leadership-the jack welch way
TRANSCRIPT
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LEADERSHIP STYLE
Leadership style is the behaviour exhibited by the leader while influencing the behaviour of followers
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Task Behavior
Involves:Clearly Telling People
• What to Do• Who will doIt• Where to Do It• When to Do It
And then closely supervising them
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Relationship Behavior
Involves: Listening to People Providing Support and Encouraging Their
Efforts Facilitating Their Involvement in
Problem Solving and Decision Making
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STYLES BASED ON AUTHORITY RETAINED
AUTHORITARIAN STYLE:
PARTICIPATIVE STYLE: a) Consultative b) Consensual c) Democratic
FREE-REIN STYLE: Does not adopt leadership role and actually
abdicates position
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Situational Leadership By
Paul Hersey & Kenneth Blanchart
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Levels of Development of Followers
D1 - Low Competence, High Commitment “Enthusiastic Beginner”
D2 - Some Competence, Low Commitment “Disillusioned Learner”
D3 - Moderate to High Competence, Variable Commitment “Reluctant Contributor”
D4 - High Competence, High Commitment “Peak Performer”
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Directing/Telling
• High Directive, Low Supportive• Leader Defines Roles of Followers• Problem Solving and Decision Making
Initiated by the Leader• One-way Communication
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Coaching/selling
High Directive, High Supportive Leader Now Attempts to Hear Followers'
Suggestions, Ideas, and Opinions Two-way Communication Control Over Decision Making Remains
With the Leader
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Supporting
• High Supportive, Low Directive• Focus of Control Shifts to Follower• Leader Actively Listens• Follower Has Ability and Knowledge to
Do the Task
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Delegating
Low Supportive, Low Directive Leader Discusses Problems With
Followers Seeks Joint Agreement on Problem
Definitions Decision Making Is Handled by the
Subordinate They “Run Their Own Show”
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S3
S1S4
S2
Low Supportive and Low DirectiveBehavior
High Directive and Low SupportiveBehavior
High Directive and High SupportiveBehavior
High Supportive and Low DirectiveBehavior
DEVELOPMENT LEVEL OF FOLLOWER(S)
DEVELOPED DEVELOPING
HIGH LOWMODERATE
D4 D1D2D3
THE FOUR LEADERSHIP STYLES
DIRECTIVE BEHAVIOR
(High)
(High)(Low)
SUPPORTIVE BEHAVIOR
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L E A D E R S H I PL E A D E R S H I P
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Six businesses, each with a number of business units aligned for growth
Commercial Finance
Healthcare
Infrastructure
NBC UniversalConsumer Finance
Industrial
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Early Years...
Welch joined General Electric in 1960.
He worked as a Junior Engineer in Pittsfield, Massachusetts, at a salary of $10,500 annually.
While at GE, he blew off the roof of the factory, and was almost fired for doing so.
He was displeased with the $1,000 raise he was offered after his first year, as well as the strict bureaucracy within GE.
He planned to leave the company
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Jack Welch and GE
• 1972: Elected GE’s youngest VP• 1979: Vice Chairman• April 1, 1981: Became the 8th
Chairman and CEO of General Electric
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Welch’s Vision
“A decade from now, I would like General Electric to be perceived as a Unique, high-spirited, Entrepreneurial enterprise…the most profitable, highly diversified company on the earth, with world quality leadership in every one of its product lines”. -- Jack Welch
Three-Circle Vision for GE
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Initiatives - Objectives• Work ethics • Best Practices• Going Global• Boundaryless Behavior• Six Sigma • E-Business
“We bring together the best ideas – turning the meetings of our top managers into intellectual orgies.” ~ Jack Welch
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“Restructuring the Hard Drive” Challenged everyone to be “better than the best” Sold more than 200 businesses and made over 370
acquisitions Insisted GE become more “lean and agile” resulting
Delayering: elimination of the “sector” level Downsizing: elimination of about 123,450 jobs Divestiture: elimination of an additional 122,700 jobs
Replaced 12 of his 14 business heads
“Willingness to change is a strength, even if it means plunging part of the company into total confusion for a while.” ~ Jack Welch
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Jack Welch
• 1999: Named “Manager of the Century” by Fortune
• named one of the three most admired business leaders in the world by Financial Times
• September 7, 2001: Retired as CEO• Published autobiography, “Jack,
Straight from the Gut”
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GE Now
• Operates in 100+ countries worldwide• 300,000+ employees worldwide• 2006 revenue - $163.4 billion• 2006 earnings - $20.8 billion• One of original six companies still listed on Dow
Jones index
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Choose to win...
If you pick the right people and give them the opportunity to spread their wings and put compensation as a carrier behind it you almost don't have to manage them.
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Bring together best ideas...
“Early in my career...there was too much focus on numbers... and lot less on bulding a team, sharing ideas, exciting others.
Numbers aren't the vision; numbers are products”
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See “change” as an opportunity...
“Know that change is here to stay.
Expect the least expected, but move quickly to stay a step ahead
Prepare those around you for the inevitable change that will affect their lives
The game is going to change and change drastically”
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“Change” may never end...
“The wisdom may lie in changing the institution while it is still winning... reinvigorating a business, in fact, while it is making more money than anyone ever dreamed it could make.”
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Put “values” first...
There are four types of leaders. Type One leaders deliver on commitments and share values of the Company. They have promising future at GE.
Type Two do not deliver. Neither they share the values. They have no place here.
Type Three leaders miss commitments ;but share values. So, they will usually be given chance.
Type Four always deliver but do not have the same values. They are the 'tyrant', the big shots who 'force' performance – and not inspire. They will not last long.
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Spark others to perform...
Energy
Enrgize
Edge
Execution
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THANK THANK YOUYOU
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LEADERSHIP STYLE
THEORIES EMPHASIS END RESULT
Traits Study personal characteristics Separates leaders; Separates non-leaders
Leader Behaviour Theory Study how leaders behave Follower's performance & satisfaction
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GE Global Research: First Industrial Lab in the U.S.
Began in Schenectady, New York in 1900
Founded with the focus to improve businesses through technology
One of the world’s most diverse industries
Cornerstone of GE’s commitment to technology
1900
2006
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GE –a Bellwether of American Management Practices
1930s, highly centralized, tightly controlled corporate form
1950s, decentralization
1960s, strengthen its corporate staff and develop sophisticated planning systems
1970s, SBU-based structure and sophisticated planning processes
1980’s-2001, three waves in Welch’s period
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Lead...
“What we are looking for... are leaders at every level who can energise, excite and inspire rather than enervate, depress and control”
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Articulate vision...
“ Leaders -you take anyone from Roosvelt to Churchill to Reagan- inspire people with clear versions of how things can be done better”
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Simplify
“ You can't believe how hard it is for people to be simple, how much they fear being simple...Clear tough-minded people are the most simple people”
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Manage less...
“Don't get bogged down in meaningless details.
Manage less.
Empower, delegate, get out of the way.
You can't manage self-confidence into people”
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Get less formal“You must realize how important it is to maintain the kind of corporate informality that encourages a ... training class to comfortably challenge the boss's pet ideas”
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Lead by energizing... “We now know where productivity - real & limitless productivity - comes from. It comes from the challenged, empowered, excited, rewarded teams of people”
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Live speed...
“Speed is everything. It is the indispensible ingredient in competitiveness. Don't sit on decisions. Communicate faster. Incorporate speed into every activity” - In his final speech to GE shareholdersIn his final speech to GE shareholders
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Quality is your job...
“ (Six Sigma) is the most important thing we ever had. It's betterthan going to Harvard Business School”