General Electric (GE) is one of the most successful companies in the end of the 20 century. This company has been developed a business strategy line.
GE started to has aggressive marketing product and services under the leadership of John Francis Welch, Jr. Through the 1980s, Welch make GE become a more competitive company by setting a new contemporary paradigm for the corporation that is the model for the 21st century.
It is a model that has delivered extraordinary growth, increasing the market value of GE from just $12 billion in 1981 to about $280 billion today. Based on that, important to know who Welch is, what the Welch’s theory is, and the implementation of the theory to the defense and security in Indonesia.
A. Who is Welch?
John Francis ‘Jack’ Welch, Jr was born on November 19, 1935 in Peabody, Massachusetts, USA. Welch attended Salem High School and later the University of Massachusetts Amherst. He graduated in 1957 with a Bachelor of Science degree in chemical engineering. He continued to pursue his education at University of Illinois, with M.S and PhD degrees in chemical engineering in 1960.
Welch joined GE in 1960. Welch became GE’s youngest chairman and CEO in 1981, succeeding Reginald H. Jones. The achievements of Welch are sits atop a business empire with $304 billion in assets, $89.3 billion in sales, and 276,000 employees scattered in more than 100 countries around the globe.
B. The Welch’s Idea and Implementation in Security and Defense in Indonesia
25 Principles of management and leadership by Jack Welch:
Managers muddle – leaders inspire. Leaders are people who inspire with clear vision of how things can be done better. “What we are looking for are leaders at every level who can energize, excite and inspire rather than enervate, depress, and control.”
Leaders in all levels must create and improve can be motivate the spirit and trust to their subordinate so the organization run dynamically and efficient with high productivity. For example, before decision makers (commander) make a decision, staff can give some suggestions.
2. Manage Less
“We are constantly amazed by how much people will do when they are not told what to do by management.” In the new knowledge-driven economy, people should make their own decision. Managing less is managing better. Close supervision, control and bureaucracy kill the competitive spirit of the company. “Weak managers are the killers of business; they are the job killers. You can’t manage self-confidence into people.”
The leaders trust their subordinate and give delegation assignment and authority, but the responsibility still in the leader’s hands. So the decision maker (commander) takes the responsibility of the members do.
3. Articulate Your Vision
“Leaders inspire people with clear visions of how things can be done better.” The best leaders do not provide a step-by-step instruction manual for workers. The best leaders are those who come up with new idea, and articulate a vision that inspires others to act.
The leaders socialize and communicate their vision to their subordinate. The leaders also develop two ways communication. So the objectives can be achieved. For example, the subordinate always report what they had done as the response of the direction.
Keeping things simple is one of the keys to business. “Simple messages travel faster, simpler designs reach the market faster and the elimination of clutter allows faster decision making.”
Simplify make effective and efficient in all areas, like arrange the budget, cut the bureaucracy and eliminate unimportant thing. So the leader (commander) give the short and clear direction.
5. Get Less Formal
“You must realize now how important it is to maintain the kind of corporate informality that encourages a training class to comfortably challenge the boss’s pet ideas.”
This is accepted in the special case like in emergency situation. For example, in the combat situation, the troops can make emergency decision as long danger their safety.
6. Energize Others
Genuine leadership comes from the quality of your vision and your ability to spark others to extraordinary performance.
The leaders stimulate the subordinate for developing their potency to achieve high performance by reward and punishment. Horizontal and vertical supports are interconnected. So, the opinion not only came from the commander, but also from the subordinate.
7. Face Reality
Face reality, then act decisively. Most mistakes that leaders make arise from not being willing to face reality and then acting on it. Facing reality often means saying and doing things that are not popular, but only by coming to grips with reality would things get better.
Giving real data to make decision and develop organization. Open mind to the change global situation and brave to evaluate the condition. For example upgrading the equipment and weapon is it necessary important or not.
8. See Change as an Opportunity
Change is a big part of the reality in business. “Willingness to change is strength, even if it means plunging part of the company into total confusion for a while… Keeping an eye out for change is both exhilarating and fun.”
Have a brave to make a change smartly so we can get all chances. For example make a good relationship with china for supplying weapon so Indonesia will not depend with US or European country.
9. Get Good Ideas from Everywhere
New ideas are the lifeblood of business. “The operative assumption today is that someone, somewhere, has a better idea; and the operative compulsion is to find out who has that better idea, learn it, and put it into action – fast.”
Involve the civilian in security and defence system. For example make seminar and discussion to arrange management of defence which the member the army and civilian.
10. Follow up
Follow up on everything. Follow-up is one key measure of success for a business. Your follow-up business strategy will pave the way for your success.
Constantly doing frame and mission that had been established. For example given equal opportunity for TNI member to get more education and training.
11. Get Rid of Bureaucracy
The way to harness the power of your people is “to turn them loose, and get the management layers off their backs, the bureaucratic shackles off their feet and the functional barriers out of their way.”
Cut off the bureaucracy. For example reducing the bureaucracy in logistic distribution especially in combat or war situation.
12. Eliminate Boundaries
In order to make sure that people are free to reach for the impossible, you must remove anything that gets in their way. “Boundarylessness” describes an open organization free of bureaucracy and anything else that prevents the free flow of ideas, people, decisions, etc. Informality, fun and speed are the qualities found in a boundaryless organization.
Eliminating the differences among three units arm forces. For example give a proportional budget, facility, and equipment. In order maximize their function.
13. Put Values First
Don’t focus too much on the numbers. “Numbers aren’t the vision; numbers are the products.”9 Focus more on the softer values of building a team, sharing ideas, exciting others
Consistence to the vision and mission of defence management. For example make a team building in achieve solid organization.
14. Cultivate Leaders
Cultivate leaders who have the four E’s of leadership: Energy, Energize, Edge, and Execution; leader who share values of your company and deliver on commitments.
Role model of leadership. For example the commander must do with consistence their decision.
15. Create a Learning Culture
Turn your company into a learning organization to spark free flow of communication and exchange of ideas. “The desire, and the ability, of an organization to continuously learn from any source, anywhere – and to rapidly convert this learning into action – is its ultimate competitive advantage.
Exchange ideas and experience is important for developing organization. Because idea and experience from someone can be a learning media for the others. For example experience of duty can be the reference for the colleagues.
16. Involve Everyone
Business is all about capturing intellect from every person. The way to engender enthusiasm it to allow employees far more freedom and far more responsibility.
The collecting ideas, information, and opinion from all of members are important to create and develop organization. So the leader makes a decision by collecting the idea and devices from the subordinate.
17. Make Everybody a Team Player
Managers should learn to become team players. Middle managers have to be team members and coaches. Take steps against those managers who wouldn’t learn to become team players.
Duty and function of organization is the collective order, so all the element must have responsibility.
Stretch targets energize. “We have found that by reaching for what appears to be the impossible, we often actually do the impossible; and even when we don’t quite make it, we inevitably wind up doing much better than we would have done.”
It cannot be implemented in security and defence in Indonesia because security strategy based on the vision and mission.
19. Instill Confidence
Create a truly confident workforce. Confidence is a vital ingredient of any learning organization. The prescription for winning is speed, simplicity, and self-confidence. Self-confident people are open to good ideas regardless of their source and are willing to share them. “Just as surely as speed flows from simplicity, simplicity is grounded in self-confidence.”
Confidence is very important to take care the security and defence by maximized the resources.
20. Have Fun
Fun must be a big element in your business strategy. No one should have a job they don’t enjoy. If you don’t wake up energized and excited about tackling a new set of challenges, then you might be in the wrong job.
Put the right man in the right place so can be getting the high performance.
21. Be Number 1 or Number 2
“When you’re number four or five in a market, when number one sneezes, you get pneumonia. When you’re number one, you control your destiny. The number fours keep merging; they have difficult times. That’s not the same if you’re number four, and that’s your only businesses. Then you have to find strategic ways to get stronger. But GE had a lot of number ones.”
This slogan becomes the spirit to build a great defence and security. So, Indonesia could have main role in southeast region.
22. Live Quality
“We want to change the competitive landscape by being not just better than our competitors, but by taking quality to a whole new level. We want to make our quality so special, so valuable to our customers, so important to their success that our products become the only real value choice.”
Make good security and defence build insurance national stability so the society life will be better.
23. Constantly Focus on Innovation
“You have just got to constantly focus on innovation. And more competitors. You’ve got to constantly produce more for less through intellectual capital. Shun the incremental, and look for the quantum leap.” Now the fundamentals have got to be more education. More information knowledge, faster speeds, more technology across the board.
The change of strategic management adapted global security and defence chances. For example counter terrorism strategy and new paradigm of army.
24. Live Speed
“Speed is everything. It is the indispensable ingredient of competitiveness.” Speed, simplicity and self-confidence are closely intertwined. By simplifying the organization and instilling confidence, you create the foundation for an organization that incorporates speed into the fabric of the company.
Responding and aware of threat and danger must be quickly and comprehensively. For example disaster management in earthquake or tsunami in Indonesia.
25. Behave Like a Small Company
Small companies have huge competitive advantages. They “are uncluttered, simple, and informal. They thrive on passion and ridicule bureaucracy. Small companies grow on good ideas – regardless of their source. They need everyone, involve everyone, and reward or remove people based on their contribution to winning. Small companies dream big dreams and set the bar high – increments and fractions don’t interest them.”
Keep the spirit of survival and maintains the existence. By pretending to be a small organization, will make the willingness to become the bigger one. So we always have motivation to get the better conditions.
Tugas Prinsip Manajemen Pertahanan. Dikerjakan Syndicate I: Agus Eko, Andriawan, David, Evendi, Janpristiwandi,