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Jack Welch's Definition of LeadershipWelch is probably the best known "big-businessman" of his generation. The Welch leadership way is typified by clarity of thought and forthrightness of direction. B.W. (Before Welch) big American business was all about big bureaucracies, layers of command-and-control management and jobs-for-life. Change before it's too late! For Welch, business leaders who treat change as an enemy will fail. They need to be aware that the very survival of their corporation rests with their ability to change - this is the reality they are working in - and to prepare their workers for change. The faster this can be accomplished the better. Get out of the way! Managers need to manage less. Once the vision is established, the right resources are in place and confidence is on a crest of a wave, managers need to get out of the way and let the workers get on with it. For Welch leadership is about Vision not supervision! The Leaders should set a general framework for their team, the vision should be congruent with the overall goals of the organisation but they should avoid too detailed (and therefore restrictive) plans: this can stifle the ability to change. Trying to keep tabs on detailed plans is not the best use of time:Control slows you down! If an employee can't live up to the values - get rid of them. Downsize before it's too late! Welch's leadership will be forever linked to "downsizing": he was referred to by the nickname "Neutron Jack" (as in a lethal neutron-bomb) due to his ruthless culling of employees and managerial layers. This all started in the early 80s just as US firms came under tougher competition from the far East. In fact GE was doing well - but that didn't stop Welch downsizing before it was too late. He was incredibly controversial back then. But for Welch business leadership wasn't a popularity contest - he did what he believed was right for the long term health of his company. Look outside GE under Welch developed the reputation for incredible and audacious acquisitions. Often these would appear to be of corporations that were outside GE's sphere of expertise. Exceptional business nous played a part in their successes and this was augmented by a passion for sharing best-practice and for breaking down "silo-mentalities". Searching for the very best ideas, wherever they come from (including globally), was a key element of Welch's leadership. Creativity and idea-sharing sessions between departments and businesses was seen as essential. Speed, Simplicity and Self-Confidence The 3 S's built the whole organisation. A simple vision, speedily implemented by self-confident managers and employees. In a way it was like creating a small-company feel within a giant multi-national. Welch compared his company frequently to a small corner grocer's shop. Everyone knew their customer (or should do), communications within the organisation were simple and everyone was involved. This turned ordinary workers into productive, passionate "owners" of their part of the business. Welch put in place feedback models so that everyone could effectively have their say - any manger who could not deal with his team candidly having their say was waved bye-bye to! Any practice that no longer made sense was also waved bye-bye to. Stretch Welch believed in setting goals that stretched employees to the absolute maximum...right on the brink of impossible. This got the best from his people. This leadership concept of stretching targets is illustrated by GE's embracing of the six Sigma standard (that is only 3.4 defects per million outputs from a process). At the start of this programme GE had about 35,000 defects per million, in other words they needed to get about 10,000 times better! This process had taken quality obsessed Motorola 10 years to achieve. Welch set the target at 5 years. The story of GE's adoption of Six Sigma can be read in many of Welch's books - it's worth reading! To return to the Definition Leadership Page To return to the Winston Churchill Leadership Home Page
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