Topgrading
From Wikipedia, the free encyclopedia
Topgrading is a set of best practices for improving business performance by upgrading teams until at least 90% are high performers. Topgrading methods are used to assess candidates to hire, candidates for promotion, and internal talent (to determine an employee’s potential). The methodology is fully described in the book, Topgrading: How Leading Companies Win by Hiring, Coaching, and Keeping the Best People, by Bradford D. Smart.
The Topgrading methodology relies on unusually detailed, chronological interviews; conclusions are gleaned from patterns which have emerged across layers of competencies as interviewers probe every success, failure, relationship, and major decision in a person’s career. The results from a Topgrading interview are used to coach people to become high performers.
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[edit] Key Concepts of Topgrading
- A Player - Someone in the top 10% of available talent for the compensation level.
- Topgrading Interview – Chronological interview including 15 questions about every full-time job.
- Scorecard – Job description including all important accountabilities stated as measurable goals.
- Virtual Bench – The best way to recruit is to call on talented people one has worked with or met.
- 30-to-1 Topgrading Advantage – If one has 25% success hiring, 40 people have to be hired and 30 fired to end up with 10 high performers. With 90% hiring success, only 11 people must be hired and 1 fired to get 10 high performers. Thus, a 30 mis-hires to 1 mis-hire advantage.
- Topgrade from the Top Down – The “First Principle” of Topgrading. High performers at the top attract and hold high performers at the next level. Topgrading occurs as the high performance standard cascades down throughout the company.
[edit] Advantages of Topgrading
Some companies named in the books (General Electric, Lincoln Financial, Barclays, American Heart Association and others) attribute their success in part to the application of Topgrading methods. Research cited by the authors suggests that only 25% of managers hired by most firms turn out to be the expected high performers, yet Topgrading companies cited eventually achieved up to 90% success.
[edit] Origin
The word “Topgrading” first occurred in an article by Brad and Geoff Smart, published in 1997, and is the main title of hard copy books published by Brad Smart in 1999 and 2005, and a handbook authored by Brad and Geoff, published in 2005.
Topgrading is a registered trademark owned by Brad and Geoff.
[edit] Criticisms of Topgrading
Some companies have laid off people claiming they were “Topgrading.” The founders of Topgrading (Brad and Geoff Smart) are adamant that Topgrading is abused when low performing executives resort to layoffs that high performers would have avoided.
The Smarts readily admit that the thorough Topgrading methods that can strengthen companies and individual careers can be ineffective in the hands of C players, since it is hard for them to recruit and retain top performers.
Initially Topgrading referred to “having all A players.” The Topgrading definition of A player is unique: “someone in the top 10% of talent for the compensation level.” It means, “You are paying for all A players, so why not use Topgrading methods to be sure you are picking A players.” Because some companies think of an A player as someone promotable two or more levels, those companies frequently should not have all of what they consider A players. Within the Topgrading definition, even the greeter at Wal-Mart can be an A player – someone in the top 10% of talent available for that compensation.
[edit] Books
- Smart, Bradford Topgrading: How Leading Companies Win by Hiring, Coaching, and Keeping the Best People (Portfolio Penguin, 2005). (ISBN 1-59184-081-3)
- Smart, Bradford and Geoff Topgrading: How to Hire, Coach and Keep A Players (Pritchett , 2005)
- Smart, Bradford The Smart Interviewer: Tools and Techniques for Hiring the Best (Wiley, 1989) (ISBN 978-0471513315)
- Smart, Bradford & Mursau, Kate Smart Smart Parenting: How to Raise Happy, Can-Do Kids (CDK Press, 2006) (ISBN 0-9777044-0-8)
[edit] References
- Topgrade, Leadership Excellence
- The Truth Can Hurt-Get Used to It, Fortune Magazine
- Wall Street Journal (front page story) Wall Street Journal
- The Smart Way to Hire Superstars, Fortune Small Business
- How to Hire Smart, Fortune Small Business
- Looking to Hire the Very Best?, Fortune Magazine
- Topgrading: Power Tool for Boosting Recruitment Sales, Recruiter.com
- The Topgrading Approach to Succession Planning, SCI
- Finding Great People for Your Team
- Topgrading the Organization (First Topgrading article – 1997), Directors and Boards
