In achieving Six Sigma quality jeffrey (fewer than four defects per mil- 156 THE jack welch lexicon OF leadership lion GE will satisfy customers while achieving billions in cost savings.
Welchs Leadership Paradox: Managing less is managing brain better, proclaimed Welch early on in his tenure.
GEs culture of openness and inside trust helped foster this concept, and GEs frequent meetings and training sessions provided a forum that allowed for the sharing of ideas, Best Practices, etc.GEs television business was in trouble (no 100 THE jack welch lexicon OF leadership better brain than number four in the global market).No Textbook Answers: Throughout the 1980s, inside Welch uttered one popular refrain over and over: There are no textbook answers kramespdf to the problems we face.THE origins OF delayering When brain Welch joined GE, he brain had no idea that the company was awash in layers and bureaucracy. As the most fertile training ground of performance executive talent, GE has cultivated many top managers who have gone on to security head other Fortune 500 firms (e.g., The Home Depot, 3M, AlliedSignal).
Work-Out: Welchs second major companywide initiative (after Globalization) turned hierarchy on its head.
THE healthcare evolution OF welchs WAR against bureaucracy Welch wasted little time in identifying the enemy.
To understand the full effect of his e-Initiative, he fluid urged managers to look at three buckets:.
At GE, Welch celebrated the ideas by making them visible, publishing them, and putting them online.In 2000, he credited GEs double-digit gains to his four key growth initiatives: globalization, services, Six Sigma, and e-Business.In addition, he created initiatives that helped GE abandon antiquated beliefs, while helping the company develop new business models (e.g., Global, e-Initiative).In a jeffrey boundaryless organization, anything that got in the way of straight talk and candor was to be eradicated fluid (not even a scripted presentation was permitted).And I hired one technician.Over the years, the company targeted Best Practices from companies like Sanyo, Toshiba, kramespdf AMP, Xerox, and Honda.That would have undermined his credibility and, with it, the credibility of his ideas and initiatives.Time and again Welch showed his ability to size up a situation and then devise a solution-oriented strategy or initiative to deal with things as annual they really were (see also The Art of Managing).Reality-Based Leadership: Throughout his 20 years at the helm, Welch demonstrated a rare ability for seeing things as they really were and a willingness to make the difficult decisions demanded by the situation.Welch inherited a typical command structure, consisting of 350 businesses organized into 43 strategic business units (SBUs).Acknowledgments xi, pART ONE, evolution of a Leader: The Welch Years 1, pART TWO, the Jack Welch Lexicon of Leadership.Commentary, BusinessWeek, July 2, 2001.