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1/21

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2/21

Creating the worlds most competitive enterprise

2007 Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com

25 Lessons

from Jack Welch

Lessons from the legendary former CEO of GE,whose management innovations have made him the most

influential CEO of his era

Ten3 Business e-Coachthe worlds leading source ofinspiration, innovation, and unlimited growth!

25 LESSONS FROM JACK WELCH

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3/21

Exemplary Leaders (Aitken) 3

Jack Welch--The Strategic

Communicator

He has been called the greastest CEO in the US. Hewas chairman and CEO of General Electric from1981 to 2001.

He give power to people. Welch says a CEO's greatest failing is being the last

to know. A leader who never hears bad news ishopelessly out of touch.

Welch is a corporate statesman who is a true believerin the long-term future of his company.

Welch has a capacity for self-criticism.

7/28/2019 25 Lessons Jack Welch Ten3 Minicourse2xcxzc;lzx;clzx;c;zx;czxc zx;; z;; ,;xlc,;,; ,;zx,;l ,c;l xz, ;,x, ,;l,;,s;;lc;ldcd;c,;dl,c;,d;c,;d,c;,c;dl,c;d,c,dclldc;ld;,;,;d,;c;ldc,sld;;c,;d,c;,d;,c;dc,

4/21

I. Lead More, Manage Less

II. Build a Winning Organization

GE Success Story: Flash Points

25 Lessons from Jack Welch

III. Harness Your People for Competitive Advantage

IV. Build a Market-Leading Company

25 Lessons from Jack WelchCreating the worlds most competitive enterprise

Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com

Slide + Executive SummaryTo see Slides with Executive Summaries,view or print slides as Note Pages

Clickable titles

GE Leadership Assessment Survey

Contents

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5/21

Exemplary Leaders (Aitken) 5

Welch's Leadership Lessons

Embrace change.

Focus on developing people.

Communicate relentlessly. Be decisive.

Be seen as the leader.

Live your message.

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6/21

Exemplary Leaders (Aitken) 6

Jack Welch--The Strategic

Communicator

He has been called the greatest CEO in the US. Hewas chairman and CEO of General Electric from1981 to 2001.

He give power to people. Welch says a CEO's greatest failing is being the last

to know. A leader who never hears bad news ishopelessly out of touch.

Welch is a corporate statesman who is a true believerin the long-term future of his company.

Welch has a capacity for self-criticism.

7/28/2019 25 Lessons Jack Welch Ten3 Minicourse2xcxzc;lzx;clzx;c;zx;czxc zx;; z;; ,;xlc,;,; ,;zx,;l ,c;l xz, ;,x, ,;l,;,s;;lc;ldcd;c,;dl,c;,d;c,;d,c;,c;dl,c;d,c,dclldc;ld;,;,;d,;c;ldc,sld;;c,;d,c;,d;,c;dc,

7/21

Creating the Worlds Most Competitive EnterpriseLessons from Jack Welch, Former CEO of GE

GE MarketCapitalization

US$13 billion

US$500 billion

2000

Jack Welchsteps down

as CEO of GE

1981

Jack Welchappointed

as CEO of GE

1. Develop a vision for the

business2. Change the culture to

achieve the vision

3. Flatten the organization

4. Eliminate bureaucracy

5. Empower individuals

6. Raise quality and

efficiency

7. Eliminate boundaries

Welchs Seven-PointProgram for Management

by Leadership

More information at 1000ventures.com: Jack Welch a Corporate Change Leader

SuccessStory

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8/21

Jack Welch Corporate Change LeaderWelchs Trademark Messages

Business is simple.

Don't make business overly complicated.

Face reality, then act decisively.

Don't be afraid of change.

Change before you have to.

Fight bureaucracy.

Use the brains of your workers.

Discover who has the best ideas, and put those ideasinto practice.

1000ventures.com

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9/21

Leading Organizational TransformationLessons from Jack Welch

Welchs prescriptionfor winning in business

1. Speed

2. Simplicity

3. Self-confidence

More information at 1000ventures.com: Jack Welch Corporate Change Leader

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10/21

Shared Corporate Values

GE Values Guide

GE Leaders... Always with Unyielding Integrity:

Have a Passion for Excellence and Hate Bureaucracy

Are Open to Ideas from Anywhere... and Committed to Work-Out

Live Quality... and Drive Cost and Speed for Competitive Advantage

Have the Self-Confidence to Involve Everyone and Behave in aBoundaryless Fashion

Create a Clear, Simple, Reality-Based Vision... and Communicate Itto All Constituencies

Have Enormous Energy and the Ability to Energize Others

Stretch... Set Aggressive Goals... Reward Progress... Yet UnderstandAccountability and Commitment

See Change as Opportunity... Not Threat

Have Global Brains... and Build Diverse and Global Teams

More information at 1000ventures.com: Shared Values

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11/21

ExecutionThey are action-oriented, and

are focused on getting results

EdgeThey have a competitive edge

and a will to win

EnergizeThey energize teams, and

don't intimidate them

EnergyThey have tremendous

personal energy

Lessons from Jack WelchThe 4 Es of Leadership

More information at 1000ventures.com: 25 Lessons from Jack Welch

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12/21

Going for the leap Radical innovation

Diversification

Venture investing Acquisitions

Shining the incremental

Lean organization

GE Work-Out

Quality Management: Six Sigma

GE Growth Strategies

Shun the incremental and go for the leap Jack Welch

More information at 1000ventures.com: Sustainable Growth Strategies

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13/21

Quality Management: Six Sigma

Impact of Six Sigma Implementation at GE

11%

14%

17%

13%

Revenue

increased

Profits

increased

Earning per

share increased

Operating

margins

increased

Results achieved over the first two years (1996-1998)

More information at 1000ventures.com: Six Sigma

"We want to change the competitive landscape by being not just better

than our competitors, but by taking quality to a whole new level. Jack Welch

S S G

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14/21

Six Sigma Implementation at GEMaking the Six Sigma Process Work

Four MAIC Steps1. Measure

2. Analyze

3. Improve

4. Control

Five Corporate Measures1. Customer Satisfaction2. Cost of Poor Quality

3. Supplier Quality

4. Internal Performance

5. Design for Manufacturability

Everyday Six Sigma

Plant managers can use Six Sigma to reduce waste, improve

product consistency, solve equipment problems or create capacity.

Human resources managers can use it to reduce the cycle time for

hiring employees.

Regional sales managers can use it to improve forecast reliability,

pricing strategies or pricing variation.

More information at 1000ventures.com: Six Sigma

C t I ti i E t l V t

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15/21

No of Ventures Invested

0

300

600

1995 2000 2005

Nature of VentureInvestments (2002)

15%

85%

Strategic ValueInvestments

Investments in

Areas Unrelatedto GE

Established in 1995, General Electric (GE) Equity, a business unit withinGE Capital, invests around $1.5 billion annually in external ventures

GE Equity invests an average of $3 million to $5 million in each ofcompanies, and it gets somewhere between 5 and 11% of each venture

85% of investment are strategic value investments that help GEbusinesses grow and are done jointly with one of them

Corporate Investing in External Ventures

GE Equity

More information at 1000ventures.com: Corporate Venture Investing

C t V t I ti GE E it

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16/21

Corporate Venture Investing: GE EquitySuccess Factors

Qualities of Top ManagersCritical to Success

they are visionary leadersaiming at building a world-class, global, private equity

organization

each of them is aremarkable hybrid ofcorporate executive andventure capitalist

they practice and lead ahighly disciplined approachto project selection andportfolio management

Highly Disciplined BusinessManagement System(BMS)

rigorous examinationprocedure

systematic investmentapproach based on decisionand probability theories

the most onerous due-

diligence checklist in theworld of corporate ventureinvesting

portfolio management system

More information at 1000ventures.com: Corporate Venture Investing

25 L f J k W l h

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17/21

25 Lessons from Jack WelchCreating the worlds most competitive enterprise

2007 Vadim Kotelnikov, Founder, Ten3 Business e-Coach, www.1000ventures.com

Slide + Executive SummaryTo see Slides with Executive Summaries,

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I. Lead More, Manage Less

II. Build a Winning Organization

GE Success Story: Flash Points

25 Lessons from Jack Welch

III. Harness Your People for Competitive Advantage

IV. Build a Market-Leading Company

Clickable titles

GE Leadership Assessment Survey

M t b L d hi

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18/21

Management by Leadership25 Lessons from Jack WelchLEAD MORE, MANAGE LESS

1. Lead2. Manage less3. Articulate your vision4. Simplify5. Get less formal

BUILD A WINNING ORGANIZATION

11. Get rid of bureaucracy12. Eliminate boundaries13. Put values first14. Cultivate leaders

15. Create learning culture

HARNESS YOUR PEOPLE

16. Involve everyone17. Make everybody a team player18. Stretch19. Instill confidence

20. Make business fun

BUILD THE MARKET-LEADING COMPANY

24. Live speed25. Behave like a small company

6. Energize others7. Face reality8. See change as an opportunity9. Get good ideas from everywhere10. Follow up

21. Be number 1 or number 222. Live quality23. Constantly focus on innovation

More information at 1000ventures.com: 25 Lessons from Jack Welch

L d M M L L 1

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19/21

Managers muddle leaders inspire."What we are looking for are leaders atevery level who can energize, excite andinspire rather than enervate, depress,and control."

Create a vision and then ignite your organization to make thisvision a reality

Focus on strategic issues

Don't micromanage

Involve everyone and welcome great ideas from everywhere

Lead by example

More information at 1000ventures.com: Effective Leadership

Lead More, Manage Less: Lesson 1

Lead

Lesson1: LEAD

B ild M k t L di C L 22

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20/21

"We want to change the competitive landscape by being notjust better than our competitors, but by taking quality to awhole new level. We want to make our quality so special, sovaluable to our customers, so important to their success thatour products become the only real value choice."

Take great pride in your work

Make quality your way of life

Quality is your job

Make quality the job of every employee

Seek out quality training

Involve customers

Exchange best practices

More information at 1000ventures.com: Quality Management

Build a Market-Leading Company:Lesson 22

Live Quality

25 L f J k W l h

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21/21

I. Lead More, Manage Less

II. Build a Winning Organization

GE Success Story: Flash Points

25 Lessons from Jack Welch

III. Harness Your People for Competitive Advantage

IV. Build a Market-Leading Company

25 Lessons from Jack WelchCreating the worlds most competitive enterprise

Helpful Links to Ten3 Business e-Coach at www.1000ventures.com

25 Lessons from Jack Welch

How To Make Effective Presentations

Ten3 Services

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Ten3 Training

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Vadim Kotelnikov

Inventor & Founder

Ten3 Business e-Coach Innovation Unlimited!

www.1000ventures.com

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THANKYOU!

GE Leadership Assessment Survey

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