This document outlines 14 principles for business success from Jack Welch, the former CEO of General Electric. It discusses harnessing change, facing reality, managing with less supervision, creating a vision and getting out of the way, nurturing valued employees, constantly improving competitiveness, being number one or two in the market, incubating ideas from all employees, promoting speed, simplicity and confidence, acting like a small company, removing boundaries, unleashing worker energy, listening to frontline employees, and using technology to reduce bureaucracy. Under Welch's leadership, GE's value increased 4000% over 20 years and it was frequently recognized as the most admired company.

2. About the
author
• Born Nov 19, 1935. An American
business executive, author and chemical
engineer.
• Chairman and CEO of General Electric
(1981-2001)
• During his tenure at GE, the company's
value rose 4000%

3. 1.Harness the POWER OF CHANGE
• BRINGING IN BIG NUMBERS
• MAKE EACH DAY YOUR FIRST DAY ON THE
JOB
• THE GENESIS OF “NUMBER ONE, NUMBER
TWO”
• EMPLOYEES HAVE GOOD IDEAS TOO

4. 2. FACE REALITY!
• Deal with situations
as they are
• Move and Act on
Reality quickly!
• Turn your business
around

5. 3. MANAGING LESS IS MANAGING
BETTER
• less monitoring and less supervising
• Show Respect, Instill Confidence
• Get out of the way
• Emphasize vision, not supervision

6. 4. CREATE A VISION AND
THEN
GET OUT OF THE WAY
• Business is simple
• Always keep the five key questions in
mind
i. What does your global competitive environment
look like?
ii. In the last 3 years, what have your competitors
done?
iii. In the same period, what have you done to
them?
iv. How might they attack you in the future?
v. What are your plans to leapfrog them?
• Managing is allocating people and
resources

7. 5. NURTURE EMPLOYEES WHO
SHARE THE COMPANY’S VALUES
• Give employees more responsibility
• Nurture the employees who live up to company
values
• Eliminate employees who do not live the
company values.

8. 6. KEEP WATCH FOR WAYS TO CREATE
OPPORTUNITIES AND TO BECOME MORE
COMPETITIVE
• Don’t stick your head in the sand
• See things for what they are
• Begin with a vision

9. 7. BE NUMBER ONE OR NUMBER TWO
AND KEEP REDEFINING YOUR MARKET
• Setting the bar as high as possible
• Develop market-leading businesses
• Define markets broadly

10. 8. INCULCATE THE BEST IDEAS INTO THE
BUSINESS, NO MATTER WHERE THEY COME FROM
• Make searching for new ideas a priority
of every employee
• Hold idea-sharing meetings on a regular
basis
• Reward employees for sharing knowledge

11. 9. SPARK PRODUCTIVITY THROUGH THE “S”
SECRETS
“S” Secrets
Speed Simplicity
Self-
Confidence

12. • Promote the three “S’s”: speed,
simplicity, and self-confidence
• Start with a simple message
• Establish systems that foster self-confidence

13. 10. ACT LIKE A SMALL
COMPANY
• Assume that your big company can act small
• Structure for smallness
• Check reality: Do you know your customers

14. 11.REMOVE THE
BOUNDARIES!
• Root out boundaries
• Model behaviours with senior managers
• Involve everybody

15. 12. UNLEASH THE ENERGY OF
YOUR WORKERS
• Unleash productivity by involving everyone
• Turn workers into owners
• Have patience; attitudes don’t change
overnight

16. 13. LISTEN TO THE PEOPLE WHO
ACTUALLY DO THE WORK
• Turn hierarchy upside down
• Enable people to speak out freely
• If a full-blown Work-Out session is not
possible, consider a half-day mini-session

17. 14. USE E-BUSINESS TO PUT THE
FINAL NAIL IN BUREAUCRACY
• Manage in Internet time, using the latest
technologies
• Reinvent the company to compete in
Internet time
• Build on strengths

18. AFTERWORD
• Jack Welch retired as chairman and CEO of GE (Sep
2001)
• GE “Most Admired Company” for the fifth year in
a row – Fortune Magazine
• “World’s Most Respected Company” for the fourth
time – The Financial Times

19. Sanket
Bhawarkar
MBA-3,