Leadership Tenets of Leadership Tenets of Jack WelchJack Welch

Aniruddha RayAniruddha RayFrom - www.1000ventures.comFrom - www.1000ventures.com

LeadLead

Managers muddle – Leaders inspire. Managers muddle – Leaders inspire. Leaders are people who inspire with clear Leaders are people who inspire with clear

vision of how things can be done better. "What vision of how things can be done better. "What we are looking for are leaders at every level we are looking for are leaders at every level who can energize, excite and who can energize, excite and inspireinspire rather rather than enervate, depress, and control." than enervate, depress, and control."

Manage LessManage Less

"We are constantly amazed by how much people will "We are constantly amazed by how much people will do when they are not told what to do by do when they are not told what to do by management." management."

In the new knowledge-based economy, people should In the new knowledge-based economy, people should make their own decision. make their own decision.

Managing less is managing better. Close supervision, Managing less is managing better. Close supervision, control and bureaucracy kill the competitive spirit of control and bureaucracy kill the competitive spirit of the company. "Weak managers are the killers of the company. "Weak managers are the killers of business; they are the job killers. You can't manage business; they are the job killers. You can't manage self-confidence into people."self-confidence into people."

Articulate Your VisionArticulate Your Vision

"Leaders inspire people with clear visions of "Leaders inspire people with clear visions of how things can be done better." how things can be done better."

The best leader do not provide a step-by-step The best leader do not provide a step-by-step instruction manual for workers. The best instruction manual for workers. The best leaders are those who come up with new idea, leaders are those who come up with new idea, and articulate a vision that inspires others to and articulate a vision that inspires others to act.act.

SimplifySimplify

Keeping things simple is one of the keys to Keeping things simple is one of the keys to business. business.

Simple messages travel faster, simpler designs Simple messages travel faster, simpler designs reach the market faster and the elimination of reach the market faster and the elimination of clutter allows faster decision making."clutter allows faster decision making."

Get Less FormalGet Less Formal

"You must realize now how important it is to "You must realize now how important it is to maintain the kind of corporate informality that maintain the kind of corporate informality that encourages a training class to comfortably encourages a training class to comfortably challenge the boss's pet ideas."challenge the boss's pet ideas."

Energize OthersEnergize Others

Genuine leadership comes from the quality of Genuine leadership comes from the quality of your vision and your ability to spark others to your vision and your ability to spark others to extraordinary performance extraordinary performance

Face RealityFace Reality

Face reality, then act decisively. Face reality, then act decisively. Most mistakes that leaders make arise from Most mistakes that leaders make arise from

not being willing to face reality and then not being willing to face reality and then acting on it. Facing reality often means saying acting on it. Facing reality often means saying and doing things that are not popular, but only and doing things that are not popular, but only by coming to grips with reality would things by coming to grips with reality would things get better.get better.

See Change as an OpportunitySee Change as an Opportunity

Change is a big part of the reality in business. Change is a big part of the reality in business. "Willingness to change is a strength, even if it "Willingness to change is a strength, even if it means plunging part of the company into total means plunging part of the company into total confusion for a while... confusion for a while...

Keeping an eye out for change is both Keeping an eye out for change is both exhilarating and fun." exhilarating and fun."

Get Good Ideas from EverywhereGet Good Ideas from Everywhere

New ideas are the lifeblood of business. New ideas are the lifeblood of business. "The operative assumption today is that "The operative assumption today is that

someone, somewhere, has a better idea; and someone, somewhere, has a better idea; and the operative compulsion is to find out who the operative compulsion is to find out who has that better idea, learn it, and put it into has that better idea, learn it, and put it into action - fast." action - fast."

Follow upFollow up

Follow up on everything. Follow up on everything. Follow-up is one key measure of success for a Follow-up is one key measure of success for a

business. business. Your follow-up business strategy will pave the Your follow-up business strategy will pave the

way for your success.way for your success.

Get Rid of BureaucracyGet Rid of Bureaucracy

The way to harness the power of your people The way to harness the power of your people is "to turn them loose, and get the management is "to turn them loose, and get the management layers off their backs, the bureaucratic layers off their backs, the bureaucratic shackles off their feet and the functional shackles off their feet and the functional barriers out of their way." barriers out of their way."

Eliminate BoundariesEliminate Boundaries

In order to make sure that people are free to In order to make sure that people are free to reach for the impossible, you must remove reach for the impossible, you must remove anything that gets in their way. anything that gets in their way.

"Boundarylessness" describes an open "Boundarylessness" describes an open organization free of bureaucracy and anything organization free of bureaucracy and anything else that prevents the free flow of ideas, else that prevents the free flow of ideas, people, decisions, etc. Informality, fun and people, decisions, etc. Informality, fun and speed are the qualities found in a boundary-speed are the qualities found in a boundary-less organization.less organization.

Put Values FirstPut Values First

Don't focus too much on the numbers. Don't focus too much on the numbers. "Numbers aren't the vision; numbers are the "Numbers aren't the vision; numbers are the

products.“products.“ Focus more on the softer values of building a Focus more on the softer values of building a

team, sharing ideas, exciting others.team, sharing ideas, exciting others.

Cultivate LeadersCultivate Leaders

Cultivate leadersCultivate leaders who have the four E's of who have the four E's of leadership: leadership:

Energy, Energy,

Energize, Energize,

Edge, and Edge, and

Execution;  Execution; 

Leader who share values of your company and Leader who share values of your company and deliver on commitments.deliver on commitments.

Create a Learning CultureCreate a Learning Culture

Turn your company into a learning Turn your company into a learning organization to spark free flow of organization to spark free flow of communication and exchange of ideas. communication and exchange of ideas.

"The desire, and the ability, of an organization "The desire, and the ability, of an organization to continuously learn from any source, to continuously learn from any source, anywhere - and to rapidly convert this learning anywhere - and to rapidly convert this learning into action – is its ultimate competitive into action – is its ultimate competitive advantage."advantage."

Involve EveryoneInvolve Everyone

Business is all about capturing intellect from Business is all about capturing intellect from every person. every person.

The way to engender enthusiasm it to allow The way to engender enthusiasm it to allow employees far more freedom and far more employees far more freedom and far more responsibility responsibility

Make Everybody a Team PlayerMake Everybody a Team Player

Managers should learn to become team Managers should learn to become team players. players.

Middle managers have to be team members Middle managers have to be team members and coaches. and coaches.

Take steps against those managers who Take steps against those managers who wouldn't learn to become team players wouldn't learn to become team players

StretchStretch

Stretch targets energize.  Stretch targets energize.  "We have found that by reaching for what "We have found that by reaching for what

appears to be the impossible, we often actually appears to be the impossible, we often actually do the impossible; and even when we don't do the impossible; and even when we don't quite make it, we inevitably wind up doing quite make it, we inevitably wind up doing much better than we would have done."much better than we would have done."

Instill ConfidenceInstill Confidence

Create a truly confident workforce. Create a truly confident workforce. Confidence is a vital ingredient of any learning Confidence is a vital ingredient of any learning

organization. organization. The prescription for winning is speed, simplicity, and The prescription for winning is speed, simplicity, and

self-confidence. self-confidence. Self-confident people are open to good ideas Self-confident people are open to good ideas

regardless of their source and are willing to share regardless of their source and are willing to share them. them.

"Just as surely as speed flows from simplicity, "Just as surely as speed flows from simplicity, simplicity is grounded in self-confidence." simplicity is grounded in self-confidence."

Have FunHave Fun

Fun must be a big element in your business Fun must be a big element in your business strategy.strategy.

No one should have a job they don't enjoy. If No one should have a job they don't enjoy. If you don't wake up energized and excited about you don't wake up energized and excited about tackling a new set of challenges, then you tackling a new set of challenges, then you might be in the wrong job. might be in the wrong job.

Be Number 1 or Number 2Be Number 1 or Number 2

"When you're number four or five in a market, "When you're number four or five in a market, when number one sneezes, you get pneumonia.when number one sneezes, you get pneumonia.

When you're number one, you control your When you're number one, you control your destiny. destiny.

The number fours keep merging; they have The number fours keep merging; they have difficult times. That's not the same if you're difficult times. That's not the same if you're number four, and that's your only businesses.number four, and that's your only businesses.

Then you have to find strategic ways to get Then you have to find strategic ways to get stronger." stronger."

Live QualityLive Quality

"We want to change the competitive landscape "We want to change the competitive landscape by being not just better than our competitors, by being not just better than our competitors, but by taking quality to a whole new level. but by taking quality to a whole new level.

We want to make our quality so special, so We want to make our quality so special, so valuable to our customers, so important to valuable to our customers, so important to their success that our products become the their success that our products become the only real value choice." only real value choice."

Constantly Focus on InnovationConstantly Focus on Innovation

"You have just got to constantly focus on "You have just got to constantly focus on innovation. And more competitors. innovation. And more competitors.

You've got to constantly produce more for less You've got to constantly produce more for less through intellectual capital. through intellectual capital.

Shun the incremental, and look for the Shun the incremental, and look for the quantum leap." quantum leap."

Now the fundamentals have got to be more Now the fundamentals have got to be more education. More information knowledge, faster education. More information knowledge, faster speeds, more technology across the board.speeds, more technology across the board.

Live SpeedLive Speed

"Speed is everything. It is the indispensable "Speed is everything. It is the indispensable ingredient of competitiveness." ingredient of competitiveness."

Speed, simplicity and self-confidence are Speed, simplicity and self-confidence are closely intertwined. closely intertwined.

By simplifying the organization and instilling By simplifying the organization and instilling confidence, you create the foundation for an confidence, you create the foundation for an organization that incorporates speed into the organization that incorporates speed into the fabric of the company.fabric of the company.

Behave Like a Small CompanyBehave Like a Small Company

Small companies have huge competitive advantages. Small companies have huge competitive advantages. They "are uncluttered, simple, informal. They thrive They "are uncluttered, simple, informal. They thrive

on passion and ridicule bureaucracy. on passion and ridicule bureaucracy. Small companies grow on good ideas - regardless of Small companies grow on good ideas - regardless of

their source. They need everyone, involve everyone, their source. They need everyone, involve everyone, and reward or remove people based on their and reward or remove people based on their contribution to winning. contribution to winning.

Small companies dream big dreams and set the bar Small companies dream big dreams and set the bar high - increments and fractions don't interest them." high - increments and fractions don't interest them."

Thank YouThank You

Bibliography:Bibliography:

Jack Welch and the GE WayJack Welch and the GE Way, Robert Slater , Robert Slater The Welch WayThe Welch Way, Jeffrey A. Krames , Jeffrey A. Krames Relentless GrowthRelentless Growth, Christopher Meyer , Christopher Meyer ""Control Your Destiny or Someone Else WillControl Your Destiny or Someone Else Will", Noel ", Noel

Tichy and Stratford Sherman Tichy and Stratford Sherman "Roads to Success", Heller Robert "Roads to Success", Heller Robert "The GE Work-Out", Dave Ulrich, Steve Kerr, Ron "The GE Work-Out", Dave Ulrich, Steve Kerr, Ron

Ashkenas Ashkenas "Winning," Jack Welch and Suzy Welch "Winning," Jack Welch and Suzy Welch "Jack Welch on Leadership," Robert Slater "Jack Welch on Leadership," Robert Slater