Tuesday, June 9, 2009

Jack Welch's Leadership Formula

I bought a Jeffrey Krames book “Jack Welch and the 4E’s of Leadership” because the teaching of OL328 Leadership is never complete without embracing the winning leadership formula of Jack Welch. In his 20-plus years at the helm of General Electric, Welch transformed this mature manufacturing company into an outstanding products-and-services juggernaut. But most of all, Welch selected and developed leaders – under his watch, GE turned out more Fortune 500 CEOs than any other company in history (pp 2-3). But what impressed me about him is that he had guts! He was not afraid to act decisively: selling off more than 100 businesses and firing more than 100,000 employees (pp 6-7). As he himself said: “Change before you have to”. Now, what about HICT?

A second Jack Welch quote awakened inside of me: “Strong managers who make tough decisions to cut jobs provide the only true job security in today's world. Weak managers are the problem. Weak managers destroy jobs”. Is it any wonder that Fortune magazine named him one of America’s toughest bosses? It is not uncommon to read of massive job losses because of the current weakened economic state worldwide. It’s a tough call to make – erase jobs to save jobs! A third quote from Jack Welch rightly nailed it down: “Face reality as it is, not as it was or as you wish it to be”. I am a Jack Welch fan now. In fact, anybody who needs lessons in leadership should read this book!

No comments: