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Ideas -- The Welch Way




JULY 24, 2006
IDEAS -- THE WELCH WAY
By Jack and Suzy Welch

The Smarter They Are...
...the more you look like a genius. Why you shouldn't fear that whiz you hired

I am looking for advice about a situation you've probably had to deal with: a superior employee. You can't fire yourself, so what's the solution? Do you keep a lid on the employee's performance? Or hope the organization doesn't figure out your underling is better than you are? -- Richard Ginnaty, Orange, Calif.

Or how about this? You celebrate.

Look, the best thing that can happen to you as a boss -- and you're right, it has happened to both of us -- is hiring a person who is smarter, more creative, or in some way more talented than you are. It's like winning the lottery. Suddenly you've got a team member whose talent will very likely improve everyone's performance and reputation. Including yours.


Yes, it's human nature to feel as you do -- fearful that a "superior" employee could make you look, well, inferior, and perhaps slow down your career progress. But in reality, the exact opposite usually occurs.

The reason is that leaders are generally not judged on their personal output. What would be the point of evaluating them like individual contributors? Rather, most leaders are judged on how well they've hired, coached, and motivated their people, individually and collectively -- all of which shows up in the results. That's why when you sign up top performers and release their energy, you don't look bad. You look like the goose that laid the golden egg.

So keep laying them. It is a rare company that doesn't love a boss who finds great people and creates an environment where they flourish. And you don't have to be the smartest person in the room to do that. Indeed, when you consistently demonstrate that leadership skill and come to be known as the person in your company who can land and build the best, watch your career take off.

Now, we're not saying managing "superior" employees on your team is necessarily easy. Your question, in fact, reminds us of one we received in Chicago several years ago from an audience member who said two of his seven direct reports were smarter than he was. He asked: "How can I possibly appraise them?"

"What the heck happened to the other five?" was our attempt at a lighthearted response. But we took his point. How in the world do you evaluate people whom you feel are more talented than you?

You don't. That is, you don't evaluate them on their intelligence or particular skill set. Of course, you talk about what they are doing well, but just as important, you focus on areas in which they can improve. It is no secret that some very smart people have trouble, for instance, relating to colleagues or being open to other people's ideas. Indeed, some struggle with becoming leaders themselves. And that is where your experience, self-confidence, and coaching come into play.

In that way, then, managing superior employees is just like managing regular types. You have everything to gain from celebrating their growth and nothing at all to fear.

After 61 years as a family business, our company was just sold to a $250 million corporation. We'll operate independently, and everyone will keep their jobs. Everything is the same, but it isn't. How do I, as president, and my employees make the quickest adjustment to our new world? -- Bing J. Carbone, Bridgeport, Conn.

Congratulations, and congratulations. The first for the deal itself since you and your top team probably did pretty well cashing out. And you should feel great about the financial rewards of building a company that the market loved.

The second congratulations is for realizing that, even though everything might look the same going forward, nothing will be. You've been acquired. You and your people now work for someone else. And even if that someone else likes you very much, they will have their own way of doing things. HR will have a new way of appraising people. Finance will have a new way of formatting the numbers. There will be new processes, policies, and procedures galore.

And so the quickest and most appropriate way for you to adjust is to buy in. You don't have to stifle yourself. But your energy about change should be positive and any criticisms constructive. No moaning about how "we used to..." or groaning about how "it was better in the old days." Very bluntly, you gave that right away with the cash-out.

Being acquired is one of the most traumatic upheavals a company can live through. For you, money may have taken away the sting. But if you want your people and organization to thrive -- and clearly, you do -- then your message must be simple: The past is over. Get on with the new.



Jack and Suzy Welch look forward to answering your questions about business, company, or career challenges. Please e-mail them at thewelchway@BusinessWeek.com For their podcast discussion of this column, go to www.businessweek.com/search/podcasting.htm
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