by Jack Welsh
My wife, god love her, rolled her eyes after hearing me going on and on about the virtues of Agile and Deming-style management for the millionth time.
A manager herself (and often my sparring partner over the best way to manage), she was growing tired of my pontification. “You know,” she said with a frown, “there’s other management styles out there.”
I decided to take her up on this and look at a contrary style.
Another reason I selected this book is because one of my fellow employees, after eyeballing the library on my desk, told me, “I’d prefer to take advice from people who have actually ran a business.”
So, I selected Jack Welsh’s book, Winning. Welsh is probably one of the biggest influences on management in the last decade. Warren Buffest said Winning was the only management book that was needed. It’s hard to argue with Welsh’s advice. After all, he grew GE by 4000% during his stay as GE’s CEO and made it the largest company in the world.
I’ll admit, this book rattled my confidence. Welsh’s ideas would certainly better resonate with the circles I’ve worked in than any of the Agile exhortations I’ve spouted. Many would say his management style is superior because the proof is in the pudding, and despite Deming’s belief that there is no instant pudding, Welsh has a hell of a lot pudding. It’s hard to argue against.
Overall it was an interesting read and I learned a lot.
At first, I was calling Welsh the anti-Deming. But as it turns out, Deming and Agile have a lot in common with Welsh. Here are some of the thing I saw:
|“There is no easy formula (for success).”||“There is no such thing as instant pudding. (i.e. no recipe for success).”~Deming|
|“Variation is evil and must be destroyed.” Welsh is a huge supporter of Six Sigma.||“If I had to reduce my message for management to just a few words, I’d say it all had to do with reducing variation.” ~Deming|
|You must develop a culture of trust in order to develop a culture of candor.||Trust is important in both Agile and Deming philosophy. Deming often talks about the importance of driving out fear.|
|Believes an organization must have a culture of learning.||PDSA, an appreciation for knowledge, kaizen and retrospectives are at the heart of Agile and Deming philosophy.|
|Believe culture is very important. It’s just as important as strategy.||Also believe culture is important and the key for successful change or the biggest obstacle for change. “Culture eats strategy for breakfast.”|
|Change is important.||Also embraces change.|
|“Don’t get the mentality of ship it then fix it.”||Build quality into the product the first go around.|
|Does not like quotas. He said it ruins a meritocracy.||Also hate quotas.|
|Believes management must change in order to succeed. Interesting enough, he brought up the post war Japanese miracle as an example (though did not mention Deming).||“It would be a mistake to export American management to a friendly country.” ~Deming|
|Doesn’t like the concept of the boss needs to knows it all. There needs to be a culture of employees coming forward with opinions and ideas and the boss needs to listen. Every voice needs to be heard and everyone needs to feel like they can come forward and speak their minds.||Hate command and control. Absolutely hate it.|
|People are important. So important he believes the HR director should at least be equal to the CFO.||Lots of focus on understanding people and what motivates them. Respect for people underlies Agile concepts and is core to Deming’s teachings.|
That being said, there are some key differences:
|Differentiation or 20-70-10 or ‘Rank and Yank’ is critical to his philosophy of success. He says it creates a meritocracy and is fair for everyone. Welsh admits this is the most controversial of his philosophies.||Deming hated ranking. He called it a destroyer of people. Ironically, this was also the most controversial of his philosophies.|
|Emphasis on the individual and heroic effort. He believes stars are critical to success. He talks about undaunted individual effort a lot and chalks it up to much of GE’s success over the years.||Both agile and Deming emphasize teamwork over heroes. Jeff Sutherland said if you need heroics it’s a sign of poor planning.|
|Results is the best indicator of success.||Deming said beware of management by results (MBR) or management by objective (MBO).|
|Does not mention the importance of a system.||Systems are key in both Deming and agile thinking.|
|Rely on leaders who have a sixth sense—i.e. “the ability to see around corners,” trust their gut, are intuitive, have an uncanny ability to see things others do not, people who just have a ‘knack,’ people with natural abilities (i.e. its something that can’t be trained)||Emphasis on science to bring about improvement (PDSA, understanding of psychology).|
I enjoyed reading this book and would recommend it to Agile and Deming practitioners. It gave me better perspective on what I think most people in the U.S. would prefer as a management style. Perhaps there is something there we can leverage to instigate change? After all, looking at the two philosophies, there are plenty of similarities. Perhaps we can build from there? I’m certainly going to borrow some of his ideas such as the importance of creating an organization that can be candid with one another.
I’m going to continue to study contrary points of view and post what I found on my blog. After all, Taichi Ohno told us, “We are doomed to failure without a daily destruction of our various preconceptions.”
You can buy Winning here.