Book: Straight from the gut

Author

Jack Welch

Summary

The life and professional career of Jack Welch, Chairman of General Electric from 1981 to 2001, described in his own words.

Takeaways

Leadership requires more than the knowledge to make sound business decisions. It is equally important to establish the right culture with a focus on people that allows for differentiation and development, and that empowers everyone to contribute ideas (“boundaryless”).

Being able to react to changes trumps a well thought out longterm strategy. Speed and decisiveness are important to remain competitive in changing circumstances even if not all decisions or judgment calls stand the test of time. The characterization of some associates who receive high praise in the book but were later on criticized for their leadership (Jeff Immelt, Bob Nardelli) or general conduct (Roger Ailes, Matt Lauer), is one example that appears to not have aged well.

Quotes

“We learned the hard way that we could have the greatest strategies in the world. Without the right leaders developing and owning them, we’d get good-looking presentations and so-so results."

“Business success is less a function of grandiose predictions than it is a result of being able to respond rapidly to real changes as they occur. That’s why strategy has to be dynamic and anticipatory."

“Informality isn’t about first names, unassigned parking spaces, or casual clothing. It’s so much deeper. It’s about making sure everybody counts–and everbody knows they count."

“Your back room is somebody else’s front room … Don’t own a cafeteria: Let a food company do it. Don’t run a print shop: Let a printing company do it. It’s understanding where your real value added is and putting your best people and resources behind that.”