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By: Arnold Encomendero Dávalos

With the clarity and accuracy of an exemplary Managerial Leader, as well as he has written in his books, “JACK: STRAIGHT From de Gut”, and, “Winning”, we had the opportunity to meet him and share his ideas and experience acquired as CEO of General Electric, and we verified that JACK WELCH is and will be recognized as “a influent thinking, clear strategy man, for he created a strong corporate culture and created LEADERS”. “A managerial leader who was always clear regarding what he wanted to be and how to get it”. He has never been afraid to warn in the FORUMS and business spaces that “LACK OF HONESTY IS THE BIGGEST UNWRITTEN FAULT IN BUSINESS”. “Sincerity pays its benefits because it has the ability to clarify most of the situations; hence it has an inestimable value”. What an eloquent message of Managerial leadership has JACK gave to 600 Peruvian managers and executives on October 18 of the current year, when he exclaimed: “SUCCESS means WINNING and, if we know HOW TO WIN, we create opportunities for everyone and everywhere. WINNING is the formula that regenerates anything it touches and makes the world a kinder place for all.” “Regarding SUCCESS, individuals are everything,” he strongly emphasized.
With the warmness and honesty he always put on each of his business and personal affairs, he said to us: “Leadership is a challenge which intertwines balance, responsibilities and pressure. There are different types of leaders: some are shy, some others are cautious, analytical or impulsive, severe or protective to the team. However, the best among them are those who keep a passionate interest in their group, its development and its achievements”. The truth is what it is. A true leader knows how to link things together. There is no such thing as a free lunch.

When Welch became Chief Executive Officer (CEO) of General Electric in 1981, his strategic initiative, according to his autobiography, was this: to leave businesses that were becoming general consumer goods and focus on those that manufacture high technology products or sell services rather than objects. General Electric Company has successfully kept that strategy throughout 20 years, since it has been supplementing it with new initiatives such as globalization, complement existing services, Siy Sigma, the use of digital technologies.

Its strategic base was formed by two tough principles: INDIVIDUALS are everything; general consumer goods have no interest. And, in order to have a consistent strategy, it is necessary to think of INNOVATION, technology, internal processes, complement existing services…, i.e., anything presuming SOMETHING UNIQUE”. STRATEGY, as WELCH told us, means to make clear decisions about HOW TO COMPETE”. We must always remember that “We must create an atmosphere converging with what we are selling”. “Strategy is a referential course of action to which one must return and often REDEFINES according to the market conditions”.

Those who have made our lives a constant and critical development in the search for exceptional results, know very well and acknowledge that in the day-to-day, there is always a lot learning to learn; and, thereby, make-make each time BETTER. Technical knowledge and emotional intelligence are two key factors to guarantee good competitive leadership, with the strong conviction that the whole is bigger than the sum of its parts, and that Management Leader, regardless of his power. Like Jack Welch, he has always a lot to TEACH and a lot to GIVE with Social Responsibility. This will prevent outraged people feeling excluded. We cannot afford to miss such worthy teachings whatever the size of the company is: small, medium or large, and whether it is public, private or cooperative.

In this regard, it should be emphasized with the value criterion JACK WELCH deserves, that General Electric Company was the only company where he worked and gave his full potential until his term was up, as Chief Executive Officer. During his management as CEO, the market value of General Electric increased from US$ 3 to 400 billion dollars. And, as every leader of excellence, since he retired as General Manager of such an important company, he travels to every continent in the world sharing his experience and inspiring so far, including more than 250,000 executives. On 2010 he opened the JACK WELCH MANAGEMENT INSTITUTE, where he develops an ONLINE MBA Program, thus contributing changing the lives of executives and their organizations.

As a corollary of this beautiful experience, our book “Amigo, Gerente y Líder” (Friend, Manager and Leader) which we gave JACK WELCH at the FORUM 2012 organized by EKOS and PWC, the following critical reflections on Managerial Leadership are made:

“Business success arises when leaders and those led share visions, actions and values, and, at the same time, enjoy their benefits”.

“Continuous learning is a business reason. A Manager without updated knowledge has no reason to be in the company”.

“Applied knowledge and shared values are the bifocals of business development”.

“A Managerial leader teaches with his example because he knows learning to learn, and because his people have shown him he has the mind of a manager and the soul of a leader”.

“Operational efficacy and better costs, in order to be competitive, are achieved investing in technology; but, also, we should CREATE.
INNOVATE. HUMANIZE THE COMPANY, the Product and the Customer Service, to gain loyalty along with social responsibility”

“A good Managerial Leader does not have fixed opinions. He is aware of everything. He moves with the times, and on time.”

Jack Welch

Jack Welch is receiving the book
«Friend, Manager and Leader” from its author,
Dr. Arnold Encomendero Dávalos, on October 18, 2012.

Jack Welch

«In regards to the success people it mean
everything,» said Jack Welch.

Jack Welch

John Francis Jack Welch Jr. was born in Peabody, Massachusetts, on November 19, 1935, American writer and businessman.
Executive of the 20th century was elected. He started working at the General Electric Company in 1960 and in 1981 became the eighth director-general of the company. During his tenure, the benefits of the company amounted to $ 400 billion, so this became one of the largest companies in the world. Welch is currently director of Jack Welch, LLC, a company that provides advice to companies.