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All efforts have been made to ensure that the book under review in this presentation is depicted in its original form and without personal influence of the presenters except for logical examples. Any error observed in content delivery is unintentional and regretted.
"We are what we repeatedly do. Excellence, then, is not an act, but a habit.
Aristotle
Jack Welch?
John Francis "Jack" Welch, Jr. b. November 19, 1935 PhD - Chemical Engineering Former Chairman & CEO of GE Manager of the Century - Fortune One of the three most admired business leaders in the world - Financial Times
Jack Welch knew how to win. Led the company to year-after-year success around the globe, in multiple markets against brutal competition. Honest, be-the-best style of management became the gold standard in business. With his relentless focus on people, teamwork & profits. Market capitalization rose from $13 billion to $400 billion making it the most valuable and largest company in the world.
No other management book will ever be needed. Warren E. Buffett A candid and comprehensive look at how to succeed in business. Bill Gates ...candid and accessible...insights and wisdom to share. Business Week ...smart, practical and not afraid to address tough subjects. Newsweek The right stuff. The Wall Street Journal Now is the time. New York Times
Winning: noun 1. the act of a person or thing that wins. 2. Usually, winnings. something that is won, especially money. 3. that wins; successful or victorious, as in a contest: the winning team.
Business is about people. In fact, life is only about people. At the end of the day, it is only people that matter. People in companies must find a way to win. Winning is brutally hard but achievable.
This book offers no easy formulas. There are none. It, however, gives you guidelines to follow, rules to consider, assumptions to adopt and mistakes to avoid.
WINNING
Lets begin the journey
Welch has divided the book into four parts: Company Attitude The Company & its People Managing Organizations & Competition Your Career
Whats Ahead
Winning
Mission&Values
An effective mission statement basically answers one question: How do we intend to win this business?
Requires companies to make choices about people, investment & resources. Prevents them from falling into the common mission trap of asserting they will be all things to all people at all times.
Mission&Values
Profitability
Inspiration
Sense of Direction
Mission&Values
Mission Statement
Top Management
Mission&Values
Values are marching orders. They are how the mission, the means to the end - winning.
Creating values should be iterative. Involve everybody. Make them tangible, identifiable, real, clear.
Mission&Values
Mission Statement
Winning Proposition
Values
Mission and values rupture due to the little crises of daily life in business Remember the tragic demise of Arthur Andersen and Enron?
Candor
candor/kand r: - Noun, the quality of being open and honest in expression; frankness.
Candor
Candor
Candor is hard to implement and is time consuming. To get candor, you reward it, praise it and talk about it. Most of all, you yourself demonstrate it in an exuberant and even exaggerated way.
Candor
Cuts Cost!
D I F F E R E N T I A T I O N
Differentiation
A company has only so much money & time. Winning leaders invest where the payback is the highest. They cut their losses everywhere else.
Differentiation
Differentiation is a way to manage people and businesses. Welch suggests that differentiation should be linked to a candid performance appraisal system and has advised to assess employees, separating them into three categories.
Differentiation
Top 20% Star performers - rewarded and nurtured. Middle 70% Future stars, core workers - train and cultivate them. Bottom 10% They have to go. Period.
So differentiate if you want the best people in your team. Its transparent, fair and speeds up the whole process.
Voice
&
Dignity
Voice&Dignity
In China, a young woman asked Welch how any businessperson in her country could practice candor and differentiation when only the voice of the boss is allowed? At a Work-Out session, Welch asked a co-worker, Why arent you asking those questions to your own boss? The answer came, I cant bring that up. Id get killed.
Voice&Dignity
Some people have better ideas than the others; some are smarter or more experienced or more creative. But everyone should be heard and respected.
Leadership
LEADERS upgrade, evaluate, coach their team. make sure that people live & breathe the vision. radiate positive energy & optimism. establish trust with candor, transparency & credit. have the courage to make unpopular decisions & gut calls. make sure questions are answered with action. inspire risk taking and learn by setting examples. celebrate. Examples: Benazir Bhutto & Mian Muhammad Mansha
Leadership
Hiring
What is the one thing you should ask in an interview to help you decide whom to hire?
Hiring good people is hard. Hiring great people is brutally hard.
Hiring
Hiring
Positive Energy
Has an Edge
Can Execute
Hiring
Heavy-Duty Resilience
Put it all together and youll hire a person whos going to win!
PeopleManagement
- Elevate HR to a position of power and primacy. HR must have special qualities to help managers build leaders and careers. - Use a rigorous, non-bureaucratic evaluation system.
PeopleManagement
- Create effective mechanisms: money, recognition and training: to motivate and retain. - Face straight into charged relationships: unions, stars, sliders and disrupters.
PeopleManagement
- Treat the middle 70% like the heart and soul of the organization. - Design the org chart to be as flat as possible, with blindingly clear reporting relationships and responsibilities.
Example of Company where Middle 70% is taken for granted: Woodward Example of Organization with Tall and Ineffective org structure: Police Dept.
PeopleManagement
PartingWays
PartingWays
THE PRELUDE
Professional development
PartingWays
PartingWays
No Surprises No Humiliation No Procrastination Example of Company where its done wrong: Geo TV
Change
Change
Technology
Change is an absolutely critical part of business. You do need to change before you have to.
Change
Welch advises to follow these four practices: - Attach every change to a clear goal. - Hire and promote only true believers and go-getters. - Search and remove the resisters, even if their performance is satisfactory. - Look out for wrecks and exploit change.
CrisisManagement
CrisisManagement
Assumptions which give a plan of action to solve crises: - Worse than your imagination. - Everyone will come to know. - Media will crucify you. - Systems and people must change. - You will survive; becoming smarter and stronger. Example of Company that survived and then flourished: PTCL Example of Company that took all the wrong steps: Dewan Group
CrisisManagement
Strategy
Welchs strategy approach in three steps: - Come up with a big aha for your business. - Put the right people in the right jobs. - Seek out best practices to achieve the goal.
Strategy
WHAT THE PLAYING FIELD LOOKS LIKE NOW - The competitors? - The market share? - Characteristics of this business? - Strengths and weaknesses of competitors? - The customers?
Strategy
WHAT YOUR COMPETITION HAS BEEN UP TO - Their past year performance? - New products, technologies, distribution channel? - New entrants?
Strategy
WHAT YOU'VE BEEN UP TO - Your past year performance? - Introduced a new product, strengthened the team? - Lost any competitive advantages?
Strategy
WHAT'S AROUND THE CORNER - What scares you most in the year ahead? - How could your competitor harm you?
Strategy
WHAT'S YOUR WINNING MOVE? - What can you do to change the playing field? Is it an acquisition, a new product, globalization? - What can you do to make customers stick to you more than ever before and more than to anyone else?
Strategy
Ponder less, do more. Example of Organization with Worst Strategic Planning: KESC
Budgeting
Budgeting
The Better Way Link budgeting to strategic planning process and focus on two questions: - How can we beat last year's performance? - What is our competition doing, and how can we beat them?
OrganicGrowth
Organic growth is the process of business expansion by increasing overall customer base (market share performance), increased output per customer, new sales, new products or services (portfolio growth) or any combination of the above.
OrganicGrowth
Welch provides three guidelines for making organic growth a winning proposition. - Spend plenty and put the best people in leadership roles. - Make a commotion about the new venture. - Get off the new venture's back.
OrganicGrowth
Mergers&Acquisitions
Handled right, a merger or acquisition could give you a 1 + 1 = 3 or even 1 + 1 = 11 But there are seven pitfalls to avoid. You have to deal the heat.
Mergers&Acquisitions
- Merger of equals - Cultural fit - Reverse hostage situation - Integrating too timidly - Conqueror syndrome - Paying too much - Resistance
Mergers&Acquisitions
SixSigma
SixSigma
Six Sigma is a quality program to improve a companys operational efficiency, improves customers experience, lower costs and build better leaders.
SixSigma
Last Word
Footnote
In Good To Great, Jim Collins discusses companies' "Hedgehog Ideas, their core, driving business: what can we be the best in the world at, that we love to do? GE posed a particular problem for him. It didn't enter a market where it couldn't be first or second, and nevertheless it was in a tremendous number one of different markets. Collins finally decided that GE's core business was developing CEOs, and indeed, GE alumni are all over the country's executive suites.
My philosophy of life is that if we make up our mind what we are going to make of our lives, then work hard toward that goal, we never lose - somehow we win out. Ronald Reagan
http://www.welchway.com/