The biggest and most nasty barrier to innovation and good management is the forced ranking which many companies still use. GE and JPM started using it in a big way and now many companies have adopted it. Jack Welch popularized it but that was a different time and circumstances have changed. The forced ranking system is a performance evaluation and compensation system designed around the famous statistical concept of the normal distribution or bell shaped curve. Essentially, everyone within the team is ranked within 1 out of 5 categories, by each of their peers. 1 being the worst and 5 being the best. The idea is that there will always be people that outshine and always be people that can't meet the basic requirements of working at the company. The competitive nature of the firm and this system will naturally bring out these traits in people and promote innovation, efficiency and so forth. So essentially, all the 1's (which are few an far between) always get fired every year and are replaced. Alternatively, the 5's get huge bonuses and remain highly recognized as valuable contributors to the success of the firm. Now, the barrier is inherently seen within the competition. Why should I help cooperate with you (you being my team mate), when I know that the pie will be divided between us. I should be searching for the best possible method of securing my slice of the pie. This mentality invariably leads to problems of deciet, selfishness, and closed environments where information is not shared in a trustful manner. I propose that information sharing in an open and trustworthy manner are the cornerstones of innovation. Forced Ranking fails to understand this and is handicapped because it has short term goals aimed at yearly bonuses and compensation schemes which create a 'pump and dump' or 'hire and fire' mentality within the org. This mentality creates another barrier, the frustration of retraining, and integrating new members into a team. Let's look at the Japanese system of hiring where once you are hired, you are hired for life.