Jack Welch and the GE Way

"Only through change?massive change?could GE win, and Jack Welch firmly believed in winning. "

"The less managing someone does, the better off the company."

"The way to engender enthusiasm is to allow employees far more freedom and far more responsibility."

"The art of leading comes down to one simple thing: Determining and facing reality?about situations, products, and people?and then acting quickly and decisively on that reality. "

"When you're number four or five in a market, you get pneumonia when number one sneezes."

"It is absolutely essential for a leader to buy into the company's value scheme and be able to sell those values to everyone else."

"This learning culture was reflected in the openness of a company that encouraged an exchange of ideas at virtually every level of the organization."

"Welch had a name for his attack upon GE's bureaucracy. He called it?Delayering. "

"Boundarylessness, for Welch, defines GE: an open, informal company where employees can move swiftly and effortlessly and where they can connect to the outside world just as quickly and effectively."

"Self-confident leaders produce simple plans, speak simply, and propose big, clear targets."

"The most appropriate model for Work-Out, one that would help break down the walls of hostility between managers and employees, was the New England town meeting."

""Stretch" simply means figuring out performance targets that are achievable, reasonable, and then raising sights higher?much higher "

"The rate of growth in the service sector is potentially higher than the rate of growth for manufacturing?only so many pieces of industrial equipment can be sold in the world. "

"There's almost no expansion globally that isn't fraught with risk. The risk side is long, but the opportunity side is longer."

"Six sigma is a measurement of mistakes per one million discreet operations?and applies to all transactions, not just manufacturing. "

"GE launched the quality initiative in late 1995 with 200 projects and massive training. It invested $200 million in the initiative and got a return of nearly that much ($170 million) in quality-related savings."

"There are no second chances for those who violate the ethical code."

"Junior executives are given the opportunity?and responsibility, as it is a badge of courage?to point out all sorts of things to their bosses that could improve the company. "

"To remain truly competitive, companies will have to see increases of 8 to 9 percent a year."