Jack Welch and the GE Way When Jack Welch was named CEO of General Electric, Welch saw a company in trouble even though the business world saw GE as an intrinsically healthy corporation, secure in its position as a world industrial leader. Welch knew that the company was too large to fail yet GE was too unwieldy to adapt for further growth. The changes he instituted restructured and revolutionized GE and made Welch the most respected CEO in business today. After reading the book there were three parts that really stood out for me.
Chapter 3: Cultivate managers who share your vision was the most important chapter to me. It talks about putting the right managers in the right positions. Welch says, “What we are looking for…are leaders… who can energize, excite, and control rather than enervate, depress, and control” (p. 35). Managers in a company should bursting with energy and are able to develop and implement a vision and not just talk about those visions. They must also know how to spread enthusiasm throughout the entire company. One of the keys to being a great business leader is getting employees excited about their work. One of the ways to get employees excited about their work is to allow employees more freedom and responsibility then they have now. In order to make this happen, middle managers have to be team members and coaches. They need to facilitate more than control. Managers should be energizers and not enervators. Welch suggests that the only way to last at GE is to get on board, to become a team player, and to adapt oneself to the company’s values and culture when describing the different types of managers that will or will not succeed. The first type of manager delivers on commitments and shares the company’s values. The second type does not meet commitments and does not share the company’s values. The third type misses commitments but does share the company’s values. Welch himself cares more that a manager sticks to the company’s values than meets the numbers. The fourth type delivers on the commitments but does not subscribe to the company’s values. Welch broke these managers into three categories, type A, type B, and type C managers. Type A managers were defined as team players that subscribe to the company’s values. People trust them; they make impacts on decisions, and are leaders who seek to develop high value in other…
…h targets” (p. 170).
Welch emphasizes that one should not settle for second best when you are able to achieve more. When you reach for the stars, you may fail but stretching yourself and stretching your business you are going to bring better performance results to your business. He also says to be creative, more imaginative, and more thoughtful about your business. The more you think about how to get more out of your business, the higher your stretch targets and the better off your are going to be.I think that all employers and manager should encourage their employees to reach for the stars. This will help employees realize what they are capable of doing. Managers need to help employees realize and make goals along with making sure that they meet their goals.
I believe that Jack Welch and the GE Way is a great tool for any manager. He Welch helped turn a great company into an even greater company. Many of his ideas can be used in the workplace and in everyday life. His ideas are not complex or complicated to understand. It will just take time to incorporate them into your life or business. When you do, you will realize that even you life or business can be better.