Rejuvenating an Organization!

Published on December 2, 2001

The start of a new year brings us all a sense of renewal and hope. But do you really have to wait to the start of a new year to be rejuvenated? Cells in our bodies are constantly dying off and new cells are born. Organizations too must act in a state of constant rebirth in order to stay on top of the competitive ladder.

Jack Welch, former CEO of GE, claims in his book “Jack” that every year GE removes the bottom 10% of performers. He claims that while it is a very difficult task to do, both sides benefit. For one, the organization forces the individual to continuously improve production in order to avoid being in the bottom 10%. When the majority of individuals upgrade their skills and performance, the chances of success for the organization increases.

As for the individuals who do not make the cut, they too benefit by being forced to get out of a situation they are probably not thrilled with and move on to a better situation.

Now, we are not suggesting that all leaders follow Mr. Welch’s philosophy and immediately lop off the bottom 10%. What we are suggesting is that it is a leader’s responsibility to create an environment that supports and motivates all individuals to continuously push themselves and grow. If this does not happen, then the organization’s ability to compete is seriously compromised.

As for high performing sales people, they too need to be pushed. High performers are usually motivated by competition. The stronger the competition, the harder they push themselves. Titan sales people love competing. Don’t sell them short. Creating an environment that provides the skills training, opportunities and expectations that high performing individuals and organizations need to stay on top.

Competition never hurt anyone and is the foundation for improved performance.

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