Jack Welch is a god of the times, he served as CEO of GE in the last 20 years of the last century, will be an arrogant, bureaucratic "elephant" to an unprecedented height, GE's market capitalization soared from 13 billion U.S. dollars to 450 billion U.S. dollars; profitability soared from the tenth national public companies to the world's first; twelve business units have become the leader in their respective markets, nine business units can be included in the Fortune 500, establishing the "essence of business". GE's market capitalization soared from $13 billion to $450 billion; its profitability soared from the 10th place of the nation's listed companies to the first in the world; its twelve business divisions all became leaders in their respective markets, and nine business divisions were selected as part of the Fortune 500, laying the foundation for the myth of the "one-two" strategy. He became a true "entrepreneur of entrepreneurs", and the great Drucker called him "the best corporate leader of the century"! He has one of the richest and most successful fan bases in the world.
His book, The Autobiography of Jack Welch, has been called the "CEO's bible" and sold over 2 million copies in the Chinese market 5 years ago. His second book, Winning, is also known as the "management bible", and his good friend Warren Buffett's testimonial is "With Winning, there is no need for any other management book". So this "essence of business" is not also known as "business bible", perhaps many people will be disappointed, he discussed the same old topics: strategy, human resources, finance, marketing, and the conclusion is still the same plain, even you can think out, so why he will be so sought after?
In fact, management is not mysterious, the nature of business has not changed because of the Internet and high-tech, we are accustomed to "Sun Tzu's Art of War", "Romance of the Three Kingdoms" in the search for the essence of the bag of brilliant ideas, that management is to have a high-handedness, do not know that the management of the philosophy is flat and clumsy + unremitting perseverance.
The book is full of Welch-style sincerity, rich cases, spot-on reviews, and his old man has been providing in-depth counseling for new-age companies and CEOs for more than a decade, and has not fallen out of line. I believe every sincere reader can read his painstaking efforts.
The main discussion is on organizational and operational models, motivating employees, improving synergy, developing strategies, inspiring innovation in employees, marketing, finance and crisis communication.
Mainly discuss the new management model, the conditions for the realization of the model, the role. How to build teams, recruit, motivate, train and retain talent, how to manage "geniuses".
The focus of the discussion is on career management, including how life should be spent; how to get out of career purgatory; and what should be done at the end of the career.
**"Mission":** determines where a company wants to end up, where it wants to go and why, and what "accomplishing the mission means in the life of each employee".
** "Action":** refers to the way employees think, explore, communicate and do things. Practical action is necessary to fulfill the mission.
** "Results":** is to make sure that the whole process moves forward smoothly, we want to determine promotions and bonuses based on whether the employee recognizes the mission, pushes for its completion, and their productivity.
*** Case: Nielsen's metamorphosis ***
Nielsen's predecessor was the Dutch VNU Group, which was poorly run, and then was acquired by a consortium of several private equity firms, which then hired Dave, a vice president of GE, to be the CEO. Dave changed the name of the company from the obscure name to Nielsen, and changed the original mission statement from "to be the market information leader" to "to study what consumers like to see and what they like to buy", which was clear, powerful, and inspiring. Three actions were then released: have an open mind; have a passion for integrating data; and deliver information to customers in a clear and understandable way. With a mission and actions in place, it was time to look at the results. Dave's determination to change was recognized when he terminated a senior executive at Nielsen for his whining and opposition to integrating data. In the six years Dave has been CEO, Nielsen Group has tripled its market capitalization, three times what it was at the start of his tenure.
** First, a leader must empathize with his subordinates; **
** Second, a leader must see himself as the "Chief Explainer"; **
** Third, a leader must remove obstacles in his subordinates' way; **
** Fourth, a leader must cheerfully demonstrate the "Generosity Gene". "generosity gene"; **
** Fifth, leaders make sure they keep subordinates happy at work." **
Business careers come with all sorts of setbacks; poaching by rivals, market downturns, regulatory interventions, and so on. So how to face it? Let's look at it through a case, there is an online building materials business HDS company, in 08 years before the sales had reached 12 billion dollars. But when the subprime crisis hit, the business slipped 40%, and they laid off nearly 1/2 of their staff. Their response strategy was summarized as follows:
** 1. Facing the trauma head on:** No blaming, no complaining, no shirking, and inspiring people through spiritual incentives.
** 2. Retain good talent: ** Avoid blind layoffs and retain good talent.
** 3. Carefully analyze factors affecting cost, performance and growth based on data:** Don't take things for granted, based on useful data analysis, HDS sold its wood fabrication, plumbing and industrial piping businesses to focus on facilities maintenance.
** 4. Reinvent your strategic process:** Use the 5-slide methodology: assess competitors and analyze their recent activities; analyze your own recent situation; analyze latent change factors; and analyze your own strengths HDS insisted on holding a weekly meeting on Thursdays to analyze the market situation, which was extremely helpful for them in reviewing the situation.
** 5. Check your company's social structure in the light of reality:** Check whether your organizational structure is up to date, the authors recommend that you pay attention to the IT department and the risk management department, the United States of America's Target 2013 Christmas Eve 70 million accounts were stolen.
** 6. Don't worry unnecessarily:** This is the same as Kazuo Inamori's "Don't worry emotionally", take steps to realize that the worry is not really there or reasonable, rather than ignoring it or being anxious about it. Welch once suggested that the head of an advertising agency should visit her major client to see if her concerns were legitimate, but she didn't take immediate action and ended up losing the major client.
Economic growth is a state of mind, and employees will only feel secure if the company grows. A great deal of the fun in a business career comes from company growth. One of Welch's old subordinates, Michael, jumped from GE to a medical device company, and used the following methods:
** 1. Injecting fresh blood into the company:** Recruiting new people can also try to change the old man for a new job to stimulate vitality.
** 2. To concentrate resources:** Avoid blind investment, good steel on the knife edge. The company has invested in only 2 out of a dozen new projects, all of which have been a huge success.
** 3. Let everyone participate in innovation:** Let innovation become a deep-rooted culture, rather than the boss meeting to say, everyone should do how to do still do, applaud those who are creative, and organize a celebration ceremony.
** 4. Utilize the best people for growth:** Putting the best resources into growth is the same as putting the best people into growth projects, as in the case of Michael, who picked the most capable manager for his new division.
** 5. Provide reasonable compensation for employees:** Check whether the salary structure you give your employees is reasonable and outdated, that company was only focusing on the total performance of the commission, the sales team is only willing to work on large customers, but not willing to develop new customers, after the restructuring, everyone went to work to develop new markets.
** 6. through the necessary means to pull together those who resist growth: ** Many old employees will hate, resist the new plan, they will give the new plan to trip, do not cooperate, such as hidden information, hide the good talent, you can link the new plan with their salary income for incentives, really ineffective, you need to let them walk away from the big one.
** Question 1: Is your globalization program a mutually beneficial ****win? **
Many companies globalize with the idea of making a quick buck, but this is not a long-term solution. Especially for your suppliers, stop squeezing your foreign partners. Some companies have a long-term vision and provide capital, training, and long-term orders for their suppliers, so that they don't have to worry about their own future. Welch suggests that you start with a 5- or 10-year plan, and that your expatriates not rotate so often that they make the relationship unsustainable.
** Question 2: Does your expatriate have "insight"? **
Expatriates work in complex environments, where the political, legal, cultural, and business environments are very different and challenging. However, many companies are accustomed to sending people who are willing to go abroad or who have excellent business skills, but the most important quality is insight, i.e., the ability to assess the situation and make good judgments. Disney has been very successful in setting up a welcoming staff in Japan against the custom, and setting up a large dining table in Hong Kong against the custom
** Question 3: Have you seriously considered the risk? **
The risks of going abroad are self-evident, and effective methods such as reducing dependence on a particular country, operating in strict accordance with local country regulations, and managing the details well. The authors also make a point of not paying bribes, which will help your long-term reputation.
** Question 4: Is the potential of overseas business fully exploited? **
Some people just think of overseas as a low-cost sourcing or manufacturing center, when in fact there are rich cultural elements that can provide you with many resources for learning and innovation. For example, a Vietnamese spray-painting process inspired a U.S. furniture maker to develop a popular line of furniture, and the success of Unilever's small-package shampoo in Asia alerted it to try it in other markets, with very successful results.
For many, finance is like an exotic language, and the authors suggest that you must familiarize yourself with terms such as cash flow, the balance sheet, and the building blocks of the income statement. Cash flow, in particular, is a very important indicator of the health of a company.
Cash flow includes cash flow from operating activities, which is income less all expenses; cash flow from investing activities reflects the buying and selling of assets and their gains and losses in the financial markets; and cash flow from financing activities represents the net value of new equity and cash dividends. Cash flow doesn't lie; it tells you what's going in and out of the books and what's present. Many people prefer to use cash flow to measure the value of a company rather than an income statement that contains many subjective assessments.
A balance sheet summarizes a company's assets, liabilities, and equity, and the usual types of assets include Assets contain many different types, and the usual types of assets include cash, accounts receivable, raw materials, company buildings, plant, inventory, and fixed property. There are also intangible assets such as goodwill, patents, licenses and copyrights. Liabilities include long term and short term liabilities and share holders' equity is the money invested into the company by the owners and the market. The income statement reflects the profitability of the company, it reflects the company's sales, costs and the assets that are left over after all the settlements are clear.
The authors tell you that you don't need to be a financial expert, the main thing is to stay curious, to stay curious about the differences that tell you how the business is running, where it's going, and why it's going that way.
Marketing theories are constantly innovating, such as the 4Cs, but the authors believe that the core of marketing is still the 5Ps: product, channel, price, promotion and marketing team.
Relative to the other elements, ** the product element ** has changed less, but you need to consider the transformation of information technology and networking.
** Channels** have changed dramatically, and e-commerce has dramatically changed the way products are sold. Whereas before you might have been concerned with "how many channels can we use to get people's attention and desire to buy", now you are concerned with "which channels should we choose in order to sell the most products and make a profit". Now it's "which channels should we choose to sell the most product and make a profit".
**Pricing:** Pricing was largely based on guesswork, but now there are great ways to do it, and price testing is very easy and effective. For example, the online reseller platform RealReal adjusts prices downward if it's very heavily viewed by customers but no one is buying.
**Promotion:** The author suggests two methods, one is "unconditional experiment", if you are not sure about the effectiveness of your advertisement idea, you can put it on the website to test, you may find that an advertisement with no taste is the most effective; the second is the surprise experiment. Marketing is also the realm of innovation, such as experiential marketing, which increases exposure, ****enjoyment and brand value through consumer experience.
**Marketing Team:** As technology plays an increasing role in digital marketing, requiring faster and faster responses, going it alone kills speed and stifles creativity, and big companies lose a lot of their ability to respond with agility as they go through various processes. Oreo is notable for the 2013 Super Bowl, where a power outage gave them a talking point marketing experience, tweeting a "dunk in the dark" campaign that generated roughly 500 million page views, made headlines in over 100 countries, and won 14 advertising awards. With 14 advertising awards, Oreo was a Super Bowl winner that year.
The explosive communication of social media has made crisis management increasingly important, and Lewinsky said of her scandal that it was a good thing Twitter didn't exist yet! Crisis has gotten faster and worse in this day and age.
1. No matter how hard you try to control a crisis, it always ends up being bigger and deeper than you thought. So face the crisis head on.
2. There are no such things as secrets in this world. Promises, contracts and hush money are not the perfect solution, once the bad news is revealed by others, the details will all be disclosed without doubt.
3. The media may try hard to vilify the way you handle a crisis. You have to be brave and tell the reporter what you really think.
4, crisis management, to make changes in the company's internal personnel arrangements and workflow.
5. If you respond properly, you will turn a crisis into an opportunity.
1, the accumulation of goodwill, in case of emergency, so that once when you suffer a big event, someone for you to speak out;
2, in the absence of a crisis, but also the use of multi-channel to the public to send out a loud voice, and at the same time to deal with your social media and official media information, so as not to be exploited in a crisis;
3, good treatment of their own ex-employees, so as not to let their own stupid move triggered the crisis. stupidity to trigger a crisis.
4. Everything will pass, the criticism will wane, and timely change will eventually get us back on track.
Welch's career has been to advocate honesty, trust in the work culture, he believes that the search for truth and build trust is the leader of the two bottom line.
Many companies believe that as long as they are doing their job, they are fine, and do not value in-depth communication with their employees, nor do they value seeking out the true state of the company. Seeking the truth about people means being honest about where they are and telling them how they can improve. For companies it means thinking hard about whether strategies, budgets and some assumptions are realistic, and pursuing the truth relentlessly from the surface to the inside. For budgets it is a process of bargaining and playing with each other that has changed the nature of the budget.
We want to pursue the truth, but the truth is that there is no truth without trust. You have to "really care about your subordinates and their work": you have to applaud their achievements; but when they fail, you also need to take your responsibility to be his back; leaders can not take the credit belonging to the subordinates; do a good job of listening to encourage them to tell the truth in difficult situations; make sure that everyone believes that there is no one to control the sincere conversation. Anyone will control the sincere conversation; strictly keep your inner secrets, not to favor those who are close to you; do not talk about other subordinates in private occasions are not; can not be in different occasions to express different views, if you can not do the same, it will damage their credibility.
The essence of business competition is the competition of talent, recruitment and retention of talent is the core issue of business competition.
Recruiting the right people is very difficult, even a master like Welch was only 1/3 right at the beginning of his career, and only 2/3 at the peak of his career. generally valued integrity, self-discipline, self-knowledge, intrinsic motivation, empathy, and social skills. You also need to know what key competencies and behaviors are needed to achieve the company's mission, such as "insights" when globalizing the company. In addition, you need to be aware of whether the person is a positive or negative energy person, and be wary of people who are sullen, arrogant, irritable, hypocritical, manipulative, and moody.
Happiness is at the heart of employee retention. Happy employees work enthusiastically and have a sense of accomplishment, so they are willing to stay. How to improve the happiness, the following suggestions: first, start from the salary, to provide employees with a sense of fairness in the salary; second, to create an excellent work environment, make the work environment fun, exciting, fully authorized, to create this environment is not the CEO of the company can do, every leader can: transfer the positive energy of the workplace, to maintain the enthusiasm of the startup company; to avoid the bureaucratic culture; to stimulate the inspiration, to energize morale.
Avoid the hazy, embarrassed mentality that only harms employees who think he's doing well. The leader needs to be clear with the employee about his performance, setting out expectations and performance improvement measures.
** Geniuses:** people who work with cutting-edge and complex technologies and whose heads are literally black boxes;
** Hobos:** freelancers who are also important members of your staff;
** Thieves:** underperforming employees.
You should show your technologist that you want to learn from him and are interested in their work, so that you can be on the path of probing for truth and building trust. You should not treat them as monsters, after all, geniuses are human beings, and when you get to know them better and take an interest in their lives and interests, they will open up to you.
Currently, 1 out of every 5 commuters in the United States works from home, and the number of freelance and contract workers will increase by 60% in the next 5 years. Leaders should learn to use online tools to enable instant communication and convey your culture and ethos. This is the case with the Welch School of Management, which focuses on online teaching, has a very small staff, and the faculty are basically part-time Ph.D.'s. The president's tool for connecting with the faculty is an online tool, and through a data management system, the president can clearly assess the performance of each part-time faculty member.
Welch suggests that you don't have to waste too much energy on these negative employees, which can make yourself and the rest of the staff ineffective as well. Sometimes, they know they're not performing well, so letting them leave with dignity is a superior option.
This may seem like a chicken-soup topic, but being connected to your happiness and life naturally affects a business career as well. There are many people who have lived in "captivity" for years or decades before resolving to break free and seek spiritual rebirth. For example, a 50-year-old doctor gave up his job to become a photographer; a CEO finally transformed into a fitness instructor, which he loved. But the wait is too long. There's an assessment tool called "The Domain of Destiny" that imagines your life as two highways, one representing what you're good at and the other what you really like to do, and where they cross, that's the intersection of your well-being and your ability to achieve the best place in your career.
Being good at something is not one of those generalized I'm-good-at-writing-reporting-and-such-generalist items, but what exactly makes you different, such as a headhunter who thought it was good to work with nervous kids, and who ended up being a staffer who helped with educational programs for difficult kids.
And finding out what you like to do is very easy, people naturally know what they like, and narrowing down what they like to activities, careers, and recreation will tell you that.
Combine the two and you can think about what industries, companies, or jobs are at the intersection, and then your ideal job is available. Sometimes good at it and like it coincide, sometimes they don't, for example, there is a business partner Jim, he is best at being able to handle a group of people working together, but what he really likes is to sing, he likes the music to bring him that beautiful and stirring feeling, after creative analysis;, he thinks he is suitable for the management of music theatre, he can use his expertise to organize the performance team, and be able to enjoy the songs he wants.
Everyone hits a career low, for one thing, when the company doesn't offer the position you want. Your boss is in the way, and you'll run into a paratrooper, or even a family business that's long been in the works. The second is that you think the skills are not oppressive, more than changing departments, and as a result, leaving the most skillful areas, such as Jordan to play baseball, the results speak for themselves. Thirdly, you don't see eye to eye with your boss, and you always think it's the boss's problem. Fourth is the most common underperformance. But if none of the above reasons, you still step into the trough period, it means you are not good enough.
The combination of width and depth of work is the most powerful weapon to persuade the boss:
1, you do not just have to complete the task, but also over-delivered: do not stay in the appraisal of the table, but also to reach the realm of the bosses eyes.
2, I do not go to hell, who go to hell: take the initiative to help, to complete the difficult task.
3, down-to-earth, looking for supporters
4, must keep up with the latest technology: for the slightly older crowd, it is important to keep up with the times, learn the latest technology, and become a hipster.
5, Three's a crowd: learn from those around you, find the right mentor for you
6, People love people, people love people: integrity, attentiveness, do not do negative things, focus on their long-term reputation
In a career of up to 40 or 50 years, we may have all encountered the problem of changing jobs, sometimes voluntarily, sometimes not, and each time it ends means we're back on the starting line, and if you can get your mind right, you can reinvent yourself.
A PR manager named Graham was fired from the company he had worked for for 15 years. At first he had a very hard time accepting it because his performance was still good, but he had stayed for 15 years at a higher salary, and the company was in a slump, so it was a natural choice to fire him. After some time, he finally had the courage to recognize and face up to the reality of losing out to the competition, and later, he started his own company with a very good track record.
A new company means a new culture, and you should let go of your defensive mindset and embrace the potential changes. The authors do not suggest that you give up your true self and the valuable knowledge and experience you have accumulated over the years, which is your advantage; at the same time, you need to show that you are integrating sincerity and giving up some of your original conflicting behavioral patterns, so that you will achieve a successful metamorphosis.
Attached: mind map