Jack Welch Performance-Values Matrix

Let’s talk about how to build a winning team using the Jack Welch matrix. 

Jack Welch was the best CEO of the 1980s and 90s having increased GE’s market value 30X from $14billion to $410 billion. 

One of the tools he used was a Performance-Values matrix that rates values and behaviors more highly than performance. 

Winning teams have a very high percentage of high-performing, high-values players, aka the right people in the right seats. 

And do you? Find out. Plot every employee on the Jack Welch matrix.  It’s easy.  SImply have your leaders score their direct reports’ performance and values on a 1 to 10 scale and enter the results on the matrix.   I’ll cover a good way to generate those numbers in a later video. 

What do you do with the results?  

• Well, upper right quadrant players are definitely keepers, they’re your stars. These are high performing, high values players. You keep developing, promoting and rewarding them. 

• Lower left quadrant people, i.e. low scores on both counts, performance and values, are pretty easy. You typically move them out. 

• Lower right quadrant employees, i.e. low performing, high values, are worth working with to help them improve their performance.  

• The hard one, and what separates the great companies from the also-rans, is the upper left quadrant, i.e. high performing but low values.  Here, you bite the bullet because people with values challenges are usually hard wired that way and the destruction they sow on the group far outweighs the benefit of their individual performance.  So, the default approach here is to have a “values talk” with them and then, if they don’t respond,  move them out.  Yes, it depends on how low their values score is and their ability to improve it.  But please don’t tolerate people who can’t fully live your company’s values.  They’re not worth it. Yes, it’s hard to remove a high-performing employee but hard is what winners do that others are not willing to. 

So now it’s time to make this happen. Plot your employees on the Jack Welch matrix and take action accordingly.  Get people into the upper right quadrant and watch your company soar.