Sunday, October 30, 2005

Why Jack Welch loves small business

When he was the visionary, no-prisoners CEO at General Electric, Jack Welch tried hard to make his behemoth of a company more focused, effective and efficient. In other words, he wanted GE to be like the best small businesses.

Why does Welch admire smaller businessess? "For one, they communicate better," he says. "Without the din and prattle of bureaucracy, people listen as well as talk; and since there are fewer of them they generally know and understand each other.

"Second, small companies move faster. They know the penalties for hesitation in the marketplace.

"Third, in small companies, with fewer layers and less camouflage, the leaders show up very clearly on the screen. Their performance and its impact are clear to everyone.

"And, finally, smaller companies waste less. They spend less time in endless reviews and approvals and politics and paper drills. They have fewer people; therefore they can only do the important things. Their people are free to direct their energy and attention toward the marketplace rather than fighting bureaucracy."

That's one for your bulletin board. An indictment of modern business and a guide to success - all in 125 words.

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