Documente Academic
Documente Profesional
Documente Cultură
▪ Team selected 9 companies including Ford, HP, Xerox & Toshiba & identified:
▪ they focused more on developing effective processes than controlling individuals
▪ Customer satisfaction was their main gauge of performance
▪ they treated their supplier as partners
▪ They emphasized the need for a constant stream of high quality new products
Going Global
▪ Welch raised the bar on GE’s well known performance standard:
▪ from now on, #1 or #2 was to be evaluated on world market positions.
▪ As these reviews rolled out, all employees excepted honest feedback about:
▪ Where they were professionally
▪ Reasonable expectations about future positions they could hold & specific skills required.
▪ Managers at every level used these discussions as the basis for coaching and developing staff
Developing Leaders
▪ Despite all the individual development & corporate initiatives, not all managers were able to
achieve Welch's ideal leadership profile.
▪ He addressed the problem. In our views, Leaders whether on the shop floor or at the top of
our business can be characterized in at least four ways.
▪ Who deliver on commitments & share the values. She/he has an onward & upward future.
▪ Who does not meet commitments& does not share our values. Not pleasant a call, but equally easy.
▪ Who misses commitments but share values, usually get a 2nd chance in a new environment.
▪ Who delivers on commitments but doesn’t share the values we must have.
▪ To reinforce his intentions to identify and weed out Type 4 managers, Welch began rating
top managers not only on performance but also on the extent to which they lived GE values.
▪ As back up his commitment to the new leadership criteria, GE introduced a 360 degree
feedback process. 360 feedback become the means for identify training needs & career
planning.
Into the 1990s:
The third wave
Boundaryless behavior
▪ Welch share his vision for GE in the 1990s as a “boundaryless” company, one
characterized by an open, anti parochial environment, friendly towards seeking
and sharing new ideas regardless of their origin.
▪ In many ways an institutionalization of the openness “work-out” had initiated and
“best practices” transfers had reinforced.
▪ The boundaryless company will:
▪ remove the barrier between all departments
▪ it will recognize no distinctions between foreign and domestic operations
▪ will ignore group labels group labels such as “management” “salaried” or “hourly”
Stretch: Achieving the impossible
▪ He introduced the notion of “stretch” to set performance targets and described it as a
using dreams to set business targets.
▪ The objective was to change the way targets were set and performance was
measured.
▪ You absolutely have to honour the don’t push failure concept, stretch targets
becomes a disaster without that.
Service business
▪ In 1994, launched a new strategic initiatives to reduce GE’s dependence on
traditional industrial products.
Closing out the decade:
Raising the Bar
Six Sigma quality Initiative
▪ Provided massive training to thousands of managers to create a cadre of:
▪ Greenbelts with training of four weeks followed by implementation of a five months
project aimed at improving quality.
▪ Black belts with six weeks training in statistics, data analysis, and other six sigma tools
which prepared the candidate to undertake three major quality projects
▪ Master Black belts – full time sigma instructors- mentored the black belt candidate
through two year process.
▪ GE invested $500 million to train 85,000 professional workforce in first two years.
▪ Welch said, they have began to change the DNA of GE to one wheose central
stand is quality
“A players” with “four E’s”
▪ Modifying his early language of four management types, he described GE as a
company that wanted only “A players” – individual with vision, leadership, energy
and courage.
▪ “A players” were characterized by welch as 4E’s –
▪ Energy – excited by ideas and attracted to turbulence of the opportunity it brings
▪ Ability to energize others – infecting every one with their enthusiasm for an idea and
having every one dreaming the same big dreams.
▪ Edge – the ability to make tough calls
▪ Execution – the consistent ability to turn vision into results
▪ Welch urged his top management, We are an A plus company. We want A players.
Take care of your best. Reward them. Promote them. Pay them well. Give them lot
of stock option.
▪ Don’s spend all the time trying to work plans to get Cs to be Bs. Move them out
early. It is a contribution.
“A players” with “four E’s”
▪ Implemented a strong performance appraisal system that required each
manager to rank his employees into five categorise based on long term
performance
1. Top 10% - offer stock option
2. Strong 15% - offer stock option
3. Highly valued 50%
4. Borderline 15%
5. Least effective 10% - had to go
▪ E-business
Q/A
Thank you
What Leaders Really Do?
John P. Kotter
They don’t make plans; they
don’t solve problems; they
don’t even organize people.
¡ You can’t do anything in business without followers, and followers in these “empowered” times are hard to
find.
¡ So executives had better know what it takes to lead effectively—they must find ways to engage people and
rouse their commitment to company goals.
¡ Everyone agrees that leaders need vision, energy, authority, and strategic direction.
¡ But we’ve discovered that inspirational leaders also share four unexpected qualities.
WHAT ARE THOSE QUALITIES THEN?
ANY GUESSES?
¡ They selectively show their weaknesses.
¡ They rely heavily on intuition to gauge the appropriate timing and course of their
actions.
¡ They manage employees with something we call tough empathy.
¡ They reveal their differences.
REVEAL YOUR WEAKNESSES
¡ Exposing a weakness establishes trust and thus helps get folks on board.
¡ Indeed, if executives try to communicate that they’re perfect at everything, there will
be no need for anyone to help them with anything.
¡ They won’t need followers. They’ll signal that they can do it all themselves.
¡ Communicating a weakness also builds solidarity between followers and leaders.
¡ Sharing an imperfection is so effective because it underscores a human being’s
authenticity.
¡ That said, the most effective leaders know that exposing a weakness must be done
carefully.
¡ The golden rule is never to expose a weakness that will be seen as a fatal flaw—by
which we mean a flaw that jeopardizes central aspects of your professional role.
BECOME A SENSOR
¡ Indeed, great sensors can easily gauge unexpressed feelings; they can very accurately judge
whether relationships are working or not.
¡ The process is complex, and as anyone who has ever encountered it knows, the results are
impressive.
¡ Sensing can create problems.
¡ That’s because in making fine judgments about how far they can go, leaders risk losing their
followers.
¡ There is another danger associated with sensing skills. By definition, sensing a situation involves
projection—that state of mind whereby you attribute your own ideas to other people and things.
¡ Sensing capability must always be framed by reality testing.
¡ Even the most gifted sensor may need to validate his perceptions with a trusted adviser or a
member of his inner team.
PRACTICE TOUGH EMPATHY
¡ Another quality of inspirational leaders is that they capitalize on what’s unique about
themselves.
¡ In fact, using these differences to great advantage is the most important quality of the
four we’ve mentioned.
¡ Most people, however, are hesitant to communicate what’s unique about themselves, and
it can take years for them to be fully aware of what sets them apart.
¡ Some leaders know exactly how to take advantage of their differences.
LEADERSHIP IN ACTION
¡ All four of the qualities described here are necessary for inspirational leadership, but they
cannot be used mechanically.
¡ So the challenge facing prospective leaders is for them to be
themselves, but with more skill.
¡ That can be done by making yourself increasingly aware of the four leadership qualities we
describe and by manipulating these qualities to come up with a personal style that works
for you.
¡ Remember, there is no universal formula, and what’s needed will vary from context to
context.
UNRAVELING THE MYSTERY