HIRING AND FIRING
JACK WELCH INTERVIEWED BY BILL HYBELS
VIDEO OVERVIEW:
In his Global Leadership Summit session, “Leader to Leader,” Jack Welch says he is convinced leaders have
to be authentic. People know they can’t count on a “phony” to tell them the truth or possess the leadership
capabilities necessary to “take a hill.” Leaders need to get a vision, lay it out, and then energize everybody
around following that vision.
TRANSITION TO VIDEO CLIP:
ABOUT THE SPEAKER:
Said to be the most studied Chief
There hasn’t been anything about Jack’s methods as hotly debated in leadership circles as his concept of
differentiation. Using this concept, company employees are ranked in three groups: the top 20 percent,
the vital 70 percent, and the bottom 10 percent. The bottom 10 percent is either quickly improved or
terminated. Jack’s reasoning is that this is more motivating and increases the quality of staff. Jack also
argues this isn’t cruel, because the bottom 10 percent would be a better fit, and happier, somewhere else.
This differentiation relies on candor, because the appraisal system must be honest, not the phony appraisal
system that occurs in most organizations.
In the video clip, Jack describes the qualities of the top 20 percent, the vital 70 percent, and the bottom 10
percent; and specifics about how to work with people in each of these groups.
POST CLIP SUMMARY:
Executive Officer (CEO) of the 20th
Century, Jack Welch began his
41-year career with the General
Electric Company in 1960, and
in 1981 became the company’s
eighth Chairman and CEO. Fortune
magazine named him “manager
of the century,” and the Financial
Times named him one of the three
After the clip, Jack speaks of people he observes in the business world. They choose a career and expect the
financial rewards of that choice. So, in business the two top groups are financially compensated as highly
as possible. Since ministry and non-profit employment have a different set of values and cash flow, the top
20 percent and the vital 70 percent of non-profits will have to be encouraged in other ways. Jack also says
some people think non-profit means non-performance, but that is nonsense.
most admired business leaders
Jack then talks about the speed of decision making. In most cases the CEO moves too slowly. The leader
also needs to give advance time and attention to succession planning. A final business principle of Jack’s
is that leaders need to celebrate victories. Doing so infuses energy into the staff. At the end of the Summit
video, Jack and Bill talk about Jack’s faith journey.
Management Institute at Chancellor
TEAM DISCUSSION QUESTIONS:
in the world. He teaches at MIT’s
Sloan School of Management and
recently launched the Jack Welch
University, offering advanced
management degrees online. A
prolific business writer, he authored
the internationally best-selling
1. What do you think are the strengths and weaknesses of differentiation?
autobiography Jack: Straight from
2. How would you feel about implementing the 20/70/10 method in your chruch or organization? Why?
the Gut and most recently outlined
3. In what new ways can you better encourage and retain the staff of your church or organization?
his management philosophy in the
best-seller Winning.
©2011 Willow Creek Association. Permission granted to the purchaser of the Take Ten product to make copies of the accompanying process tool as needed.