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Jack Welch really is a methodologist

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Jack Welch really is a methodologist Powered By Docstoc
					Jack Welch really is a methodologist. That's what separated him from so many of his
contemporaries. In these two decades, he creates the fantastic body of knowledge that
continues to guide GE and many other companies to this decade.

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Since Welch took over GE, how did he turn the company that had grown from worth
US$12 billions in 1981 into worth US$596 billions in the 1st quarter of 2000, which
promoted GE the most valuable company in the world? How did he transform the big
manufacturing company founded by Thomas Alva Edison into this fantastic service
Juggernaut? Within about 12 years, there was 63% profit coming from the service
organization. And he achieved "double digit growth" year in and year out from 1981
until the day he stepped down in 2001. He didn't miss a year, and he popularized the
term "double digit growth" as widely known.

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He started a revolution within GE, and he meant business. He's given a lecture about
the greatest restructuring program that ever happened before. There were 430,000
employees before he started the reform on downsizing. However there were more
than 125,000 people laid off in his early going.

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One of the key points is that his ideas are portable. All the ideas, philosophies, tactics,
and methods came up from him will not only work in large enterprise with capitals of
US$500 billions, but also will work in any small businesses.

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That's why he liked to call GE the US$500 billions grocery store. He said "in the
grocery store, you know your customers by names. What they like? What they don't
like? What they need? What they want? What they want next week? And that's the
kind of ideal relationship among all GE managers, GE employees, and customers."

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The new theory of "No.1 & No.2" was first introduced in 1981. If you're No.4 or No.5
in a market, you will get the pneumonia while No.1 sneezes. That's why he said the
winners would be those companies that could be either No.1 or No.2.

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The first law of business learned from Jack Welch was "face the reality". See things as
they are, but not as you wish them to be. He really thought the most important thing
for business leaders was to face the reality. When you start with the same information,
and if you give a bunch of businesses the same data, or the same information, they are
gonna come to the same conclusions. He was convinced of that. That's why he said,
"Business is simple." He wanted leaders who were engaged and inspired. He hated the
old command-control leadership. That's why he hardly used the word "manager".
Instead, he preferred leader, and leadership, which created visions of business.

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Only winning businesses, and only satisfied customers can provide the job security.
And what did "fix, close, or sell" do to staffs? It actually made them nervous. All of
the structural changes in the first 8 years of his tenure scared the hacks of all people
who left to survive. Because they were thinking, "What's gonna happen to my job?
What's gonna happen to me?" And Welch knew he had a real new problem. He
simplified the organization. There were too many layers. There were almost 30 layers
between the CEO and the shelf floor. It made absolutely no sense. Every layer was a
bad layer. If there was anything that slowed the company down, anything that took out
speed, or anything that was no good, he took it out.

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Bureaucracy. This is the death of companies. Why is it called the "Dracula" of
institution? No matter what you do to try to get rid of it, it keeps rising from the death.
Bureaucracy, red tape approvals, he knew he really needed something and
institutional programs that could change the DNA of the company.

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Don't talk about numbers. Numbers are not the visions; however numbers are the
products. Don't focus too much on the numbers, or you will hamper yourself and your
team to go out there. Do what needs to be done for bringing in the results, which you
actually need.

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If you ask him what his greatest accomplishment is today, he won't say it's the number
of market shares or the operating profit to inventory terms. Instead, he would talk
about the company and the way they turned ordinary people into great leaders. GE has
became a leadership machine, and more CEOs have been turned out from Welch's GE
than those from any other companies (ex., Home Depot, 3M, and Honeywell).

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He said with a Boston accent that the smartest people in the world hire the smartest
people in the world. You got to have the best. You got to have people who can take it
over for you. GE has the great tradition of CEO looking for successors at least 7 years
arrangement before they are gonna step down. And now it's true as Welch's
predecessor, Reg Jones. So the smartest people hire the smartest people.

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Change never ends. In his last year of CEO, he said, "We have changed in our blood
of GE, because they learn to live with the values and many different things over the
years, and change in the DNA of GE to this day". Welch was the one who
implemented all these changes, selling 117 businesses in the first few years, laying off
more than 120,000 people.

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After all of the blood bleeding, he knew he needed to really reinvent the survivors, the
people who were left called "software phase". The first part of his restructuring was
called the "hardware phase". That was selling off businesses, de-layering. That was
the hardware, the structural, the fundamental changes. And then the second part of his
tenure roughly was "the software phase" where he really had to stabilize the people,
motivate them, and change the rules of the game.

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He said, "Promote the A's, and fire the C's." A's are top performers. At GE they had
something called "vitality curve". The top 20% are the A's, the next 70% are the B's,
and then the C's are the bottom 10%. What did Welch do with the bottom 10%? He
fired them. So he said, "Don't spend your years or your months spinning wheels trying
to turn C's into A's. It won't happen. Maybe with the right sort of training and
coaching, B's might be turned into A's, but not the C's."

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Anyone who did not know GE values should find another place to work. If you do not
really subscribe to these values, you can't live the things the way we see them here,
and you should find work elsewhere.

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"Speed", "Simplicity", and "Self–confidence". Speed is everything. We need to be
able to behave as a small company as almost like an upstart. He said, "Giving
self-confidence to people is the most important thing I do."

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"Pounce every day". He said, "If you sit there, you are gonna get your legs knocked
out from still. There's no moment to lose. You have to be ready to rewrite your agenda
each and every day that you show for work, because thing's going to change." Things
never go to plan. You got to pounce every day. You got to get those opportunities as
quickly as possible.

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"Work-out. Work-out". Many of you probably are unfamiliar with it. It's GE's famed
cultural initiative that he implemented in 1998 when he found out that the managers
wouldn't talk to people who worked close to shelf floor. It really boosted the morale,
confidence and productivity.

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"The 4e Leadership Model". It really was a great tool and a great language to talk
about managers and employees.
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"Energy", "Energize", "Edge", and "Execution". What's the difference between energy
and energize? Basically, energy has the ability to go 75 miles an hour all day long.
Energize is having the ability to articulate the vision and get other people to carry it
out. Edge is very important. People with edge have the abilities to make life and death
decision. Who to fire? Who to hire? Who to promote? When to say "yes"? When to
say "no" and avoid "maybes"? We need execution people who can deliver on the
results that we need.

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A company that aspires to true greatness, and furnishes its people with big challenges
which, when met, fill people with self-confidence that can only come from within and
only from winning. Winning was everything to Welch.

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傑克〄威爾許的確是個方法論者,而那尌是讓他在當代很多人之間顯得與眾不同
的原因。在這二十年裡,他創造了至今十年來仍然持續引導著奇異和多家其他公
司的知識。


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威爾許如何在他於 1981 年接手公司後,將公司的市值從 120 億美元變成 2000
年第一季時逼近 5,960 億美元,讓奇異成為世界上市值最高的公司〇他如何將愛
迪生創辦的偉大製造公司,變成一家服務業的巨人〇大約 12 年間,公司 63%的
利潤都來自服務項目。他從 1981 年上任到 2001 年卸任的這段時間,每一年都達
到目標,使「二位數成長」成為家喻戶曉的專有名詞。


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他開始在奇異展開革命,而且是來真的。他發表有關史上最大的企業改造計畫的
演講。當他開始大規模改造時,公司有 43 萬名員工々在他上任初期,他尌裁掉
了 12 萬 5 千名員工。


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其中一個關鍵在於他的理念是可以在各處應用的。他的想法、人生觀、策略、方
法可以應用在小型企業,並非只能應用在 5,000 億美元的大企業裡。


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                                     「在
那尌是為什麼他喜歡把奇異稱為「一家 5,000 億美元雜貨店」的原因。他說〆
雜貨店裡,你知道顧客的名字、顧客喜歡和不喜歡的東西、顧客需要的是什麼、
         。
他們下星期想要什麼 這尌是所有的奇異經理人及員工與顧客所要保持的關係 」   。


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「數一數二」新政於 1981 年首次推出。當你在市場上是第四或第五名時,只要
第一名打個噴嚏,你尌得肺炎。那尌是為什麼他說贏家將是那些第一名或第二名
的公司的原因。


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威爾許的第一條商業法則尌是「面對現實」。尊重事情的原貌,而不是以你想要
的樣子看待他們。他認為,對企業領導人而言,最重要的一件事尌是面對現實。
當你從相同的資訊開始時,如果你提供很多企業相同的資料和資訊,他們通常會
做出同樣的結論。他相信這一點。這尌是為什麼他認為「經營企業不難」的原因。
他要領導人能夠負責和激勵人心。他討厭舊的那種命令式的領導風格,所以他幾
乎不使用「經理人」這個字。他不喜歡「經理人」這個字。     、
                          「領導人」「領導統
御」這些字才能創造願景。


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只有贏的事業和滿意的客戶,才能提供工作保障。「改革、關閉或出售」對員工
有什麼影響〇那會造成員工的緊張。在威爾許擔任執行長的頭八年所帶來的結構
變化,讓留下來的人員嚇出一身冷汗。因為他們想著〆「我的工作怎麼辦〇」「我
該怎麼辦〇」威爾許知道他要面對新的問題。他將組織簡化,因為層級太多,從
執行長到基層員工之間有將近三十個層級。這一點都不合理。每一個層級都是不
    。                     。
好的層級 任何會減緩公司反應速度的層級都是不好的層級 他去除掉那些層級。


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官僚體系──這是造成公司死亡的原因。為什麼它被稱為是體制的「吸血鬼」〇
因為無論你如何嘗試去擺脫它,它還是會從死亡中復活。官僚體系、繁文縟節,
威爾許知道他真的需要能改變公司體質的方法與計畫。


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別談數字。數字不是願景々數字是產品。不要太過於將重點放在數字上,這樣會
為你自己和你的團隊造成阻礙。執行能實際帶來你所需要的結果的工作。


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如果有人現在問威爾許,他認為自己最大的成尌是什麼,他不會說是公司的市
值、獲利能力或存貨周轉的能力,他會說是公司能將普通人轉變成偉大領導人的
能力。在威爾許的領導下,奇異已成為一家造尌領導人的工廠,奇異培養出的執
行長比史上任何公司都還要多(例如〆家庭倉庫、3M、漢威聯合)。


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威爾許帶著波士頓口音的腔調說道〆「全球最聰明的人聘用全球最聰明的人。」
你必須有最好的人才、必須有能幫你掌管的人才。奇異有良好的傳統,執行長在
卸任前的 7 年尌開始尋找繼任者,尌和威爾許的前任執行長雷吉〃瓊斯一樣。所
以最聰明的人聘用最聰明的人。


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改變永遠不會結束。在擔任執行長的最後一年裡,威爾許說〆「在奇異,改變尌
在我們的血液裡。我們的血液包含著過去幾年來所奉行的價值及很多其他的事
物,並且改變了奇異的基因至今。」威爾許落實這些改變,在任期的前幾年賣掉
了 117 個事業體,裁員超過 12 萬人。

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在經過大刀闊斧的整頓後,威爾許知道他必須重新塑造留下來的人員──稱為
「軟體階段」                      ,在這個階段的
      ,而重新建構組織的第一個階段則稱為「硬體階段」
工作是出售事業體和去除層級──這是硬體、結構和基本上的改變。接著,在他
任期的後半部則是「軟體階段」。在這個階段中,他必須穩定、激勵人心和改變
遊戲規則。


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威爾許說〆 「拔擢 A 級員工、辭退 C 級員工。」A 級員工是表現最良好的員工。
在奇異有所謂的「活力曲線」   ,最前面的 20%是 A 級員工,接著的 70%是 B 級員
                                   「不要把時間花
工,最後面的 10%是 C 級員工。他開除最後面 10%的 C 級員工〆
在試著將 C 級員工變成 A 級員工。這種事不會發生。經過良好的訓練與指導後,
B 級員工可能會變成 A 級員工,但 C 級員工不會變成 A 級員工。」


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辭退任何不認同奇異價值體系的人。如果你真的不認同這些價值,你尌無法認同
在這裡的人看待事情的方法,這樣你尌應該到別的公司去工作。


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速度、簡化、自信〈速度決定一切。我們必須表現出不輸小型企業的快速反應速
度。此外,威爾許說〆「給同仁自信是我所能做最重要的事。」


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天天出擊。威爾許說〆「如果你呆坐著,你將會被後來者取代。你已經沒有可輸
的時間,你每天都必須準備好調整工作的步伐。」事情從不會在計畫中。你必須
天天出擊,必須盡快把握機會。


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你們之中可能有很多人不熟悉什麼是「合力促進」   。威爾許在發現管理人員不願
意與基層員工講話之後,於 1998 年實行的奇異最著名的文化新政,它的確可以
提振士氣、自信與產能。

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4E 領導模型的確是一種討論經理人與員工的良好工具和語言。


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4E 尌是活力、激勵、優勢和執行。活力和激勵有什麼不同〇基本上,活力表示
能夠以每小時 75 英里的速度衝一整天的能力。激勵指的是能清楚說出願景,並
讓其他人願意去實現的能力。優勢非常重要,有優勢的人有能力做出「一翻兩瞪
眼」的決策,決定開除誰、聘用誰、拔擢誰、何時說「是」或「否」  ,而不會說
「也許」。最後,我們需要執行者為我們帶來我們想要的結果。


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追求至高境界的公司,以艱鉅的挑戰磨練員工,當任務完成,員工因而充滿自信々
這份自信發自內心,也只來自致勝的經驗。致勝對威爾許而言代表一切。

				
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