6. The Origin of The Method
Stack ranking or the vitality curve was first introduced by Jack Welch, the CEO of GE (General Electric) in the 1980s. He defined it as a “20-70-10” system where he divided employees into categories based on their performance. The top 20% were “A” players, 70% of employees were “B” players, and the bottom 10% were “C” players. Each of the categories is defined by a set of characteristics according to Welch. If you wish to learn more about his division, you can visit SIMCON Blog.
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