Professional Documents
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Book Summary and Outline From Jack Welch's Book, "Winning": My Comments
Book Summary and Outline From Jack Welch's Book, "Winning": My Comments
Book Summary and Outline From Jack Welch's Book, "Winning": My Comments
On Mission
To be “the most competitive enterprise in the world” by being No. 1 or No. 2 in every
market – fixing, selling, or closing every underperforming business that couldn’t get
there.
Setting The Mission
Setting the mission is top management’s responsibility. A mission cannot, and must not,
be delegated to anyone except the people ultimately held accountable for it.
Values
Create values: People must be able to use them as marching orders because they are the
how of the mission, the means to the end – winning. In contrast to the creation of a
mission, everyone in a company should have something to say about values.
Integrating Mission & Values
A concrete mission is great. And values that describe specific behaviors are too. But for
a company’s mission and values to truly work together as a winning proposition, they
have to be mutually reinforcing.
Chapter 2: On Candor
B. It generates speed.
Chapter 3: Differentiation
Differentiation Defined
Basically, differentiation holds that a company has two parts, software and hardware.
Software is simple—it’s your people. Hardware depends. If you are a large company,
your hardware is made up of the different businesses in your portfolio. If you are
smaller, your hardware is your product lines.
Managing the People
It’s a process that requires managers to assess their employees and separate their
performance into three categories: top 20 percent, middle 70, and bottom 10. Then—and
this is the key—it requires managers to act on that distinction. I emphasize the word
“act” because all managers naturally differentiate—in their heads. But very few make it
real. Differentiation is about managers looking at the middle 70, identifying people with
potential to move up, and cultivating them. But everyone in the middle needs to be
motivated and made to feel as if they truly belong. You do not want to lose the vast
majority of your middle 70—you want to improve them. As for the bottom 10 percent,
and there is no sugarcoating this—they have to go.
When people differentiation is real, the top 20 percent of employees are showered with
bonuses, stock options, praise, love, training and a variety of rewards. There can be no
mistaking the stars at a company that differentiates. They are the best and are treated that
way.
Before you are a leader, success is all about growing yourself. When you become a
leader, success is all about growing others.
What Leaders Do: Jack’s 8 Rules
Nothing matters more in winning than getting the right people on the field.
The Acid Tests
People management covers a wide range of activities, but it really comes down to six
fundamental practices.
1. Elevate HR to a position of power and primacy in the organization, and make sure
HR people have the special qualities to help managers build leaders and careers.
In fact, the best HR types are a combination of pastor and parent in the same
package.
2. Use a rigorous, non-bureaucratic evaluation system, monitored for integrity with
the same intensity as Sarbanes-Oxley Act compliance.
3. Create effective mechanisms—read: money, recognition, and training—to
motivate and retain.
4. Face straight into charged relationships—with unions, stars, sliders, and
disrupters.
5. Fight gravity, and instead of taking the middle 70 percent for granted, treat them
like the heart and soul of the organization.
6. Design the organization chart to be as flat as possible, with blindingly clear
reporting relationships and responsibilities.
1. Attach every change initiative to a clear purpose or goal. Change for change’s
sake is stupid and enervating.
2. Hire and promote only true believers and get-on-with-it types.
3. Ferret out and get rid of resisters, even if their performance is satisfactory.
4. Look at car wrecks.
5. With all the noise out there about change, it’s easy to get overwhelmed and
confused.
Strategy is a living, breathing, totally dynamic game. It’s fun—and fast. And it’s alive.
In real life, strategy is actually very straightforward. You pick a general direction and
implement like hell.
First, come up with a big aha for your business—a smart, realistic, relatively fast way to
gain a sustainable competitive advantage.
Second, put the right people in the right jobs to drive the big aha forward.
Third, relentlessly seek out the best practices to achieve your big aha, whether inside or
out, adapt them, and continually improve them.
Strategy, then, is simply finding the big aha, setting a broad direction, putting the right
people behind it and then executing with an unyielding emphasis on continual
improvement. I couldn’t make it more complicated that that if I tried.
Making Strategy Real: 5 Points
Any strategy, no matter how smart, is dead on arrival unless a company brings it to life
with people—the right people.
Budgeting –Jack’s Way
While work-life balance was increasingly front and center during the 1990’s. The debate
about it has only intensified since my retirement in 2006. Today, no CEO or company
can ignore it.
Your boss’s top priority is competitiveness. Of course he wants you to be happy, but
only inasmuch as it helps the company win.
Most bosses are perfectly willing to accommodate work-life balance challenges if you
have earned it with performance. The key word here is: “if”.
Bosses know that the work-life policies in the company brochure are mainly for
recruiting purposes and that real work-life arrangements are negotiated one-on-one in the
context of a supportive culture, not in the context of “But the company says….!”
People who publicly struggle with work-life balance problems and continually turn to the
company for help get pigeonholed as ambivalent, entitled, uncommitted or
incompetent—or all of the above.
Even the most accommodating bosses believe that work-life balance is your problem to
solve. In fact, most know that there are really just a handful of effective strategies to do
that, and they wish you would use them.