Jack Welch - The Secret of Leadership 1 - Harnessing the Power of Change It is important in today's changing economy that business leaders are not afraid to make the changes necessary to succeed. When Jack Welch became CEO of General Electric in 1981, the company was lethargic, satisfied with its results and trapped in bureaucracy. He understood the competition that foreign markets presented and the need for a new global strategic plan. He was able to imagine the true potential of his resources and implemented drastic changes such as the business concepts Stretch, Work-Out and Number One, Number Two (which we will talk about later) to achieve his goals.- Leadership Secret 2- Face RealityThis is the most important rule in Jack Welch's business strategy. Too many business leaders get comfortable with their performance and refuse to see the need for change. A business leader must understand the importance of accurately defining their company's current position if they are planning to make successful changes. And once problem areas are discovered, managers must take immediate action to correct them. When Welch took over at GE, he quickly addressed the common practice of sugarcoating financial documents that left only a false sense of security and insisted that every business unit in the GE empire must be the number one or two competitor in their respective markets or it would be terminated, closed or sold. - Leadership Secret 3: Managing less is managing better Managers must provide a vision to their employees and instill trust. Too many times, employees are held back by not having the power to make even the simplest of decisions without approval. Managers should empower their employees and have confidence that they are giving their best effort. This will give managers more time to work on plans to achieve the company's long-term goals. - Leadership Secret 4 - Create a vision, then get out of the way“People always overestimate how complex business is. This isn't rocket science. We have chosen one of the simplest professions in the world.” In the words of Jack Welch, business is simple. A leader must provide his employees with the information, resources, vision and atmosphere to succeed and reward them when they succeed. Welch doesn't worry about the details of GE's many business units; it just needs to... middle of paper ......pay more attention to the service side of an industry. Growth rates for product-services increase faster than those for product manufacturing, so there is a great incentive to direct one's primary resources to provide after-sales services.- Leadership Secret 27, 28, 29- Transform your business into an e-CompanyThe Internet is the future of business. Update your business and provide customers with not only product descriptions and information, but also a way to shop, communicate, and interact with your business via the web. The Internet also offers less opportunity for human error in the ordering process because fewer people have to handle the information. And most importantly, the Internet speeds up operations, whether it is used to send information to employees or receive personalized orders from customers. ConclusionJack Welch has definitely revolutionized the business approach. He has proven, over the years, that his techniques and concepts are extremely effective and that business leaders, everywhere, should heed his advice. This book offers a brief look at the methods and methodology of, arguably, one of the greatest managers of our time.