7 Principles Jack Welch in Business Leadership

By | October 4, 2013

jack welcWho does not know Jack Welch? The former number one at General Electric, whose real name John Francis Welch Jr. was born 19 November 1935. He is one of the characters who is known for his leadership while serving as the leader and Chief Executive of GE in the period 1981-2001. His reputation was achieved thanks to the high business acumen and leadership strategies at GE. He remains a respected figure among businesses considering innovative management strategies and leadership style.

Here are the 7 principles upheld by Jack Welch in managing GE extracted from the writings of Robert Slater “Jack Welch and the GE Way”:

Business is simple

Of simplicity, Welch has always stressed that it is not a complicated business. He encouraged people to respond to the business as a simple field. Welch said in a statement had said, “Do not make business harder than it is.” (Do not make the business more difficult than it actually is)

Simplicity is also very important for a reliable business leaders associated with the two functions he clothing: creating and projecting a clear vision.

Simplicity is an art form with many definitions. Meaning of simplicity can be a great deal depending on one’s viewpoint, but if you want to be summarized, Welch said, “… it [simplicity] takes the form of a plain-speaking, directness – honesty.” He emphasized honesty, candor as a real form of the concept of simplicity.

Do not make a business seem complicated

How different from other GE businesses, he encouraged everyone in the company to think simply, to see them as perpetrators him a similar process: input and output. And do not complicates the business more than it should.

Same input, said Welch. Input can be a person, energy, and physical space. While the output may vary.

Face reality

Welch in his book “Jack Welch and the GE Way” states unequivocally, “Face reality. gthen act decisively. “Let’s face the reality that is before us, whatever it is. Whether sweet or bitter. Bright or gloomy. Never retreat and escape from what we face.

For Welch, this is one of the main principles of doing business. Anyone, either in life or business, will usually win and be successful if he is able to recognize the fact that there are and react appropriately. It’s that easy.

However, for various reasons, some people are afraid to face reality. It was easier to avoid the truth with all sorts of ways. Truth hurts and bitter.

As an entrepreneur, successful leadership depends on two things: determine and deal with the fact – about the situation, products and people. Then do something quickly and firmly based on the fact that. A lot of mistakes that we make comes from a reluctance to face reality and act decisively.

Do not dither will change

“Embrace change, do not fear it,” said Welch. Changes occur faster than the time it takes a company to respond.

It makes no sense for an entrepreneur and venture to be successful if he is to avoid change. The future-oriented leaders like the changes. Change is their breath.

Change is an integral part of business reality. Every time we encounter new competitors, new partners, new methods, and so forth.

Welch apply this principle in GE by setting the same goal, which is to boost business growth, but the tools and methods are constantly evolving, not constant.

Fight bureaucracy

“Get rid of the managers, get rid of the bureaucracy!” Welch believes that each layer must be penetrated in a layer of bureaucracy is bad. The world is moving at a speed so high that the control could be hampering restraints. It just makes us sluggish.

Use existing resources efficiently. There is no need to have too many workers if the workload can still be handled properly. This he applied in GE. He became a pioneer in a movement streamlining unpopular. Although less enjoyable for many people, including himself, Welch knew it had to be done if GE is eager to be a company that continues to survive in the global competition in the future.

Use your intelligence worker

Involve everyone in the company. Take away the layers of management that makes it difficult and makes slow. Discard the shackles of bureaucratic restraints. And destroy the barrier reef which impede the course of the company to success.

Find out who has the best ideas, and apply the idea
This is the secret of other progressive management. Find the good ideas from anyone and then apply that idea seriously. That is adhered Welch at any time.

As a seasoned entrepreneur, he did not want to stop studying arrogant, even from people who are more ‘green’ from him. He thought vanity as we already know everything and that we could monopolize the truth is the beginning of destruction.