Jack Welch, the great corporate giant who turned GE into a huge success, had a way of simplifying matters – he said that all things that are important in a business, whether it is a nuclear power plant or a corner grocery store, are the same : people, quality, service and cash flow. He mentioned a number of his strategies and insights for managerial and organizational success in his books and lectures. The following 8 (the management octagon if you like) are our favorites…
People: A lot of organizations spend a lot of time formulating strategies and will spend enormous amounts of money on ensuring these are carefully considered and planned. The reality is one can have great strategies but without the right leadership and team it is all an exercise in futility. The job of the leader according to Jack Welch is 75% about people and 25% about other things.
Integrity: Forget the stuff about expediency – the ends justify the means argument. There is only one way – the right way and that’s that. For any professional organization and manager, this is the only route to long-term success.
Differentiation: How are we different? Where is the innovation? What is the value-add? what is special about our offering? how can our people be smarter and more creative than the competition? These questions need to be on the management agenda at all times.
Informal Culture: Jack Welch believed this was necessary not just for employee satisfaction but as a weapon of competitive advantage. He said it was more than just the easy stuff of using first names and casual dress – it was cutting out red tape, and ensuring everone felt included and significant.
Speed: This is a key parameter in any kind of organizational activity. Jack Welch would often regret not that he acted but that he did not act quick enough. Ask yourself how quickly you confront non-performers, how you delay important decisions because these are tough to make and may be unpopular. Caution is good but it should not get in the way of organizational momentum.
Long Term and Short Term: All managers need to be concerned with BOTH long-term and short term objectives. One view without the other is simply not possible. Long term happens because short term succeeds.
Change: When the rate of change within an organization becomes slower than the rate of change outside, the end is not far away. No organization can afford to stay within its comfort zone for too long. When success comes, it becomes even more necessary to move away from status quo even if that causes temporary discomfort.
Listening: One of the key drivers of team morale, greater ownership and organizational learning, listening more to customers, employees and partners is an essential requirement for leadership.