Management classics of Jack Welch, the world's bes

2022-05-20
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Jack Welch's management classic

founded in 1892, General Electric Company (GE) ranked first in the "world's most respected company" selected by fortune for four consecutive years, and won 50% more votes than the second most famous Microsoft. In 2000, GE's total revenue reached 130 billion US dollars and its net revenue reached 12.7 billion US dollars. Its "best done" leader is John F. Welch, the eighth chairman and CEO who abdicated in September 2001. During his 20 years in charge of Ge, he implemented a series of drastic changes, which made the old electric company full of vitality and always the leader in the global electrical field, showing his extraordinary business leadership and unique personal charm. As the most outstanding manager in the fierce competition with the same industry, Welch's successful and unique business philosophy is worthy of our learning and reference

GE's management architecture

1 Three color pattern: that is, shareholders do not directly interfere in the operation of the company, operators let go of the operation, represent the social concept and social forces to protect the interests of investors, and supervise the law-abiding operation of enterprises

2. Performance evaluation: the board of directors of GE has four criteria for evaluating Welch - growth, efficiency, strategic measures, talent training and development, and Welch's evaluation criteria for subordinates - performance

3. Management authority: GE's top management team has only three people and its headquarters has only four departments. It effectively controls the personnel changes of 21 business units of Ge and makes timely reports to Wall Street that shareholders need

4. Management method: GE's management method vividly means "highly centralized when spending money and highly decentralized when making money". As an independent level in the organizational structure, GE's headquarters no longer directly participates in the business activities of its subordinate units, and all the profits of 21 business units subordinate to the headquarters are handed over to the headquarters. This management structure is to ensure that the configuration of all relevant materials must be subject to the overall and long-term interests of Ge, and smoothly realize the good flow of "people, money and materials"

concept and behavior requirements

when introducing Welch's personality characteristics and business philosophy, Fortune magazine summarized the following six points: first, master your own destiny, otherwise it will be controlled by others; Second, face the reality and don't live in the past or fantasy; Third, honest street people; Fourth, don't just manage, learn to lead; Fifth, reform before forced; Sixth, if there is no competitive advantage, do not compete with it. Welch's internal thoughts deeply affect GE's business philosophy and GE's destiny

at present, every GE employee has a "Ge values" card. There are 9 cautions for leading cadres on the card: hating bureaucracy, being open-minded, paying attention to speed, self-confidence, being far sighted, energetic, setting goals boldly, viewing change as an opportunity and adapting to globalization

Welch's four criteria for talent selection

1 Have "energy": be able to grasp and control the changing rhythm of knife drama

2. Can "stimulate vitality": it is necessary to have the ability to "excite" the enterprise system and encourage people to strive for action

3. Have a "sharp edge": be very confident to say "yes" or "no" to thorny problems, rather than "maybe"

4. To be able to "implement": that is, always fulfill your commitments and never let people down

how Welch evaluates and rewards (returns to the original position) talents:

1 Talent classification: Top 20%, middle 70% and bottom 10%

2. The best 20%: must be cherished, cultivated and rewarded spiritually and materially. GE's leaders must understand that they are people who create "miracles" and "value". Losing such a person will be regarded as a serious mistake in leadership work - this is a real dereliction of duty

3. Motivation: the best 20% and the middle 70% are not immutable. People always flow between them. We should always cheer and cheer 70% of people to encourage them to make continuous progress

4. Elimination: the last 10% often doesn't change. GE's leaders are determined to replace the last 10% in a humane way. Only in this way can a real "elite" emerge and the enterprise prosper. A company that places its future on talents must eliminate these people -- in order to continuously improve the performance level of employees and the quality of leaders

the best market principle

in order to make the enterprise more competitive, Welch reduced the scale through his famous "best one and second" principle in terms of "hardware", so as to build a flat structure and restructure the industry of General Electric; In terms of "software", we try our best to change the culture of the whole enterprise and the thinking mode of employees. Since the 1990s, the growth of the company year after year comes from the three growth measures implemented throughout the company - globalization, service and 6sigma quality standard

according to Welch's idea, the condition for the existence of any business department is that it must be "one of the best in the market", otherwise it will be "cut off" - rectified, closed or sold. The best performing enterprises among GE's existing enterprises meet the following four requirements: first, they are among the best in the industry; Second, it has a return on investment much higher than the general level; Third, it has obvious competitive advantage; Fourth, make full use of GE's specific leverage

implement 6 Sigma quality standards

in the 1980s, Ge defined how employees should act through collective wisdom and efforts. Today, 6Sigma also stipulates how GE employees should work. Since the second half of 1995, an activity called "Six Sigma" has been burning all over Ge like a raging fire. By means of improving the technical level, improving the work process and strict supervision and assessment, GE has made the product quality of the company reach the level of 6Sigma quickly through concerted efforts. Today, 6Sigma has become the central link of all ideals and aspirations of this large company and a standardized working method

Ge applies "6Sigma" to all activities operated by the company, such as debt bookkeeping, credit card processing system, satellite time leasing, legal contract design, etc. Through this activity, GE has basically eliminated the defects and deficiencies of every product, first order and transaction that the company is engaged in worldwide every day

create enterprise values

Welch believes that any enterprise has two types of problems: hard problems and soft problems. Hard issues include finance, marketing, technology and production; Soft issues are about values, morale and communication. Hard problems usually affect the offline profit line of enterprises; The soft problem will affect the online of the enterprise - the total operating revenue. Corporate culture and values are the most ambiguous areas of enterprise management, and also the most challenging link so far. Welch believes that every organization needs values, especially a capable organization. You must stand up in front of the public and unremittingly convey your values. The formation of values is a long-term challenge

borderless behavior and borderless enterprise

Ge is a large-scale enterprise, and the market requires that the organization must be concise, so Ge began to make new changes and put forward the enterprise ideal of the 21st century: the enterprise characteristic of the 21st century lies in regardless of boundaries. Welch emphasizes the seemingly contradictory pros and Cons: the way to win requires huge strength and resources, as well as the sensitivity of start-ups

without smooth communication, an enterprise can't talk about sharp response. "We want people to have the courage to express their objections, show all the facts, and respect different views. This is our way to resolve contradictions. Good communication is to make everyone have the same opinion on the facts, so that they can make plans for their organization. Real communication is an attitude and environment, which is the most interactive in all processes, and its purpose is to create consistency," Welch said

the purpose of "boundless behavior" is to sue and destroy all the "high walls" that hinder communication and find good ideas. It evaluates these ideas according to their own value, not according to the level of the people who put forward them

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