Creating the Spirit of a Start-Up Firm

in a Large and Complex Enterprise





Jack Welch advice business quotes

One of the ways we'll know that Work-Out has been successful is that my style of leadership will no longer be tolerated in this company.

Jack Welch



Jack Welch advice business quotes

Involve everyone. 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.

Jack Welch





GE Work-Out Getting Rid of Bureacracy Employee Empowerment Building Trust Paradigms Continuous Improvement Firm (CIF) Employee Empowerment Continuous Improvement Firm (CIF) GE (case study)


Key Benefits

Reduces bureaucracy

Empowers people

❸ Continuously reinvents ever- more effective ways of doing business

Four Major Goals

Build Trust

Empower Employees

Eliminate Unnecessary Work

Create a New Paradigm for GE

Two Defining Aspects

❶ Employees have to be able to make suggestions to their bosses face-to-face.

❷ Employees have to be able to get a response on the spot, if possible.

5 Targeted Dimensions of Growth

Focus on "stretch" making participants feel urgency to change... More

7 Implementation Steps

❶ Chose the issues to be discussed.

❷ Select the appropriate cross-functional team to tackle the problem... More

5 Sessions

❶ Introduction


❸ The Gallery of Ideas

❹ Generate Action Plans

❺ The Town Meeting

Why Work-Out?

As Jack Welch began to recognize that employees were an important source of brainpower for new and creative ideas, he wanted to create an environment that pushes towards "a relentless, endless companywide search for a better way to do everything we do."

25 Lessons from Jack Welch  Download PowerPoint presentation, pdf e-book       

The Work-Out program was a way to reduce bureaucracy and give every employee, from managers to factory workers, an opportunity to influence and improve GE's day-to-day operations.

Ultimately, the goal of the Work-Out program was to "clean up" GE, to make workers more productive and processes simpler and more clear-cut.

Work-Out was also designed to reduce, and ultimately eliminate all of the waste hours and energy that large organizations typically expend in performing day-to-day operations.  >>>

Continuous Improvement Firm  Download PowerPoint presentation, pdf e-book

In Welch's words, Work-Out is meant to help people stop "wrestling with the boundaries, the absurdities that grow in large organizations. We're all familiar with those absurdities: too many approvals, duplication, pomposity, waste."

The Work-Out "in essence turned the company upside down, so that the workers told the bosses what to do. That forever changed the way people behaved at the company."3 

Choosing the Name

The program lacked the name at the start. Because Welch had talked about "working out" the nonsense of GE, and dealing with problems that had to be "worked out", the name Work-Out was chosen.

Making Change Really Happen

In most organizations, change efforts come and go and rarely make a difference. But at GE, one of the largest companies in the world, one particular change process helped spark a complete transformation Work-Out. With Work-Out as part of its DNA, GE has become one of the most innovative Download PowerPoint presentation, pdf e-book, profitable, and admired companies on earth.1


The Work-Out Concept

At its core, Work-Out is a very simple concept based on the premise that those closest to the work know it best. When the ideas of those people, irrespective of their functions and job titles, are solicited and turned immediately into action, an unstoppable wave of creativity, energy, and productivity is unleashed throughout the organization.

At GE, Work-Out "Town Meetings" gave the corporation access to an unlimited resource of imagination and energy of its talented employees.


Jack Welch advice business quotes

The idea flow from the human spirit is absolutely unlimited. All you have to do is tap into that well.

Jack Welch



Case Studies Success Stories

GE Capital used to give vehicle fleet leasing customers a 500-pages report of monthly usage with all backup detail. No customer read this huge report however. This problem was brought up at a Work-Out session. It was decided to give customers much shorter 30-page summary reports not all backup detail. Implementation of this decision resulted in less paper, postage, labor savings from less handling, reductions in computer processing time and customer queries, and  US$100,000 in savings... More





Five Targeted Dimensions of Growth...   Five Sessions...   Briefing the Participants...

Brainstorming...    Encouraging Lateral Thinking a GE Workout...    The Gallery of Ideas...

Generating Action Plans...   The Town Meeting...

Case Studies Encouragement of Lateral Thinking at GE Work-Out


1. The GE Work-Out, Dave Ulrich et al

2. Venture Catalyst, Donald L. Laurie

3. The Welch Way, Jeffrey A. Krames

4. Jack Welch and the GE Way, Robert Slater

5. Idea Management Quotes

Continuous Improvement Firm  Download PowerPoint presentation, pdf e-book

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