Jwi 520: People Management - Differentiation Framework

 “Leadership is an inspiration relationship among leaders and followers who expect real changes that reflect their shared purpose” (Welch, 2005).  In an organization one should constantly raise the bar through differentiation no employee should be surprised about their standing with managers and leadership (Welch, 2005). The 20-70-10 differentiation framework can develop a competitive, rigorous, and motivational organization.  The framework helps to drive organizations to higher performance in employees.

20-70-10 Framework Experience

When you know where you stand in the organization you can control your own destiny and create goals to help you succeed. Organizations are all about people. Organizations consist of multiple positions representing different sets of common interests such as functional area, educational background, occupation, culture, and ethnicity, to name a few.

Employees differ in the extent to which they are aware of the constant upgrades to the organization making it leaner, faster, creative, exciting, motivational, and fun.

Differentiation among employees is much like building a house. The crucial parts of a house are the foundation and the roof. They are the most important and most complicated of the total structure. The roof can account for 10 percent, the interior structure can account for 70 percent, and the foundation is the 20 percent. Treating the house structure as if the roof and foundation are not the most important can lead to the destruction of the house. Same for treating all employees the same in the organization can lead to destruction of the business (Welch, 2005).  

Differentiation Assumptions

Differentiation is best applied once a process is detailed and all employees are aware of the expectations. Most organizations are not willing to implement such a process so for years employees were not matched to their strengths. Implementing such a process takes candor.  Candor is the state or quality of being frank, open, and sincere in speech or expression; candidness (Dictionary.com). Candor with Differentiation allows the system to operate for the good of all and in fairness. The 10 percent employees don’t possess the drive and ambition to take the company to the level of extraordinary service and success. The 70 percent employees usually do the most work and carry the workload of the organization. This group will become the employees that move into the top 20 percent for the company. The 20 percent employees are the best of the group and strive for the bonuses, praise, and the leadership overflows them with the rewards.

Organizations have to accept the fact that not all employees can be in the 20 percent differentiation each employee is good at something. In fact when employees are performing in their passion they are motivated to the 20 percent differentiation. A major strength of the differentiation process is allowing employees to move around within the organization, cultivate and motivate them along with investing in the employees that have the potential.

Which Framework Would Work Best

20-70-10 differentiation framework can be utilized as a tool to help organizations think more in-depth on how to develop their leaders.  The 70 framework if fostered properly can become a system to employ leadership development with the employees and invest in the majority of the employees at the company. Most of the development that employees receive is on the job development and when designed as a tool to help organizations think more in depth on how to develop that 70 percent and show them that there is much more to developing them than just a formal leadership program.  With most organizations the budget is created and designed for that 20 percent of the framework the star to receive formal development to make the profitability of the organization to continue to soar. Although real on the job development is key to success from a leadership perspective you can’t measure success to clients and investors with on the job development, but a formal leadership development does convey extensive profitability.  Developing into a committed leader requires personal passions, convictions, energies, and strengths to empower others and exercise leadership.

Leaders constantly develop themselves. For an effective leader collaborating with others is a better way to get things done than controlling the employees. Even when provided with a clear definition of what makes a leader effective, being effective in a leadership role is often easier said than done. More importantly, stakeholders, employees, and the company generally pay the price for bad or ineffective leadership. . Leadership is something that can continually grow through training, self-discipline, knowledge, and mentoring. Leadership is exciting, forceful and stressful but it’s open for everyone.

Equity and Productivity with Differentiation

Winning and profitability is the goal of the organization and as a leader in the organization one has to analyze and evaluate to the pitfalls the ensure success (Araoz, C. F.,2007).  When discussing the importance of values for organizations it is also important to present how these organizational values influence employee performance.  Differentiation of employees has been perceived as a good match between the organization and personal value according to the income the employee receives from the organization.

This shows that people have started to value more how they feel in the organization then how much they get paid for the work they do. Along with an organizations characteristics a motivating organization should be structured in a way it allows for employee personal realization and goal achievement. Organizations should contain various elements in order to be equitable and productive in order to contribute to employee and job satisfaction.