The problem is that ranking someone against their peers is not the ranking that matters and is counterproductive in terms of building an exceptional corporate culture.
Makes me think of what I read this morning in Leaders Eat Last about it not being the people that are a bad fit, but the processes in your business.
I much prefer doing what’s described in The Coaching Habit. Spend time working with your employees to help them identify where they need to grow and then help them get there.
Forced ranking and 99% of performance reviews just create a toxic work environment.