THE REAL-LIFE MBA
Jack Welch and Suzy Welch
Thorsons (HarperCollins);
242 pages; Rs 599
The Real-Life MBA is a brilliant book - but in patches. The biggest disappointment is the introductory chapter, which starts with a cheesy "Hello and congratulations" and the promise of "best learn-it-today, apply-it-tomorrow techniques" that make you wonder whether Jack and Suzy Welch have taken too long a break from writing - after all, it's a decade since their blockbuster international bestseller Winning was published.
The chapter is also full of boring homilies. Sample these gems: "Create a strategy that never gets stale", "Stand still at your peril", "Reward your employees by giving them raises", "Make sure work is fun!!", etc.
This over-simplification of a complex topic gets a touch of irony as well when the authors write that leaders forced to fire employees should handle it with extreme care. Irony, because one of the co-authors was nicknamed "Neutron Jack" for his repeated lay-offs during his General Electric CEO days in the early 1980s.The nickname was in reference to the neutron bomb in that he sacked employees (over 100,000 in five years) while leaving buildings intact.
And then there are many hard-to-decipher nuggets of wisdom across the 242-page book. For example, the authors offer a career-assessment process called the Area of Destiny, in which you imagine your life as two superhighways, one for your passions and one for your skill set, and envision where these two highways intersect. Many readers may not find it worth the effort and may be tempted to stop reading.
But that would be a mistake. For, as you dig deeper, the book has many takeaways. Jack Welch's years of iconic leadership and Suzy Welch's insights as former editor of the Harvard Business Review infuse the book with fresh, relevant stories that are targeted at those seeking to broaden their business skills.
One of the most memorable parts of the book is how many companies ignore the importance of technology architecture even in a wired world. Despite the fact that "almost every day, the Net demands a head on the platter", risk managers, the authors say, are trotted out to report to the board twice a year and get patted on the head and sent back to their caves. The leaders of too many companies can't bring themselves to let their chief information officer (CIO) into the room for strategy conversations on the ground that they only ask for money. There are many examples of the fallout of such neglect - the most significant being that of Target in the United States. Right before Christmas in 2013, cyber thieves broke into Target's system, accessing the account information of 70 million customers. .
There is also some wonderful advice for people in corner offices who don't know how to use money that seems to be always in short supply, especially during periods of an economic slowdown. Most managers "sprinkle" resources - a little money on this initiative, a little there, until each initiative gets a dusting of funds and everyone is unhappy. According to the authors, this is like practising the age-old favourite pastime of CYA (covering your ass). So what's the way out? Simple. Bet on that area that has maximum growth possibility. Because when dollars are in short supply, the solution is to "unleash creativity".
That calls for innovation - which is also often in short supply, as too many people think it's the job of someone else. The reality is that innovation is possible only if managers can convince everybody to think that he/she is going to find a better way to do the job today. The authors prescribe a system that has a demonstration effect in that innovations, even incremental ones, are celebrated. The authors' sharp sense of humour is evident from this piece of advice: celebration or rewards should never mean dinner with the boss as "no matter how wonderful and fun a boss is - and a few are - dinner with the boss is still work".
Overseas companies, the Welch couple says, should take a hard look at their strategy for emerging countries. The question to ask is, "are we taking full advantage of our foreign foray's upside"? The answer would be in the negative as too many companies are in India to have a call centre or in Indonesia to manufacture shoes. The appointment of country heads in emerging countries also comes in for some sharp criticism. For example, most companies assign a dual-passportholder or an MBA who happened to live in India until he was five - or somebody who has a couple of years of left until retirement and wouldn't mind spending them in some sort of mini-vacation with his or her spouse. What is required is people with some "discernment" and who won't follow the global template blindly. The book is replete with examples of people who have made that difference.
The Real-Life MBA also talks in detail about how to handle freelancers or virtual employees who have no physical contact with their managers. It's useful as every single company is grappling with this issue, and readers get valuable insights into how out of sight need not be out of mind.
Of particular importance will be the section on how to squelch those who drain the company of resources, time and energy - all accompanied by numerous real-life examples of business practices that worked and those that didn't. Mr Welch is on familiar territory here.
