Jack Welch-style management is a management style of the 90s, but Tom Peterson’s crazy management is the most promising in the 2000s.
Jack Welch, he became the CEO of GE in the early 80s and led a multinational global company for about 20 years until the late 90s. That era is clearly different from now. The environment, consciousness, and technological advancements have been made. Compared to Western standards that pursue materialism and rationalism, his theories of that era are certainly appropriate in many ways, but as Asians, we feel that they are very different.
Jack Welch’s style vs. the new style
- Become the leader of the market.
==> Create a new market.
++> Abandon the 1st place mentality of ‘become the leader of the market’ and find a niche market to create something new. - Grow in size and take over the market.
==> Agility is more important than size. ++> Throw away the principle of ‘grow big and dominate the market’. Companies should be agile rather than growing in size. - Shareholders are the best.
==> Customers are king.
++> Change the shareholder value management of ‘shareholders are the best’ to a customer-centered mindset of ‘customers are king’. This is because you cannot increase the value of a company without satisfying customers. - Hire the best talent
==> Hire passionate people.
++> Break away from the principle of ‘hire the best talent’ and hire passionate people. - Strengthen the decisiveness of leaders.
==> We need a courageous CEO.
++> Hire a courageous CEO rather than a charismatic CE. These days, the management environment demands a CEO who has a vision for the future and courageously executes it rather than a decisive CEO who displays charisma. - Commit to a light and nimble organization
==> Innovation is not inside, but outside. ++> Rather than pursuing a light and nimble organization, you should look for it from the outside, not the inside. This means that you should seek ways to increase corporate profits from the outside, rather than internal innovation through methods such as restructuring. - Cherish your abilities.
==> Cherish your soul.
++> Cherish your soul more than your abilities. Rather than hiring employees based solely on their abilities and creating a talent academy, you should become a company that captures the souls of employees and gives opportunities to passionate employees.
Jack Welch is suitable for 80s-style management, and the modern 21st century is opening a new era. The analog era has passed and the digital era has arrived.
Desirable leadership based on Jack Welch’s experience
- A leader must constantly evaluate and guide all situations, use them as opportunities to build employees’ confidence, and continuously improve the team.
- A leader must not only make employees understand their vision, but also make them live and breathe the vision.
- The leader’s positive energy and optimistic thoughts must penetrate into the skin of all employees.
- Leaders must build trust through honesty, transparency, and credibility.
- Leaders must have the courage and determination to make unpopular decisions.
- Leaders must persistently ask questions, almost opportunistically, and must resolve doubts through action.
- Leaders must take risks and be role models for their employees through such behavior.
- The joy of victory must be shared with employees.