Jack Welch has achieved a legendary status in the business world and is considered by many of his colleagues and colleagues to be one of the greatest CEOs (CEOs) of all time.
During his 20 years of managing General Electric (1981-2001), as CEO and later chairman, Welch’s most significant achievement was to increase the company’s market value. Welch increased it from approximately US$14 billion when he took office to US$410 billion when he announced his retirement in 1999, making General Electric the world’s second-largest company by market capitalization, second only to Microsoft.
Accompanied by Welch’s unique, effective, and sometimes brutal management style, a number of profitable strategic acquisitions under his leadership have helped General Electric rise to the top of the business world, achieving more than 10% in consecutive quarters Profit growth. Welch’s most profitable acquisition was a $6.28 billion payment for the American Broadcasting Corporation (RCA), which owns NBC TV.
Manage like Jack
However, under Jack Welch’s energetic and visionary leadership, GE’s success story is a complex narrative of management innovation and prescient strategic moves, including not only acquiring companies but also selling troubled companies owned by large conglomerates. Company, and ruthlessly dismissed managers who did not produce.
In business, as in life, there are no guarantees. But for businesses of any size, Jack Welch’s management philosophy can be applied equally, and the results will be positive.
Management strategies from top CEOs
The following analysis will describe the basic principles of the Welch management system. Each principle contains details, subtleties, and case history that are discussed throughout the book. These five points will solve bigger problems.
- Change is a good thing; don’t be afraid. Welch insists that his managers, from the top to the bottom, “embrace change.” Welch said that everything is constantly changing-market conditions, business environments, consumer spending habits, technological advancements, new products and even your competitors.
CEOs, senior management teams, mid-level and junior managers, and individual employees must be open to reinventing themselves and everything they do. This is the only way to keep up with all the constantly changing factors that affect the business, the way it operates, and the bottom line.
- Lead a company, don’t over-manage it. Once upon a time, most senior managers performed only limited functions. They monitor, supervise and dictate orders to their subordinates. Isolated from subordinates and employees, these senior managers can neither motivate them nor allow them to take top-down unauthorized actions.
Welch hated this method.He often said that he wanted his senior leadership instead of management. Welch said that the manager controls and they do not provide convenience. Managers complicate things, they will not simplify things. Welch hinted that, in a sense, managers would apply the brakes instead of the accelerator. Successful managers can only understand the entire workflow if they integrate their responsibilities into multiple aspects of the business.
- Hire and train managers who can motivate, motivate and control. According to Welch, the ideal manager is someone who shares a vision with him, has unlimited energy, and is able to radiate enthusiasm and ignite fire among other employees. In addition to these very desirable skills, the best managers also have the indispensable talent for creating, developing and perfecting visions and putting them into practice.
Stimulating the enthusiasm and excitement of employees, no matter which level in the company hierarchy, is to give them more responsibility, give them permission, freedom and encouragement to act independently.
- Acknowledge the facts and use them to gain advantages or eliminate their negative effects. Welch believes that CEOs and all managers who deliberately ignore business facts, business environment, and overall market and economic conditions are doomed to fail.
Under Welch’s leadership, GE’s ever-changing market conditions and the ever-developing advantages of technology and financial resources prompted the CEO to sell certain assets, despite the profitability of these assets. Understanding the macroeconomic factors that affect your business can ensure long-term prosperity in a vibrant corporate environment. The assets that generate income today may not fit the ongoing company’s business model.
In 1986, as market facts indicated that mass media could increase profitability, GE acquired RCA, which owns NBC TV. This action eventually brought GE a huge and stable income.
- Focus, be consistent and follow up every detail. Focus, consistency, and follow-up are Jack Welch’s mantras. He has always focused on making changes when necessary, being open to new ideas, customer service, quality, simplicity, empowering managers and employees, and the pursuit of competitive advantage. These are all hallmarks of Welch’s outstanding leadership. Follow up to ensure that these values are pursued at all levels, but to ensure that in a very unpredictable world, the company has at least the potential for success.
The above management principles are only a small part of Welch’s comprehensive management style. From the CEO of a large company to the owner and operator of a small business, managers in all fields can benefit from implementing these ideas.
Welch’s skills in managing strategic and tactical actions, recruitment, compensation issues, R&D, financing, accounting, marketing and advertising, legal issues, employee relations and other human resource issues, and many other aspects of business operations are beyond the scope of this article.