'Differentiation Curve'
Copyright Jack Mixner 714 449 1040 www.mixnerstrategy.com
End game strategy is about speeding up the pace, practicing in advance, and hiring the right people. When you talk about people, one person always comes to mind, Jack Welch. In his book, Welch talks about all the different charts and curves they used to evaluate senior managers over the years. They finally settled on a chart they called the "Differentiation Vitality Curve (Welch, page 159)." Basically, the curve broke a management team into three quadrants, the Top 20 (people filled with passion), the Vital 70 and the Bottom 10. Let's just say you didn't want to be in the Bottom 10.
Strategic Implication
Over the years, Welch has gotten a lot of bad press about the Vitality Curve. Dividing personnel according to a curve sounds mechanistic. Let's look at GE's definition of a "passionate" leader:
- High energy levels
- Ability to energize others
- Edge to make tough go / no go decisions and, finally,
- Ability to execute and deliver on their promises (Welch's four E's of GE leadership, page 158).
Not a bad list. I use it to evaluate new hires. The list and the methodology point to why end game strategy takes a while. Start early on when you hire people by looking how they will work out not just now, but later on when things really matter.
References
Welch, Jack with John A. Byrne. Jack Straight From the Gut. Warner Business Books. 2001.