4 Steps to Manage Your Employees and Help Them Win

4 Steps to Manage Your Employees and Help Them Win
Image credit: Shutterstock

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
Guest Writer
Founder of Thrive15.com
3 min read
Opinions expressed by Entrepreneur contributors are their own.

“The team with the best players wins.” -- Jack Welch 

When Jack Welch was the CEO of General Electric, he was able to produce record growth year after year by using a few simple principles relentlessly. The system of management he used was called differentiation. At the core of the differentiation system is a belief that everyone in should know where they stand in terms of their performance at all times.

Here are four steps to make this system of differentiation work for you and your business:

1. Develop a ranking system.

Develop a system that ranks every employee on an A to C level for different factors including ability to do their core job and complete tasks, ability to get things done and make decisions and the ability to bring energy to the workplace every day. Learn which players are on each level A, B or C to manage these different player rankings, then devise a plan to celebrate the A players, appreciate the B players and fire the C players. 

Related: 6 Ways to Improve Your Management Style

2. Set aside time to develop your team. 

It is important to let every employee know where he or she stands throughout his or her time in your business; I would suggest every quarter of the fiscal year. By being honest and open with each team member and their performance, you create value in their efforts. Those that are lacking with either find encouragement to become better or they will quit.

Related: Stop Sugar-Coating Your True Opinion

3. Create an acknowledgement strategy.

Develop a way to publicly celebrate your A players and appreciate your B players. 

Welch celebrated A Players with kind words, public recognitions, bonuses, promotions, plaques, awards and trophies. His system also rewarded the B players for their dependability and loyalty to the company. Some B players can ultimately become A players with the right mentorship and positive feedback.

4. Have a plan of action for poor-performing employees.

Let the poorest performer know how they are doing, give them an opportunity to improve, or have them leave. Often C players can be seen as bottom feeders who can't handle candid feedback in the workplace. They are easily offended or emotionally hurt whenever they are told how they are doing or what they could do better. Normally you can spot a C player from their behaviors -- they tend to always be late, constantly pessimistic and always have excuses as to why they could not get their tasks done. Let your C players know where they stand without any sugarcoating. Give them two weeks to improve, and if they refuse, let them go. 

Related: 3 Common Leadership Mistakes That Make a Miserable Company Culture

More from Entrepreneur

Learn how to get your own business launched with our on-demand start-up course. Whether your ready or just thinking about starting your own business, get started for free with our first 3 lessons and receive a personalized 1-page business brief.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur