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25 Lessons from Jack Welch

Creating the worlds most competitive enterprise

Lessons from the legendary former CEO of GE, whose management innovations have made him the most influential CEO of his era

2007 Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com

25 LESSONS FROM JACK WELCH

Jack Welch--The Strategic Communicator

He has been called the greastest CEO in the US. He was chairman and CEO of General Electric from 1981 to 2001. He give power to people. Welch says a CEO's greatest failing is being the last to know. A leader who never hears bad news is hopelessly out of touch. Welch is a corporate statesman who is a true believer in the long-term future of his company. Welch has a capacity for self-criticism.

Exemplary Leaders (Aitken)

Creating the worlds most competitive enterprise

Clickable titles
Contents

25 Lessons from Jack Welch

GE Success Story: Flash Points 25 Lessons from Jack Welch

I. Lead More, Manage Less II. Build a Winning Organization III. Harness Your People for Competitive Advantage IV. Build a Market-Leading Company

GE Leadership Assessment Survey

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

Welch's Leadership Lessons

Embrace change. Focus on developing people. Communicate relentlessly. Be decisive. Be seen as the leader. Live your message.

Exemplary Leaders (Aitken)

Jack Welch--The Strategic Communicator

He has been called the greatest CEO in the US. He was chairman and CEO of General Electric from 1981 to 2001. He give power to people. Welch says a CEO's greatest failing is being the last to know. A leader who never hears bad news is hopelessly out of touch. Welch is a corporate statesman who is a true believer in the long-term future of his company. Welch has a capacity for self-criticism.

Exemplary Leaders (Aitken)

Creating the Worlds Most Competitive Enterprise

Lessons from Jack Welch, Former CEO of GE
US$500 billion

Success Story

Welchs Seven-Point Program for Management by Leadership

1. Develop a vision for the business 2. Change the culture to achieve the vision 3. 4. 5. 6. Flatten the organization Eliminate bureaucracy Empower individuals Raise quality and efficiency 7. Eliminate boundaries
More information at 1000ventures.com: Jack Welch a Corporate Change Leader

GE Market Capitalization

US$13 billion 1981 Jack Welch appointed as CEO of GE 2000 Jack Welch steps down as CEO of GE

Jack Welch Corporate Change Leader

Welchs 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

Welchs prescription for winning in business

1. Speed 2. Simplicity 3. Self-confidence

More information at 1000ventures.com: Jack Welch Corporate Change Leader

Shared Corporate Values

GE Values Guide

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

Lessons from Jack Welch

The 4 Es of Leadership

Energy
They have tremendous personal energy

Energize
They energize teams, and don't intimidate them

Execution
They are action-oriented, and are focused on getting results

Edge
They have a competitive edge and a will to win

More information at 1000ventures.com: 25 Lessons from Jack Welch

GE Growth Strategies
Shun the incremental and go for the leap Jack Welch

Going for the leap

Radical innovation Diversification Venture investing Acquisitions

Shining the incremental

Lean organization GE Work-Out Quality Management: Six Sigma
More information at 1000ventures.com: Sustainable Growth Strategies

Impact of Six Sigma Implementation at GE

"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

Quality Management: Six Sigma

Results achieved over the first two years (1996-1998)

17% 11% 13% 14%

Revenue increased

Profits increased

Earning per share increased

Operating margins increased

More information at 1000ventures.com: Six Sigma

Six Sigma Implementation at GE

Making the Six Sigma Process Work
Four MAIC Steps
1. Measure 2. Analyze 3. Improve 4. Control Everyday Six Sigma
Plant managers can use Six Sigma to reduce waste, improve product consistency, solve equipment problems or create capacity.

Five Corporate Measures

1. 2. 3. 4. 5. Customer Satisfaction Cost of Poor Quality Supplier Quality Internal Performance Design for Manufacturability

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

Corporate Investing in External Ventures

GE Equity

No of Ventures Invested
600

Nature of Venture Investments (2002)

15%
Strategic Value Investments Investments in Areas Unrelated to GE

300 0 1995 2000 2005

85%
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
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 worldclass, 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 duediligence checklist in the world of corporate venture investing portfolio management system

More information at 1000ventures.com: Corporate Venture Investing

Creating the worlds most competitive enterprise

Clickable titles

25 Lessons from Jack Welch

GE Success Story: Flash Points 25 Lessons from Jack Welch

I. Lead More, Manage Less II. Build a Winning Organization III. Harness Your People for Competitive Advantage IV. Build a Market-Leading Company

GE Leadership Assessment Survey

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

Management by Leadership
25 Lessons from Jack Welch
LEAD MORE, MANAGE LESS
1. 2. 3. 4. 5. Lead Manage less Articulate your vision Simplify Get less formal 6. 7. 8. 9. 10. Energize others Face reality See change as an opportunity Get good ideas from everywhere Follow up

BUILD A WINNING ORGANIZATION

11. 12. 13. 14. 15. Get rid of bureaucracy Eliminate boundaries Put values first Cultivate leaders Create learning culture

HARNESS YOUR PEOPLE

16. 17. 18. 19. 20. Involve everyone Make everybody a team player Stretch Instill confidence Make business fun

BUILD THE MARKET-LEADING COMPANY

21. Be number 1 or number 2 22. Live quality 23. Constantly focus on innovation 24. Live speed 25. Behave like a small company
More information at 1000ventures.com: 25 Lessons from Jack Welch

Lead More, Manage Less: Lesson 1

Lead
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
Lesson1: LEAD More information at 1000ventures.com: Effective Leadership

Build a Market-Leading Company: Lesson 22

Live Quality
"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

Creating the worlds most competitive enterprise GE Success Story: Flash Points

25 Lessons from Jack Welch

25 Lessons from Jack Welch

I.
II.

Lead More, Manage Less

Build a Winning Organization

III.
IV.

Harness Your People for Competitive Advantage

Build a Market-Leading Company

GE Leadership Assessment Survey

THANK YOU!
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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

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