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Ideas -- The Welch Way




AUGUST 7, 2006
IDEAS -- THE WELCH WAY
By Jack and Suzy Welch

Battle Stations In A Dead Calm
How to motivate a complacent bureaucracy without a clear and present danger

How should a traditional company -- with rigid processes and long-term employees -- change in order to compete with the fast-moving global competitors popping up everywhere? -- Paulo Miguel, São Paulo

First, we're going to make an assumption: Your company is not under siege from global competitors quite yet. You're way too calm.

That's O.K. for now. But get ready. Because "war" hasn't officially broken out yet, your job will be more difficult than it would be if your company was being attacked. Organizational transformations, especially the brave-new-world kind required by global competition, almost never happen unless people really feel the fear factor in their bones. Survival is a mighty motivator.


Without an impending crisis, oh, how people love the status quo! A bureaucracy like yours, in fact, can feel like a warm bath. People never want to get out. And they certainly have no desire to jump into the icy water of global competition. And icy it will be, at least at first, because competitive organizations must be flat, fast, and transparent. Informal, candid communication is a must. So, too, is a mindset that has people constantly seeking best practices inside and outside the company.

And since people won't jump, they need a push. Which is why you, or any leader trying to galvanize change, has to present a powerful case. And make it personal. Your people will change when, and only when, they see how new behaviors will improve the company and, more important, their own lives.

So get gritty and detailed. Use as much data as you can gather on industry dynamics, profit margins, emerging technologies, political trends, whatever will best illustrate two vivid story lines: one about what the company will become if it doesn't change and the other about what happens if it does. Contrast plant closings with growth opportunities at home and abroad, lost jobs with more interesting work, and flat or shrinking wages with more money for everyone.

Then start campaigning. Talk and talk and talk. Not believing or absorbing a tough message the first or second time around is just human nature. You will have to repeat your case to the point of gagging, and then repeat it again.

Eventually, however, if your case is compelling enough, behaviors will change. They will change faster if you publicly praise and celebrate them whenever they occur, and faster still if you reward the people who demonstrate them.

Speaking of people, two other actions will help your transformation effort. First, make sure you start to hire and promote only true believers, those who completely accept the case for change and will proselytize for it, too. Second, make sure you start to ease out resisters who can't let go of the good old days, no matter how much persuading they hear. Yes, some of them may do their jobs well, but they should be working someplace else. Probably at one of the few companies left out there with no global competition.

I have achieved a lot as a leader and still want to grow and move on to more challenging positions. However, I fail to make an impact at interviews. I always think I am right for the job, but the right answers don't come to me until it's over. Your advice? -- Eddie Khumalo, Johannesburg

Your question reminds us of the time one of us was part of a hiring process where a highly qualified young job candidate strutted into the room and started his interview with the words: "So let me get this straight. Do you ask me questions, or do I ask you?" His bravado, needless to say, did not exactly win over any hearts.

You don't have a bravado problem -- quite the opposite. But it sounds as if you're not winning over any hearts, either. We would guess that's because you're too tied up trying to win over brains with perfectly crafted answers.

That's off track. Your résumé should speak for your credentials. Of course, you can use the interview to elaborate or fill in any blanks on your expertise. But based on your question, it seems more important that you show your potential boss who you really are. That is, a leader who cares about your work and your team passionately. A colleague who can laugh, listen, and worry. A real person with outside interests and friends, maturity and self-awareness, and the ability to connect emotionally.

Indeed, in any interview, your best selling point can be your authenticity. So stop performing, and be yourself. The positive impact you long for is probably right inside you, if only you'll let it out.



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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