25 Lessons Jack Welch Ten3 Mini Course

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    Creating the worlds most competitiveenterprise

    2005 Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com. October 2005

    25 Lesso nsfrom Jack We lch

    Lessons from the legendary former CEO of GE,whose management innovations have made him the most

    influential CEO of his era

    Ten3 Business e-Coach the worlds leading source ofinspiration, innovation, and unlimited growth!

    http://www.1000ventures.com/vk.htmlhttp://www.1000ventures.com/vk.htmlhttp://www.1000ventures.com/http://www.1000ventures.com/http://www.1000ventures.com/vk.htmlhttp://www.1000ventures.com/vk.html
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    Lead More, Manage Less

    Build a Winning Organization

    GE Success Story: Flash Points

    25 Lessons from Jack Welch

    Harness Your People for Competitive Advantage

    Build a Market-Leading Company

    25 Lessons from Jack WelchCreating the worlds most competitive enterprise

    2005 Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com. October 2005

    http://www.1000ventures.com/vk.htmlhttp://www.1000ventures.com/vk.htmlhttp://www.1000ventures.com/http://www.1000ventures.com/http://www.1000ventures.com/vk.htmlhttp://www.1000ventures.com/vk.html
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    anagem en y ea ers p: ucc essSt oryJack Welch

    GE MarketCapitalization

    US$13 billion

    US$500 billion

    2000

    Jack Welchsteps down

    as CEO of GE

    1981

    Jack Welchappointed

    as CEO of GE

    1. Develop a vision for the

    business2. Change the culture to

    achieve the vision

    3. Flatten the organization

    4. Eliminate bureaucracy

    5. Empower individuals

    6. Raise quality and

    efficiency

    7. Eliminate boundaries

    Welchs Seven-PointProgram for Managementby Leadership

    More information at 1000ventures.com: Jack Welch a Corporate Change Leader

    http://www.1000ventures.com/business_guide/crosscuttings/cs_leadership_welch.htmlhttp://www.ge.com/oac/appliance.htmhttp://www.1000ventures.com/business_guide/crosscuttings/cs_leadership_welch.html
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    ac e c orpora e a ngeLead erWelch s Tr ademark Me ssa ges Business is simple.

    Don't make business overly complicated.

    Face reality, then act decisively. Don't be afraid of change.

    Change before you have to.

    Fight bureaucracy.

    Use the brains of your workers.

    Discover who has the best ideas, and put those ideasinto practice.

    1000ventures.com

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    e a ng rga n z a onaTransf orm at ionCre atin g an E xt raord in ary Or ganiza t ion

    Redesigning the role of the leader in the neweconomy: creating followers throughcommunicating a vision, and establishingopen, caring relations with every employee

    Creating an open, collaborative workplacewhere everyone's opinion is welcome

    Empowering senior executives to run far-flungbusinesses in entrepreneurial fashion

    Liberating the workforce; making everybody aparticipant through improving verticalcommunication and employee empowerment

    Leading Changethrough the GE's Organization

    Welchs prescription

    for winning in business

    1. Speed

    2. Simplicity

    3. Self-confidence

    More information at 1000ventures.com: Jack Welch a Corporate Change Leader

    http://www.1000ventures.com/business_guide/crosscuttings/cs_leadership_welch.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/cs_leadership_welch.html
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    GE Leadership AssessmentSurvey(LES): Characteristics

    2. Vision

    3. Customer / Quality Focus

    4. Integrity

    5. Accountability / Commitment

    6. Communication / Influence

    7. Shared Ownership

    8. Team Builder / Empowerment

    9. Knowledge / Expertise / Intellect

    10. Initiative / Speed

    11. Global Mind-setMore information at 1000ventures.com: GEs Leadership Assessment Survey (LES)

    Four Essential Tasks2. Recognize the importance of

    leadership to your businesssuccess

    3. Have in place a specificprocess for developingleadership talent

    4. Define leadership attributesbehaviorally, for the benefit offuture leaders

    5. Use the leadershipcompetencies stipulated inthe Leadership EffectivenessSurvey (LES) to integrate anumber of managementpractices with the purpose ofbuilding quality of leadership.

    Le adership De velop ment at GEA S trategic D uty of A l l S enior Leaders

    http://www.1000ventures.com/business_guide/crosscuttings/tests_leadership_ef_byge.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/tests_leadership_ef_byge.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/tests_leadership_ef_byge.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/tests_leadership_ef_byge.html
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    Sha red Corp orat e V al uesGE V alues G uideGE Leaders... Always with Unyielding Integrity:

    Have a Passion for Excellence and Hate Bureaucracy

    Are Open to Ideas from Anywhere... and Committed to Work-Out

    Live Quality... and Drive Cost and Speed for Competitive Advantage

    Have the Self-Confidence to Involve Everyone and Behave in aBoundaryless Fashion

    Create a Clear, Simple, Reality-Based Vision... and Communicate Itto All Constituencies

    Have Enormous Energy and the Ability to Energize Others Stretch... Set Aggressive Goals... Reward Progress... Yet

    Understand Accountability and Commitment

    See Change as Opportunity... Not Threat

    Have Global Brains... and Build Diverse and Global TeamsMore information at 1000ventures.com: Shared Values

    http://www.1000ventures.com/business_guide/crosscuttings/shared_values.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/shared_values.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/shared_values.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/shared_values.html
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    ExecutionThey are action-oriented, and

    are focused on getting results

    EdgeThey have a competitive edge

    and a will to win

    EnergizeThey energize teams, and

    don't intimidate them

    EnergyThey have tremendous

    personal energy

    Le ssons fro m Jack Welc hTh e 4 E s of L ead er sh ip

    1000ventures.com

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    Going for the leap Radical innovation

    Diversification

    Venture investing Acquisitions

    Shining the incremental

    Lean organization

    GE Work-Out

    Quality Management: Six Sigma

    GE G rowth Str ateg iesShun the incremental and go for the leap

    - Jack Welch

    More information at 1000ventures.com: Sustainable Growth Strategies

    http://www.1000ventures.com/business_guide/sustainable_growth.htmlhttp://www.1000ventures.com/business_guide/sustainable_growth.htmlhttp://www.1000ventures.com/business_guide/sustainable_growth.htmlhttp://www.1000ventures.com/business_guide/sustainable_growth.html
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    St rate gy Form ulat ionGE M ul t ifa cto r Bu sine ss P or tf oli o Ma trix

    1000ventures.com

    Invest /

    Grow

    Invest /

    Grow

    Invest /Grow

    Selective

    Investment

    Harvest /Divest

    Harvest /Divest

    Harvest /Divest

    LOW MEDIUM HIGH

    Industry Attractiveness

    MEDIUM

    LOW

    HIGH

    Busin

    essPosition

    Source: GE & McKinsey & Co.

    SelectiveInvestment

    SelectiveInvestment

    Companies win when their managers make a clear and meaningfuldistinction between top- and bottom-performing businesses and people,when they cultivate the strong and cull the weak. Jack Welch

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    Quality M an agem ent: S ix S igmaCa se in Po int : Impa ct of S ix Si gma I mp lem ent at ionat GE

    11%14%

    17%

    13%

    Revenue

    increased

    Profits

    increased

    Earning per

    share increased

    Operating

    margins

    increased

    Results achieved over the first two years (1996-1998)

    More information at 1000ventures.com: Six Sigma

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

    Jack Welch

    http://www.1000ventures.com/business_guide/mgmt_quality_six_sigma.htmlhttp://www.1000ventures.com/business_guide/mgmt_quality_six_sigma.htmlhttp://www.1000ventures.com/business_guide/mgmt_quality_six_sigma.html
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    Six Sigm a Im plem en tation at G EMakin g t he S ix S igma Proce ss WorkFour MAIC Steps Measure

    Analyze

    Improve Control

    Five Corporate Measures2. Customer Satisfaction

    3. Cost of Poor Quality

    4. Supplier Quality

    5. Internal Performance

    6. Design for Manufacturability

    Everyday Six Sigma

    Plant managers can use Six Sigma to reduce waste, improveproduct consistency, solve equipment problems or create capacity.

    Human resources managers can use it to reduce the cycle time for

    hiring employees.

    Regional sales managers can use it to improve forecast reliability,

    pricing strategies or pricing variation.1000ventures.com

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    or - uCre atin g th e Sp irit of a St ar t-U p Firm in a La rg eEnterprise

    1000ventures.com

    Key Benefits of the Work-Out

    Reduces bureaucracy

    Empowers people

    Continuously reinvents ever-more-effective ways of doingbusiness

    At GE, Work-Out "Town Meetings" gave the corporation access to anunlimited resource of imagination and energy of its talented employees.

    With Work-Out as part of its DNA, GE hasbecome one of the most innovative,

    profitable, and admired companies on earth.

    Work-Outs Four Major Goals

    2. Build trust

    3. Empower employees

    4. Eliminate unnecessary work

    5. Create a new paradigm

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    GE Work-O utSe ven Ste ps to Im plemen t W or k- Out

    1000ventures.com

    1. Chose the issues to be discussed.

    2. Select the appropriate cross-functional team to tackle the problem.

    3. Chose a "champion" who will see any Work-Out recommendationthrough to implementation.

    4. Let the team meet for three days, drawing up recommendations toimprove your company's processes.

    5. Meet with managers, who make decisions on the spot about eachrecommendation.

    6. Hold more meetings as required to pursue the implementation of therecommendations.

    7. Keep the process going, with these and other issues andrecommendations.

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    No of Ventures Invested

    0

    300

    600

    1995 2000 2005

    Nature of Venture Investments

    (2002)

    15%

    85%

    Strategic ValueInvestments

    Investments inAreas Unrelatedto GE

    Established in 1995, General Electric (GE) Equity, a business unit within GE

    Capital, invests around $1.5 billion annually in external ventures

    GE Equity invests an average of $3 million to $5 million in each ofcompanies, and it gets somewhere between 5 and 11% of each venture

    85% of investment are strategic value investments that help GE businessesgrow and are done jointly with one of them

    GE Ve ntu re S tra teg iesCorporate Investing in External Ventures

    More information at 1000ventures.com: Corporate Venture Investing

    http://www.1000ventures.com/business_guide/corporate_vinvesting_external.htmlhttp://www.1000ventures.com/business_guide/corporate_vinvesting_external.htmlhttp://www.1000ventures.com/business_guide/corporate_vinvesting_external.htmlhttp://www.1000ventures.com/business_guide/corporate_vinvesting_external.html
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    Corporate Venture Investing: GE EquitySucce ss Fa ct ors

    1000ventures.com

    Qualities of Top ManagersCritical to Success

    they are visionary leadersaiming at building a world-class, global, private equity

    organization

    each of them is aremarkable hybrid ofcorporate executive and

    venture capitalist they practice and lead a

    highly disciplined approachto project selection andportfolio management

    Highly Disciplined BusinessManagement System(BMS)

    rigorous examinationprocedure

    systematic investmentapproach based on decisionand probability theories

    the most onerous due-diligence checklist in theworld of corporate ventureinvesting

    portfolio management system

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    Lead More, Manage Less

    Build a Winning Organization

    GE Success Story: Flash Points

    25 Lessons from Jack Welch

    Harness Your People for Competitive Advantage

    Build a Market-Leading Company

    25 Lessons from Jack WelchCreating the worlds most competitive enterprise

    2005 Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com. October 2005

    http://www.1000ventures.com/vk.htmlhttp://www.1000ventures.com/vk.htmlhttp://www.1000ventures.com/http://www.1000ventures.com/http://www.1000ventures.com/vk.htmlhttp://www.1000ventures.com/vk.html
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    Managem ent by Lea dership25 L esso ns f ro m Jac k W elch

    1000ventures.com

    LEAD MORE, MANAGE LESS

    1. Lead2. Manage less3. Articulate your vision4. Simplify5. Get less formal

    BUILD A WINNING ORGANIZATION

    1. Get rid of bureaucracy2. Eliminate boundaries3. Put values first4. Cultivate leaders

    5. Create learning culture

    HARNESS YOUR PEOPLE

    1. Involve everybody2. Make everybody a team player3. Stretch4. Instill confidence

    5. Have fun

    BUILD THE MARKET-LEADING COMPANY

    1. Live speed2. Behave like a small company

    1. Energize others2. Face reality3. See change as an opportunity4. Get good ideas from everywhere5. Follow up

    1. Be number 1 or number 22. Live quality3. Constantly focus on innovation

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    Lead More, Manage Less

    Build a Winning Organization

    GE Success Story: Flash Points

    25 Lessons from Jack Welch

    Harness Your People for Competitive Advantage

    Build a Market-Leading Company

    25 Lessons from Jack WelchCreating the worlds most competitive enterprise

    2005 Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com. October 2005

    http://www.1000ventures.com/vk.htmlhttp://www.1000ventures.com/vk.htmlhttp://www.1000ventures.com/http://www.1000ventures.com/http://www.1000ventures.com/vk.htmlhttp://www.1000ventures.com/vk.html
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    Le ad Mo re , Mana ge Le ss: Le sson 1Lead

    Managers muddle leaders inspire."What we are looking for are leaders atevery level who can energize, excite andinspire rather than enervate, depress,

    and control."

    Create a vision and then ignite your organization to make thisvision a reality

    Focus on strategic issues Don't micromanage

    Involve everyone and welcome great ideas from everywhere

    Lead by example

    More information at 1000ventures.com: Effective Leadership

    http://www.1000ventures.com/business_guide/crosscuttings/leadership_main.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/leadership_main.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/leadership_main.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/leadership_main.html
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    Le ad Mo re , Mana ge Le ss: Le sson 3Articulate Your Vision

    "Leaders inspire people with clear visions of howthings can be done better." The best leader do notprovide a step-by-step instruction manual for workers.The best leaders are those who come up with new

    idea, and articulate a vision that inspires others to act.

    Create and project a clear vision

    Articulate a few clear stretch goals for your company

    Make sure you have the very best people to carryyour vision out.

    More information at 1000ventures.com: Vision, Mission, Goals

    http://www.1000ventures.com/business_guide/crosscuttings/vision_mission_strategy.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/vision_mission_strategy.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/vision_mission_strategy.html
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    Le ad Mo re , Mana ge Le ss: Le sson 4Simplify

    1000ventures.com

    Keeping things simple is one of the keys to business.Have the courage to be simple. Simplicity is practically anart form, with many definitions. "Simple messages travelfaster, simpler designs reach the market faster and theelimination of clutter allows faster decision making."

    Don't make business harder than it is

    Think simply to create a clear vision

    Make your messages simple Build self-confidence

    Simplify your workplace and communications

    Make meeting simpler

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    Le ad Mo re , Mana ge Le ss: Le sson 5Get Less Formal

    1000ventures.com

    "You must realize now how important it is tomaintain the kind of corporate informalitythat encourages a training class tocomfortably challenge the boss's pet ideas."

    Take the "Boss Element" our of your company

    Keep formality and rigidity out of the office

    Hold more informal meetings Find simple ways to loosen things up

    Brainstorm with bosses and colleagues frequently

    Organize a once-in-a-while informal get together

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    Le ad Mo re , Mana ge Le ss: Le sson 6Energize Others

    1000ventures.com

    Genuine leadership comes from the quality ofyour vision and your ability to spark others toextraordinary performance. Getting employeesexcited about their work is the key to being agreat business leader. "We now know whereproductivity - real and limitless productivity -

    comes from. It comes from challenged,empowered, excited, rewarded teams of people."

    Live action all day

    Allow employees more freedom

    Give employees more responsibility

    Never lead by intimidation

    Let people know how their efforts are helping your organization

    Send handwritten thank-you notes

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    Le ad Mo re , Mana ge Le ss: Le sson 7Face Reality

    1000ventures.com

    Face reality, then act decisively. Most mistakes thatleaders make arise from not being willing to face realityand then acting on it. Facing reality often means sayingand doing things that are not popular, but only bycoming to grips with reality would things get better.

    Accept the truth

    Own up the reality, don't bury your head in the sand

    See things as they are, not as you wish them to be Look at things with a fresh eye every day

    Look at your situation as an outsider

    Play scenarios

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    Le ad Mo re , Mana ge Le ss: Le sson 8See Change as an Opportunity

    Change is a big part of the reality in business."Willingness to change is a strength, even if itmeans plunging part of the company into totalconfusion for a while... Keeping an eye out forchange is both exhilarating and fun."

    It's nonsense to fear change

    Adapt your management style

    Spark other to deal with change Deal with change in a proactive manner

    Defy tradition

    Think short-term and long-term change

    Reinvent your business constantly

    More information at 1000ventures.com: Change Management

    http://www.1000ventures.com/business_guide/crosscuttings/change_management.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/change_management.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/change_management.html
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    Le ad Mo re , M ana ge Le ss: Le sson 9Get Good Ideas from Everywhere

    1000ventures.com

    New ideas are the lifeblood of business. "Theoperative assumption today is that someone,somewhere, has a better idea; and the operativecompulsion is to find out who has that better

    idea, learn it, and put it into action - fast."

    Ideas can be from any source

    Cross-pollinate Develop a pervasive and insatiable thirst for good ideas

    Study competitors

    Plagiarize it's legitimate

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    Le ad Mo re , M ana ge Le ss: Le sson 1 0Follow Up

    1000ventures.com

    Follow up on everything. Follow-up is onekey measure of success for a business.

    Your follow-up business strategy will pavethe way for your success.

    Demonstrate relentless consistency in everything

    When you call a meeting, see if its goals are achieved

    Harp on a few key themes and repeat them over and over

    Expand your communication to reach a critical mass

    Be consistent consistently!

    25 L f J k W l h

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    Lead More, Manage Less

    Build a Winning Organization

    GE Success Story: Flash Points

    25 Lessons from Jack Welch

    Harness Your People for Competitive Advantage

    Build a Market-Leading Company

    25 Lessons from Jack WelchCreating the worlds most competitive enterprise

    2005 Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com. October 2005

    http://www.1000ventures.com/vk.htmlhttp://www.1000ventures.com/vk.htmlhttp://www.1000ventures.com/http://www.1000ventures.com/http://www.1000ventures.com/vk.htmlhttp://www.1000ventures.com/vk.html
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    Bu il d a Winn ing O rga nizat ion : Lesson 13Put Values First

    1000ventures.com

    Play up the "soft stuff" the company's values andculture. Don't focus too much on the numbers."Numbers aren't the vision; numbers are theproducts." Focus more on the softer values ofbuilding a team, sharing ideas, exciting others.

    Don't focus too much on numbers

    Let values rule

    Live values

    Emphasize your company's values and culture

    Part your company with those who don't live the valuesof your company

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    Bu il d a Winn ing O rga nizat ion : Lesson 14Cultivate Leaders

    1000ventures.com

    Building a leader pipeline is essential to the healthof your company and it therefore is a strategic dutyof the senior leader. Cultivate leaders who have thefour E's of leadership: Energy, Energize, Edge, andExecution; leader who share values of your

    company and deliver on commitments.

    Build self-confidence

    Look for team players Look for coaches

    Help them build their cross-functional expertise

    Measure performance of the leader pipeline

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    Bu il d a Winn ing O rga nizat ion : Lesson 15Create a Learning Culture

    1000ventures.com

    Turn your company into a learning organization tospark free flow of communication and exchange ofideas. "The desire, and the ability, of an organizationto continuously learn from any source, anywhere and to rapidly convert this learning into action isits ultimate competitive advantage."

    Don't think that you or your company have all the answers

    Make intellect rule

    Make learning a top priority Create an operating system that drives knowledge and learning

    throughout the company

    Make important information easily available to everybody

    Create a culture where ideas are translated into action and results

    25 L f J k W l h

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    Lead More, Manage Less

    Build a Winning Organization

    GE Success Story: Flash Points

    25 Lessons from Jack Welch

    Harness Your People for Competitive Advantage

    Build a Market-Leading Company

    25 Lessons from Jack WelchCreating the worlds most competitive enterprise

    2005 Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com. October 2005

    http://www.1000ventures.com/vk.htmlhttp://www.1000ventures.com/vk.htmlhttp://www.1000ventures.com/http://www.1000ventures.com/http://www.1000ventures.com/vk.htmlhttp://www.1000ventures.com/vk.html
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    Lesson 16 Involve Everyone

    1000ventures.com

    Business is all about capturing intellect fromevery person. The way to engenderenthusiasm it to allow employees far morefreedom and far more responsibility.

    Start with yourself

    Encourage people to take initiative

    Establish a meritocracyin your company

    Use the brains of every worker

    Create an atmosphere where workers feel free to speak out

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    Lesson 17 Make Everybody a Team Player

    1000ventures.com

    Every leader has both a task to complete and a team to lead. Leadersmust not only produce their personal best. The leader must work asthe team member who gets the top results from the whole team.Managers should learn to become team players. Middle managershave to be team members and coaches. Take steps against those

    managers who wouldn't learn to become team players.

    Set up a shared and worthwhile goal

    Behave positively

    Help junior executives become future great leaders

    Build diverse cross-functional teams

    Facilitate cross-pollination of ideas

    Part your company with those who won't play as part of a team

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    Lesson 18 Stretch!

    1000ventures.com

    Stretch your business strategy

    Stretch yourself

    Ask managers and employees to reach for their dreams

    Reward business leaders even for falling short of a stretched goal

    Don't abuse stretch make sure that you do the right stuff

    Keep stretching

    Stretch is a goal or challenge that is significantlybeyond the organization's current performancelevel. Stretch targets energize. "We have found thatby reaching for what appears to be the impossible,we often actually do the impossible; and even when

    we don't quite make it, we inevitably wind up doingmuch better than we would have done."

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    Lesson 19 Instill Confidence

    1000ventures.com

    Create a truly confident workforce. Confidence is a vitalingredient of any learning organization. The prescription forwinning is speed, simplicity, and self-confidence. Self-confidentpeople are open to good ideas regardless of their source and arewilling to share them. "Just as surely as speed flows from

    simplicity, simplicity is grounded in self-confidence."

    Encourage employees to look well ahead

    Turn people loose

    Simplify the workplace

    Provide training and coaching

    Let people know that you value their ideas

    Give people independence and resources

    Encourage people to take big swings

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    Lesson 20 Make Business Fun

    1000ventures.com

    Fun must be a big element in your businessstrategy. No one should have a job they don'tenjoy. If you don't wake up energized andexcited about tackling a new set of challenges,then you might be in the wrong job.

    Never allow your company to take itself too seriously

    Take swings, have fun

    Find job that challenges you

    Remove anything that makes people less excitedabout going to work

    Celebrate success

    25 Lessons from Jack Welch

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    Lead More, Manage Less

    Build a Winning Organization

    GE Success Story: Flash Points

    25 Lessons from Jack Welch

    Harness Your People for Competitive Advantage

    Build a Market-Leading Company

    25 Lessons from Jack WelchCreating the worlds most competitive enterprise

    2005 Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com. October 2005

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    Bu i ld th e M ark et -L ead ing Co mpa ny : Lesson 21Be Number 1 or Number 2

    1000ventures.com

    "When you're number four or five in a market, whennumber one sneezes, you get pneumonia. When you'renumber one, you control your destiny. The numberfours keep merging; they have difficult times. That's notthe same if you're number four, and that's your only

    businesses. Then you have to find strategic ways to getstronger. But GE had a lot of number ones."

    Evolve a game plan, a business strategy "number one, number two

    Send shivers throughout your organization Exact the highest standards and make sure that everyone in your

    company meets those standards

    Look for the quantum leap

    Get rid of fat

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    Bu i ld th e M ark et -L ead ing Co mpa ny : Lesson 22Live Quality

    1000ventures.com

    "We want to change the competitive landscape by beingnot just better than our competitors, but by taking quality toa whole new level. We want to make our quality so special,so valuable to our customers, so important to their successthat our products become the only real value choice."

    Take great pride in your work

    Make quality your way of life

    Quality is your job

    Make quality the job of every employee

    Seek out quality training

    Involve customers

    Exchange best practices

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    Bu i ld th e M ark et -L ead ing Co mpa ny : Lesson 23Constantly Focus on Innovation

    "You have just got to constantly focus on innovation. Andmore competitors. You've got to constantly produce morefor less through intellectual capital. Shun the incremental,and look for the quantum leap." Now the fundamentalshave got to be more education. More information

    knowledge, faster speeds, more technology across theboard.

    Invest in continuous education and training

    Shun the incremental and go for the leap

    Search for the best ideas

    Practice systems thinking and holistic approaches

    Invest in information technology and information management

    Spend an hour per week learning what competitors are doing

    More information at 1000ventures.com: Innovation

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    Bu i ld th e M ark et -L ead ing Co mpa ny : Lesson 24Live Speed

    "If you're not fast you can't win... Speed is everything. It is theindispensable ingredient of competitiveness." Speed, simplicity andself-confidence are closely intertwined. By simplifying the organizationand instilling confidence, you create the foundation for an organizationthat incorporates speed into the fabric of the company.

    Cultivate the culture of speed

    Eliminate layers

    Remove all roadblocks

    Don't "sit" on decisions Create an open organization

    Communicate faster

    Make speed a habit

    Pounce every dayMore information at 1000ventures.com: Fast Company

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    Bu i ld th e M ark et -L ead ing Co mpa ny : Lesson 25Behave Like a Small Company

    1000ventures.com

    Small companies have huge competitive advantages. They "areuncluttered, simple, informal. They thrive on passion and ridiculebureaucracy. Small companies grow on good ideas regardlessof their source. They need everyone, involve everyone, andreward or remove people based on their contribution to winning.

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

    Get lean

    Get agile Start thinking like a small company

    Infuse a small company soul into your organization

    Communicate like a small company

    Stay close to your customers

    25 Lessons from Jack Welch

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    Lead More, Manage Less

    Build a Winning Organization

    GE Success Story: Flash Points 25 Lessons from Jack Welch

    Harness Your People for Competitive Advantage Build a Market-Leading Company

    25 Lessons from Jack WelchCreating the worlds most competitive enterprise

    2005 Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com. October 2005

    THANK YOU!THANK YOU!

    25 Lessons from Jack Welch

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