On the underperformer side this is an interesting strategy. By having frequent conversations about underperformance that alone causes people to leave.

If what they're doing is true I think this is one of the more innovative talent management strategies out there. I hope this leads to more honest conversations and less politics due to doing whatever it takes to make sure you come out on the top end of a distribution.

As a consultant I've had many projects where we came in to fix a process where we were really fighting their performance management and incentives system.