Jack Welch
At the core of Welch’s philosophy, he emphasizes the distinction between
leaders and managers and necessitates the transformation of the latter into
leaders in order to achieve success.
Making Managers Lead
Welch had a seven-point program for management: (1) Develop a vision for the
business; (2) Change the culture to achieve the vision; (3) Flatten the
organization; (4) Eliminate bureaucracy; (5) Empower individuals; (6) Raise
quality; and (7) Eliminate boundaries.
The difference between a leader and a manager is likened to that of a general
and an officer down the line. A leader’s job is to allocate resources available
(people and money) rigorously in order to generate optimum results. The
results, in turn, will be gained under the “management” of the “officers”. The role
of a manager is not to spread resources out evenly (to Welch, this is
bureaucracy) but to make dynamic choices.
Controlling Bureaucracy. Welch waged a war on bureaucracy. He removed
layers upon layers of heads who were, according to him, harmful and whose
roles where vague, who slowed decision-making, blurred responsibility, and
created undoable jobs.
Sharing Information. Welch believed in the power of sharing information. He
uses meetings and committees not as a form of control but as his most powerful
management tool. The critical sessions are what he called Corporate Executive
Council (CEC) which is attended by the company’s top executives and where he
checks on progress, and exchanges ideas and information. The leaders in these
sessions shared their lessons of successes and failures, transferred new ideas.
Pursuing Best Practices. The principle of “best practices” is also deeply rooted
in Welch’s philosophy. Welch uses these regular meetings to share and
publicize achievements of other groups and the methodology behind them. The
decision to adopt these practices, however, is left to the individual businesses
and their leaders.
Delegating Responsibility. Welch’s leadership theory depends heavily on the
power of delegation. Welch, however, does not just relinquish all power to good
people. He balances hands-off management – giving his business heads full
autonomy and the power of decision – with hands-on leadership. He keeps his
“direct reports” on their toes by the unpredictability of his interventions in
sometimes, lesser matters.
Jack Welch
At the core of Welch’s philosophy, he emphasizes the distinction between
leaders and managers and necessitates the transformation of the latter into
leaders in order to achieve success.
Making Managers Lead
Welch had a seven-point program for management: (1) Develop a vision for the
business; (2) Change the culture to achieve the vision; (3) Flatten the
organization; (4) Eliminate bureaucracy; (5) Empower individuals; (6) Raise
quality; and (7) Eliminate boundaries.
The difference between a leader and a manager is likened to that of a general
and an officer down the line. A leader’s job is to allocate resources available
(people and money) rigorously in order to generate optimum results. The
results, in turn, will be gained under the “management” of the “officers”. The role
of a manager is not to spread resources out evenly (to Welch, this is
bureaucracy) but to make dynamic choices.
Controlling Bureaucracy. Welch waged a war on bureaucracy. He removed
layers upon layers of heads who were, according to him, harmful and whose
roles where vague, who slowed decision-making, blurred responsibility, and
created undoable jobs.
Sharing Information. Welch believed in the power of sharing information. He
uses meetings and committees not as a form of control but as his most powerful
management tool. The critical sessions are what he called Corporate Executive
Council (CEC) which is attended by the company’s top executives and where he
checks on progress, and exchanges ideas and information. The leaders in these
sessions shared their lessons of successes and failures, transferred new ideas.
Pursuing Best Practices. The principle of “best practices” is also deeply rooted
in Welch’s philosophy. Welch uses these regular meetings to share and
publicize achievements of other groups and the methodology behind them. The
decision to adopt these practices, however, is left to the individual businesses
and their leaders.
Delegating Responsibility. Welch’s leadership theory depends heavily on the
power of delegation. Welch, however, does not just relinquish all power to good
people. He balances hands-off management – giving his business heads full
autonomy and the power of decision – with hands-on leadership. He keeps his
“direct reports” on their toes by the unpredictability of his interventions in
sometimes, lesser matters.
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