication skills, team skills, managerial skills, and leadership skills.

  • Question on team work: “Describe a situation when your team members disagreed with your ideas or proposal on a project. What did you do?”
  • Question on analytical problem-solving: “Tell me about a time when you discovered a problem before anybody else on your team. What was the nature of the problem? How did you handle it? Did you ask for help?”
  • Question on assertiveness: “Give me an example of when you had difficulty getting along with a team member. What made this person difficult to work with? How did you handle the situation?”
  • Question on customer orientation and commitment to task: “Tell me about a time when you had to reject a customer’s request. What reasons did you give? How did you communicate?”
  • Question on creativity: “What is your most creative solution to a problem?”
  • Question on working effectively with others: “What was a constructive criticism you received recently? How did you respond to it? Did your relationship with this person change?”

Concluding Thoughts

In answering interview questions, the best way to impress an interviewer is to discuss your credentials and accomplishments in terms of personal success stories. The ‘STAR’ technique is probably the best method to structure answers to interview questions. By following this simple technique, you can narrate direct, meaningful, personalized experiences that best demonstrate your qualifications.

Filed Under: Career Development, Effective Communication Tagged With: Career Planning, Getting Ahead, Interviewing, Job Search

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About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

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Unless otherwise stated in the individual document, the works above are © Nagesh Belludi under a Creative Commons BY-NC-ND license. You may quote, copy and share them freely, as long as you link back to RightAttitudes.com, don't make money with them, and don't modify the content. Enjoy!