Jack - Straight From the Gut

I wanted GE to become “the most competitive enterprise on earth.” My objective was to put a small-company spirit in a big-company body, to build an organization out of an old-line industrial company that would be more high-spirited, more adaptable, and more agile than companies that are one-fiftieth our size. I said then that I wanted to create a company “where people dare to try new things—where people feel assured in knowing that only the limits of their creativity and drive, their own standards of personal excellence, will be the ceiling on how far and how fast they move.”

There is no straight line to anyone’s vision or dream.

“You punk!” she shouted in my face. “If you don’t know how to lose, you’ll never know how to win. If you don’t know this, you shouldn’t be playing.”

And many of my basic management beliefs—things like competing hard to win, facing reality, motivating people by alternately hugging and kicking them, setting stretch goals, and relentlessly following up on people to make sure things get done—can be traced to her as well.

Confidence gives you courage and extends your reach. It lets you take greater risks and achieve far more than you ever thought possible.

Building self-confidence in others is a huge part of leadership. It comes from providing opportunities and challenges for people to do things they never imagined they could do—rewarding them after each success in every way possible.

There are no finite answers to many questions.

Winning teams come from differentiation, rewarding the best and removing the weakest, always fighting to raise the bar.

When people make mistakes, the last thing they need is discipline. It’s time for encouragement and confidence building. The job at this point is to restore self-confidence. I think “piling on” when someone is down is one of the worst things any of us can do.

Piling on during a weak moment can force people into what I call the “GE Vortex.” It can happen anywhere. You see the “Vortex” when leaders lose their confidence, begin to panic, and spiral downward into a hole of self-doubt.

arrogant people who refuse to learn from their mistakes have to go.

The best way to support dreams and stretch is to set apart small ideas with big potential, then give people positive role models and the resources to turn small projects into big businesses.

Problem was, no one wanted to pay $10.95 for a single light bulb, no matter how “green” or revolutionary, and our project failed. Instead of “punishing” those involved in the Halarc effort, we celebrated their great try. We handed out cash management awards and promoted several Halarc players to new jobs. While no one was happy with the results, we made a big point of rewarding the people on the team. We wanted everyone in the company to know that taking a big swing and missing was okay.

What made it work was a crazy band of people who believed we could do almost anything. We were scared to death but filled with dreams—and just nuts enough to try anything to get the plastic to work.

In early June of 1968, nearly eight years after joining GE, I was promoted to general manager of the $26 million plastics business.

I loved “constructive conflict” and thought open and honest debates about business issues brought out the best decisions.

I “kicked,” but I also “hugged.”

If I learned anything about making this easier, it’s seeing to it that no one should ever be surprised when they are asked to leave. By the time I met with managers I was about to replace, I would have had at least two or three conversations to express my disappointment and to give them the chance to turn things around. I would follow up every business review with a handwritten note.

I realized—more than ever before—how much my success would depend on the people I hired.

A résumé didn’t tell me much about that inner hunger. I had to “feel” it.

Once again I saw the benefits of acting like a small company. Giving the project visibility, putting great people on it, and giving them plenty of money continues to be the best formula for success.

I learned the importance of people, supporting the best and removing the weakest.

The clarity of No. 1 or No. 2 came from a pair of very tough questions Drucker posed: “If you weren’t already in the business, would you enter it today?” And if the answer is no, “What are you going to do about it?”