For the entrepreneurs who came to listen to Jack Welch with a mindset of seeking treatment for their ailments, there might be some disappointment, as they were unable to obtain a personally crafted prescription from him for China's manufacturing enterprises, as they had hoped.
But as the sage of stocks, Warren Buffett, once said when evaluating Welch: "All CEOs want to emulate him; though they may not match him, if they carefully listen to what he says, they can get closer to him."
Those who know Jack Welch understand that this "World's Best CEO" is passionate and skilled in talent cultivation and management. His practical summaries over decades in selecting, employing, and developing talent are regarded by the outside world as one of the management bibles. During the GMC President Forum hosted by Global Market on September 7th, he almost spent half the time strongly emphasizing and teaching his talent philosophy to the Chinese manufacturing entrepreneurs present.
"The quality of a team is crucial. Chinese companies pay insufficient attention to team quality. Building good team quality applies to both small businesses and large companies, and it is not an absolute numerical issue," Welch said in response to the confusion about how the management practices of large companies can be applied to small Chinese enterprises.
In Welch's view, a team is like a football squad, and corporate CEOs need to understand how to put the strongest lineup on the field to compete. The best resources should be focused on the finest teams and talents, and those poor performers who are unsuitable for the company must be let go.
Key to Success: Team Quality
Welch's emphasis on talent also contributed to his remarkable achievements at GE. Compared to other CEOs, Welch has spent over 50% of his lifetime focusing on talent. During his tenure at General Electric, he personally visited employee training sessions, averaging 12 to 15 times per month, spending 5 to 6 hours each time. He believed that doing so helped him grasp the pulse of the company, gain more and deeper understanding, and importantly, the CEO needs to fully embrace the work done by human capital managers.
Why place such importance on team quality and talent? Welch said: "The CEO must work together with the human capital manager to create an excellent team to help the company achieve success because success is important, and everyone wants to stand on the podium celebrating with champagne rather than crying in the locker room."
With such high regard for team quality, Welch had little tolerance for underperforming employees. If one person in a five-person team performs poorly, it means a 25% defect rate, which could spell disaster for the company. Therefore, neither the company nor the CEO can allow the worst-performing employees to remain, and they must continuously address those who perform inadequately.
Conversely, Welch emphasized rewarding outstanding performers to encourage them to improve daily, promoting self-learning and development.
"But the CEOs of Chinese manufacturing enterprises do not pay special attention to team quality. For instance, early employees hired by the company have been with the company for a long time and grown alongside it. Nothing is more important than team quality. Every day, you must ensure that your team consists of the best members and cannot tolerate any underperforming or poor employees. Only then can the entire team be driven to improve," Welch pointed out.
Entrepreneurs' Challenge:
Shifting Focus from Products to People
How does one cultivate talent and build a high-quality team? Welch introduced the most fundamental method: It is impossible to expect everyone in an organization to be a leader. New employees entering the company must have clear definitions of themselves, and the CEO must ensure all employees have no doubts about their future growth and prospects. Employees need to feel valued.
The methods may seem simple, but implementing them...