Why Need Differentiation?

Recently I been expose to Jack Welch teaching, thanks to Prashant from Entropia (http://marketingmagazine.com.my/entropia-breaking-the-mould-seizing-the-future ) /introduce to me.

Quick intro, Jack Welch is the CEO of General Electric. During his time as GE CEO, he grew the company value 4,000%, to USD 400 billion dollar company.

One of the thing that Jack Welch stress on GE is Differentiation. You must treat all the staff different based on their contribution, performance. Do not reward everyone same. He share one of his experience when he is a junior engineer at GE.

During annual salary review, he was appraised and get increment of $1,000. He feel very satisfy with the increment, and feel very motivated. All his hard work he put in the company, is worthwhile.

BUT, soon he found out that actually his colleague, regardless is A player, B player, hardworking staff or average staff, also receive $1,000 increment.

He feel very disappointing, angry. He resign from GE.

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In our company, often I chat with our people. Imagine during award night, you have a cake, how will you divide it to your team of 8 staff, which consist of A player, B player and C player.

Take some minutes to think what is your choice.

Below are choices I always hear:

• 30%, will choose Cake 1
• 50% will choose Cake 2
• 20% will choose Cake 3

If you are the one choose Cake 1, imagine you are the CEO of General Electric, you will lose all your A player, like Jack Welch. All you left is B player, and many C players. Your company won’t go far, the sales won’t great, it also means it will impact your salary review and bonus. Sooner or later, your company will be kill by other competitor, that have lot of A players than you.

If you choose Cake 2, that’s fine. You company will have some A players, a lot of B players and C players. Your company will growth, at average rate. But you need to pray god your competitor also choose Cake 1 or Cake 2. So their number of A player = your company. Else, your company soon be defeated by a stronger competitor that have more A than you.

If you choose Cake 3, good choice! You understand what it take to build a strong team. A player, only like to mix with A players. This is human nature. Cristiano Ronaldo wont play in a football team that consist of Abu as goal keeper, Ah Kau as defender, Muthu as midfield. Because Abu, Ah Kau and Muthu are C player. Ronaldo know this football team wont be able to beat Barcelona.

If you want to grow in your career, want to make good money, want to make impact in your life; make sure you work in a company, where your boss choose Cake 3.

Else, better resign immediately! Go find another company that the boss is Cake 3 type, else you will just wasting your time working for a company that will kill by their competitor, sooner or later.

On the other hand, constantly ask yourself, whether you are A, or B or C player? If you not sure, go and ask your boss. In every boss mind, they know who are A, B and C players. Get your answer, know your ranking, then ask back your self, do you want to be A player, or you comfortably remain as B player, or you don’t mind be C player.