Have you heard of the name Jack Welch?
It would be a pity if you haven’t.
Welch is often acknowledged as one of the greatest CEOs of the 20th century and was named by Fortune magazine as the ‘Manager of the Century’ in 1999.
He was the CEO of the GE Corporation between 1981 and 2001 and his impact was such that GE’s net worth grew by over 4000 percent during that period!
His innovative and unorthodox management practices, though occasionally scrutinised, became the stuff of legends. It was his successful adoption of the six-sigma program in 1995, and the success GE reaped from it that lead to six-sigma becoming a global improvement practice that every other organisation started adopting later.
Welch was given a severance pay of $417 Million at the time of his retirement and it was the largest ever such pay-out in corporate history – such was the level of his impact on GE.
Following his retirement, Jack Welch did many things – he founded the Jack Welch Management Institute, became a public speaker and taught seminars (apparently more than 35 CEOs of major global corporations were taught by him). He also wrote the #1 WSJ and New York Times Bestseller – ‘Winning’ – a book that captured the gist of his philosophy, thinking and management practices during his time at GE that made him a superstar CEO.
‘Winning’, published in 2005, is regarded today as among the best contemporary management books there is and has been showered with lavish praise by the likes of Bill Gates and Warren Buffet (who implied that the book was the ultimate book on management when he said “no other management book will ever be needed”).
I had read the book many years ago and recently bought a copy again for a second reading. Years ago, I had adopted the practice of candour at work, following some advice in the book, and that one practice helped me achieve a level of team dynamics I could never have achieved on my own. There was so much I learned from ‘Winning’ back then and when I started reading it a second time, years later, I realised there was still much left to learn.
One of the book’s chapters is dedicated to leadership and it has some fabulous insights that I thought would be worthwhile to share in this post.
Welch describes the attributes of a leader in 8 points under the sub-title ‘what leaders do’ and here are those 8 attributes, filled with some of my personal take on them too.
1. Leaders relentlessly upgrade their team using every encounter as an opportunity to evaluate, coach and build self-confidence.
Jack Welch emphatically states that a leader has to evaluate (make sure the right persons are in the right jobs, supporting and advancing those who are and moving out those who aren’t), coach (guiding critiquing and improving people) and build confidence (through words of encouragement, care and recognition). And these are things that a leader has to do throughout the year, at every interaction and not just at appraisal time.
Think about the times you’ve been in the following situation.
You go sit for your annual appraisal meeting. Your appraiser – your manager, who’s facing you, hasn’t interacted much with you outside routine work discussions the past year and you haven’t been given any feedback, mentoring or critiquing (the constructive kind). He hadn’t done any real evaluation of your skills, or contemplated where you need help or where your help could have been leveraged. But right now, he has conjured your KRA scores and is now trying to work backwards to justify those numbers (he has to fit his team on the dreaded ‘Bell Curve’). You listen and sometimes object and fight, or if you’re experienced enough, you sigh and think “Whatever, just get it over with, man” and then just practically nod to everything. At the end of the meeting, the manager walks out with a load off his chest (phew! No more appraisal headaches for another year), you shake your head and walk out thinking maybe it’s about time you looked at other options, or just give up get on with the remaining tasks for the day, knowing nothing’s going to change.
In my time, I’ve had some good and bad appraisals. The best manager I had in my career, once pulled out a notebook in which he made notes to discuss with me. He was the kind who took time out to talk to each of his team members periodically and when he spoke during an appraisal, it was not a routine yearly exercise, but a constructive session in which both he and his team member introspected on the past and set a vision and target for the future. That leader was instrumental in making winners out of anybody with the slightest potential because he knew how to evaluate, coach and build self-confidence among his subordinates.
The role of a leader is like that of a gardener who constantly waters his crops and fertilises them. While he has to occasionally pull out the weeds in between, he mostly needs to just tend and nurture. And in due time, he will see his crops yield returns.
2. Leaders make sure that people don’t just see the ‘vision’ but live and breathe it.
If you pull out 10 people at random from around you right now and ask them, “What’s our company’s or our team’s vision”, how many times would you get a convincing and correct response without hesitation? I’ll bet a wager that 9 out of 10 times you won’t get a convincing answer.
It is said that leaders often communicate their vision to their closest colleagues but that vision doesn’t filter down to the lowest levels of the people in frontline positions. And sometimes even when it does, it doesn’t stick. If the face of a company that promises the quickest and most customer oriented service are customer executives who argue and debate with a customer for hours without seeing the customer point of view – how can that company’s vision be ever realised?
Probably the company’s vision wasn’t shouted loud and strongly enough in their direction, or even worse, employee rewards weren’t aligned with that vision (so why would employees care if realising the company’s vision doesn’t directly benefit them too?)
Welch states “if you want people to live and breathe the vision, ‘show them the money’, be it with salary, bonus or significant recognition of some sort”. While a vision is an essential element, it is worth nothing unless it is well communicated, reinforced and bought to life with rewards.
If an employee, when pounded with a vision, asks himself “what’s in it for me?” and gets a satisfactory answer, he’ll start living that vision too.
3. Leaders get into everybody’s skin and exude positive energy and optimism.
I had once remarked in one of my earlier articles that organisational culture seeps down from the top. It is something that resonates with Jack Welch’s line of thought also and he brings a common saying – “The fish rots from the head down” to make his point. Simply put, it means the effect of a bad attitude or politics on the top of any team, large or small, goes down to infect everybody else.
Look around and you might just always observe that an upbeat or positive leader who exudes positivity throughout the day somehow always manages to end up running a positive and optimistic team while a pessimistic grump always seems to be leading a sore group of people. Think about your own experiences – on the day you are enervated and brimming with joy, you would definitely notice that positive aura around those under you and the days on which you behave like a sourpuss, they might seem the same.
A leader’s job is not just to fight the gravitational pull of negativism (and that pull gets really hard at times), but to also energise and enervate those people who he works with.
The right attitude can make a difference to those below and it’s about time you made it yours.
4. Leaders establish trust with candour, transparency and credit
Candour is the quality of being frank or candid and this was one of the most important lessons I learned and imbibed when I read ‘Winning’ many years ago.
So, what on earth does candour and transparency achieve?
Trust!
People would not trust a leader who is known to hide information from them (especially that concerns them) but will appreciate a leader who will tell them undiluted news upfront – even if the news isn’t good. Ever heard the casual cafeteria remarks on the likes of “that guy is at least honest and straightforward and so I guess we can trust him”?
Candour does that.
Giving credit where it is due is another way by which leaders establish trust. They don’t steal others ideas and claim it as their own and don’t “Kiss up and kick down” because they have enough maturity to realise that when their team is successful, they too will eventually get credit for it.
Leaders take responsibility when things go wrong, and in good times, are generous in passing around the praise.
5. Leaders have courage to make unpopular decisions and gut calls
Welch describes how many people naturally lean towards ‘consensus’ because they long to be loved by everybody. However, every leader at some point will be forced to make decisions that won’t be popular. Welch states that in a situation where a leader is forced into making an unpopular decision, he must listen to his subordinates patiently and then clearly explain the decision himself, but he should not walk away or move back from that decision.
Gut calls are equally hard. A gut call is a decision based on something that a leader feels strongly about though it may appear against rationale decision making on the surface. Never shy away from such decisions because gut calls are essentially an experienced person’s subconscious pattern recognition skills at work. If you are an experienced leader about to hire somebody who ticks all the right boxes but still gives you a very uncomfortable feeling without you being able to point out precisely why, it would be better not to hire him.
That gut feeling is probably because of you observing/ understanding a particular trait of this person subconsciously that matched with others who you knew previously and who didn’t turn out too well – implying that this person has all the same reasons to be that way too.
[PS: A slight deviation from the original topic: I once read a fascinating book called ‘Blink’ by Malcolm Gladwell that sheds a lot of light on how an expert makes instantaneous decisions, often against accepted rationale that turns out to be dead right. If you want to know more about how that works, do read that book!]
6. Leaders prod and push with a curiosity that borders on scepticism, making sure their questions are answered with actions.
It is said that when you are an individual contributor, your job is to have all the right answers, but as a leader your job is to have all the right questions – “Why”, “Why not?” or “How come?”
The questions are obviously for a constructive purpose to trigger debates, decisions and ACTIONS that lead to better solutions.
When a leader prods and scrutinises a proposed solution, the team members start thinking of whether better or more cost-effective alternatives to a proposed solution exists, thereby leading to better quality of work solutions every time.
7. Leaders inspire risk-taking and learning by setting the example
I have worked with teams that range from top-class to less-than mediocre and one thing that has always separated the outstanding teams from poor ones was the risk-taking ability of those in the poor teams.
I have seen how in a really good team, nobody really fears failure because they know somebody’s got their back in case they do fail, but in the poor teams, it’s always a case of ‘let me just make sure my sorry ass is safe’. Every single time I have encountered the latter behaviour, it happens the team members either work for, or worked for inept people managers who inspired no trust and tended to lambast those who encountered failure.
So how does a leader inspire risk taking? Welch states that the right way is by getting leaders to freely talk about their mistakes and then about what they learned from them.
I used to often talk to my old team about the one project I once failed miserably in – and at times even joked about it and also how in the end how it helped me do things much better in the years that followed. The free admission of my mistakes not only opened up my team members to me, but also gave them reassurance that I could empathise with failure and that failure was acceptable as long as they learned from their failures and didn’t repeat their mistakes.
8. Leaders celebrate
Jack Welch staunchly advocated that leaders celebrate their teams’ victories and achievements no matter how small or big. It would be understandable if all companies can’t send employees and their families to places like Disneyland (like Jack Welch suggests) but, teams can celebrate with an outing to fun place once in a while.
Sometime back I worked in a team that took time out to celebrate, once every quarter – that day of celebration was meant to just have fun outdoors. The stress free environment did more than just relax people; it fostered greater bonding in a day than what months of working together couldn’t achieve.
Like Welch says, celebrating makes people feel like winners and creates an atmosphere of recognition and positive energy.
Why wouldn’t anybody want that?
∞∞∞
Do you consider yourself a successful leader or do you want to be one? If this article inspired you, do not just nod your head and continue to do what you have always done.
Make a change, and practice bringing these lessons to life; it could make a world of difference to you and those who are under your wing.