Jack Welch on Management: Change Before You Have To
RSM Erasmus hosted a seminar on leadership and management in co-
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Floris Maljers, Chairman of the RSM Erasmus Advisory Board and former Chairman of Unilever, opened the conference while Wim Kok, Prime Minister of The Netherlands (1994-2002), discussed issues relating to management in The Netherlands.
Roel Pieper, Managing Director and Chairman, Favonius Ventures addressed the audience on the topic relating to how applicable American management practises are in the Dutch business context; and Ad Scheepbouwer, Chairman and CEO, KPN spoke about creating new perspectives within his organisation.
Driven by the Love of Learning
Welch was interviewed by Charles Groenhuijsen, US correspondent for the NOS Dutch Public Television and Radio. Groenhuijsen asked some tough questions about CEO pay scale, the war in Iraq, and if American management style as exemplified by Welch, has a place in The Netherlands / international business environment of the 21st century.
In answer to the question "What drives you?" the ebullient and energetic Welch said "I love to learn." Asked to elaborate, he noted that he "probably had 500 mentors," and particularly had learned a lot from Japanese business leaders the Toyoda brothers (of Toyota) and Sam Walton of Walmart.
Move Faster
Asked about any regrets, he said, "I would have done everything faster. Too often we pause when we should have charged. You're never fast enough." Speed was also at the top of his list when describing what CEOs of the 21st century are faced with. "Go faster. Encourage much more employee participation. And you have to be comfortable as a partner in international business."
Welch also emphasized on the developments of talents in organisations, comparing the role of the CFO and the head of HR in most organisations. "Why do you want the scorekeeper getting the power? The person building the team is more important," said Welch.
The Ultimate Business How-To Book
Once dubbed "Neutron Jack" for his sweeping downsizing at GE during the 80s - an act that made him the self-described "toughest boss in America" - Welch may well be the best-known CEO in the world.
He is the author of such books as Get Better or Get Beaten!, Jack Welch on Leadership, and Jack: Straight from the Gut; meanwhile he is currently in progress on his hotly-anticipated book Winning: The Ultimate Business How-To Book, due out in May 2005.
Fortune Magazine once crowned Welch "Manager of the Century" saying, "Welch wins the title because in addition to his transformation of GE, he has made himself far and away the most influential manager of his generation."
"Change Before You Have To"
Perhaps the best and most general advice given by Jack Welch was his reinforcing of one of his oft-repeated quotes, "Change before you have to." He stands by it today. "Never be happy where you are. Get a culture at your company that loves change. And every time there's a quantum change [in the business world], jump!"
The seminar concluded with a roundtable discussion by Gerlach Cerfontaine, President & CEO Schiphol Group, Ewald Kist, Chairman of the Executive Board ING Group, Thomas Leysen, CEO Umicore, Karel Noordzij Executive Director PGGM and Ad Scheepbouwer Chairman and CEO KPN. Moderated by Groenhuijsen, each panelist was given a quote of Welch and asked to comment on its applicability to Dutch business.
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Contact: Theo Backx, Executive in Residence at development@rsm.nl
