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道,领导也。领导必需要不断呼唤,教导下属以及以身作则。下属的过和错皆因领导懒惰。

 
 
 

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Chapter 5: Management Reporting  

2012-06-20 11:56:26|  分类: 7 Deadly Mgnt Be |  标签: |举报 |字号 订阅

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Jack Welch used a powerful tool to analyze business performance called management reports. Since most organizations are using management reports to analyze their business, you may argue that this is not a fair comment to justify his brilliance. Perhaps, you are right. On the surface, there is no difference. However, compared to other managers, there is a slight twist in how Jack Welch used it.

If you ask any manager whether his management reports are effective, he will think twice before giving you a reply. Why is that so?

Most managers don’t dare to say “yes” because they know they are behind the market leader, or at times, way behind. A more disturbing fact is they might have been manipulating their management reports to show that everything is fine when it is actually not. Effective management reports are supposed to serve as magnifying glasses[1] that expose the underlying weaknesses of a company. The organization will then have ample time to solve problems that had arisen, to catch up with the market leader, or even become the leader.

If a company is far behind the market leader, we can conclude that the management reports only serve as an eye masks[2]. This ‘eye mask’ works perfectly well in covering the eyes of the CEO and his executives that they do not see any area or potential for improvement. Hence, there is no reason for them to improve further. That is buffer mentality[3].

When Jack Welch first took over GE in 1981, he realized the management reports were manipulated[4]. He quickly instructed his managers to revamp their management reports and focused on nine operational management indicators: immediate processing of customer orders, operating at the optimum efficiency under minimum supervision, effective daily production planning and control, zero defect quality, zero work-in-progress inventory, zero machine downtime, extremely short production lead time, extremely short order-to-delivery lead time, and 100 percent on-time delivery.

He believed if a company’s performance is weak in any of these nine areas, the company is in the danger of going out of business. Even if it is making money, it will not make much profit. He would just write off the business and transfer the resources elsewhere.

Jack Welch’s success was very much dependent on the management reports evaluating those nine key operational indicators that matter the most to his business. The evidence left no room for his managers to mislead anybody. Jack Welch had changed the GE’s corporate culture from a laissez-faire management style to a culture that focuses on finding and rectifying the problems immediately.




[1]       To turn a management report into a magnifying glass, it must be made visual where everyone can easily see abnormalities and can quickly return the operations back to the normal state. Read the book “Visual Management” written by the same author.

[2]       By moving the review of the operations performance from the meeting room to the shop floor where the actions are, it is quite impossible to ignore the problem(s) that is adversely affecting the company’s performance. With the use of visual management techniques the eye mask effect will be effectively removed. Read the book “Visual Management” written by the same author.

[3] To understand more about buffer mentality, please read the book “Buffer Mentality” by the same author.

[4] To understand more about the fallacy of management reporting, please read the book “Visual Management” by the same author.

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