Winning Book Review Essay

1166 Words Jun 16th, 2015 5 Pages
Review of Winning by Jack Welch

When former General Electric CEO Jack Welch reflected on the thousands of questions he has been asked over the years, he realized they could be summed up by one question, “What does it take to win” (Welch Pg.3). Welch believes when companies win, everybody wins and the world is a better place. In his book, Winning, Welch attempts to answer the question of what it takes to win. He uses his experience at General Electric, the experiences of close friends and other corporate examples to provide a detailed roadmap for creating the foundation and corporate culture required to obtain a competitive advantage and win. Welch outlines and details three central pillars to his winning formula: strong management
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The second principle is candor. Lack of candor is a business killer because it inhibits creative thinking, open communication and increases costs. While Welch admits that candor is very rare and a company is unlikely to ever achieve total candor, creating an environment where candor is encouraged and celebrated is extremely important. Candor is the most important principle because every topic in the book requires either communication or assessment and candor and honesty are critical to both. The third principle, voice and dignity, states that people want to share their thoughts and ideas, “voice”, and are respected for their efforts, “dignity”. According to Welch, not only is this something employees want, it’s something companies need. Much like candor, it helps break the corporate bureaucracy and facilitate the free flow of ideas.

Differentiation is used to rate business units or product lines and employees, based on performance, in an effort to determine where to invest a company’s resources. As it relates to business units or product lines, differentiation can help determine which ones need to be cultivated and which ones need to be divested. Similarly differentiation should be used to determine which employees should be rewarded, developed and terminated. Welch outlines his 20-70-10 system to make such a determination: the top 20% should be rewarded and praised, the middle 70% require management and development and the bottom…

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