PDF Summary:Winning, by Jack Welch and Suzy Welch
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1-Page PDF Summary of Winning
In Winning, business executive and former General Electric CEO Jack Welch shares advice on how to win in the business world, whether you’re running your own company or trying to climb the corporate ladder. Welch, who was chair and CEO of GE from 1981-2001, transformed the company into the most valuable in the world, and he became one of the best-known corporate leaders in the US.
In our guide, we’ll first look at some of Welch’s general business principles, such as the controversial practice of differentiation and the importance of candor in the workplace. Then, we’ll review his advice on more specific business practices, like how to hire effectively and how to adapt your company. We’ll finish with his tips on advancing your career, which include finding the right job and handling work-life balance. We’ll also take a deeper look at Welch’s advice, comparing and contrasting it with that of other notable business leaders.
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- Effective: Make sure your employees know how to get the job done. Welch admits that effectiveness can be easily overlooked—sometimes people seem to have great potential and the right characteristics but for whatever reason can’t implement decisions effectively.
- Enthusiastic: Finally, you want employees who are excited about the work they’re doing. No matter your work ethic or business experience, it’s enthusiasm that truly sets people apart.
Alternative Hiring Strategies
Though Welch says that his five characteristics to look for have been effective for him, he also acknowledges that there are many different ways to go about hiring effectively. Let’s look at some hiring advice from other business experts and see how it stacks up against Welch’s advice.
One thing to consider is that it might be better to hire based on what people excel at rather than trying to find someone who ticks every box. As Peter Drucker says in The Effective Executive, you won’t ever find the perfect candidate, so it’s best to focus on the traits you feel are most important. Though you may want to find someone who exhibits all five of Welch’s key characteristics, it may be more realistic and effective to determine which two or three characteristics are most important for the job. If you’re hiring a salesperson, for example, you might determine that energy and enthusiasm are the most important traits. If you’re hiring a manager, you may want someone who is decisive and inspirational.
What’s more, since Welch stresses the importance of using your instincts to find people with the right characteristics, you should focus more on interviewing the candidates personally rather than comparing their skills and experience on paper. In Scaling Up, Verne Harnish recommends limiting your in-person interviews to five or 10 candidates so that you can perform comprehensive interviews with each interviewee. This will help you determine if the candidate has the right attributes and temperament to fit in with your company’s culture and values.
How to Manage Your Employees
Once you’ve hired the right people, you must set them up for success and manage them effectively. Welch provides several tips for managing employees:
Establish a strong human resources department: Welch argues that HR is crucial to the success of any company and yet is often overlooked or disregarded. HR, when implemented correctly, should be a transparent organization that addresses employees’ concerns, fosters compromise between departments, and helps people develop. Businesses are filled with people, and there will always be interpersonal conflict—office politics, hurt feelings, and disagreements. A strong HR department that has true power helps alleviate conflict and ensure that the company is as healthy and strong as it can be.
(Shortform note: Ben Horowitz, in The Hard Thing About Hard Things, agrees with Welch on the importance of a strong HR department, framing it as a company’s quality assurance: HR may not be able to create a positive company culture on its own, but it can tell when things are bad: when a company’s culture is toxic, for instance. Horowitz outlines five specific areas in which an HR team is especially helpful: Hiring (is the interview process effective?), compensation (is employee pay fair and competitive?), training (does the training process get employees up to speed efficiently?), management (is the performance review/feedback system fair and effective?), and motivation (do employees work hard consistently?).
Create a strong system for evaluating performance: According to Welch, most companies don’t have a good method for evaluating employees. Though every company’s will differ, Welch says that an evaluation system should be direct (clearly stating what the employee did well and where they can improve), data-driven (using quantitative data to measure performance), and should occur at least once a year (though more frequent evaluations may be helpful).
CFRs: An Alternative to Annual Reviews
While Welch argues that performance reviews should occur at least once a year, annual performance reviews are no longer the standard, with many companies now favoring more frequent manager check-ins or self-evaluations.
In Measure What Matters, for example, John Doerr provides an alternative to annual performance reviews: CFRs (Conversations, Feedback, Recognition). CFRs emphasize continuous improvement and addressing issues promptly rather than waiting for a yearly review. CFRs involve weekly or monthly conversations between managers and employees, constant feedback between managers and employees, and recognition of accomplishments from both peers and managers. Echoing Welch’s advice, CFRs are direct (they aim to give clear feedback on how to improve) and data-driven (they focus on accomplishments and results).
Delineate clear roles and responsibilities, with as few hierarchy layers as possible: Welch points out that many companies, especially bigger ones, suffer from a lack of clarity regarding each employee’s role within the company. To avoid this, design a detailed organizational chart that clearly shows the work each employee is responsible for and who they report to. This will promote transparent communication and ensure that everyone knows what they should be doing on a daily basis.
(Shortform note: In The Five Dysfunctions of a Team, Patrick Lencioni argues that clearly outlining each person’s responsibilities also helps solve one of his five dysfunctions: lack of accountability. He argues that in addition to each person’s responsibility, you should publicly post the goals and standards of the organization. This will make crystal clear what the team needs to accomplish as well as what each individual needs to do to accomplish it. It also shifts accountability and discipline from the managers to the entire team, as each team member will be encouraged to pull their weight and hold others accountable when they aren’t contributing to the team’s goals or adhering to the organization’s standards.)
Welch recommends having as few layers of hierarchy in your company as possible because they cost the company time and money. He claims that some companies keep adding levels within their ranks as they grow; others add layers so they can more easily promote top performers. But a company with too many hierarchy layers becomes difficult to manage and for employees to navigate. It also tends to add unnecessary costs and complicate even the most basic business decisions, requiring employees and managers to run every decision up the chain of command. Instead of having several rungs of managers within one department, it’s better to have one manager who oversees the department and reports directly to the CEO.
(Shortform note: The authors of No Rules Rules point out other key benefits of a company structure with fewer hierarchies: It empowers employees and fosters innovation. Many companies, they argue, require all big decisions to go through the higher-ups in a company, and these higher-ups may have a fixed mindset and limited perspective that can limit innovative ideas. A company with fewer hierarchies, however, lets its employees make decisions based on what they think is best for the company rather than what they think their bosses will approve of, so these decisions won’t be limited by the perspectives of a few senior executives.)
How to Adapt
Along with hiring the right people and having an effective management system, successful companies must also know how to adapt to changing market conditions. Yet enacting change within a company can sometimes feel like an uphill battle—employees are often resistant to change, and it can be costly and time-consuming. Welch gives three pieces of advice on how to adapt successfully.
Adapt purposefully: Because change is a necessary part of business, a common mistake companies make is to enact change without a clear direction in mind, jumping on the latest trend or trying to adapt in several ways at once. This can lead to a disorganized work environment in which time and money are wasted and employees don’t buy into the new way of doing things.
But if you instead adapt thoughtfully, with a clear goal, things will go much more smoothly. To do this, Welch recommends backing your changes with as much data as possible. This will ensure that the changes are actually good for the business and will be implemented correctly.
For instance, if you’re a car company looking to adapt to the rapidly growing market for electric vehicles, you should research everything that might affect this transition—the expected market share of EVs, the expected cost of research and development, design, marketing, and manufacturing, customer sentiment regarding greener energy, quantity and quality of potential competitors, and so on. With this data, you’re more likely to make a sound business decision, and when your employees see the amount of research that’s gone into the decision, they’re more likely to be on board with the change.
(Shortform note: The authors of Blue Ocean Strategy provide advice on how to determine if a changing market trend is worth adapting to. You should adapt to a trend if it meets the following criteria: 1) The trend has a meaningful impact on your company. A change in how people consume media won’t have a big effect on a car company, but a change in the durability of engine materials will. 2) The trend must have a lasting, irreversible impact. For example, the trend toward more sustainable, environmentally friendly vehicles isn’t likely to be reversed. 3) The trend must have a clear direction. If you aren’t sure whether the vehicle market is trending toward electric vehicles or cleaner fuel alternatives, you can’t adapt your company with a clear goal in mind.)
Dismiss the obstructors: Though a purposeful and data-backed change will help sway the skeptics, there will always be employees who remain resistant. Welch says you have to get rid of the people who aren’t on board with the change. Not only will they provide little value, they’ll also lower the morale and motivation of everyone else.
(Shortform note: In Leading Change, John Kotter writes that the people in your company most resistant to change are often managers. Because managers have extensive knowledge of the way things currently work, they usually feel they’ll be the ones to suffer the most from organizational changes. Further, their knowledge of the company and their power within it can make their resistance especially difficult to navigate. Kotter argues that the best way to deal with resistant managers is to approach them early and clearly explain why the change is necessary. Like Welch, Kotter argues that if a manager refuses to adapt, you must get rid of them.)
Search for opportunities everywhere: Sometimes, it’s obvious what changes your company needs to make—for example, buying out a struggling competitor for pennies on the dollar or transitioning to e-commerce with the rise of the internet. But Welch claims that to be a truly successful and adaptive company, you need to be constantly on the lookout for less obvious changes. This might mean staying up to date on the latest technologies or emerging industries. By staying ahead of the curve on potential changes your company can make, you ensure that you’re one step ahead of the competition and, when a new market trend develops, you’re not the last one to realize it.
(Shortform note: In Only the Paranoid Survive, Andrew Grove provides advice on how to prepare for unexpected changes in the marketplace. Grove outlines six key areas in which a drastic change might occur: Current competitors, potential competitors, government regulations, customers, suppliers, and complementary businesses. By keeping your eye on changes in these areas, you can ensure that your company can adapt promptly to any market disruptions.)
Advancing Your Career
Now let’s explore some of Welch’s tips on how to further your career. We’ll look at his advice on finding the right job, getting promotions, and handling work-life balance.
Finding the Right Job
Welch claims that finding a job that’s the right fit for you can only be done through trial and error. There is simply no way of knowing how much you’ll like a job, or how good you’ll be at it, until you try it out. Furthermore, it’s important to understand that no job is perfect and there will always be things you don’t like about it. It’s not about finding the perfect job, but the one that best suits your needs and capabilities.
(Shortform note: In What Color Is Your Parachute, Richard Bolles argues that job hunting is about learning who you are and what you want to do with your life. Though you may not know if a job is truly right for you until you try it, Bolles provides some tips on how to find a job that matches your identity and life goals. He recommends the flower exercise, in which you look at yourself from different angles such as compatibility with people, skills, purpose, and knowledge. Having a better understanding of yourself will provide clarity on what you want to do with your life.)
That said, there are things to look for that can help you determine if a job is the right fit:
People: Perhaps the most important part of any job is the people you work with. Welch claims that no matter how much you enjoy the work or how much money you make, you’ll be miserable if you don’t enjoy being around your coworkers. Pay careful attention to whether the organization and the people within it share your general attitude toward work and life. If you find early on that the people you work with aren’t “your kind of people,” it may be better to cut your losses and search for another job.
(Shortform note: Though you want to have a job with coworkers you like, quitting may not be a valid option, and even when you like most of your coworkers, it’s likely there will be one or two who you don’t get along with. Here is some expert advice on dealing with difficult coworkers: 1) Recognize your triggers: Acknowledge the things your coworker does that bother you so you can respond better to them. 2) Understand your differences: Knowing that you and a coworker have different priorities and approaches to work (and that that’s OK) can help you be more accepting of them. 3) Offer help: Offering help or advice to a difficult coworker can improve your relationship and might change your perspective on them.)
Opportunities: Welch argues that a job should provide you with opportunities both while you’re working there and after you leave it. By that he means that a job should help you grow as a person and learn new things while also giving you the credentials to further your career elsewhere if you choose to do so. Finding a job that challenges you is important because learning and growing keeps you motivated and mentally sharp. And a job that gives you credentials gives you options if your priorities change.
(Shortform note: Experts note that today’s career paths require more individual intention in order to build skills and find growth opportunities. There are so many career options, and so many skills that may boost your opportunities, that it can be difficult to know when to seek out new employment. There are some signs, however, that may indicate it’s time for a new job: 1) You aren’t learning. If you feel your job is too easy, it’s probably time to get out. 2) There’s no opportunity for career advancement. If you feel you can’t get a raise or promotion at your current job, you should seek out one in which you can. 3) You want to try something new. Sometimes, you just get tired of doing the same things and need to shake things up.)
Joy and meaning of the work: Though a job with the right people and opportunities is important, the work itself must also bring you happiness and meaning. Welch claims that if you find yourself making excuses for having a job, like that the money is too good to pass up, it may be better to find something else. He also says you don’t need to think too hard about whether you’re passionate about the work—when you find a job you’re truly passionate about, you’ll know.
(Shortform note: In So Good They Can’t Ignore You, Cal Newport agrees with Welch—you shouldn’t think too hard about finding a job you’re passionate about. He says that the popular notion that you should find a job based on a pre-existing passion is flawed. He claims that you’re more likely to find happiness and meaning in jobs in which you feel competent and have autonomy and that most people who love their jobs don’t get them by following their passions. Therefore, Newport argues that you should focus primarily on improving your skills, as this will increase your feeling of competence and will give you more autonomy in your career and your life.)
How to Improve Your Chances of Promotion
Welch argues that getting promoted often requires a fair amount of luck, but there are some things you can do to improve your chances.
Expand your role: One major way to increase your chances of getting a promotion is to expand your position to include more responsibilities. This will help you prove your value to the company and stand out from the crowd. For example, if you’re a salesperson looking to become a sales manager, you could expand your role by coming up with a new sales strategy that everyone can use.
(Shortform note: Though expanding your role may make you a more valuable employee, some argue that the best way to increase your value is to focus on your most vital tasks. In Eat That Frog!, Brian Tracy says there are likely three tasks that account for most of the value you contribute at work. To perform at your best, he says you should focus as much of your time and energy on these three tasks as possible, which would run counter to Welch’s advice to take on responsibility for more tasks.)
Embrace change: Since adapting to change is crucial in business, employees who embrace change are more likely to receive promotions. Quickly and wholeheartedly embracing the new project or initiative your company is implementing is a surefire way to impress your bosses and prove your worth.
(Shortform note: Embracing change has become so vital to a company’s success that some companies employ an executive whose job is to foster change throughout the organization: a chief transformation officer (CTO). Experts point to certain qualities a CTO should have: They should be an independent thinker willing to challenge the status quo, have high emotional intelligence and interpersonal skills, and inspire others with enthusiasm. If you wish to impress your manager and get promoted, you might consider emulating these qualities.)
Seek out advice from multiple mentors: Welch says you should seek out advice from as many mentors as you can, both formal and informal. By gathering as much useful information as you can, you’ll stand out from the crowd. You might have one person who fits the classic mentor mold (an older, more experienced person in your industry that you meet with regularly), but you should also look for advice from people younger than you, people outside your work, and anywhere else you can find it.
(Shortform note: While studies show that formal mentors are common among business elites, experts note that we learn from formal and informal mentors throughout our lives. Just as you learned from multiple people growing up (your mother, father, siblings, teachers, friends, and so on), if you wish to advance your career, you should seek out advice from as many sources as possible. To do this, psychologists recommend that you reach out to those you admire and develop relationships with them. More often than not, they’ll be happy to share their knowledge and help you on your journey. When developing such a relationship isn’t an option, simply observe those you admire and learn from their words and actions.)
Handling Work-Life Balance
There’s no perfect way to balance work and your social life, but if you want to advance your career, you’ll have to make some sacrifices. How much you’re willing to sacrifice is up to you, but Welch says that to make the best decision for yourself, there are a few things you need to understand about work-life balance:
You and your boss have different priorities: Your boss’s priority is to get as much value out of you as possible. This doesn’t mean most bosses expect you to give everything to the company, but they’ll take as much as they can get. A boss gets paid to keep their employees productive, and most bosses will be willing to work with you on work-life balance if you’ve proven your value to the company and can remain productive.
(Shortform note: Though you should understand that you and your boss don’t have the same priorities and that you have to make sacrifices for your career, there are ways to deal with a boss you feel is too demanding. First, be transparent: Have a personal conversation with your boss, letting them know you’re committed to work but also have other responsibilities. Second, empathize: Show that you understand the pressure they’re under to perform and ask what their biggest concerns are. This may help you better understand the work they value the most. Finally, communicate: Show your boss that you’re getting the work done. Check in as often as you can and let them see what you’re working on.)
Figuring out how to balance work and life is ultimately up to you: Welch says that some bosses are more accommodating than others, but ultimately, it’s your job to figure out how to balance work and life. A boss can help with scheduling or help you be more efficient, but you’re the one who has to implement that advice. You have to decide what your values are and what you need to do to make them a reality. If that means quitting a job that you feel demands too much of your time, so be it, but only you can make that decision.
(Shortform note: Welch says that you should clarify your values so you can balance work and life appropriately, but how do you choose your values? In Dare to Lead, Brené Brown recommends narrowing it down to your two most important values, as trying to live by too many values can make it more difficult to commit to them. Since determining your values is deeply personal and something only you can do for yourself, think long and hard about what you truly value, not what you think you should value or what you want others to think of you. If narrowing it down to two values proves difficult, try making a list of 10 values and trimming from there.)
Once you understand your boss’s priorities and your own values, here are two things you can do to best achieve your desired work-life balance:
Keep work and life separate: However you prioritize your work and life, Welch says it’s important to remain focused on the task at hand and the people you’re with. When you’re at work, give it your full attention. Don’t plan your family vacation when you’re supposed to be working or text your spouse during a meeting. Similarly, try to limit the amount of time you work when you’re with family and friends. Don’t check your emails while playing with your kids or constantly talk business on a night out with friends.
(Shortform note: In Radical Candor, Kim Scott says that instead of viewing work and life separately, work-life balance is about finding a way to integrate these two parts of your life in an enriching way. It’s okay, for example, to practice self-care at home so that you can perform better at work. Likewise, it’s okay to talk about work outside the office if you want to. Scott recommends trying to view work and life not as two aspects of your identity competing against one another, but as different parts of your whole self that complement each other.)
Set boundaries: Once you’ve determined your priorities, Welch says you must be able to say no to requests that disrupt your chosen work-life balance. Welch points out that saying ‘no’ can be hard for many career-oriented people, as they think being an agreeable person shows they’re willing to work hard. But if you say yes too often, achieving the goals you set for yourself becomes nearly impossible.
(Shortform note: In Essentialism, Greg McKeown provides some guidelines on how to deal with people who ignore your boundaries: 1) Don’t solve other people’s problems. It’s okay to help someone occasionally, but if you constantly solve their problems you’re cutting into your own time and enabling their behavior. 2) Create an agreement. Clarify to coworkers what you will help them with and won’t you won’t help them with. This way, they’ll ask for help only when it falls within your boundaries, and you won’t constantly be telling them no.)
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