As mentioned in my previous post, I am reading the Jack Welch book. Today I would like to discuss his performance evaluation strategy that he implemented at GE.
Everyone falls into one of three groups:
A People - These people are leaders, top performers, energetic, and can execute. These people make up 20% of your team.
B People - These people are very diligent and have great potential to be an "A" person. These people make up 70% of your team.
C People - These people are underperformers, do not have potential to be an "A" let alone a "B" person. These people make up 10% of your team.
Here is the falicy. The managers at GE are required to put 20% of their team in A, 70% of thier team in B and the bottom 10% of their team in C. The C people are let go. The problem here is that they are being compared to only their team. It is quite possible that someone rated a C on one team may very well be a B or even an A on another team. Besides that, if a team is full of A people, that is too bad, managers must select 10% of the team as C. What would your organization look like if 10% of your workforce is cut every year because of a quota that must be met?
I do agree with much of what he says but by putting a quota onto letting people go is never good for morale.
Tuesday, August 16, 2005
Monday, August 08, 2005
Jack Welch - Straight from the Gut
I was in the dollar general store in my town shopping for some prank gifts for a family members' 30th birthday party and I saw Jack Welch's book there, I couldn't resist picking it up for only a buck. Today's topic will be based on what Jack calls his basic management beliefs, behind his beliefs (which are bolded) are my comments about that particular belief:
1. Competing hard to win. I believe in this statement, if we do not compete hard, we will not win and we chance everything to luck.
2. Facing reality. If we do not face reality we will slowly dig a grave for ourselves in using ignorance for our shovel.
3. Motivating people by alternately hugging and kicking them. WHAT, "kicking", while I understand what he means by kicking, I would hardly use that word to describe it, maybe pushing or stretching. I we are too aggressive we will "kick" them right out of the company.
4. Setting stretch goals. It is very important to set goals that are sitting just on the other side of "things I have never done" other wise you will find yourself standing on the shores of mediocrity.
5. Relentlessly following up on people to make sure things get done. This is ridiculous, all this means is micro managing. If I have to relentlessly follow up with people then I have the wrong people on my team.
At the end of the day, Jack Welch ran a successful organization at GE using the basic management beliefs stated above.
1. Competing hard to win. I believe in this statement, if we do not compete hard, we will not win and we chance everything to luck.
2. Facing reality. If we do not face reality we will slowly dig a grave for ourselves in using ignorance for our shovel.
3. Motivating people by alternately hugging and kicking them. WHAT, "kicking", while I understand what he means by kicking, I would hardly use that word to describe it, maybe pushing or stretching. I we are too aggressive we will "kick" them right out of the company.
4. Setting stretch goals. It is very important to set goals that are sitting just on the other side of "things I have never done" other wise you will find yourself standing on the shores of mediocrity.
5. Relentlessly following up on people to make sure things get done. This is ridiculous, all this means is micro managing. If I have to relentlessly follow up with people then I have the wrong people on my team.
At the end of the day, Jack Welch ran a successful organization at GE using the basic management beliefs stated above.
Tuesday, July 19, 2005
Predictable
I have read many books and articles relating to leadership and have yet to see any one of them talk about this attribute. Predictable. A Leader needs to be predictable. Those who follow a leader need predictability. Why?
1. People need to know what your expectations are and you must act in a way that predict those expectations. If your expectations are to reach a certain objective and that objective has been met, you should predictably give praise for that accomplishment.
2. Predictability gives way to direction. When a leader is predictable, followers know what to expect and know where they are going. The unknown presents a very scary picture.
Without any predictability, your followers will constantly be questioning their performance, your view of their performance and your response to their performance. Those who have a bi-polar tendencies will be destroyed as a leader because of their inability to be predictable to their constituents. Think about it even in government, in this last election. No matter who you liked, one things for sure, President Bush is predictable, and in the end, that is what helped him win. People know what to expect. Unpredictability bring unknown expectations from the followers which is a good way to have no followers.
1. People need to know what your expectations are and you must act in a way that predict those expectations. If your expectations are to reach a certain objective and that objective has been met, you should predictably give praise for that accomplishment.
2. Predictability gives way to direction. When a leader is predictable, followers know what to expect and know where they are going. The unknown presents a very scary picture.
Without any predictability, your followers will constantly be questioning their performance, your view of their performance and your response to their performance. Those who have a bi-polar tendencies will be destroyed as a leader because of their inability to be predictable to their constituents. Think about it even in government, in this last election. No matter who you liked, one things for sure, President Bush is predictable, and in the end, that is what helped him win. People know what to expect. Unpredictability bring unknown expectations from the followers which is a good way to have no followers.
Wednesday, June 22, 2005
Reflection Point for Leadership
As my previous post mentioned, I am reading the book, "The Leadership Challenge", the authors studies show the following characteristics to be CRUCIAL in being a leader, everyday I am being convinced more and more how true this is. These are top four crucial characteristics:
1. Honesty (Credibility)
2. Competent
3. Forward-Looking
4. Inspiring
1. Honesty (Credibility)
2. Competent
3. Forward-Looking
4. Inspiring
Monday, June 20, 2005
Honesty Essential in Leadership
I am reading a new book, recommended by a high level manager for Universal Studies, called The Leadership Challenge, by Kouzes and Posner. Just after reading the very first few pages, it really became very clear to me the importance of HONESTY in leadership, and I capitalize it because of how important it really is.
Other words that would also be considered in the HONESTY category are, integrity, ethical and moral. Wow, simple yet absent in very many aspiring leaders. If you are leading, you must actually have followers. The followers have to have a compelling reason to allow you to lead them. Sure there may be reasons like you are a successful innovator but without TRUST, they will not follow. Followers trust based on their leaders HONESTY. So leaders really need to reflect on several points;
1. Do you show your followers what you stand for (this not necessarily being religion but more like the ethical treatment of employees, how you perceive the importance of your employees, etc.).
2. Are your actions in line with your words? Do you walk your talk?
If not, beware, your leadership role is soon ending. Those who we lead require the basic need of TRUST, which comes from the demonstration of HONESTY.
Other words that would also be considered in the HONESTY category are, integrity, ethical and moral. Wow, simple yet absent in very many aspiring leaders. If you are leading, you must actually have followers. The followers have to have a compelling reason to allow you to lead them. Sure there may be reasons like you are a successful innovator but without TRUST, they will not follow. Followers trust based on their leaders HONESTY. So leaders really need to reflect on several points;
1. Do you show your followers what you stand for (this not necessarily being religion but more like the ethical treatment of employees, how you perceive the importance of your employees, etc.).
2. Are your actions in line with your words? Do you walk your talk?
If not, beware, your leadership role is soon ending. Those who we lead require the basic need of TRUST, which comes from the demonstration of HONESTY.
Friday, June 17, 2005
5 Attributes to becoming a Successful Innovator
1. Be comfortable with change
2. Be clearly directed
3. Be thorough
4. Be a participated manager
5. Be Persistant
Following these attibutes will help lead you to be a successful innovator.
2. Be clearly directed
3. Be thorough
4. Be a participated manager
5. Be Persistant
Following these attibutes will help lead you to be a successful innovator.
Tuesday, June 14, 2005
Making Better Decision
I am writing on this topic based upon reading in the latest edition of Harvard Management Review Publication. They interviewed author Paul Nutt, a management professor from Ohio State University. Looking back at the experience of both others and my own, and based on information in this article, here are some keys to making better decisions as to increase the odds of being successful.
First and foremost, everyone makes wrong decisions and the purpose of this article is not to tell you the secret of always making the right decision, there is no secret. These suggestions, however, will help you minimize the chance of making the wrong decision.
There is not one shortcut to success but millions that lead to disaster.
One of the biggest problems in making decisions is for the decision maker to try and make a quick decision, often as quickly as possible. If you put unrealistic time frame on decision making, you are limiting your options and increasing your odds for failure
Increase your Option
The more options you look at to make your decision, the more chances you have to make the right decision. Without examing an array of options, how can you be sure that you are not only making the right decision but also the best decision.
Motives in Motion
What is your motivation, are they self-centered, are they inline with what the goal of what the decision is trying to accomplish. This requires brutal honesty with one's self.
Ask and Listen to Stakeholders
This not only includes those who have a financial stake in the decision but also those who will be involved in the implementation of the decision. Remember, without the support of those who will implement the decision, it is doomed for failure.
So remember when you are making your next decision; take no shortcuts, increase your options, check you motives and listen to the stakeholders.
First and foremost, everyone makes wrong decisions and the purpose of this article is not to tell you the secret of always making the right decision, there is no secret. These suggestions, however, will help you minimize the chance of making the wrong decision.
There is not one shortcut to success but millions that lead to disaster.
One of the biggest problems in making decisions is for the decision maker to try and make a quick decision, often as quickly as possible. If you put unrealistic time frame on decision making, you are limiting your options and increasing your odds for failure
Increase your Option
The more options you look at to make your decision, the more chances you have to make the right decision. Without examing an array of options, how can you be sure that you are not only making the right decision but also the best decision.
Motives in Motion
What is your motivation, are they self-centered, are they inline with what the goal of what the decision is trying to accomplish. This requires brutal honesty with one's self.
Ask and Listen to Stakeholders
This not only includes those who have a financial stake in the decision but also those who will be involved in the implementation of the decision. Remember, without the support of those who will implement the decision, it is doomed for failure.
So remember when you are making your next decision; take no shortcuts, increase your options, check you motives and listen to the stakeholders.
Friday, June 10, 2005
Passive, Aggressive, Assertive
Last night in my Organizational Behavior class, we had an excersize and discussion on the importance of understanding what type of behavioral category you fall under, passive, aggressive or assertiveness. In all cases, everyone has characteristics of all three types of responses, however, the most effective response would be assertive.
After class I had a good conversation with my daughter because she asked me what we talked about in class. At this point I realized how important it is for parents to train their children in yet another area of socialization. Since my daughter is only 10, these concepts were a little difficult to relay to her so these were the definitions I used:
Passive - You let people walk all over you, you hardly ever stand up for yourself.
Aggressive - You are too confrontational with people, this ussually makes people think you are rude.
Assertive - You are able to stand up for your rights while not taking away someone else's rights. Being able to stand up for yourself tactfully while still remaining respectful of others.
Of course most of us know this, so this message serves as a reminder for you to spend some time in reflection of what actions do you exhibit most and how can you change them to better achieve your goals.
After class I had a good conversation with my daughter because she asked me what we talked about in class. At this point I realized how important it is for parents to train their children in yet another area of socialization. Since my daughter is only 10, these concepts were a little difficult to relay to her so these were the definitions I used:
Passive - You let people walk all over you, you hardly ever stand up for yourself.
Aggressive - You are too confrontational with people, this ussually makes people think you are rude.
Assertive - You are able to stand up for your rights while not taking away someone else's rights. Being able to stand up for yourself tactfully while still remaining respectful of others.
Of course most of us know this, so this message serves as a reminder for you to spend some time in reflection of what actions do you exhibit most and how can you change them to better achieve your goals.
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