This book is authored by Jack Welch, former chairman and CEO of General Electric (GE) and who is famously quoted by Fortune magazine as the “Manager of the century” and by Business Week magazine as “The icon of American Business”.
This book is filled with lot of anecdotes. It's humorous, thought provoking, inspiring and has insight to an endless wisdom. Referring to this book, Warren Buffet says “No other management book will ever be needed”.
The book is divided into four parts:
The basics of company's attitude
- Mission and Values: Jack says that mission statement of any company should be simple and it must answer the question “How do we intend to win in the business”. Values are the behaviours and which answers the question “How do we achieve our mission”. Values must be ensured to be specific and very descriptive so that they leave little to imagination
- Candor: Ideas rule the business. To get the best ideas, turn your business into an idea machine. The only way is to develop a culture where people aren't afraid to speak. Reward people for their candor.
- Differenatiation: As in sports where the best is rewarded with awards and money and the poor performers are given lower wages, according to Jack, the same should be applied to any organization.
Managing your company
- Leadership: Jack mentions the golden rules of leadership which he followed during his tenure at GE. A true leader instills the vision, energy and optimism in his team, is transparent, has the ability to make unpopular decisions and last but not least celebrates with his team regularly
- Hiring: Candidates should pass the basic screening test – whether the person has integrity (speaks truth and keeps his word), is intelligent and is mature. Candidate should posses the 4Es and a P (has Energy, can Energize others, has Edge – can make tough decisions,can Execute and Passion for the work)
- Firing: Nobody should be surprised when they are let go. So, employee should be informed well in advance so that he can prepare for the next step. Organization should minimize the humiliation by encouraging him that there's a better job for him out in the market.
Managing your company against competition
- Strategy: Strategy means making clear-cut choices about how to compete. For developing a winning strategy, one has to come up with an idea on how to win. It may be developing a new product or developing an old product with new technique. Also, one has to put the team together and make it happen.
- Budgeting:Budgeting should provide the answers to simple questions “How can we beat last year's performance” and “What is our competitor doing and what we need to do to stay ahead of the competitor”. Jack warns that budget meeting should never end in negotiated settlements and there should not be any fake head shakes
- Start-Ups: Simple rules for start ups – put the best minds in, encourage them with much fanfare and give them the extra freedom
- Mergers and Acquisitions: Mergers should not take more than 90 days, mergers should take the cultural differences into account and one should not give away too much to get a little give in from the other
Managing yourself
- Right job: It has the people you like or of your type. It gives you the opportunity to learn and grow. The job should be your own decision and not that of your parents or spouse. The work should be fun, meaningful and rewarding
- Promotion: Few thumb rules – do more than what you're asked, help the leadership champion new rules, find the right mentors,be positive and funny and not a negative bore, don't buck the company values
- Work Life Balance: Work in such a way that you earn the chits from your boss – the chits which gives you the time to deal with personal life issues. Give your 150% both at place of work and at home, enjoy heart-fully and live for your dreams as well not just for your boss' or spouse's
On the whole,this is a must read for everyone - a new joiner in a company, a college graduate, a senior manager or a CEO. I reaffirm Mr.Buffet's saying “No other management book will ever be needed”
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