Named "The Greatest CEO of the 20th Century" by Fortune in 1999. Former GE Chief Executive Jack Welch on March 1 Passing away, he is a legend in management and a model of CEO learning.
Ten years before I started the "Advanced Management" course at the National Taiwan University EMBA, I used his case as the CEO case. What inspiration did he give to future generations of CEOs?
Strange management is a model of management in the United States in the last century. The company was founded in 1878 by Edison, who invented the electric light bulb, and succeeded Edison's CEO, Charles. Covent (Charles A. Coffin), established a singular CEO selection system, not only can train the company's outstanding CEO, but also train many CEOs for large American companies, making singularity the "CEO's output factory (CEO Factory ). "
In 2003, "Fortune" named Covent as "the greatest CEO of all time", and Welsh was a strange CEO machine, an atypical strange CEO created by him.
He has been independent since he was a child and must win, becoming the first person in the University of Illinois at the Champagne Campus (ranked fourth in the National Institute of Technology) to get a PhD in only 3 years, and then to work in the strange plastic department An engineer with an annual salary of $ 10,000, he has been the manager of the plastics department at the age of 32.
In the 1970s and 1980s, the United States experienced the second oil crisis and competition with Japan. The singularity was a large and improperly highly diversified and bureaucratic company. Facing high inflation, high interest rates and a sluggish stock market, the singular board of directors should find one. The reformed CEO, 45-year-old Will Xu Queping, was elected as CEO in April 1981. What makes him unique is his management philosophy:
First, he believes in "simple". He believes that management need not be complicated, but to capture the main points. His most famous practice is to require each business unit to be the first and second in the market, or it will be sold. He also does not believe in complicated budgeting procedures. He believes that budgeting is a game between superiors and inferiors. It is better to set a reward system and encourage subordinates to work hard. The better the performance, the more bonuses.
"Simple" is also reflected in the organizational structure. Traditionally, management science thinks that the span of control is 7 or 8 subordinates. He changed to 15 positions. This can eliminate excessive staff and reduce the organization from 9 levels to 9 levels. 4 levels. Because the supervisor had to control 15 subordinates, he had to hire capable people who could fight independently, eliminating tissue dwarfism. During his tenure, he has laid off 100,000 people, so his nickname is "Neutron Jack" (neutron bullets only kill people and do not damage buildings).
"Simple" is still in the selection of talents. He only pays attention to A-level talents and builds a company culture. He desperately mines A-level talents. These A-level talents do not belong to the business unit. Promotion, training, and assignment are all under the responsibility of the head office. Among the 350,000 employees, 700 A-level talents were selected.
Secondly, he believes in the "movement". Organizations must always accept challenges. Every two or three years, he wants to launch company-wide reforms. He is best known for "work out". In two or three days, company employees gathered to discuss how to improve the operation of the factory. On the third day, the director only said that Not good and replenishing. In fact, most of the suggested factory directors think that it is feasible to greatly increase the productivity of the factory.
He then introduced "best practice" to learn from competitors to develop the best processes and practices. "Boudaryless world" integrates customers and suppliers to work together, and re-plans global production capacity.
Third, Will Xu reorganized the strange territory. In his first five years as CEO, interest rates were as high as 20% and the company's capital cost was high. Under the philosophy of being number one or number two, he disposed of more than 200 companies, bought more than 300 companies, and entered the financial services industry. He also founded GE Capital, which uses singular good debt to issue singular corporate bonds on the market, absorbs capital at a lower cost than banks, and then finances businesses.
For example, Kiwi produces aircraft engines and Kiwi Capital finances airlines that purchase Kiwi engines. Similarly, Strange Capital also provides financing services for medical equipment, generators, etc. Due to Qiqi ’s in-depth understanding of the industry, the financing business has done better than banks, and Qiqi Capital has become the golden chicken of the group for profit.
Fourth, he believes that the company ’s management talent development costs up to 10% of the company ’s profit every year. He rectifies the singular college and rotates managers at all levels. He himself goes to the college for classes and students every two weeks Communication. He believes that this is the base for changing the company culture and the source of management innovation. For example, the joint promotion approach is the result of brainstorming between Wilsch and the students.
Taking a comprehensive look at Will Xu's 20-year CEO, from the rectification of the company's business portfolio, a large number of cuts, mergers and acquisitions, establishment of corporate culture, establishment of personnel systems, elimination of bureaucracy, seeking truth from facts, and improving productivity. At that time, the company with the highest market value in the world reached $ 500 billion.
In 2001, Willsh stepped down 4 days before September 11th. In the financial turmoil in 2008, Kiwi Capital became a singular hot potato. To date, Kiwi has fully released its financial career. Success is also Xiao He, and defeat is also Xiao He. The singularity is no longer glorious today, and it is necessary to wait for the CEO who is as talented as Will Welch to turn defeat into victory.