The Management Mantra from GE Jack Welch was appointed CEO of GE in 1981. At that time the firm had a market capitalisation of $13 billion. In 2000 when he stepped down the firm's turnover had increased multifold to $500 billion. What was the secret of Welch's success? He has laid down the following pointers for managers to be successful:
Create a vision and then ignite your organisation to make this vision a reality Get people so passionate about what they are doing that they cannot wait to execute this plan Have great energy, competitive spirit and the ability to spark excitement and achieve results. Search for leaders who have the same qualities
Focus on strategic issues. Your job is to understand the vital issues within each of your businesses. Recognise the talent needed to win in those markets
Focus on the main issue. Your job is to see the big picture. Don't manage every detail. Don't get caught up in the minute details, but instead inspire others to execute some of your vision Surround yourself with great people and trust them to do their job and contribute their best to the organisation
Involve everyone and welcome great ideas from everywhere. Anyone can be a leader, just so long as they contribute, and the most meaningful way for anyone to contribute is to come up with a good idea. Business is all about getting the best ideas from everyone. New ideas are the lifeblood of the organisation, the fuel that makes it run. "The hero is the person with a new idea." There is simply nothing more important to an organisation than expressing ideas and creating a vision.
Lead by example. To spark others to perform, you must lead by example. Jack Welch's mastery of the four E's of leadership - Energy, Energise, Edge, and Execution - was always in evidence. "He had great energy, sparked others, had incredible competitive spirit, and had a record of execution that was second to none. This is a key of the Welch phenomenon Had he been lacking in any of the traits he espoused, he would not have commanded such acclaim.
The secret behind Welch's success is efficient management. Why do you think management is important for the success of the organisation?