Promotions Based on Performance – The 20-70-10 System

A popular and effective process improvement initiative that most corporations utilize is the 20-70-10 system. In this system, management proactively monitors the performance of employees. This proactive approach to management monitoring helps improve the organizational culture as well as improving performance. This system has been used for decades by many successful organizations. However, there are many challenges associated with this system that management must resolve.

The main challenge is that senior management often does not fully understand the importance and impact of this rule. Senior management fail to see the value of monitoring employee performance. The belief that management does not need to know what is happening within their organization leads them to believe that they can continue to do what they are doing. This is a mistake. No matter how well-intentioned a manager may, he or she should realize the importance of learning about the success or failure of every employee’s efforts. Employees who feel as though their efforts are not being rewarded need to have more confidence in their ability and contributions to the organization.

Another challenge to this system is that it is difficult to enforce. The fact is that most companies have very lax standards when it comes to promotion and advancement. If employees feel that their efforts are not recognized and rewarded, they will start to avoid this system. This will harm the company’s ability to achieve organizational goals. Management must realize the importance of rewarding employees who exhibit exemplary behavior.

When the company discovers that one of its employees is exhibiting unacceptable performance, there is usually significant internal resistance to being promoted. It is not uncommon for senior management to meet privately with several individuals and ask each of them to agree with the entire team’s findings. When this resistance is removed, do the executives feel as if they can effectively promote an employee.

One way to help reduce resistance to an employee’s promotion is for senior management to explain the company’s goals. This explanation should be articulated in layman’s terms so that employees can understand the direction in which the company wishes to proceed. It should also be explained how the employee will achieve the company goals. The more employees understand the purpose of their positions, the more likely they will be to be fully committed to the company’s direction. A clear understanding of the company’s goals will also make it easier to promote an employee to be approved.

The process should also include a review of the company’s current performance. It is essential to highlight how employees feel that the company is not maximizing its potential. Once this information is documented, it can create an action plan that will increase company profits. Additionally, employees will feel as though their voices are essential in the decision-making process.

A manager’s actions in implementing the 20-70-10 system may vary depending on the employee’s position. For example, an individual responsible for marketing may have to create a promotional campaign for employees to participate in. This promotional campaign could include a seminar, newspaper ads, or Internet advertising. Another person who might be required to implement the program is the director of a major department responsible for implementing many changes within the company. The director would initiate meetings with employees and present the promotional incentive.

The promotion of an employee should be a rewarding experience for the employee and the company. An employee should feel as though their position is valued, and the company is willing to promote them based upon their past performance. The employee should feel that the company is supporting them and that the job is well worth the effort. With this system, all employees should be eager to jump into a promotion.


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