TEAMFLYTeam-Fly®29LeadershipSecretsfromJackWelchAbridgedfromGetBetterorGetBeaten,SECONDEDITIONRobertSlaterMcGraw-HillNewYorkChicagoSanFranciscoLisbonLondonMadridMexicoCityMilanNewDelhiSanJuanSeoulSingaporeSydneyTorontoCopyright©2003byTheMcGraw-HillCompanies,Inc.Allrightsreserved.ManufacturedintheUnitedStatesofAmerica.ExceptaspermittedundertheUnitedStatesCopyrightActof1976,nopartofthispublicationmaybereproducedordistributedinanyformorbyanymeans,orstoredinadata-baseorretrievalsystem,withoutthepriorwrittenpermissionofthepublisher.0-07-141684-6ThematerialinthiseBookalsoappearsintheprintversionofthistitle:0-07-140937-8Alltrademarksaretrademarksoftheirrespectiveowners.Ratherthanputatrademarksymbolaftereveryoccurrenceofatrademarkedname,weusenamesinaneditorialfashiononly,andtothebenefitofthetrademarkowner,withnointentionofinfringementofthetrademark.Wheresuchdesignationsappearinthisbook,theyhavebeenprintedwithinitialcaps.McGraw-HilleBooksareavailableatspecialquantitydiscountstouseaspremiumsandsalespro-motions,orforuseincorporatetrainingprograms.Formoreinformation,pleasecontactGeorgeHoare,SpecialSales,atgeorge_hoare@mcgraw-hill.comor(212)904-4069.TERMSOFUSEThisisacopyrightedworkandTheMcGraw-HillCompanies,Inc.(“McGraw-Hill”)anditslicensorsreserveallrightsinandtothework.Useofthisworkissubjecttotheseterms.ExceptaspermittedundertheCopyrightActof1976andtherighttostoreandretrieveonecopyofthework,youmaynotdecompile,disassemble,reverseengineer,reproduce,modify,createderivativeworksbasedupon,transmit,distribute,disseminate,sell,publishorsublicensetheworkoranypartofitwithoutMcGraw-Hill’spriorconsent.Youmayusetheworkforyourownnoncommercialandpersonaluse;anyotheruseoftheworkisstrictlyprohibited.Yourrighttousetheworkmaybeterminatedifyoufailtocomplywiththeseterms.THEWORKISPROVIDED“ASIS”.McGRAW-HILLANDITSLICENSORSMAKENOGUAR-ANTEESORWARRANTIESASTOTHEACCURACY,ADEQUACYORCOMPLETENESSOFORRESULTSTOBEOBTAINEDFROMUSINGTHEWORK,INCLUDINGANYINFORMA-TIONTHATCANBEACCESSEDTHROUGHTHEWORKVIAHYPERLINKOROTHERWISE,ANDEXPRESSLYDISCLAIMANYWARRANTY,EXPRESSORIMPLIED,INCLUDINGBUTNOTLIMITEDTOIMPLIEDWARRANTIESOFMERCHANTABILITYORFITNESSFORAPARTICULARPURPOSE.McGraw-Hillanditslicensorsdonotwarrantorguaranteethatthefunc-tionscontainedintheworkwillmeetyourrequirementsorthatitsoperationwillbeuninterruptedorerrorfree.NeitherMcGraw-Hillnoritslicensorsshallbeliabletoyouoranyoneelseforanyinac-curacy,errororomission,regardlessofcause,intheworkorforanydamagesresultingtherefrom.McGraw-Hillhasnoresponsibilityforthecontentofanyinformationaccessedthroughthework.UndernocircumstancesshallMcGraw-Hilland/oritslicensorsbeliableforanyindirect,incidental,special,punitive,consequentialorsimilardamagesthatresultfromtheuseoforinabilitytousethework,evenifanyofthemhasbeenadvisedofthepossibilityofsuchdamages.Thislimitationoflia-bilityshallapplytoanyclaimorcausewhatsoeverwhethersuchclaimorcausearisesincontract,tortorotherwise.DOI:10.1036/0071416846iiiCONTENTSPrefaceviiPARTITHEVISIONARYLEADER:MANAGEMENTTACTICSFORGAININGTHECOMPETITIVEEDGELEADERSHIPSECRET1HarnessthePowerofChange3LEADERSHIPSECRET2FaceReality!8LEADERSHIPSECRET3ManagingLessIsManagingBetter12LEADERSHIPSECRET4CreateaVisionandThenGetOutoftheWay15LEADERSHIPSECRET5Don’tPursueaCentralIdea;Instead,SetOnlyaFewClear,GeneralGoalsasBusinessStrategies19LEADERSHIPSECRET6NurtureEmployeesWhoSharetheCompany’sValues23PARTIIIGNITINGAREVOLUTION:STRATEGIESFORDEALINGWITHCHANGELEADERSHIPSECRET7KeepWatchforWaystoCreateOpportunitiesandtoBecomeMoreCompetitive29LEADERSHIPSECRET8BeNumberOneorNumberTwoandKeepRedefiningYourMarket33Formoreinformationaboutthistitle,clickhere.Copyright2003byTheMcGraw-HillCompanies,Inc,ClickHereforTermsofUse.iv29LeadershipSecretsfromJackWelchLEADERSHIPSECRET9Downsize,BeforeIt’sTooLate!37LEADERSHIPSECRET10UseAcquisitionstoMaketheQuantumLeap!41LEADERSHIPSECRET11LearningCultureI:UseBoundarylessnessandEmpowermenttoNurtureaLearningCulture46LEADERSHIPSECRET12LearningCultureII:InculcatetheBestIdeasintotheBusiness,NoMatterWhereTheyComeFrom50LEADERSHIPSECRET13TheBigWinnersintheTwenty-firstCenturyWillBeGlobal54PARTIIIREMOVINGTHEBOSSELEMENT:PRODUCTIVITYSECRETSFORCREATINGTHEBOUNDARYLESSORGANIZATIONLEADERSHIPSECRET14De-Layer:GetRidoftheFat!61LEADERSHIPSECRET15SparkProductivityThroughthe‘‘S’’Secrets(Speed,Simplicity,andSelf-Confidence)65LEADERSHIPSECRET16ActLikeaSmallCompany69LEADERSHIPSECRET17RemovetheBoundaries!73LEADERSHIPSECRET18UnleashtheEnergyofYourWorkers77LEADERSHIPSECRET19ListentothePeopleWhoActuallyDotheWork81LEADERSHIPSECRET20GoBeforeYourWorkersandAnswerAllTheirQuestions8629LeadershipSecretsfromJackWelchvPARTIVNEXTGENERATIONLEADERSHIP:INITIATIVESFORDRIVINGANDSUSTAININGDOUBLE-DIGITGROWTHLEADERSHIPSECRET21Stretch:ExceedYourGoalsasOftenasYouCan93LEADERSHIPSECRET22MakeQualityaTopPriority97LEADERSHIPSECRET23MakeQualitytheJobofEveryEmployee101LEADERSHIPSECRET24MakeSureEveryoneUnderstandsHowSixSigmaWorks105LEADERSHIPSECRET25MakeSuretheCustomerFeelsQuality110LEADERSHIPSECRET26GrowYourServiceBusiness:It’stheWaveoftheFuture115LEADERSHIPSECR