The other 10% ('bottom 10') are nonproducers and should be fired. The 'top 20' percent of the workforce is most productive, and 70% (the 'vital 70') work adequately. The vitality model of former General Electric chairman and CEO Jack Welch has been described as a '20-70-10' system.
Numerous companies practice it, but mostly covertly to avoid direct criticism. Pioneered by GE's Jack Welch in the 1980s, it has remained controversial. It is also called stack ranking, forced ranking, and rank and yank. Performance management approach to rank employeesĪ vitality curve is a performance management practice that calls for individuals to be ranked or rated against their coworkers.
