Jack Welch strategy: Customer-Centered

Hierarchy is something that is favored by the CEO but not preferred by customers. Jack Welch is one of the leaders who made the radical step of making changes to the philosophy of GE-Centered customer. GE's was full of bureaucracy into a dynamic company. This step successfully doubled the value of GE's market capitalization from $ 13 billion to $ 500 billion.
Here are the steps in changing the Jack Welch GE into a company customer-Centered.



Lower the waterline
The first step is to do is eliminate the internal barriers and dismantle the organization. How to Jack Welch, among others to create speed in the work tasks, thus reducing bureaucracy. According to Welch, the bureaucracy fears the speed and do not like simplicity. Bureaucracy trying to eliminate any efforts toward informal, fast and borderless. Welch was one of the steps that are less desirable is the policy of cutting costs.

Jack Welch also introduced a simple management process for people turnover in a simple way. He sort people into types A, B and C. Type A top-performing 20%, type B intermediate performance and the remaining 70% C 10% lower performance. They are forced to underperform its performance out.

Simplify processes
Simplify the process is long-term agenda in the minds of Jack Welch. He did re-engineering that does not just focus solely on cost and efficiency. As expressed by management guru Tom Peters: "Put customers first 'is nonsense unless you've cleaned the crap out to allow people on the front line to do it". That is what Jack Welch. He is removing layers of bureaucracy, and clean up the organization before moving into customer-Centered.

Welch is one of the leaders who successfully address the biggest problems of the current organization, which gives employees the freedom to make decisions, so no need to seek approval through a difficult bureaucracy, but within a fixed framework promises harmony with the organization as a whole.

He also introduced the Six Sigma system in order to improve the quality of their business. Through Six Sigma, then what can the organization internally aligned with customer needs.

The front line
Welch, unlike most other CEOs, pioneering approach to 'people first' in his leadership. He and his team visited the company to then talk about each individual who worked there, identify the existing strength and recommend the necessary developments.

Are like that expressed by researchers from Harvard, the fact is, positive attention from the leader of the staff to be role models in terms of how to treat customers.