Need for Transition
For a long time, the conventional wisdom in
business was that managers was that managers should do little else but keep
a close eye on what their subordinates were doing: monitor, supervise,
control. Making sure that things below were proceeding properly – that's all
that managers were supposed to do.
7 Core Principles
In old-fashioned companies top managers do not
employees and do not have direct contact with the employees who actually
produce the company's products, while junior
managers are not given a chance to do things on their own.
9 Signs of a
These old traditional ways of managing do not
longer work well. Old corporate organizational
structures – designed vertically, with matrix and ad hoc overlays – make
professional work too complex and inefficient.
❶ A systematic
and organized method for obtaining information about the context of the
business in the economy, its market and its pool of competitors.
❷ Integration of
what was once several procedures – value analysis, process analysis,
quality management and costing – into a
Creating Sustainable Profits:
When you ask
searching questions, you
innovate forward. When you have
answers, you stagnate...
5 Strategic Questions
Your Company's Most Precious Recourse
In the new rapidly changing economy,
people have become your firm's most precious and underutilized resource.
They are your firm's repository of
knowledge and they are central to
energized and highly
motivated people are critical to the
strategies, especially in today's
faster-paced, more perplexing world, where
top management alone can no
longer assure your firm's
competitiveness. At all levels, your company needs
people who can deliver at the frontier of
performance. They must understand
where your company is going and be able to influence this path. They must
share in your company's fortunes and be motivated to push for greater
These new realities brought about
a new management model.
Lessons from Jack Welch
became CEO of General Electric (GE)
in 1981, the system of management in place, commonly referred to as "command
and control" was the same system that large corporations had used for years.
"Workers worked, managers managed, and everyone new their place. Forms and
approvals and bureaucracy ruled the day," writes
Robert Slater, the author of Jack Welch and the GE Way.
Welch's goal was to make GE "the world's most competitive enterprise."
Jack Welch knew that it would take nothing less than a "revolution" to transform
that dream into a reality. This self-proclaimed revolution meant waging war
on GE's old ways of doing things and reinventing the company from top to
25 Lessons from
In the company's 1993 Annual Report, Welch
noted, "To be blunt, the two quickest ways to part company with GE are, one,
to commit an integrity violation, or, two, to be controlling, turf-defending
oppressive manager who can't change and who saps and squeezes people rather
than excites and
draws out their energy and
The techniques and ideas that Welch has employed to move GE forward are
applicable to any corporations, of any size and of any specialization.
New GE with its unique
learning culture and
boundaryless organization has become one the most admired company in the