The Law of Thirds is a simple concept that explains why some organizational cultures are more positive whereas others are negative and why some organizations have higher employee turnover than others.

The Law relates to where leaders focus their effort—on problem employees or highly engaged employees. Attention is like a magnet that draws others in its direction and influences culture.

When operating properly culture is intended to attract the right employees and reject the wrong ones.

Great Leaders obey the Law of Thirds by focusing their effort on the top third of [highly engaged] employees and in the process build a positive culture that supports higher productivity and retains better employees.

Scenario A: When leaders give more attention to problem employees. In the process many of the average performers and half of the top performers lower their standards and productivity.

This happens when leaders are afraid of conflict and don’t deal with issues as they arise. Instead they allow negativity to prevail rather than nipping it in the bud. Other times, when it is hard to hire replacement employees , like in the case of sales staff or service techs, leaders tolerate negative behaviors in fear they will lose the employee. Unfortunately, the effect of tolerating negative behaviors results in lowering the productivity of good employees whose attitudes is negatively impacted, to the point where many of them leave to find an environment they find more fulfilling and rewarding.

Scenario B: When great leaders focus their efforts on the top performers. In the process the average performers and half of the low performers increase their own efforts and adopt higher standards.

Great leaders follow a vision and uphold the values of the organization. They nip negativity in the bud so that it does not spread to others in the organization. This takes tremendous resolve and courage, but ultimately allows the leader to shape the organization into a positive and productive powerhouse where top performers thrive and low performers self-select for environments that tolerate their negative behaviors.

Here is a brief video from Patrick Lencioni that explains how the Law of Thirds works:

Herb Mast is a Leadership Coach and Employee Engagement Specialist. Learn how he can assist you in implementing the principles and concepts presented here.