Differentiation provides a methodology for making the principle spring to life

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What is it, then? Very simply, differentiation is based on the principle that the team with the best players wins. If you don’t agree with that, then differentiation will never make sense to you. But if you do, then differentiation provides a methodology for making that principle spring to life. How? By rewarding stars in an outsized way, in their souls and their wallets, in order to retain and energize them; by actively developing “the middle 70” with training and coaching; and by moving out bottom- tier performers so better talent can be brought in.

Basically, differentiation is a way to build meritocracies and continually raise the performance bar, increasing a company’s competitiveness with every upward notch.

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Source : IIPM Editorial, 2006, Arindam Chaudhuri's Initiative

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