Jack Welch’s Approach to Appraisals


I like Jack Welch’s (the very successful, former CEO of General Electric) approach to performance appraisals.

Manager presents to the employee a handwritten sheet of paper.  The left column lists the manager’s view of employee’s achievements.  The right column contains items the employee could do better.  Both lists focus on performance metrics and team behaviors.

Manager and employee engage in a meaningful conversation.  Manager gives examples, “Your error rate is less than .03 percent, almost a ten percent improvement over last period.” “I like that you went out of your way to help our new engineer learn our software tool.”

Sum up by reporting, “Shelly, you are in the top twenty percent of our employees, and I’ll recommend a good pay increase.” Or, “Jackson, your overall performance puts you in the solid seventy percent of our team and your raise will reflect that.  I would like to see improvement in meeting deadlines and reducing errors.  I’ll help you with those.

Or, “Alford, I’m disappointed that, after considerable training, your response time is still the slowest in our group.  Let me help you find another position that is a better fit.”

Conduct these interviews at least twice a year and allow about thirty minutes for each session.

What do you think?

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