Former chairman and chief executive of General Electric (GE) between 1981 and 2001, Jack Welch, is considered one of the most successful corporate leaders.
Under his leadership, GE increased market value from $12 billion in 1981 to $410 billion when he retired, making 600 acquisitions while shifting into emerging markets.
When Welch retired from GE, he received a severance payment of $417 million, the largest in business history up to that point. He was respected in leadership circles and once described leaders in four ways.
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First, one who delivers on commitments—and shares the values of our company. His or her future is an easy call. They have a future with the organisation because they belong.
Two, one who does not meet commitments and doesn’t share our values. Not as pleasant a call, but equally easy. They do not belong and the decision is not a difficult one to make. They must leave.
Three, one who misses commitments but shares the values. He or she usually gets a second chanc. With the right attitude such people can be taught and in many cases they are teachable. In the event, where the attitude is also wrong then the decision has been made easier.
A wrong attitude in an organisation is like yeast, it will affect the rest and it will grow. That said, a person with a skill level at 60 percent but with an attitude level of 100 percent is by far better than a person with a skill level of 100 percent and an attitude level that is not so great.
Then there’s the fourth type—the most difficult. That leader delivers on commitments, but doesn’t share the values of the organisation. This is the individual who forces performance out of people: the autocrat, the tyrant. Too often many decision makers have looked the other way and tolerated these “Type 4” managers because “they always deliver”—at least in the short term.
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To reinforce his intention to identify and weed out Type 4 managers, Welch began rating GE top-level managers not only on their performance against quantifiable targets but also on the extent to which they “lived” GE values. Subsequently, many of GE’s 500 officers started using a similar two- dimensional grid to evaluate and coach their own direct reports. And when coaching failed, Welch was prepared to take action on the Type 4s.
“People are removed for having the wrong values,” he insisted.
The fastest way to bring a potentially successful organisation or department to a screeching halt, is to infuse it with negative energy.
There is the story of a young man, whom I shall call Andrew. He was great at his job and was one of the first employees of a start-up. He was of the same age as the founder with whom they shared a village of origin.
One day, his boss corrected him for something and Andrew answered back with not too complimentary things.. The natural thing to do for the start-up founder and CEO was to let this person go but he was very good at what he did.
To let him go could take the organisation back a few steps. Besides, he had apologised profusely. He was forgiven and the start-up grew rapidly.. However, four years later the actions of the same person destroyed the organisation.
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Toxicity is the catalyst of organisational failure. Toxicity implodes organisations no matter how successful they might have been. Once identified, emotions must never be allowed to have a voice. It must be dealt with ruthlessly.
Why is the Type 4 manager still a great threat to organisations? Because they are carriers of toxicity and they will gather disciples as they go on. Because of their performance records, people will be inspired by them. Their values which are clearly not the organisation’s values will ultimately be passed on.
Wale Akinyemi is the founder of Street University. Email: [email protected]
Source: The East African
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