Introduction To many, leaders are not born, but made.
Manage Like Jack The success story of GE under the energetic and visionary leadership of Jack Welch, however, is a complex narrative of managerial innovation and prescient strategic moves, which not only included the acquisition of companies, but also the selling of troubled firms owned by the enormous conglomerateand the ruthless termination of managers who did not produce.
In business, as in life, there are no guarantees. But for businesses of any size, the management philosophy of Jack Welch may be applied equally, and the results will be positive. The following analysis will describe the basic principles of the Welch management system.
Within each principle are specifics, subtleties and case histories to which entire books have been devoted. These five points will address the larger picture. Welch insists that his managers, from senior level on down, "embrace change.
CEOs, the senior management team, middle and junior managers, and individual employees must be open to reinventing themselves and everything they do.
This is the only way to keep up with all of the many factors constantly in flux that impact a business, the way it operates and its bottom line.
At one time, most senior managers performed only limited functions. They watched, supervised and dictated orders to their underlings. Isolated from their subordinates and employees, these top managers could neither inspire them nor grant them permission to take initiatives not mandated from the top down.
Welch abhors this approach. He often said that he wants his top people to lead not manage.
Managers keep their feet on the brakes, in a manner of speaking, rather than on the gas, Welch has implied. Successful managers can only understand the entire work process if they integrate their duties to comprehend the multiple aspects of their business. Hire and develop managers who can energize, excite and control.
The ideal manager, according to Welch, is one who shares his vision, has boundless energy, and possesses the ability to radiate enthusiasm and ignite that flame in other employees.
Along with those highly desirable skills, the best managers also have the indispensable gift of creating, developing and refining a vision and putting it to work in a practical way.
To inspire enthusiasm and excitement in employees, no matter at what level in the corporate hierarchyis to assign them more responsibility and grant them the permission, liberty and encouragement to act on their own initiative.
CEOs and all managers who deliberately ignore the facts of their business, the business environment, and general market and economic conditions are doomed to fail, according to Welch.
Understanding the macroeconomic factors affecting your business ensures long-term prosperity in a dynamic corporate environment.
Assets that generate income today may not conform to the ongoing company business model. Inas market facts indicated the potential for increased profitability in mass media, GE acquired RCA, which owned NBC television, a move that eventually provided huge and consistent revenues for GE.
Analyzing an Acquisition Announcement. Be focused, be consistent and follow up on every detail. Following up to make sure these values are pursued at every level all but assure that, in a very unpredictable world, a company has at least the potential to succeed.
Managers across the spectrum, from CEOs of large firms to owner-operators of small businesses may profit from implementing these ideas. Get a free 10 week email series that will teach you how to start investing. Delivered twice a week, straight to your inbox.Summaries of over + MBA methods on strategy, performance management, finance, valuation, change, corporate governance, communication, marketing, leadership and responsibility.
MBA models and MBA theories. Value Based Management. Businesses use quality management systems to improve the efficiency of their processes, which can help increase profitability.
Total Quality Management systems use a variety of tools and theories. Find definitions and summaries of s of management terms, MBA concepts, methods, models, theories and approaches. Business management glossary. Strategic Management Theories and the Linkage with Firm Competitive Advantage strategic management theories and to show its correlation with the human resource-based view relationships amidst strategic management theories, strategic human resource management .
Transactional theories, also known as management theories, focus on the role of supervision, organization and group performance and the exchanges that take place between leaders and followers. These theories base leadership on a system of rewards and punishments (Charry, ).
Many companies are not single businesses but a collection of businesses with one or more levels of corporate management. Written for managers, advisors and students aspiring to these roles, this book is a guide to decision-making in the domain of corporate strategy.