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Creating the world’s most competitive enterprise
© 2007 Vadim Kotelnikov, Founder, Ten3
Business e-Coach, www.1000ventures.com
25 Lessons25 Lessons
from Jack Welchfrom Jack Welch
Lessons from the legendary former CEO of GE,
whose management innovations have made him the most
influential CEO of his era
Ten3 Business e-Coach – the world’s leading source of
inspiration, innovation, and unlimited growth!
25 LESSONS FROM JACK WELCH
I. Lead More, Manage Less
II. Build a Winning Organization
 GE Success Story: Flash Points
 25 Lessons from Jack Welch
III. Harness/ connect Your People for Competitive
Advantage
IV. Build a Market-Leading Company
25 Lessons from Jack Welch
Creating the world’s most competitive enterprise
© Vadim Kotelnikov, Founder, Ten3
Business e-Coach, www.1000ventures.com
Slide + Executive Summary
To see Slides with Executive Summaries,
view or print slides as Note Pages
Clickable titles
 GE Leadership Assessment Survey
Contents
Creating the World’s Most Competitive Enterprise
Lessons from Jack Welch, Former CEO of GE
GE Market
Capitalization
US$13 billion
US$500 billion
2000
Jack Welch
steps down
as CEO of GE
1981
Jack Welch
appointed
as CEO of GE
1. Develop a vision for the
business
2. Change the culture to
achieve the vision
3. Flatten the organization
4. Eliminate bureaucracy
5. Empower individuals
6. Raise quality and
efficiency
7. Eliminate boundaries
Welch’s Seven-Point
Program for Management
by Leadership
More information at 1000ventures.com: “Jack Welch – a Corporate Change Leader”
Success
Story
Jack Welch – Corporate Change Leader
Welch’s Trademark Messages
 Business is simple.
 Don't make business overly complicated.
 Face reality, then act decisively.
 Don't be afraid of change.
 Change before you have to.
 Fight bureaucracy.
 Use the brains of your workers.
 Discover who has the best ideas, and put those ideas
into practice.
1000ventures.com
Leading Organizational Transformation
Lessons from Jack Welch
Leading Change
through the GE's Organization
 Redesigning the role of the leader in the
new economy: creating followers
through communicating a vision, and
establishing open, caring relations with
every employee
 Creating an open, collaborative
workplace where everyone's opinion is
welcome
 Empowering senior executives to run far-
flung businesses in entrepreneurial
fashion
 Liberating the workforce; making
everybody a participant through
improving vertical communication and
employee empowerment
Welch’s prescription
for winning in business
1. Speed
2. Simplicity
3. Self-confidence
More information at 1000ventures.com: “Jack Welch – Corporate Change Leader”
GE Leadership Assessment
Survey (LES): Characteristics
1. Vision
2. Customer / Quality Focus
3. Integrity
4. Accountability / Commitment
5. Communication / Influence
6. Shared Ownership
7. Team Builder / Empowerment
8. Knowledge / Expertise / Intellect
9. Initiative / Speed
10. Global Mind-set
More information at 1000ventures.com: “GE’s Leadership Assessment Survey (LES)”
Four Essential Tasks
1. Recognize the importance of
leadership to your business
success
2. Have in place a specific process
for developing leadership talent
3. Define leadership attributes
behaviorally, for the benefit of
future leaders
4. Use the leadership
competencies stipulated in the
Leadership Effectiveness
Survey (LES) to integrate a
number of management
practices with the purpose of
building quality of leadership.
Leadership Development
A Strategic Duty of All Senior Leaders at GE
Shared Corporate Values
GE Values Guide
GE Leaders... Always with Unyielding Integrity:GE Leaders... Always with Unyielding Integrity:
 Have a Passion for Excellence and Hate Bureaucracy
 Are Open to Ideas from Anywhere... and Committed to Work-Out
 Live Quality... and Drive Cost and Speed for Competitive Advantage
 Have the Self-Confidence to Involve Everyone and Behave in a
Boundaryless Fashion
 Create a Clear, Simple, Reality-Based Vision... and Communicate It
to All Constituencies
 Have Enormous Energy and the Ability to Energize Others
 Stretch... Set Aggressive Goals... Reward Progress... Yet Understand
Accountability and Commitment
 See Change as Opportunity... Not Threat
 Have Global Brains... and Build Diverse and Global Teams
More information at 1000ventures.com: “Shared Values”
Execution
They are action-oriented, and
are focused on getting results
Edge
They have a competitive edge
and a will to win
Energize
They energize teams, and
don't intimidate them
Energy
They have tremendous
personal energy
Lessons from Jack Welch
The 4 E’s of Leadership
More information at 1000ventures.com: “25 Lessons from Jack Welch”
Going for the leap
• Radical innovation
• Diversification
• Venture investing
• Acquisitions
Shining the incremental
• Lean organization
• GE Work-Out
• Quality Management: Six Sigma
GE Growth Strategies
“Shun/ Avoid the incremental and go for the leap“
– Jack Welch
More information at 1000ventures.com: “Sustainable Growth Strategies”
Strategy Formulation
GE Multifactor Business Portfolio Matrix
1000ventures.com
Invest /
Grow
Invest /
Grow
Invest /
Grow
Selective
Investment
Harvest /
Divest
Harvest /
Divest
Harvest /
Divest
LOW MEDIUM HIGH
Industry Attractiveness
MEDIUM
LOW
HIGH
BusinessPosition
Source: GE & McKinsey & Co.
Selective
Investment
Selective
Investment
“Companies win when their managers make a clear and meaningful distinction
between top- and bottom-performing businesses and people, when they cultivate
the strong and cull the weak.” – Jack Welch
Quality Management: Six Sigma
Impact of Six Sigma Implementation at GE
11%
14%
17%
13%
Revenue
increased
Profits
increased
Earning per
share increased
Operating
margins
increased
Results achieved over the first two years (1996-1998)
More information at 1000ventures.com: “Six Sigma”
"We want to change the competitive landscape by being not just better
than our competitors, but by taking quality to a whole new level.”
– Jack Welch
Six Sigma Implementation at GE
Making the Six Sigma Process Work
Four MAIC Steps
1. Measure
2. Analyze
3. Improve
4. Control
Five Corporate Measures
1. Customer Satisfaction
2. Cost of Poor Quality
3. Supplier Quality
4. Internal Performance
5. Design for Manufacturability
Everyday Six Sigma
 Plant managers can use Six Sigma to reduce waste, improve
product consistency, solve equipment problems or create capacity.
 Human resources managers can use it to reduce the cycle time for
hiring employees.
 Regional sales managers can use it to improve forecast reliability,
pricing strategies or pricing variation.
More information at 1000ventures.com: “Six Sigma”
GE Work-Out
Creating the Spirit of a Start-Up Firm in a Large Enterprise
1000ventures.com
Key Benefits of the Work-Out
 Reduces bureaucracy
 Empowers people
 Continuously reinvents ever-
more-effective ways of doing
business
At GE, Work-Out "Town Meetings" gave the
corporation access to an unlimited resource of
imagination and energy of its talented employees.
With Work-Out as part of its DNA, GE has become one of the
most innovative, profitable, and admired companies on earth.
Work-Out’s Four Major Goals
1. Build trust
2. Empower employees
3. Eliminate unnecessary work
4. Create a new paradigm
GE Work-Out
Seven Steps to Implement Work-Out
1000ventures.com
1. Chose the issues to be discussed.
2. Select the appropriate cross-functional team to tackle the problem.
3. Chose a "champion" who will see any Work-Out recommendation
through to implementation.
4. Let the team meet for three days, drawing up recommendations to
improve your company's processes.
5. Meet with managers, who make decisions on the spot about each
recommendation.
6. Hold more meetings as required to pursue the implementation of
the recommendations.
7. Keep the process going, with these and other issues and
recommendations.
No of Ventures Invested
0
300
600
1995 2000 2005
Nature of Venture
Investments (2002)
15%
85%
Strategic Value
Investments
Investments in
Areas Unrelated
to GE
 Established in 1995, General Electric (GE) Equity, a business unit within
GE Capital, invests around $1.5 billion annually in external ventures
 GE Equity invests an average of $3 million to $5 million in each of
companies, and it gets somewhere between 5 and 11% of each venture
 85% of investment are strategic value investments that help GE
businesses grow and are done jointly with one of them
Corporate Investing in External Ventures
GE Equity
More information at 1000ventures.com: “Corporate Venture Investing”
Corporate Venture Investing: GE Equity
Success Factors
Qualities of Top Managers
Critical to Success
 they are visionary leaders
aiming at building a world-
class, global, private equity
organization
 each of them is a
remarkable hybrid of
corporate executive and
venture capitalist
 they practice and lead a
highly disciplined approach
to project selection and
portfolio management
Highly Disciplined Business
Management System (BMS)
 rigorous examination
procedure
 systematic investment
approach based on decision
and probability theories
 the most onerous due-
diligence checklist in the
world of corporate venture
investing
 portfolio management system
More information at 1000ventures.com: “Corporate Venture Investing”
25 Lessons from Jack Welch
Creating the world’s most competitive enterprise
© 2007 Vadim Kotelnikov, Founder, Ten3
Business e-Coach, www.1000ventures.com
Slide + Executive Summary
To see Slides with Executive Summaries,
view or print slides as Note Pages
I. Lead More, Manage Less
II. Build a Winning Organization
 GE Success Story: Flash Points
 25 Lessons from Jack Welch
III. Harness/ Connect Your People for Competitive
Advantage
IV. Build a Market-Leading Company
Clickable titles
 GE Leadership Assessment Survey
Management by Leadership
25 Lessons from Jack Welch
LEAD MORE, MANAGE LESS
1. Lead
2. Manage less
3. Articulate your vision
4. Simplify
5. Get less formal
BUILD A WINNING ORGANIZATION
11. Get rid of bureaucracy
12. Eliminate boundaries
13. Put values first
14. Cultivate leaders
15. Create learning culture
HARNESS/ Cont. YOUR PEOPLE
16. Involve everyone
17. Make everybody a team player
18. Stretch
19. Instill confidence
20. Make business fun
BUILD THE MARKET-LEADING COMPANY
24. Live speed
25. Behave like a small company
6. Energize others
7. Face reality
8. See change as an opportunity
9. Get good ideas from everywhere
10. Follow up
21. Be number 1 or number 2
22. Live quality
23. Constantly focus on innovation
More information at 1000ventures.com: “25 Lessons from Jack Welch”
25 Lessons from Jack Welch
Creating the world’s most competitive enterprise
© 2007 Vadim Kotelnikov, Founder, Ten3
Business e-Coach, www.1000ventures.com
Slide + Executive Summary
To see Slides with Executive Summaries,
view or print slides as Note Pages
I. Lead More, Manage Less
II. Build a Winning Organization
 GE Success Story: Flash Points
 25 Lessons from Jack Welch
III. Harness Your People for Competitive Advantage
IV. Build a Market-Leading Company
Clickable titles
 GE Leadership Assessment Survey
Managers muddle – leaders inspire.
"What we are looking for are leaders at
every level who can energize, excite and
inspire rather than enervate, depress,
and control."
 Create a vision and then ignite your organization to make this
vision a reality
 Focus on strategic issues
 Don't micromanage
 Involve everyone and welcome great ideas from everywhere
 Lead by example
More information at 1000ventures.com: “Effective Leadership”
Lead More, Manage Less: Lesson 1
Lead
Lesson1: LEAD
"We are constantly amazed by how much people will
do when they are not told what to do by
management." In the new knowledge-driven
economy, people should make their own decision.
Managing less is managing better. Close
supervision, control and bureaucracy kill the
competitive spirit of the company. "Weak managers
are the killers of business; they are the job killers.
You can't manage self-confidence into people."
 Don't get bogged down in overmanaging
 Don't hold information close to your chest
 Inspire, empower, and get out of the way
More information at 1000ventures.com: “25 Lessons from Jack Welch”
Lead More, Manage Less: Lesson 2
Manage Less
"Leaders inspire people with clear visions of how
things can be done better." The best leaders do not
provide a step-by-step instruction manual for workers.
The best leaders are those who come up with new
idea, and articulate a vision that inspires others to act.
 Create and project a clear vision
 Articulate a few clear stretch goals for your company
 Make sure you have the very best people to carry
your vision out.
More information at 1000ventures.com: “Vision, Mission, Goals”
Lead More, Manage Less: Lesson 3
Articulate Your Vision
Keeping things simple is one of the keys to business.
Have the courage to be simple. Simplicity is practically an
art form, with many definitions. "Simple messages travel
faster, simpler designs reach the market faster and the
elimination of clutter allows faster decision making."
 Don't make business harder than it is
 Think simply to create a clear vision
 Make your messages simple
 Build self-confidence
 Simplify your workplace and communications
 Make meeting simpler
More information at 1000ventures.com: “The Power of Simplicity”
Lead More, Manage Less: Lesson 4
Simplify
"You must realize now how important it is to
maintain the kind of corporate informality
that encourages a training class to
comfortably challenge the boss's pet ideas."
 Take the "Boss Element" our of your company
 Keep formality and rigidity out of the office
 Hold more informal meetings
 Find simple ways to loosen things up
 Brainstorm with bosses and colleagues frequently
 Organize a once-in-a-while informal get together
More information at 1000ventures.com: “25 Lessons from Jack Welch”
Lead More, Manage Less: Lesson 5
Get Less Formal
Genuine leadership comes from the quality of
your vision and your ability to spark others to
extraordinary performance. Getting employees
excited about their work is the key to being a
great business leader. "We now know where
productivity - real and limitless productivity -
comes from. It comes from challenged,
empowered, excited, rewarded teams of people."
 Live action all day
 Allow employees more freedom
 Give employees more responsibility
 Never lead by intimidation
 Let people know how their efforts are helping your organization
 Send handwritten thank-you notes
More information at 1000ventures.com: “Energizing Employees”
Lead More, Manage Less: Lesson 6
Energize Others
Face reality, then act decisively. Most mistakes that
leaders make arise from not being willing to face reality
and then acting on it. Facing reality often means saying
and doing things that are not popular, but only by
coming to grips with reality would things get better.
 Accept the truth
 Own up the reality, don't bury your head in the sand
 See things as they are, not as you wish them to be
 Look at things with a fresh eye every day
 Look at your situation as an outsider
 Play scenarios
More information at 1000ventures.com: “25 Lessons from Jack Welch”
Lead More, Manage Less: Lesson 7
Face Reality
Change is a big part of the reality in business.
"Willingness to change is a strength, even if it
means plunging part of the company into total
confusion for a while... Keeping an eye out for
change is both exhilarating and fun."
 It's nonsense to fear change
 Adapt your management style
 Spark other to deal with change
 Deal with change in a proactive manner
 Defy/ Challenge tradition
 Think short-term and long-term change
 Reinvent your business constantly
More information at 1000ventures.com: “Change Management”
Lead More, Manage Less: Lesson 8
See Change As an Opportunity
New ideas are the lifeblood of business. "The
operative assumption today is that someone,
somewhere, has a better idea; and the operative
compulsion is to find out who has that better
idea, learn it, and put it into action - fast."
 Ideas can be from any source
 Cross-pollinate
 Develop a pervasive and insatiable thirst for good ideas
 Study competitors
 Plagiarize – it's legitimate
More information at 1000ventures.com: “25 Lessons from Jack Welch”
Lead More, Manage Less: Lesson 9
Get Good Ideas From Everywhere
Follow up on everything. Follow-up is one
key measure of success for a business.
Your follow-up business strategy will pave
the way for your success.
 Demonstrate relentless consistency in everything
 When you call a meeting, see if its goals are achieved
 Harp on a few key themes and repeat them over and over
 Expand your communication to reach a critical mass
 Be consistent – consistently!
More information at 1000ventures.com: “25 Lessons from Jack Welch”
Lead More, Manage Less: Lesson 10
Follow Up
25 Lessons from Jack Welch
Creating the world’s most competitive enterprise
© 2007 Vadim Kotelnikov, Founder, Ten3
Business e-Coach, www.1000ventures.com
Slide + Executive Summary
To see Slides with Executive Summaries,
view or print slides as Note Pages
I. Lead More, Manage Less
II. Build a Winning Organization
 GE Success Story: Flash Points
 25 Lessons from Jack Welch
III. Harness Your People for Competitive Advantage
IV. Build a Market-Leading Company
Clickable titles
 GE Leadership Assessment Survey
The way to harness the power of your
people is "to turn them loose, and get the
management layers off their backs, the
bureaucratic shackles off their feet and the
functional barriers out of their way."
 Bureaucracy is the enemy. It fears change, is terrified by
speed and hates simplicity
 Drop unnecessary work
 Delayer, create a flat responsive organization
 Cross-pollinate to make faster and better decisions
 Encourage employees to identify problems and come up
with solutions
 Make your workplace more informal
More information at 1000ventures.com: “Get Rid of the Bureaucracy”
Build a Winning Organization: Lesson 11
Get Rid Of Bureaucracy
In order to make sure that people are free to reach for the
impossible, you must remove anything that gets in their way.
"Boundarylessness" describes an open organization free of
bureaucracy and anything else that prevents the free flow of
ideas, people, decisions, etc. Informality, fun and speed are
the qualities found in a boundaryless organization.
 Eliminate boundaries between management layers
 Eliminate boundaries between people
 Seek out ideas from everyone
 Harness the power of diversity
 Never stop eliminating boundaries
More information at 1000ventures.com: “25 Lessons from Jack Welch”
Build a Winning Organization: Lesson 12
Eliminate Boundaries
Play up the "soft stuff" – the company's values and
culture. Don't focus too much on the numbers.
"Numbers aren't the vision; numbers are the
products." Focus more on the softer values of
building a team, sharing ideas, exciting others.
 Don't focus too much on numbers
 Let values rule
 Live values
 Emphasize your company's values and culture
 Part your company with those who don't live the values
of your company
More information at 1000ventures.com: “Shared Values”
Build a Winning Organization: Lesson 13
Put Values First
Lesson 13: PUT VALUES FIRST
Building a leader pipeline is essential to the health
of your company and it therefore is a strategic duty
of the senior leader. Cultivate leaders who have the
four E's of leadership: Energy, Energize, Edge, and
Execution; leader who share values of your
company and deliver on commitments.
 Build self-confidence
 Look for team players
 Look for coaches
 Help them build their cross-functional expertise
 Measure performance of the leader pipeline
More information at 1000ventures.com: “Managerial Leadership”
Build a Winning Organization: Lesson 14
Cultivate Leaders
Turn your company into a learning organization to
spark free flow of communication and exchange of
ideas. "The desire, and the ability, of an organization
to continuously learn from any source, anywhere –
and to rapidly convert this learning into action – is
its ultimate competitive advantage."
 Don't think that you or your company have all the answers
 Make intellect rule
 Make learning a top priority
 Create an operating system that drives knowledge and learning
throughout the company
 Make important information easily available to everybody
 Create a culture where ideas are translated into action and results
More information at 1000ventures.com: “Learning Organization”
Build a Winning Organization: Lesson 15
Create a Learning Culture
25 Lessons from Jack Welch
Creating the world’s most competitive enterprise
© Vadim Kotelnikov, Founder, Ten3
Business e-Coach, www.1000ventures.com
Slide + Executive Summary
To see Slides with Executive Summaries,
view or print slides as Note Pages
I. Lead More, Manage Less
II. Build a Winning Organization
 GE Success Story: Flash Points
 25 Lessons from Jack Welch
III. Harness Your People for Competitive Advantage
IV. Build a Market-Leading Company
Clickable titles
 GE Leadership Assessment Survey
Business is all about capturing intellect from
every person. The way to engender
enthusiasm it to allow employees far more
freedom and far more responsibility.
 Start with yourself
 Encourage people to take initiative
 Establish a meritocracy in your company
 Use the brains of every worker
 Create an atmosphere where workers feel free to speak out
More information at 1000ventures.com: “25 Lessons from Jack Welch”
Harness Your People for Competitive Advantage: Lesson 16
Involve Everyone
Every leader has both a task to complete and a team to lead. Leaders
must not only produce their personal best. The leader must work as
the team member who gets the top results from the whole team.
Managers should learn to become team players. Middle managers
have to be team members and coaches. Take steps against those
managers who wouldn't learn to become team players.
 Set up a shared and worthwhile goal
 Behave positively
 Help junior executives become future great leaders
 Build diverse cross-functional teams
 Facilitate cross-pollination of ideas
 Part your company with those who won't play as part of a team
More information at 1000ventures.com: “Team Building and Teamwork”
Harness Your People for Competitive Advantage: Lesson 17
Make Everybody a Team Player
 Stretch your business strategy
 Stretch yourself
 Ask managers and employees to reach for their dreams
 Reward business leaders even for falling short of a stretched goal
 Don't abuse stretch – make sure that you do the right stuff
 Keep stretching
Stretch is a goal or challenge that is significantly
beyond the organization's current performance
level. Stretch targets energize. "We have found that
by reaching for what appears to be the impossible,
we often actually do the impossible; and even when
we don't quite make it, we inevitably wind up doing
much better than we would have done."
More information at 1000ventures.com: “25 Lessons from Jack Welch”
Harness Your People for Competitive Advantage: Lesson 18
Stretch!!!
Lesson 18: STRETCH!!!
Create a truly confident workforce. Confidence is a vital
ingredient of any learning organization. The prescription for
winning is speed, simplicity, and self-confidence. Self-confident
people are open to good ideas regardless of their source and are
willing to share them. "Just as surely as speed flows from
simplicity, simplicity is grounded in self-confidence."
 Encourage employees to look well ahead
 Turn people loose
 Simplify the workplace
 Provide training and coaching
 Let people know that you value their ideas
 Give people independence and resources
 Encourage people to take big swings
More information at 1000ventures.com: “25 Lessons from Jack Welch”
Harness Your People for Competitive Advantage: Lesson 19
Instill Confidence
Fun must be a big element in your business
strategy. No one should have a job they don't
enjoy. If you don't wake up energized and
excited about tackling a new set of challenges,
then you might be in the wrong job.
 Never allow your company to take itself too seriously
 Take swings, have fun
 Find job that challenges you
 Remove anything that makes people less excited
about going to work
 Celebrate success
More information at 1000ventures.com: “25 Lessons from Jack Welch”
Harness Your People for Competitive Advantage: Lesson 20
Make Business Fun
25 Lessons from Jack Welch
Creating the world’s most competitive enterprise
© 2007 Vadim Kotelnikov, Founder, Ten3
Business e-Coach, www.1000ventures.com
Slide + Executive Summary
To see Slides with Executive Summaries,
view or print slides as Note Pages
I. Lead More, Manage Less
II. Build a Winning Organization
 GE Success Story: Flash Points
 25 Lessons from Jack Welch
III. Harness Your People for Competitive Advantage
IV. Build a Market-Leading Company
Clickable titles
 GE Leadership Assessment Survey
"When you're number four or five in a market, when
number one sneezes, you get pneumonia. When you're
number one, you control your destiny. The number
fours keep merging; they have difficult times. That's not
the same if you're number four, and that's your only
businesses. Then you have to find strategic ways to get
stronger. But GE had a lot of number ones."
 Evolve a game plan, a business strategy "number one, number two“
 Send shivers throughout your organization
 Exact the highest standards and make sure that everyone in your
company meets those standards
 Look for the quantum leap
 Get rid of fat
More information at 1000ventures.com: “25 Lessons from Jack Welch”
Build a Market-Leading Company: Lesson 21
Be Number 1 or Number 2
"We want to change the competitive landscape by being not
just better than our competitors, but by taking quality to a
whole new level. We want to make our quality so special, so
valuable to our customers, so important to their success that
our products become the only real value choice."
 Take great pride in your work
 Make quality your way of life
 Quality is your job
 Make quality the job of every employee
 Seek out quality training
 Involve customers
 Exchange best practices
More information at 1000ventures.com: “Quality Management”
Build a Market-Leading Company: Lesson 22
Live Quality
"You have just got to constantly focus on innovation. And
more competitors. You've got to constantly produce more
for less through intellectual capital. Shun the incremental,
and look for the quantum leap." Now the fundamentals have
got to be more education. More information knowledge,
faster speeds, more technology across the board.
 Invest in continuous education and training
 Shun the incremental and go for the leap
 Search for the best ideas
 Practice systems thinking and holistic approaches
 Invest in information technology and information management
 Spend an hour per week learning what competitors are doing
More information at 1000ventures.com: “Innovation”
Build a Market-Leading Company: Lesson 23
Constantly Focus On Innovation
"If you're not fast you can't win... Speed is everything. It is the
indispensable ingredient of competitiveness." Speed, simplicity and
self-confidence are closely intertwined. By simplifying the organization
and instilling confidence, you create the foundation for an organization
that incorporates speed into the fabric of the company.
 Cultivate the culture of speed
 Eliminate layers
 Remove all roadblocks
 Don't "sit" on decisions
 Create an open organization
 Communicate faster
 Make speed a habit
 Pounce every day
More information at 1000ventures.com: “Fast Company”
Build a Market-Leading Company: Lesson 24
Live Speed
Lesson 24: LIVE SPEED
Small companies have huge competitive advantages. They "are
uncluttered, simple, informal. They thrive on passion and ridicule
bureaucracy. Small companies grow on good ideas – regardless
of their source. They need everyone, involve everyone, and
reward or remove people based on their contribution to winning.
Small companies dream big dreams and set the bar high –
increments and fractions don't interest them."
 Get lean
 Get agile
 Start thinking like a small company
 Infuse a small company soul into your organization
 Communicate like a small company
 Stay close to your customers
More information at 1000ventures.com: “25 Lessons from Jack Welch”
Build a Market-Leading Company: Lesson 25
Behave Like a Small Company
25 Lessons from Jack Welch
Creating the world’s most competitive enterprise
© Vadim Kotelnikov, Founder, Ten3
Business e-Coach, www.1000ventures.com
Slide + Executive Summary
To see Slides with Executive Summaries,
view or print slides as Note Pages
I. Lead More, Manage Less
II. Build a Winning Organization
 GE Success Story: Flash Points
 25 Lessons from Jack Welch
III. Harness Your People for Competitive Advantage
IV. Build a Market-Leading Company
Clickable titles
 GE Leadership Assessment Survey
GE Leadership Assessment Survey
10 Characteristics and 40 Performance Criteria
cecsi.ru
Уроки
лидеров
Characteristic Performance Criteria
Ranking Scale:
Significant Development Needed 1 2 3 4 5 Outstanding Strength
1
Vision
 Has developed and communicated a clear, simple, customer-focused
Vision / direction for the organization.
 Forward-thinking, stretches horizons, challenges imaginations.
 Inspires and energizes others to commit to Vision. Captures minds.
Leads by example.
 As appropriate, updates Vision to reflect constant and accelerating
change impacting the business.
2
Customer /
Quality Focus
 Listens to customer and assigns the highest priority to customer
satisfaction, including internal customers.
 Inspires and demonstrates a passion for excellence in every aspect of
work.
 Strives to fulfill commitment to Quality in total product / service offering.
 Lives Customer Service and creates service mind-set throughout
organization.
GE Leadership Assessment Survey: Criteria 1 to 10
GE Leadership Assessment Survey
10 Characteristics and 40 Performance Criteria
cecsi.ru
Уроки
лидеров
3
Integrity
 Maintains unequivocal commitment to honesty / truth in every
facet of behavior.
 Follows through on commitments; assumes responsibility for
own mistakes.
 Practices absolute conformance with company policies
embodying GEI&PS commitment to ethical conduct.
 Actions and behaviors are consistent with words. Absolutely
trusted by others.
4
Accountability /
Commitment
 Sets and meets aggressive commitments to achieve business
objectives.
 Demonstrates courage / self-confidence to stand up for the
beliefs, ideas, co-workers.
 Fair and compassionate yet willing to make difficult decisions.
 Demonstrates uncompromising responsibility for preventing
harm to the environment
GE Leadership Assessment Survey
10 Characteristics and 40 Performance Criteria
cecsi.ru
Уроки
лидеров
5
Communication /
Influence
 Communicates in open, candid, clear, complete, and
consistent manner – invites response / dissent.
 Listens effectively and probes for new ideas.
 Uses facts and rational arguments to influence and
persuade.
 Breaks down barriers and develops influential
relationships across teams, functions, and layers.
6
Shared Ownership /
Boundaryless
 Self-confidence to share information across traditional
boundaries and be open to new ideas.
 Encourages / promotes shared ownership for Team Vision
and goals.
 Trusts others; encourages risk taking and boundaryless
behavior.
 Champions Work-Out as a vehicle for everyone to be
heard. Open to ideas from anywhere.
GE Leadership Assessment Survey
10 Characteristics and 40 Performance Criteria
cecsi.ru
Уроки
лидеров
7
Team Builder /
Empowerment
 Selects talented people; provides coaching and feedback to
develop team members to fullest potential.
 Delegates whole task; empowers team to maximize
effectiveness. Is personally a Team Player.
 Recognizes and rewards achievement. Creates positive /
enjoyable work environment.
 Fully utilizes diversity of team members (cultural, race,
gender) to achieve business success.
8
Knowledge /
Expertise / Intellect
 Possesses and readily shares functional / technical
knowledge and expertise. Constant interest in learning.
 Demonstrates broad business knowledge / perspective
with cross-functional / multicultural awareness.
 Makes good decisions with limited data. Applies intellect to
the fullest.
 Quickly sorts relevant from irrelevant information, grasp
essentials of complex issues and initiates action.
GE Leadership Assessment Survey
10 Characteristics and 40 Performance Criteria
cecsi.ru
Уроки
лидеров
9
Initiative /
Speed
 Creates real and positive change. Sees change as an
Opportunity.
 Anticipates problems and initiates new and better ways of
doing things.
 Hates / avoids / eliminates "bureaucracy" and strives for
brevity, simplicity, clarity.
 Understands and uses speed as a competitive advantage.
10
Global Mind-set
 Demonstrates global awareness / sensitivity and is comfortable
building diverse / global teams.
 Values and promotes full utilization of global and work force
diversity.
 Considers the global consequences of every decision.
Proactively seeks global knowledge.
 Treats everyone with dignity, trust, and respect.
I. Lead More, Manage Less
II. Build a Winning Organization
 GE Success Story: Flash Points
 25 Lessons from Jack Welch
III. Harness Your People for Competitive Advantage
IV. Build a Market-Leading Company
25 Lessons from Jack Welch
Creating the world’s most competitive enterprise
Helpful Links to Ten3 Business e-Coach at www.1000ventures.com
• 25 Lessons from Jack Welch
• How To Make Effective Presentations
Ten3 Services
• Ten3 e-Coaching Products
• Ten3 Training
To view / print slides with Executive Summaries,
view / print the file as Note Pages
© Vadim Kotelnikov
Inventor & Founder
Ten3
Business e-Coach – Innovation Unlimited!
www.1000ventures.com
The Single-user License is below this slide. View the slide as Note Pages.
THANKTHANK
YOU!YOU!
 GE Leadership Assessment Survey

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25_lessons_jack_welch_ten3_minicourse2

  • 1. Creating the world’s most competitive enterprise © 2007 Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com 25 Lessons25 Lessons from Jack Welchfrom Jack Welch Lessons from the legendary former CEO of GE, whose management innovations have made him the most influential CEO of his era Ten3 Business e-Coach – the world’s leading source of inspiration, innovation, and unlimited growth! 25 LESSONS FROM JACK WELCH
  • 2. I. Lead More, Manage Less II. Build a Winning Organization  GE Success Story: Flash Points  25 Lessons from Jack Welch III. Harness/ connect Your People for Competitive Advantage IV. Build a Market-Leading Company 25 Lessons from Jack Welch Creating the world’s most competitive enterprise © Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com Slide + Executive Summary To see Slides with Executive Summaries, view or print slides as Note Pages Clickable titles  GE Leadership Assessment Survey Contents
  • 3. Creating the World’s Most Competitive Enterprise Lessons from Jack Welch, Former CEO of GE GE Market Capitalization US$13 billion US$500 billion 2000 Jack Welch steps down as CEO of GE 1981 Jack Welch appointed as CEO of GE 1. Develop a vision for the business 2. Change the culture to achieve the vision 3. Flatten the organization 4. Eliminate bureaucracy 5. Empower individuals 6. Raise quality and efficiency 7. Eliminate boundaries Welch’s Seven-Point Program for Management by Leadership More information at 1000ventures.com: “Jack Welch – a Corporate Change Leader” Success Story
  • 4. Jack Welch – Corporate Change Leader Welch’s Trademark Messages  Business is simple.  Don't make business overly complicated.  Face reality, then act decisively.  Don't be afraid of change.  Change before you have to.  Fight bureaucracy.  Use the brains of your workers.  Discover who has the best ideas, and put those ideas into practice. 1000ventures.com
  • 5. Leading Organizational Transformation Lessons from Jack Welch Leading Change through the GE's Organization  Redesigning the role of the leader in the new economy: creating followers through communicating a vision, and establishing open, caring relations with every employee  Creating an open, collaborative workplace where everyone's opinion is welcome  Empowering senior executives to run far- flung businesses in entrepreneurial fashion  Liberating the workforce; making everybody a participant through improving vertical communication and employee empowerment Welch’s prescription for winning in business 1. Speed 2. Simplicity 3. Self-confidence More information at 1000ventures.com: “Jack Welch – Corporate Change Leader”
  • 6. GE Leadership Assessment Survey (LES): Characteristics 1. Vision 2. Customer / Quality Focus 3. Integrity 4. Accountability / Commitment 5. Communication / Influence 6. Shared Ownership 7. Team Builder / Empowerment 8. Knowledge / Expertise / Intellect 9. Initiative / Speed 10. Global Mind-set More information at 1000ventures.com: “GE’s Leadership Assessment Survey (LES)” Four Essential Tasks 1. Recognize the importance of leadership to your business success 2. Have in place a specific process for developing leadership talent 3. Define leadership attributes behaviorally, for the benefit of future leaders 4. Use the leadership competencies stipulated in the Leadership Effectiveness Survey (LES) to integrate a number of management practices with the purpose of building quality of leadership. Leadership Development A Strategic Duty of All Senior Leaders at GE
  • 7. Shared Corporate Values GE Values Guide GE Leaders... Always with Unyielding Integrity:GE Leaders... Always with Unyielding Integrity:  Have a Passion for Excellence and Hate Bureaucracy  Are Open to Ideas from Anywhere... and Committed to Work-Out  Live Quality... and Drive Cost and Speed for Competitive Advantage  Have the Self-Confidence to Involve Everyone and Behave in a Boundaryless Fashion  Create a Clear, Simple, Reality-Based Vision... and Communicate It to All Constituencies  Have Enormous Energy and the Ability to Energize Others  Stretch... Set Aggressive Goals... Reward Progress... Yet Understand Accountability and Commitment  See Change as Opportunity... Not Threat  Have Global Brains... and Build Diverse and Global Teams More information at 1000ventures.com: “Shared Values”
  • 8. Execution They are action-oriented, and are focused on getting results Edge They have a competitive edge and a will to win Energize They energize teams, and don't intimidate them Energy They have tremendous personal energy Lessons from Jack Welch The 4 E’s of Leadership More information at 1000ventures.com: “25 Lessons from Jack Welch”
  • 9. Going for the leap • Radical innovation • Diversification • Venture investing • Acquisitions Shining the incremental • Lean organization • GE Work-Out • Quality Management: Six Sigma GE Growth Strategies “Shun/ Avoid the incremental and go for the leap“ – Jack Welch More information at 1000ventures.com: “Sustainable Growth Strategies”
  • 10. Strategy Formulation GE Multifactor Business Portfolio Matrix 1000ventures.com Invest / Grow Invest / Grow Invest / Grow Selective Investment Harvest / Divest Harvest / Divest Harvest / Divest LOW MEDIUM HIGH Industry Attractiveness MEDIUM LOW HIGH BusinessPosition Source: GE & McKinsey & Co. Selective Investment Selective Investment “Companies win when their managers make a clear and meaningful distinction between top- and bottom-performing businesses and people, when they cultivate the strong and cull the weak.” – Jack Welch
  • 11. Quality Management: Six Sigma Impact of Six Sigma Implementation at GE 11% 14% 17% 13% Revenue increased Profits increased Earning per share increased Operating margins increased Results achieved over the first two years (1996-1998) More information at 1000ventures.com: “Six Sigma” "We want to change the competitive landscape by being not just better than our competitors, but by taking quality to a whole new level.” – Jack Welch
  • 12. Six Sigma Implementation at GE Making the Six Sigma Process Work Four MAIC Steps 1. Measure 2. Analyze 3. Improve 4. Control Five Corporate Measures 1. Customer Satisfaction 2. Cost of Poor Quality 3. Supplier Quality 4. Internal Performance 5. Design for Manufacturability Everyday Six Sigma  Plant managers can use Six Sigma to reduce waste, improve product consistency, solve equipment problems or create capacity.  Human resources managers can use it to reduce the cycle time for hiring employees.  Regional sales managers can use it to improve forecast reliability, pricing strategies or pricing variation. More information at 1000ventures.com: “Six Sigma”
  • 13. GE Work-Out Creating the Spirit of a Start-Up Firm in a Large Enterprise 1000ventures.com Key Benefits of the Work-Out  Reduces bureaucracy  Empowers people  Continuously reinvents ever- more-effective ways of doing business At GE, Work-Out "Town Meetings" gave the corporation access to an unlimited resource of imagination and energy of its talented employees. With Work-Out as part of its DNA, GE has become one of the most innovative, profitable, and admired companies on earth. Work-Out’s Four Major Goals 1. Build trust 2. Empower employees 3. Eliminate unnecessary work 4. Create a new paradigm
  • 14. GE Work-Out Seven Steps to Implement Work-Out 1000ventures.com 1. Chose the issues to be discussed. 2. Select the appropriate cross-functional team to tackle the problem. 3. Chose a "champion" who will see any Work-Out recommendation through to implementation. 4. Let the team meet for three days, drawing up recommendations to improve your company's processes. 5. Meet with managers, who make decisions on the spot about each recommendation. 6. Hold more meetings as required to pursue the implementation of the recommendations. 7. Keep the process going, with these and other issues and recommendations.
  • 15. No of Ventures Invested 0 300 600 1995 2000 2005 Nature of Venture Investments (2002) 15% 85% Strategic Value Investments Investments in Areas Unrelated to GE  Established in 1995, General Electric (GE) Equity, a business unit within GE Capital, invests around $1.5 billion annually in external ventures  GE Equity invests an average of $3 million to $5 million in each of companies, and it gets somewhere between 5 and 11% of each venture  85% of investment are strategic value investments that help GE businesses grow and are done jointly with one of them Corporate Investing in External Ventures GE Equity More information at 1000ventures.com: “Corporate Venture Investing”
  • 16. Corporate Venture Investing: GE Equity Success Factors Qualities of Top Managers Critical to Success  they are visionary leaders aiming at building a world- class, global, private equity organization  each of them is a remarkable hybrid of corporate executive and venture capitalist  they practice and lead a highly disciplined approach to project selection and portfolio management Highly Disciplined Business Management System (BMS)  rigorous examination procedure  systematic investment approach based on decision and probability theories  the most onerous due- diligence checklist in the world of corporate venture investing  portfolio management system More information at 1000ventures.com: “Corporate Venture Investing”
  • 17. 25 Lessons from Jack Welch Creating the world’s most competitive enterprise © 2007 Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com Slide + Executive Summary To see Slides with Executive Summaries, view or print slides as Note Pages I. Lead More, Manage Less II. Build a Winning Organization  GE Success Story: Flash Points  25 Lessons from Jack Welch III. Harness/ Connect Your People for Competitive Advantage IV. Build a Market-Leading Company Clickable titles  GE Leadership Assessment Survey
  • 18. Management by Leadership 25 Lessons from Jack Welch LEAD MORE, MANAGE LESS 1. Lead 2. Manage less 3. Articulate your vision 4. Simplify 5. Get less formal BUILD A WINNING ORGANIZATION 11. Get rid of bureaucracy 12. Eliminate boundaries 13. Put values first 14. Cultivate leaders 15. Create learning culture HARNESS/ Cont. YOUR PEOPLE 16. Involve everyone 17. Make everybody a team player 18. Stretch 19. Instill confidence 20. Make business fun BUILD THE MARKET-LEADING COMPANY 24. Live speed 25. Behave like a small company 6. Energize others 7. Face reality 8. See change as an opportunity 9. Get good ideas from everywhere 10. Follow up 21. Be number 1 or number 2 22. Live quality 23. Constantly focus on innovation More information at 1000ventures.com: “25 Lessons from Jack Welch”
  • 19. 25 Lessons from Jack Welch Creating the world’s most competitive enterprise © 2007 Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com Slide + Executive Summary To see Slides with Executive Summaries, view or print slides as Note Pages I. Lead More, Manage Less II. Build a Winning Organization  GE Success Story: Flash Points  25 Lessons from Jack Welch III. Harness Your People for Competitive Advantage IV. Build a Market-Leading Company Clickable titles  GE Leadership Assessment Survey
  • 20. Managers muddle – leaders inspire. "What we are looking for are leaders at every level who can energize, excite and inspire rather than enervate, depress, and control."  Create a vision and then ignite your organization to make this vision a reality  Focus on strategic issues  Don't micromanage  Involve everyone and welcome great ideas from everywhere  Lead by example More information at 1000ventures.com: “Effective Leadership” Lead More, Manage Less: Lesson 1 Lead Lesson1: LEAD
  • 21. "We are constantly amazed by how much people will do when they are not told what to do by management." In the new knowledge-driven economy, people should make their own decision. Managing less is managing better. Close supervision, control and bureaucracy kill the competitive spirit of the company. "Weak managers are the killers of business; they are the job killers. You can't manage self-confidence into people."  Don't get bogged down in overmanaging  Don't hold information close to your chest  Inspire, empower, and get out of the way More information at 1000ventures.com: “25 Lessons from Jack Welch” Lead More, Manage Less: Lesson 2 Manage Less
  • 22. "Leaders inspire people with clear visions of how things can be done better." The best leaders do not provide a step-by-step instruction manual for workers. The best leaders are those who come up with new idea, and articulate a vision that inspires others to act.  Create and project a clear vision  Articulate a few clear stretch goals for your company  Make sure you have the very best people to carry your vision out. More information at 1000ventures.com: “Vision, Mission, Goals” Lead More, Manage Less: Lesson 3 Articulate Your Vision
  • 23. Keeping things simple is one of the keys to business. Have the courage to be simple. Simplicity is practically an art form, with many definitions. "Simple messages travel faster, simpler designs reach the market faster and the elimination of clutter allows faster decision making."  Don't make business harder than it is  Think simply to create a clear vision  Make your messages simple  Build self-confidence  Simplify your workplace and communications  Make meeting simpler More information at 1000ventures.com: “The Power of Simplicity” Lead More, Manage Less: Lesson 4 Simplify
  • 24. "You must realize now how important it is to maintain the kind of corporate informality that encourages a training class to comfortably challenge the boss's pet ideas."  Take the "Boss Element" our of your company  Keep formality and rigidity out of the office  Hold more informal meetings  Find simple ways to loosen things up  Brainstorm with bosses and colleagues frequently  Organize a once-in-a-while informal get together More information at 1000ventures.com: “25 Lessons from Jack Welch” Lead More, Manage Less: Lesson 5 Get Less Formal
  • 25. Genuine leadership comes from the quality of your vision and your ability to spark others to extraordinary performance. Getting employees excited about their work is the key to being a great business leader. "We now know where productivity - real and limitless productivity - comes from. It comes from challenged, empowered, excited, rewarded teams of people."  Live action all day  Allow employees more freedom  Give employees more responsibility  Never lead by intimidation  Let people know how their efforts are helping your organization  Send handwritten thank-you notes More information at 1000ventures.com: “Energizing Employees” Lead More, Manage Less: Lesson 6 Energize Others
  • 26. Face reality, then act decisively. Most mistakes that leaders make arise from not being willing to face reality and then acting on it. Facing reality often means saying and doing things that are not popular, but only by coming to grips with reality would things get better.  Accept the truth  Own up the reality, don't bury your head in the sand  See things as they are, not as you wish them to be  Look at things with a fresh eye every day  Look at your situation as an outsider  Play scenarios More information at 1000ventures.com: “25 Lessons from Jack Welch” Lead More, Manage Less: Lesson 7 Face Reality
  • 27. Change is a big part of the reality in business. "Willingness to change is a strength, even if it means plunging part of the company into total confusion for a while... Keeping an eye out for change is both exhilarating and fun."  It's nonsense to fear change  Adapt your management style  Spark other to deal with change  Deal with change in a proactive manner  Defy/ Challenge tradition  Think short-term and long-term change  Reinvent your business constantly More information at 1000ventures.com: “Change Management” Lead More, Manage Less: Lesson 8 See Change As an Opportunity
  • 28. New ideas are the lifeblood of business. "The operative assumption today is that someone, somewhere, has a better idea; and the operative compulsion is to find out who has that better idea, learn it, and put it into action - fast."  Ideas can be from any source  Cross-pollinate  Develop a pervasive and insatiable thirst for good ideas  Study competitors  Plagiarize – it's legitimate More information at 1000ventures.com: “25 Lessons from Jack Welch” Lead More, Manage Less: Lesson 9 Get Good Ideas From Everywhere
  • 29. Follow up on everything. Follow-up is one key measure of success for a business. Your follow-up business strategy will pave the way for your success.  Demonstrate relentless consistency in everything  When you call a meeting, see if its goals are achieved  Harp on a few key themes and repeat them over and over  Expand your communication to reach a critical mass  Be consistent – consistently! More information at 1000ventures.com: “25 Lessons from Jack Welch” Lead More, Manage Less: Lesson 10 Follow Up
  • 30. 25 Lessons from Jack Welch Creating the world’s most competitive enterprise © 2007 Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com Slide + Executive Summary To see Slides with Executive Summaries, view or print slides as Note Pages I. Lead More, Manage Less II. Build a Winning Organization  GE Success Story: Flash Points  25 Lessons from Jack Welch III. Harness Your People for Competitive Advantage IV. Build a Market-Leading Company Clickable titles  GE Leadership Assessment Survey
  • 31. The way to harness the power of your people is "to turn them loose, and get the management layers off their backs, the bureaucratic shackles off their feet and the functional barriers out of their way."  Bureaucracy is the enemy. It fears change, is terrified by speed and hates simplicity  Drop unnecessary work  Delayer, create a flat responsive organization  Cross-pollinate to make faster and better decisions  Encourage employees to identify problems and come up with solutions  Make your workplace more informal More information at 1000ventures.com: “Get Rid of the Bureaucracy” Build a Winning Organization: Lesson 11 Get Rid Of Bureaucracy
  • 32. In order to make sure that people are free to reach for the impossible, you must remove anything that gets in their way. "Boundarylessness" describes an open organization free of bureaucracy and anything else that prevents the free flow of ideas, people, decisions, etc. Informality, fun and speed are the qualities found in a boundaryless organization.  Eliminate boundaries between management layers  Eliminate boundaries between people  Seek out ideas from everyone  Harness the power of diversity  Never stop eliminating boundaries More information at 1000ventures.com: “25 Lessons from Jack Welch” Build a Winning Organization: Lesson 12 Eliminate Boundaries
  • 33. Play up the "soft stuff" – the company's values and culture. Don't focus too much on the numbers. "Numbers aren't the vision; numbers are the products." Focus more on the softer values of building a team, sharing ideas, exciting others.  Don't focus too much on numbers  Let values rule  Live values  Emphasize your company's values and culture  Part your company with those who don't live the values of your company More information at 1000ventures.com: “Shared Values” Build a Winning Organization: Lesson 13 Put Values First Lesson 13: PUT VALUES FIRST
  • 34. Building a leader pipeline is essential to the health of your company and it therefore is a strategic duty of the senior leader. Cultivate leaders who have the four E's of leadership: Energy, Energize, Edge, and Execution; leader who share values of your company and deliver on commitments.  Build self-confidence  Look for team players  Look for coaches  Help them build their cross-functional expertise  Measure performance of the leader pipeline More information at 1000ventures.com: “Managerial Leadership” Build a Winning Organization: Lesson 14 Cultivate Leaders
  • 35. Turn your company into a learning organization to spark free flow of communication and exchange of ideas. "The desire, and the ability, of an organization to continuously learn from any source, anywhere – and to rapidly convert this learning into action – is its ultimate competitive advantage."  Don't think that you or your company have all the answers  Make intellect rule  Make learning a top priority  Create an operating system that drives knowledge and learning throughout the company  Make important information easily available to everybody  Create a culture where ideas are translated into action and results More information at 1000ventures.com: “Learning Organization” Build a Winning Organization: Lesson 15 Create a Learning Culture
  • 36. 25 Lessons from Jack Welch Creating the world’s most competitive enterprise © Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com Slide + Executive Summary To see Slides with Executive Summaries, view or print slides as Note Pages I. Lead More, Manage Less II. Build a Winning Organization  GE Success Story: Flash Points  25 Lessons from Jack Welch III. Harness Your People for Competitive Advantage IV. Build a Market-Leading Company Clickable titles  GE Leadership Assessment Survey
  • 37. Business is all about capturing intellect from every person. The way to engender enthusiasm it to allow employees far more freedom and far more responsibility.  Start with yourself  Encourage people to take initiative  Establish a meritocracy in your company  Use the brains of every worker  Create an atmosphere where workers feel free to speak out More information at 1000ventures.com: “25 Lessons from Jack Welch” Harness Your People for Competitive Advantage: Lesson 16 Involve Everyone
  • 38. Every leader has both a task to complete and a team to lead. Leaders must not only produce their personal best. The leader must work as the team member who gets the top results from the whole team. Managers should learn to become team players. Middle managers have to be team members and coaches. Take steps against those managers who wouldn't learn to become team players.  Set up a shared and worthwhile goal  Behave positively  Help junior executives become future great leaders  Build diverse cross-functional teams  Facilitate cross-pollination of ideas  Part your company with those who won't play as part of a team More information at 1000ventures.com: “Team Building and Teamwork” Harness Your People for Competitive Advantage: Lesson 17 Make Everybody a Team Player
  • 39.  Stretch your business strategy  Stretch yourself  Ask managers and employees to reach for their dreams  Reward business leaders even for falling short of a stretched goal  Don't abuse stretch – make sure that you do the right stuff  Keep stretching Stretch is a goal or challenge that is significantly beyond the organization's current performance level. Stretch targets energize. "We have found that by reaching for what appears to be the impossible, we often actually do the impossible; and even when we don't quite make it, we inevitably wind up doing much better than we would have done." More information at 1000ventures.com: “25 Lessons from Jack Welch” Harness Your People for Competitive Advantage: Lesson 18 Stretch!!! Lesson 18: STRETCH!!!
  • 40. Create a truly confident workforce. Confidence is a vital ingredient of any learning organization. The prescription for winning is speed, simplicity, and self-confidence. Self-confident people are open to good ideas regardless of their source and are willing to share them. "Just as surely as speed flows from simplicity, simplicity is grounded in self-confidence."  Encourage employees to look well ahead  Turn people loose  Simplify the workplace  Provide training and coaching  Let people know that you value their ideas  Give people independence and resources  Encourage people to take big swings More information at 1000ventures.com: “25 Lessons from Jack Welch” Harness Your People for Competitive Advantage: Lesson 19 Instill Confidence
  • 41. Fun must be a big element in your business strategy. No one should have a job they don't enjoy. If you don't wake up energized and excited about tackling a new set of challenges, then you might be in the wrong job.  Never allow your company to take itself too seriously  Take swings, have fun  Find job that challenges you  Remove anything that makes people less excited about going to work  Celebrate success More information at 1000ventures.com: “25 Lessons from Jack Welch” Harness Your People for Competitive Advantage: Lesson 20 Make Business Fun
  • 42. 25 Lessons from Jack Welch Creating the world’s most competitive enterprise © 2007 Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com Slide + Executive Summary To see Slides with Executive Summaries, view or print slides as Note Pages I. Lead More, Manage Less II. Build a Winning Organization  GE Success Story: Flash Points  25 Lessons from Jack Welch III. Harness Your People for Competitive Advantage IV. Build a Market-Leading Company Clickable titles  GE Leadership Assessment Survey
  • 43. "When you're number four or five in a market, when number one sneezes, you get pneumonia. When you're number one, you control your destiny. The number fours keep merging; they have difficult times. That's not the same if you're number four, and that's your only businesses. Then you have to find strategic ways to get stronger. But GE had a lot of number ones."  Evolve a game plan, a business strategy "number one, number two“  Send shivers throughout your organization  Exact the highest standards and make sure that everyone in your company meets those standards  Look for the quantum leap  Get rid of fat More information at 1000ventures.com: “25 Lessons from Jack Welch” Build a Market-Leading Company: Lesson 21 Be Number 1 or Number 2
  • 44. "We want to change the competitive landscape by being not just better than our competitors, but by taking quality to a whole new level. We want to make our quality so special, so valuable to our customers, so important to their success that our products become the only real value choice."  Take great pride in your work  Make quality your way of life  Quality is your job  Make quality the job of every employee  Seek out quality training  Involve customers  Exchange best practices More information at 1000ventures.com: “Quality Management” Build a Market-Leading Company: Lesson 22 Live Quality
  • 45. "You have just got to constantly focus on innovation. And more competitors. You've got to constantly produce more for less through intellectual capital. Shun the incremental, and look for the quantum leap." Now the fundamentals have got to be more education. More information knowledge, faster speeds, more technology across the board.  Invest in continuous education and training  Shun the incremental and go for the leap  Search for the best ideas  Practice systems thinking and holistic approaches  Invest in information technology and information management  Spend an hour per week learning what competitors are doing More information at 1000ventures.com: “Innovation” Build a Market-Leading Company: Lesson 23 Constantly Focus On Innovation
  • 46. "If you're not fast you can't win... Speed is everything. It is the indispensable ingredient of competitiveness." Speed, simplicity and self-confidence are closely intertwined. By simplifying the organization and instilling confidence, you create the foundation for an organization that incorporates speed into the fabric of the company.  Cultivate the culture of speed  Eliminate layers  Remove all roadblocks  Don't "sit" on decisions  Create an open organization  Communicate faster  Make speed a habit  Pounce every day More information at 1000ventures.com: “Fast Company” Build a Market-Leading Company: Lesson 24 Live Speed Lesson 24: LIVE SPEED
  • 47. Small companies have huge competitive advantages. They "are uncluttered, simple, informal. They thrive on passion and ridicule bureaucracy. Small companies grow on good ideas – regardless of their source. They need everyone, involve everyone, and reward or remove people based on their contribution to winning. Small companies dream big dreams and set the bar high – increments and fractions don't interest them."  Get lean  Get agile  Start thinking like a small company  Infuse a small company soul into your organization  Communicate like a small company  Stay close to your customers More information at 1000ventures.com: “25 Lessons from Jack Welch” Build a Market-Leading Company: Lesson 25 Behave Like a Small Company
  • 48. 25 Lessons from Jack Welch Creating the world’s most competitive enterprise © Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com Slide + Executive Summary To see Slides with Executive Summaries, view or print slides as Note Pages I. Lead More, Manage Less II. Build a Winning Organization  GE Success Story: Flash Points  25 Lessons from Jack Welch III. Harness Your People for Competitive Advantage IV. Build a Market-Leading Company Clickable titles  GE Leadership Assessment Survey
  • 49. GE Leadership Assessment Survey 10 Characteristics and 40 Performance Criteria cecsi.ru Уроки лидеров Characteristic Performance Criteria Ranking Scale: Significant Development Needed 1 2 3 4 5 Outstanding Strength 1 Vision  Has developed and communicated a clear, simple, customer-focused Vision / direction for the organization.  Forward-thinking, stretches horizons, challenges imaginations.  Inspires and energizes others to commit to Vision. Captures minds. Leads by example.  As appropriate, updates Vision to reflect constant and accelerating change impacting the business. 2 Customer / Quality Focus  Listens to customer and assigns the highest priority to customer satisfaction, including internal customers.  Inspires and demonstrates a passion for excellence in every aspect of work.  Strives to fulfill commitment to Quality in total product / service offering.  Lives Customer Service and creates service mind-set throughout organization. GE Leadership Assessment Survey: Criteria 1 to 10
  • 50. GE Leadership Assessment Survey 10 Characteristics and 40 Performance Criteria cecsi.ru Уроки лидеров 3 Integrity  Maintains unequivocal commitment to honesty / truth in every facet of behavior.  Follows through on commitments; assumes responsibility for own mistakes.  Practices absolute conformance with company policies embodying GEI&PS commitment to ethical conduct.  Actions and behaviors are consistent with words. Absolutely trusted by others. 4 Accountability / Commitment  Sets and meets aggressive commitments to achieve business objectives.  Demonstrates courage / self-confidence to stand up for the beliefs, ideas, co-workers.  Fair and compassionate yet willing to make difficult decisions.  Demonstrates uncompromising responsibility for preventing harm to the environment
  • 51. GE Leadership Assessment Survey 10 Characteristics and 40 Performance Criteria cecsi.ru Уроки лидеров 5 Communication / Influence  Communicates in open, candid, clear, complete, and consistent manner – invites response / dissent.  Listens effectively and probes for new ideas.  Uses facts and rational arguments to influence and persuade.  Breaks down barriers and develops influential relationships across teams, functions, and layers. 6 Shared Ownership / Boundaryless  Self-confidence to share information across traditional boundaries and be open to new ideas.  Encourages / promotes shared ownership for Team Vision and goals.  Trusts others; encourages risk taking and boundaryless behavior.  Champions Work-Out as a vehicle for everyone to be heard. Open to ideas from anywhere.
  • 52. GE Leadership Assessment Survey 10 Characteristics and 40 Performance Criteria cecsi.ru Уроки лидеров 7 Team Builder / Empowerment  Selects talented people; provides coaching and feedback to develop team members to fullest potential.  Delegates whole task; empowers team to maximize effectiveness. Is personally a Team Player.  Recognizes and rewards achievement. Creates positive / enjoyable work environment.  Fully utilizes diversity of team members (cultural, race, gender) to achieve business success. 8 Knowledge / Expertise / Intellect  Possesses and readily shares functional / technical knowledge and expertise. Constant interest in learning.  Demonstrates broad business knowledge / perspective with cross-functional / multicultural awareness.  Makes good decisions with limited data. Applies intellect to the fullest.  Quickly sorts relevant from irrelevant information, grasp essentials of complex issues and initiates action.
  • 53. GE Leadership Assessment Survey 10 Characteristics and 40 Performance Criteria cecsi.ru Уроки лидеров 9 Initiative / Speed  Creates real and positive change. Sees change as an Opportunity.  Anticipates problems and initiates new and better ways of doing things.  Hates / avoids / eliminates "bureaucracy" and strives for brevity, simplicity, clarity.  Understands and uses speed as a competitive advantage. 10 Global Mind-set  Demonstrates global awareness / sensitivity and is comfortable building diverse / global teams.  Values and promotes full utilization of global and work force diversity.  Considers the global consequences of every decision. Proactively seeks global knowledge.  Treats everyone with dignity, trust, and respect.
  • 54. I. Lead More, Manage Less II. Build a Winning Organization  GE Success Story: Flash Points  25 Lessons from Jack Welch III. Harness Your People for Competitive Advantage IV. Build a Market-Leading Company 25 Lessons from Jack Welch Creating the world’s most competitive enterprise Helpful Links to Ten3 Business e-Coach at www.1000ventures.com • 25 Lessons from Jack Welch • How To Make Effective Presentations Ten3 Services • Ten3 e-Coaching Products • Ten3 Training To view / print slides with Executive Summaries, view / print the file as Note Pages © Vadim Kotelnikov Inventor & Founder Ten3 Business e-Coach – Innovation Unlimited! www.1000ventures.com The Single-user License is below this slide. View the slide as Note Pages. THANKTHANK YOU!YOU!  GE Leadership Assessment Survey