we had breakdowns in the system we ended
up on the front page of The Wall Street
Journal find every excuse to have a
party so I think innovation is
everywhere I think it’s in in the
structure your organization you got to
be over here with the needle to get the
needle here somebody’s out there waiting
to pluck you or anywhere they work on
say I’m dreaming please I’m not gonna
make any numbers for a while people
today are just better you grow from the
reflected glory of your people never do
what the assignments do more than that
thousands of people walk walk walk
around frightened to death about what’s
gonna happen he’s a retired American
business executive author and chemical
engineer he was chairman and CEO of
General Electric between 1981 and 2000 I
won
during his tenure at GE the company’s
value rose 4,000% he’s Jack Welch and
here’s his top ten rules for success
well I was tumultuous in the early
career I have a totally impetuous I have
always had a stammer so that’s a
weakness from the beginning to the end I
think that’ll be there I think I think
if I if I go at it I made mistakes on
deals
I don’t openly admit it I walk around
talking about if I can make it this big
a dopey move anybody can make a move
don’t be paralyzed I made lots of
mistakes on people I hired people in the
early days I had him almost always on
resumes and slickness which is probably
inversely proportional to talent
so I did a number of these things on a
fairly frequent basis but I talked about
it I think the thing is talking about
what you what you what your mistakes I
helps that organization enormous ly yeah
it allows them to feel free to make em I
mean I bought a decimal Bank it Kidder
Peabody no one could make a mistake
thing in that Boo Boo’s we had we did
not have run it we had breakdowns in the
system we ended up on the front page of
Wall Street Journal 17 times in 14
months right hand column being called
dopes that’s not fun and we went through
that because it was a cultural era that
I that I personally made and I owned up
to what talk to everybody about it a
boss is entire job is to get the
combined intellect of his team to be
raised to a new level and to instill
spirit find every way to celebrate find
every excuse to have a party but every
little victory counts I mean it is so if
a boss can’t energize if he or she can’t
excite and make people want to be there
they shouldn’t have that title well I
think people too often think of
innovation is going to the lab going off
in the garage and designing something
new and bring it to market
I think innovations all around you you
see you smell something that somebody
else is doing you adapt it to your place
and take it to new new levels that’s a
breakthrough for your company and the
process never stops and if you’ve got a
company that has a mentality inside that
is filled with searching for a better
idea every day not just as a slogan but
as a real concept you will have
innovation around you all the time
classic example we add an innovation by
going to India we went in in India in
the late 80s and we want there to sell
lots of products to a billion people
well 15 years like later we still
haven’t reached a bid
in dollars in sales but we’ve got
forty-one thousand employees because we
found intellect and we were the first
people to go there and build huge R&D
centers technology centers by using the
intellect that was it that’s innovation
getting stuck in one corner when when
bureaucracy won’t let you sell products
but finding it another answer intellect
and capitalize on your so I think
innovation is everywhere I think it’s in
in the structure your organization I
think it’s in every process you deal
with it’s just finding a better way to
do things every day I think everything
has to be a closed loop you drive it
with people you measure it with the
people and then you go visit it and you
go visit the progress now you’ll get a
lot of air and nonsense when you go
visit you’ll see it’ll be it mean for
example in Six Sigma if the amount of
savings I was presented in the course of
Six Sigma we’re all added up it would
have been larger than the GDP of the
United States so I mean the PowerPoint
slides can accumulate enormous events so
all these things are hype to an extent
but they gotta be you cannot you cannot
make change with rational behavior you
cannot make change by like let’s have
quality program quality is good
everybody let’s go at it let’s make sure
our customers feel good without without
quality you guys they know quark our
quality stinks we’ve got to improve it
dramatically only the best people can be
on it
half of our offices by the Year 2005
will it will have been black belts in
quality the stock options and the awards
are going to those leading the efforts
and you’ve got to be you got to be a
maniac about it to move it you got to be
over here with the needle to get the
needle here if you’re sitting there
comfortable in what you’re doing you can
be sure with you with your nicer wards
of number one here number one here
number one the baguette and number one
this one number one that one somebody’s
out there waiting to pluck you
and you can’t get comfortable and at
that rate of change if you start seeing
stuff you got a move the only job of a
leader is you when you ran for Europe or
anyone in this room running businesses
the only reason for having the job is to
make the right trade house between
cutting costs productivity efficiency
and developing new ideas and new
products and anybody in the world for
example I love these CEOs and say oh I’d
like to have it
I hate these analyst presentations and
was they pressing me for quarterly
earnings etc etc look any jerk in the
world can squeeze all day and say talk
to me in five years about my growth or
anywhere they were going to say I’m
dreaming please I’m not going to make
any numbers for a while you can squeeze
or you can dream but a manager does both
elite it does both you dream in your
squeeze you eat while you dream and
there’s no and it’s no getting around
that’s why you’re paid any jerk and do
one of the other but it’s your job to
make those trade-offs you got to see
everyone as a mentor the whole crowd
somebody who works for you might be a
magic I remember when when I became CEO
I was not a great financial wizard I
never did become a financial wizard but
I at least I had this fellow who worked
for me ten years my junior 34 3 3 3
years old while I made CFO he basically
dumped his brain into mine I live with
him and as we went through all the stuff
left side right side and suddenly the
balance sheet from A to Z and and he was
an enormously valuable person I’ve had
people who run on my board who were
completely committed to our success who
would challenge every people appointment
I would make who would have a is sure
hey right I think the business media is
a great mentor he may laugh at that but
I think fortune Businessweek it there’s
a business language I find them mentors
read every story
I can’t understand why somebody can be
in business and not read all those
stories I think you learn you learn what
strategies didn’t work didn’t work some
of the stories aren’t quite accurate
some of the line through so what you’re
constantly learning the rhythm of
business so education and teaching is
all around you it as far as today’s reel
is we have an anonymous tag cadre people
today are just better than they were
before it’s more competitive it’s no
longer when you become CEO today it’s no
longer the coronation it’s the beginning
of a new competitive career I remember
one night in 1980 when I became CEO I
would go to these meetings where people
would sit around and that briefing books
prepared by huge staffs and their
pontificate about the economy and the
other nonsense that meant nothing is
mouthing words it was a ridiculous now
today people in shirtsleeves
getting in there and doing it cuz the
global competition is so tough I think
building an organization building a team
the idea that Jack Welch is the hero of
creating all this value is silly getting
great people in all these jobs it’s a
team that makes this thing happen and so
building a team is your strongest suit
and you’ve got to love your team you’re
going to want your team to be promoted
and when you’re coming up the biggest
problem I find with young MBAs at first
the job is you shining raising your hand
having the answers they want to do that
all the time they just go to school they
want to show you how smart they are now
the transition to manager it all changes
it’s about growing your people not you
you grow from the reflected glory of
your people so it’s all about making
them flourish I like to use the line
that your job is walking around with a
can of water in one hand a can of
fertilizer on the other hand sprinkling
on the seeds and watching them grow
you’ll get some weeds and you got to
pull those weeds out so everyone’s not
going to flourish but you’ve got a
be thinking about all the time loving to
see your people thrive loving to see
them get promoted it’s a real turn-on it
is what management’s all about it’s
about bringing to people great lives
great futures changing their family’s
life that’s a turn-on it’s a big deal
that’s what you’re going to think about
when you work it in a business and
you’re asked to do something if you just
do what the boss asks you to do you will
end up just confirming what the boss
wanted to have written down they already
knew the answer when they asked the
question so your job and a new job is to
over-deliver give them new perspectives
when anybody has some schools ask you
for a problem problem solving in a case
then they ask you the questions so you
answer the questions you don’t get the
answer you don’t get the questions in
business you have to develop a
perspective that’s wider and I always
tell the story of my of my first job I
was a project manager in a little
plastic operation in Pittsfield Mass and
my boss from New York was coming up to
see I’m not my high boss my boss’s boss
and they wanted me to come in one of
those gee white shirt pictures they
present the cases for my new plastic
tell them where I was going so I got all
prepared enough but what I did what I
did do is I didn’t talk about my project
alone I talked about the ten plastics in
the industry where they were going to be
in five years their cost structure from
do tout cela nice to Pont etc I’d give
up that pact I gave my boy my boss’s
boss this picture of the industry I
think answering like a notice there I
was I got out of the pile because I
didn’t just give him my project report
ever I did yesterday if I get tomorrow
history will do next day a game of
perspective and made him look smarter he
knows more about the industry than he
ever knew and that’s what you want to do
you always want to over-deliver never do
what
assignments do more than that wider new
insights new arises well if your elite
up because we have to demonstrate you
have to be open you have to be able to
admit mistakes you have to be able to
cut through the business ease you’ve got
to be able to talk to every person in
your organization in such a way that
they know where they stand no one can be
a manager without know no one can call
themselves a manager and have employees
working for them when the employees
don’t know exactly where they stand
where they are relative to others where
they’re going in their career when
you’re debating a deal you’ve got to lay
it you’ve got to have an atmosphere
where everybody gets it on the table not
massive powerpoint slides numbing shots
that put people to sleep but really
dialogue face to face eyeball to eyeball
confrontation about why the deal works
or doesn’t work and you demonstrate that
yourself you yourself would be if the
place is tied up instant in its knickers
it’ll be because you are setting an
atmosphere that isn’t open isn’t fun
making fun we used to make fun of people
that wouldn’t be open them you know Josh
about it just to try and lighten up hang
up so they’d get their it candor can
kill you though because can if you’re in
a stiff rigid hierarchy you’ve got to be
able to use it right because if nobody
above you is practicing it you coming in
swing for the fences it could be
troublesome so I am going to believe it
speeds everything in business it speeds
decision-making it moves the
organization competitively faster it
gets people to be open about where they
fit I was over at the BBC this week and
this place is the most paralyzed place
I’ve seen in my lifetime I mean
people thousands of people walk walk
walk around frightened to death about
what’s going to happen are they going to
get sack everywhere every interview I
had they asked about well you know
somebody gets on a gets sacked in this
new round we’re going through here and
no one knew where they stood and so the
management there is just being cruel so
employees are walking around not knowing
where they stand you can’t have an
organization where people don’t know
where you as the professor of
organizational dynamics you know but
you’ve got to let people know where they
stand they can’t be in this frighten
paralysis state nothing happens thanks
so much for watching we made this video
because Ryan J Davies asked us to so if
you have a famous entrepreneur you want
us to profile next leave it down in the
comment section below and we’ll see what
we can do also we love to know which one
of Jack Welch’s top ten rules meant the
most to you leave it in the comments
below and we’ll enjoy it in the
discussion thank you so much for
watching
continue to believe and we’ll see you
soon
differentiation is a big valuable I
don’t believe you can run a company
without having an organization that
differentiates differentiates on how it
treats different businesses some would
more not equal and people not equal
takes care of the Stars motivates the
middle and asks the bottom to move on
I believe that did you think the
Patriots keep the worst players why
should a sports team Keith were suppose
the silliest thing that I hear when we
talk about differentiation and we and we
get this all the time is how can you
possibly be telling somebody they’re not
that good and somebody else is that good
well why should you stop getting grades
the day you leave bu why should a grown
up not be able to it great but a sixth
grader is given best in the class and we
gives in the class it’s the dumbest idea
in the world so you want to tell people
where they stand as a manager people
always have to know where they said you
can’t be turning away from it and then
one went one day going in saying we’re
having a layup
now when Ford has this big 30,000 left
layoff hopefully they got in the
performance appraisal system that
somebody wants ey me and somebody said
well you weren’t very good now you pull
out the appraisals let’s say they were
great for the last 10 years you want
candor you want differentiation and
those are values I believe in I walked
around G preaching constantly don’t you
ever think you’re a victim if you ever
feel like a victim get out because if
enough of you get out we’ll find out
who’s making you feel like a victim it’s
your job to take responsibility go find
another game there’s plenty of games
here unemployment slow here go find
something else go on your own
do something but Jesus don’t spend most
your waking hours feeling like a victim
if you ever say something is important
in your organization you better put your
best person on it because your whole
organization is evaluating how important
it is by who you staff it with the
biggest mistakes CEOs makers let me
give you this big puffy speech about how
critical this is inventory turns are
critical we need to get our cash flow
improved and then they hire Joe four
months from retirement to lead the
effort and the whole place just goes
into a yard Joe is like a gas paint
you’ll go away and and and that’s what
happens to the initiative and so it’s an
enormous problem you say something’s
important stop it that way follow up
that way closed-loop measure that way
but I’m sure many of you have had
experiences where people would
articulate the criticalness of an oven
of an issue and then put some okay
player only a best
up on the front page of The Wall Street
Journal find every excuse to have a
party so I think innovation is
everywhere I think it’s in in the
structure your organization you got to
be over here with the needle to get the
needle here somebody’s out there waiting
to pluck you or anywhere they work on
say I’m dreaming please I’m not gonna
make any numbers for a while people
today are just better you grow from the
reflected glory of your people never do
what the assignments do more than that
thousands of people walk walk walk
around frightened to death about what’s
gonna happen he’s a retired American
business executive author and chemical
engineer he was chairman and CEO of
General Electric between 1981 and 2000 I
won
during his tenure at GE the company’s
value rose 4,000% he’s Jack Welch and
here’s his top ten rules for success
well I was tumultuous in the early
career I have a totally impetuous I have
always had a stammer so that’s a
weakness from the beginning to the end I
think that’ll be there I think I think
if I if I go at it I made mistakes on
deals
I don’t openly admit it I walk around
talking about if I can make it this big
a dopey move anybody can make a move
don’t be paralyzed I made lots of
mistakes on people I hired people in the
early days I had him almost always on
resumes and slickness which is probably
inversely proportional to talent
so I did a number of these things on a
fairly frequent basis but I talked about
it I think the thing is talking about
what you what you what your mistakes I
helps that organization enormous ly yeah
it allows them to feel free to make em I
mean I bought a decimal Bank it Kidder
Peabody no one could make a mistake
thing in that Boo Boo’s we had we did
not have run it we had breakdowns in the
system we ended up on the front page of
Wall Street Journal 17 times in 14
months right hand column being called
dopes that’s not fun and we went through
that because it was a cultural era that
I that I personally made and I owned up
to what talk to everybody about it a
boss is entire job is to get the
combined intellect of his team to be
raised to a new level and to instill
spirit find every way to celebrate find
every excuse to have a party but every
little victory counts I mean it is so if
a boss can’t energize if he or she can’t
excite and make people want to be there
they shouldn’t have that title well I
think people too often think of
innovation is going to the lab going off
in the garage and designing something
new and bring it to market
I think innovations all around you you
see you smell something that somebody
else is doing you adapt it to your place
and take it to new new levels that’s a
breakthrough for your company and the
process never stops and if you’ve got a
company that has a mentality inside that
is filled with searching for a better
idea every day not just as a slogan but
as a real concept you will have
innovation around you all the time
classic example we add an innovation by
going to India we went in in India in
the late 80s and we want there to sell
lots of products to a billion people
well 15 years like later we still
haven’t reached a bid
in dollars in sales but we’ve got
forty-one thousand employees because we
found intellect and we were the first
people to go there and build huge R&D
centers technology centers by using the
intellect that was it that’s innovation
getting stuck in one corner when when
bureaucracy won’t let you sell products
but finding it another answer intellect
and capitalize on your so I think
innovation is everywhere I think it’s in
in the structure your organization I
think it’s in every process you deal
with it’s just finding a better way to
do things every day I think everything
has to be a closed loop you drive it
with people you measure it with the
people and then you go visit it and you
go visit the progress now you’ll get a
lot of air and nonsense when you go
visit you’ll see it’ll be it mean for
example in Six Sigma if the amount of
savings I was presented in the course of
Six Sigma we’re all added up it would
have been larger than the GDP of the
United States so I mean the PowerPoint
slides can accumulate enormous events so
all these things are hype to an extent
but they gotta be you cannot you cannot
make change with rational behavior you
cannot make change by like let’s have
quality program quality is good
everybody let’s go at it let’s make sure
our customers feel good without without
quality you guys they know quark our
quality stinks we’ve got to improve it
dramatically only the best people can be
on it
half of our offices by the Year 2005
will it will have been black belts in
quality the stock options and the awards
are going to those leading the efforts
and you’ve got to be you got to be a
maniac about it to move it you got to be
over here with the needle to get the
needle here if you’re sitting there
comfortable in what you’re doing you can
be sure with you with your nicer wards
of number one here number one here
number one the baguette and number one
this one number one that one somebody’s
out there waiting to pluck you
and you can’t get comfortable and at
that rate of change if you start seeing
stuff you got a move the only job of a
leader is you when you ran for Europe or
anyone in this room running businesses
the only reason for having the job is to
make the right trade house between
cutting costs productivity efficiency
and developing new ideas and new
products and anybody in the world for
example I love these CEOs and say oh I’d
like to have it
I hate these analyst presentations and
was they pressing me for quarterly
earnings etc etc look any jerk in the
world can squeeze all day and say talk
to me in five years about my growth or
anywhere they were going to say I’m
dreaming please I’m not going to make
any numbers for a while you can squeeze
or you can dream but a manager does both
elite it does both you dream in your
squeeze you eat while you dream and
there’s no and it’s no getting around
that’s why you’re paid any jerk and do
one of the other but it’s your job to
make those trade-offs you got to see
everyone as a mentor the whole crowd
somebody who works for you might be a
magic I remember when when I became CEO
I was not a great financial wizard I
never did become a financial wizard but
I at least I had this fellow who worked
for me ten years my junior 34 3 3 3
years old while I made CFO he basically
dumped his brain into mine I live with
him and as we went through all the stuff
left side right side and suddenly the
balance sheet from A to Z and and he was
an enormously valuable person I’ve had
people who run on my board who were
completely committed to our success who
would challenge every people appointment
I would make who would have a is sure
hey right I think the business media is
a great mentor he may laugh at that but
I think fortune Businessweek it there’s
a business language I find them mentors
read every story
I can’t understand why somebody can be
in business and not read all those
stories I think you learn you learn what
strategies didn’t work didn’t work some
of the stories aren’t quite accurate
some of the line through so what you’re
constantly learning the rhythm of
business so education and teaching is
all around you it as far as today’s reel
is we have an anonymous tag cadre people
today are just better than they were
before it’s more competitive it’s no
longer when you become CEO today it’s no
longer the coronation it’s the beginning
of a new competitive career I remember
one night in 1980 when I became CEO I
would go to these meetings where people
would sit around and that briefing books
prepared by huge staffs and their
pontificate about the economy and the
other nonsense that meant nothing is
mouthing words it was a ridiculous now
today people in shirtsleeves
getting in there and doing it cuz the
global competition is so tough I think
building an organization building a team
the idea that Jack Welch is the hero of
creating all this value is silly getting
great people in all these jobs it’s a
team that makes this thing happen and so
building a team is your strongest suit
and you’ve got to love your team you’re
going to want your team to be promoted
and when you’re coming up the biggest
problem I find with young MBAs at first
the job is you shining raising your hand
having the answers they want to do that
all the time they just go to school they
want to show you how smart they are now
the transition to manager it all changes
it’s about growing your people not you
you grow from the reflected glory of
your people so it’s all about making
them flourish I like to use the line
that your job is walking around with a
can of water in one hand a can of
fertilizer on the other hand sprinkling
on the seeds and watching them grow
you’ll get some weeds and you got to
pull those weeds out so everyone’s not
going to flourish but you’ve got a
be thinking about all the time loving to
see your people thrive loving to see
them get promoted it’s a real turn-on it
is what management’s all about it’s
about bringing to people great lives
great futures changing their family’s
life that’s a turn-on it’s a big deal
that’s what you’re going to think about
when you work it in a business and
you’re asked to do something if you just
do what the boss asks you to do you will
end up just confirming what the boss
wanted to have written down they already
knew the answer when they asked the
question so your job and a new job is to
over-deliver give them new perspectives
when anybody has some schools ask you
for a problem problem solving in a case
then they ask you the questions so you
answer the questions you don’t get the
answer you don’t get the questions in
business you have to develop a
perspective that’s wider and I always
tell the story of my of my first job I
was a project manager in a little
plastic operation in Pittsfield Mass and
my boss from New York was coming up to
see I’m not my high boss my boss’s boss
and they wanted me to come in one of
those gee white shirt pictures they
present the cases for my new plastic
tell them where I was going so I got all
prepared enough but what I did what I
did do is I didn’t talk about my project
alone I talked about the ten plastics in
the industry where they were going to be
in five years their cost structure from
do tout cela nice to Pont etc I’d give
up that pact I gave my boy my boss’s
boss this picture of the industry I
think answering like a notice there I
was I got out of the pile because I
didn’t just give him my project report
ever I did yesterday if I get tomorrow
history will do next day a game of
perspective and made him look smarter he
knows more about the industry than he
ever knew and that’s what you want to do
you always want to over-deliver never do
what
assignments do more than that wider new
insights new arises well if your elite
up because we have to demonstrate you
have to be open you have to be able to
admit mistakes you have to be able to
cut through the business ease you’ve got
to be able to talk to every person in
your organization in such a way that
they know where they stand no one can be
a manager without know no one can call
themselves a manager and have employees
working for them when the employees
don’t know exactly where they stand
where they are relative to others where
they’re going in their career when
you’re debating a deal you’ve got to lay
it you’ve got to have an atmosphere
where everybody gets it on the table not
massive powerpoint slides numbing shots
that put people to sleep but really
dialogue face to face eyeball to eyeball
confrontation about why the deal works
or doesn’t work and you demonstrate that
yourself you yourself would be if the
place is tied up instant in its knickers
it’ll be because you are setting an
atmosphere that isn’t open isn’t fun
making fun we used to make fun of people
that wouldn’t be open them you know Josh
about it just to try and lighten up hang
up so they’d get their it candor can
kill you though because can if you’re in
a stiff rigid hierarchy you’ve got to be
able to use it right because if nobody
above you is practicing it you coming in
swing for the fences it could be
troublesome so I am going to believe it
speeds everything in business it speeds
decision-making it moves the
organization competitively faster it
gets people to be open about where they
fit I was over at the BBC this week and
this place is the most paralyzed place
I’ve seen in my lifetime I mean
people thousands of people walk walk
walk around frightened to death about
what’s going to happen are they going to
get sack everywhere every interview I
had they asked about well you know
somebody gets on a gets sacked in this
new round we’re going through here and
no one knew where they stood and so the
management there is just being cruel so
employees are walking around not knowing
where they stand you can’t have an
organization where people don’t know
where you as the professor of
organizational dynamics you know but
you’ve got to let people know where they
stand they can’t be in this frighten
paralysis state nothing happens thanks
so much for watching we made this video
because Ryan J Davies asked us to so if
you have a famous entrepreneur you want
us to profile next leave it down in the
comment section below and we’ll see what
we can do also we love to know which one
of Jack Welch’s top ten rules meant the
most to you leave it in the comments
below and we’ll enjoy it in the
discussion thank you so much for
watching
continue to believe and we’ll see you
soon
differentiation is a big valuable I
don’t believe you can run a company
without having an organization that
differentiates differentiates on how it
treats different businesses some would
more not equal and people not equal
takes care of the Stars motivates the
middle and asks the bottom to move on
I believe that did you think the
Patriots keep the worst players why
should a sports team Keith were suppose
the silliest thing that I hear when we
talk about differentiation and we and we
get this all the time is how can you
possibly be telling somebody they’re not
that good and somebody else is that good
well why should you stop getting grades
the day you leave bu why should a grown
up not be able to it great but a sixth
grader is given best in the class and we
gives in the class it’s the dumbest idea
in the world so you want to tell people
where they stand as a manager people
always have to know where they said you
can’t be turning away from it and then
one went one day going in saying we’re
having a layup
now when Ford has this big 30,000 left
layoff hopefully they got in the
performance appraisal system that
somebody wants ey me and somebody said
well you weren’t very good now you pull
out the appraisals let’s say they were
great for the last 10 years you want
candor you want differentiation and
those are values I believe in I walked
around G preaching constantly don’t you
ever think you’re a victim if you ever
feel like a victim get out because if
enough of you get out we’ll find out
who’s making you feel like a victim it’s
your job to take responsibility go find
another game there’s plenty of games
here unemployment slow here go find
something else go on your own
do something but Jesus don’t spend most
your waking hours feeling like a victim
if you ever say something is important
in your organization you better put your
best person on it because your whole
organization is evaluating how important
it is by who you staff it with the
biggest mistakes CEOs makers let me
give you this big puffy speech about how
critical this is inventory turns are
critical we need to get our cash flow
improved and then they hire Joe four
months from retirement to lead the
effort and the whole place just goes
into a yard Joe is like a gas paint
you’ll go away and and and that’s what
happens to the initiative and so it’s an
enormous problem you say something’s
important stop it that way follow up
that way closed-loop measure that way
but I’m sure many of you have had
experiences where people would
articulate the criticalness of an oven
of an issue and then put some okay
player only a best
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