Unless you are prepared to give up something valuable you will never be able to truly change at all, because you’ll be forever in the control of things you can’t give up.

Jack Welch is considered by many to be the most admired CEO in the world. During his 20-year tenure as chairman and CEO of General Elctric he transformed the company from a bureaucratic behemoth to a dynamic and revered powerhouse. During his tenure GE market value grew from $13 billion to $400 billion. In the process Welch’s management innovations made him the most influential CEO of his era.
To be a strong leader or CEO it has got to be in your blood. If you are running a business and you are some boring grunt, you need to take a step back and ask yourself what am I in this for? You are in this to see others flourish and grow. Ask yourself would you want to work for a boss like you? The job as a leader is to excite people and help them see what is in it for them. What are the benefits of success, and what are the risks of failure. As a leader you have to be clear why you want to take the hill, and make sure your employees are on the truck for the ride, also be sure there is a big bowl of goodies to share with the team upon being successful. Make sure they celebrate, it is a big deal celebrating every victory. You want people to feel the energy and excitement.
It is critical to be candid with your people, let them know where they stand. Much has been written about GE’s process of 20-70-10 differentiation. It has been called Rank and Yank, it is not. The process drives you to Take care of your top 20%, for the middle 70 show them what they need to do to join the top 20, and for the bottom 10, let them know where they stand. No one wants to work where they are in the bottom 10, they want to find somewhere to grow. Every year the Baseball team upgrades. Do it by being candid and letting people know where they stand. The idea of putting differentiation in before developing an environment of candor is cruel and stupid. You have to go through 2-3 years of appraisals and implementations, making sure people know where they stand, before this can be effectively implemented. To develop an atmosphere that embraces candor it must be deliberately rewarded. If you think it is important that is something you put up on the wall as a value, behavior and you reward it. Don’t celebrate things like integrity and excellence. These are minimum requirements to even get through the door. Define the values, and appraise them. When people have these values make them role models. This will build a workplace that truly embraces the supported values.
It is equally important to be authentic. Whoever you are, be that person. Don’t try to act like someone else, be comfortable in your own shoes. This will end up being the most important thing you do. Don’t get to a place where you are an actor, don’t put on a costume. If you are clear in vision, and are clearly yourself, people can know and trust you. They know your interests as a leader are the best for themselves and for the institution. It is also important to have one message. Some places they have a message for the employees, another for the analysts, and yet another for the press. There should only be one message for everyone. You can be quiet, loud, or however you want, but you have to get the trust of the people. That comes from authenticity. This authenticity is even more important in times of crisis. When preparing to deal with negative news, remember a couple of things. First, remember it is going to be worse than you think it will be. Second remember there are no secrets. Everyone is going to get to know it. Most problems are caused by attempting to cover up bad news rather than dealing with it. So tell the organization, explain the situation to everyone, provide weekly updates on progress towards a solution. Tell everyone everything. This will earn you the trust and support of the people.
It is important to be selective in using your gut feel for making decisions. In some situations it is extremely powerful. For example, if you are looking at a real estate proposal. It is a fact of life that the numbers on a proposal will always look good. If they didn’t look good they wouldn’t be there. As you walk around look at the number of cranes, look at the activity, and let your gut guide you on the business proposal. You gut can mislead you however when you are considering hiring someone. They may look good, be sharp and articulate, but take a quick pause, and check them out. Call lots of people, don’t let the resume fool you. Ask them why they left their last job. If they talk about a lack of opportunity, they liked the people, but not enough action, give them a plus. If they say crappy company, lousy boss, not enough raises, I would let them move on down the road. You want to know how hungry they are, how much do they want the job, what will they do with it, what will they bring to it. Smell how excited they are, their vision part. How committed they are.