Jack Welch was born in Salem, Massachusetts. Welchattended Salem High School and later the University of MassachusettsAmherst, graduating in 1957 with a Bachelor of Science degreein chemical engineering.Welch went on to receive his M.S. and PhD at the University ofIllinois at Urbana-Champaign in 1960.Welch joined General Electric in 1960. He worked as ajunior chemical engineer in Pittsfield, Massachusetts. He became thevice president of GE in 1972 and vice chairman in 1979. he led the company to year-after-year success around the globe inmultiple markets and against brutal competition and retired in 2001 aschairman and CEO
various reason to study this book:1. This book evolved from thousand of questions asked to Welch when speaking to audiences around the world.2. This book does not contain the same old stuff of what management should do. It is based on the true practical view which is faced by the company and every people related thereto.3. It offers deep insights, original thinking, and nuts-and-bolt advice that will change the way the people think about work.4. It is a philosophical and pragmatic book which is destined to become the bible of business for generation to come, clearly laying out the answers to the most difficult questions people face both on and off the job.
Chapters• This book has four parts:1. Underneath it all-which containo Mission and valueso Candoro Differentiationo Work-outs2. Your company-which containo Leadershipo Hiringo Managing peopleo Parting wayso Changeo Crisis management
Contd……3. Your competition-which containso Strategyo Budgetingo Organic growtho Six sigma4. Your career-which containso The right jobo Getting promotionso Hard spotso Balancing between work and life
Underneath it all: Mission and valuesHow do you plan on winning at this business? Answer that question, and you have your mission.Values are the behaviours you plan to exhibit in achieving your missionIn order to make your mission and values actually impact your organization, youve got to reward those who practice them and punish those who dont. Many people were fired from GE because they didnt fit with GEs mission and values.
CandorIn order to get ahead, you need great ideas - lots of great ideas.The only way to foster such idea-sharing is to develop a culture ofcandor, where people arent afraid to speak their minds.Candor is the state or quality of being frank, open, and sincere inspeech or expression.Reward them for their candor, even if it makes themselves andothers - yes, you - look bad.
Differentation Differentiation favors people who energetic and extroverted and undervalues people who are shy and introverted, even if they are talented. It may seem cruel and Darwinian, but in the longrun, people are happier doing what theyre good at.If theyre not excelling, youre ultimately doing them a favor by moving them out of an environmentwhere they know theyre a drag on the organization. Theyd be happier some place else.
Work-outs The problem: management gets ideas from only a few vocal people. The vast majority are either scared to speak up or feel they have no right to speak up because they havent been asked. A "Work-Out" is a way to get these untapped ideas flowing. Groups of thirty to a hundred gather, led by an outside facilitator. The boss shows up at the beginning, explaining what they will be doing and promising that he/she will give "an on- the-spot yes or no to 75 % of the recommendations" and to "resolve the remaining 25 percent within thirty days." Then, the boss disappears in order to not stifle discussion, leaving the meeting in the hands in the facilitator. The boss returns at the end of the meeting to hear the recommendations and make decisions. "...Work-Outs led to an explosion in productivity. They brought every brain into the game
Your company: LeadershipWelch lays out eight rules of leadership which always worked. Rule #1 - Relentlessly upgrade your team. In every encounter with them, "evaluate, coach, and build self-confidence." Rule #2 - Instill the vision. Rule #3 - Spread energy and optimism. Rule #4 - Establish trust by being candid, transparent and giving credit where its due. Rule #5 - Make the unpopular decisions. Rule #6 - Probe and push. Make sure your "questions are answered with action." Rule #7 - Inspire risk-taking and learning by doing both yourself. Rule #8 - Celebrate!
Hiring First, candidates should pass three screens: Screen #1: Do they have integrity - telling the truth and keeping their word. Screen #2: Are they intelligent - having enough curiosity and "breadth of knowledge" to lead other smart people. Screen #3: Are they mature - able to handle stress and setbacks, respect others emotions, be confident without being arrogant and have a sense of humour. Second, look for four Es and a P. Positive Energy - thriving on action, relishing change, making friends easily, loving work, play and life. Can Energize Others - "It takes a deep knowledge of your business and strong persuasion skills...." Has Edge - the ability to make tough decisions, even when all the information isnt in.
Contd… Can Execute - to take the decision and make it happen, overcoming all obstacles to complete the task. Passion - Theyre excited about their work, learning and growing, and helping those around them win. On hiring a senior level leader. Four additional traits: Authenticity - bold and decisive, yet real and likeable - not phony, not playing a part thats not them. "The ability to see around corners" - a visionary who can see the future and anticipate what most dont expect. A knack for surrounding themselves with people smarter than themselves. "Heavy-Duty Resilience" - someone whos been knocked down and beat up badly, but bounced back to run even harder. The number one question to probe in an interview: "...why the candidate left his previous job, and the one before that." This "tells you more about them than almost any other piece of data."
People management 1. Give HR (Human 3. 4. Confront 5. Spend half Resources) difficult of your time "power and 2. Motivate people evaluating primacy." Rigorously and retain issues, from and coaching Who are the evaluate with trouble- the middle 70 best HR with a money, makers to percent - types? proven recognitio big-headed those who "Pastors and stars, with are neitherparents in the system. n and candor and disrupting same training. action. nor shining. package."
Parting ways 1 - Nobody should be surprised when they are let go. Employees should be informed enough about the 2 - Minimize the nature of their humiliation. Enco business that they urage them that understand who might be laid off in an theres a better economic downturn job out there for Abide by twocontrolling principles: or change in the him, better industry. If they matched to his arent performing well, they should be temperament and well aware of this skills. Help them through regular move toward that formal and informal next job reviews. If they cant improve, they should know they will have to move on.
Change Change is the most critical part of business. In the era of change either you change or die. Practices of change are:Every change should take initiative to a clear purpose or goal. To make change happen, companies must actively hire and promote only true believers and get-on-with-its.Get rid of those who resist change.
Crisis management Crisis often stand out as the most painful and trying experiences of their business lives.5 things can be assumed about how crisis can unfold are: The problem is worse than it appears There is no secrets in the world, and everyone will eventually find out everything. With big crises, don’t ever forget you have a business to run Almost no crisis ends without blood on the floor. There will be change in people and processes. The organization will survive, ultimately stronger for what happened.
Your competition: Strategy Come up with a When it comes big “Aha” for your business- a to strategy, smart, realistic, fa ponder less and st way to gain do more, if you sustainable want to win. competitive advantage. Put the right Execute the best people in the practices for big right jobs to aha, and drive the big aha continually forwards. improve them.
BudgetingThe right budgeting process can change how a company functions andreinventing the ritual makes winning somuch easier, you can’t afford not to try. The 2 dynamics of budgets are1.negotiated settlement(minimize their risk and maximize their bonus) and 2.phony smiles(make anacquisition, develop new products, give the right amount of investment)
Organic growth or start upsFirst, put yourbest people atthe helm and Third, get off give them their backs and plenty of give them the resources to freedom to make make it their own happen. decisions. Second, encourage it with much fanfare from the top.
Six sigma Nothing compares to the effectiveness of six sigma when it comes to improving a company’s operational efficiency, raising its productivity, and lowering its costs. A huge part ofmaking customers Done right, it is sticky is meeting energizing andor exceeding their incrediblyexpectations, whi rewarding. Itch is exactly what can even be six sigma helps you do. fun.
Your career: The right job Every time I asked successful people about their first few jobs, the immediate reaction is almost always laughter. First, get a job and learn somethingThird, repeat the process about yourself. Whatuntil you find yourself in a do you like or dislike job you love. about it? What are you good at and bad at? Second, get another job thats more in line with the strengths and desires you discovered in your last job.
Getting promoted Do deliver sensational Basically, getting performance, far beyond Don’t letpromoted takes one expectations, and at every opportunity expand your job setbacks break do and one don’t. beyond its official boundaries. your stride.
Hard spotsAsk yourself why hes acting like a jerk. For example, is he a jerk to everyone, or just to me? Most workers overrate their jobperformance and how well-liked theyare among colleagues. Look honestlyand objectively at your own attitudes and performance for clues. Meet privately with your boss to ask him frankly what is wrong. If something surfaces, commit yourself to a plan for improvement. Nine out of ten times, complaining to thebosss boss will only hurt you.
Balancing between work n life Your boss may be Your strongWork-life balance is a concerned about your performance at work swap-a deal you’ve personal life, but hes should grant you a Outside of work, clarify made with yourself also concerned about hearing when you ask what you want fromabout what you keep the company winning for accommodations life.and what you give up. in a competitive work related to your life environment. outside of work.
Conclusion• 1. Compartmentalize your life. When youre home, be 100% at home. When youre at work, be 100% at work.• 2. Once youve set your life priorities, get comfortable saying "no" to things that would take away from those priorities.• 3. Dont leave yourself out of your priorities
Name- RituLakhotiaBatch- 1 st year PGDMGeneral