Winning

People everywhere, in every job, have to make decisions and are often held back by fear, the lack of a clear plan, or a team that doesn’t speak up. This book teaches you how to overcome all that and win.

1. Candor is the key to success in any organization.

Candor, or open and honest communication, creates an environment where ideas flow freely, and people feel empowered to share their thoughts. Many workplaces suffer from a culture of "making nice," where people avoid conflict by withholding criticism or challenging ideas. This stifles creativity and progress.

Jack Welch explains that candor accelerates decision-making and helps organizations adapt quickly to change. By encouraging candid conversations, businesses can assess the strengths and weaknesses of ideas and evaluate strategies faster. This eliminates wasted time and resources. Leaders must model honesty, talk about its benefits, and reward employees who practice it.

For instance, GE’s Work-Out program gathered employees for open discussions—without their managers present—to propose ideas for improvement. This system allowed innovation to thrive and created actionable solutions. It’s proof that true progress emerges when everyone has a voice.

Examples

• Employees at GE participated in Work-Out sessions, openly offering criticism and suggestions.
• A company turned around floundering proposals faster after adopting a culture of open critique.
• Leaders who reward honesty often inspire teams to take risks and innovate fearlessly.

2. The 20-70-10 framework identifies stars and stragglers.

Not all employees contribute equally, and treating everyone the same won’t help your team achieve greatness. According to Welch, you should divide your workforce into three categories: the top 20%, middle 70%, and bottom 10%.

The top 20% are your stars. Invest heavily in their development, reward them financially, and give them greater responsibilities. The middle 70% are where your energy should focus; challenges and coaching can move some of them into the top tier. However, the bottom 10% are underperformers who need to leave the organization, as keeping them can demotivate others.

Companies that actively manage their talent with this framework see remarkable results. GE, for example, rewarded their top 20% with resources and opportunities while providing stretch goals to mid-level employees, aiming to elevate their performance. Dismissing the bottom 10% created space for better hires.

Examples

• GE famously restructured its teams by letting go of underperformers yearly.
• High-performing employees often thrive with recognition and bigger challenges.
• Exiting low performers benefits both the company and the individual’s career trajectory.

3. Focus on people when hiring and firing.

Finding the right talent starts with identifying candidates with three core traits: integrity, intelligence, and maturity. These qualities ensure employees will handle stress, make sound decisions, and align with your company’s values. A meticulous hiring approach prevents future problems.

When firing, Welch advises doing it respectfully but firmly. Employees should see it coming through transparent performance evaluations. Rather than humiliating them, support them in finding their footing for the next opportunity, rebuilding their self-confidence in the process.

A hiring success story is choosing enthusiastic, positive people who energize those around them. On the other hand, respectful dismissals protect morale across teams. Companies like GE built stronger teams using these principles while avoiding toxicity and fostering growth.

Examples

• Candidates who demonstrate optimism and energy uplift other team members.
• Thorough interviews and reference checks catch potential misfits early.
• Transparent dismissal practices reduce tension and help outgoing workers land on their feet.

4. A strong mission and values drive winning organizations.

A clear mission tells everyone in your company how you plan to succeed, while values outline the behaviors that will get you there. Unfortunately, many businesses fall into the trap of vague platitudes that mean little to employees.

Jack Welch suggests making your mission and values so tangible that they guide everyday decisions. GE, for example, committed to being the number one or two player in every market it entered, a clear and ambitious mission. Its values included rejecting bureaucracy and embracing growth through change.

By openly rewarding employees who embody these principles, you reinforce the culture and align every action with the company’s goals. The entire organization thrives when everyone knows what they’re striving for and how they’re expected to act.

Examples

• GE trimmed weaker business units to meet its mission of market dominance.
• Values like “embracing change” shaped how employees handled key business decisions.
• Behavioral alignment with values improves accountability and teamwork.

5. Success stems from choosing a simple, winning strategy.

The cornerstone of any strategy is identifying what Welch calls the “big aha”—a creative yet practical way to achieve a lasting edge over your competitors. Strategy doesn’t require complexity; it demands clarity and bold decision-making.

Start your strategy by analyzing your current position, competitors, and market trends. Then determine your winning move, whether it's cost efficiency, innovation, or customer-centricity. Once defined, focus on having the right people and practices to execute this vision.

For example, GE improved its inventory turnover by studying and adopting models from unrelated industries like manufacturing. By continuously refining these best practices, the company gained a competitive edge and could stay ahead of rivals.

Examples

• GE explored cross-industry solutions like American Standard’s methods for managing inventory.
• Teams constantly improved processes instead of remaining satisfied with past achievements.
• Strategic clarity enabled faster decision-making at all company levels.

6. Ditch traditional budgets and embrace flexibility.

Annual budgets often create unnecessary battles between field managers and headquarters over performance goals. This rigid process stifles ambition and causes missed opportunities for true growth.

Instead of settling on fixed numbers, Welch promotes flexible plans and “stretch targets” that evolve as conditions change. Base your evaluations on year-over-year growth or competitive benchmarks instead of static goals. This approach helps teams aim higher and adjusts effort in real-time.

At GE, comparing performance to rivals rather than budgets spurred divisions to outperform competitors. By simplifying expectations and focusing on impactful metrics, everyone collaborated on increasing earnings and chasing opportunities.

Examples

• GE relied on stretch goals to encourage innovation and high performance.
• Staff used competitor benchmarks to see whether their efforts matched industry trends.
• Field managers prioritized projects based on current market relevance rather than arbitrary budgets.

7. Be bold with ventures but cautious with acquisitions.

Launching a new project or entering a market is thrilling but requires robust resources and commitment. To give a new venture the best chance of succeeding, assign your most passionate leaders, shower the team with support, and provide plenty of freedom.

On the other hand, acquisitions demand careful scrutiny. Deal-making can blur judgment, leading to overpayment or mismatched company cultures. Post-acquisition, decisiveness is vital; integration should occur within 90 days, avoiding ambiguity about leadership and goals.

For example, GE celebrated its new ventures enthusiastically by putting its boldest minds on critical roles. However, in acquisitions, it swiftly eliminated cultural mismatches and outlined clear plans for unification.

Examples

• Entrepreneurs within GE received autonomy to pursue ambitious goals.
• The company avoided deals where integration seemed impossible from the start.
• Effective post-acquisition actions helped turn around a struggling acquisition quickly.

8. Embrace change and remove roadblocks.

Change is inevitable, but employees often fear it. To foster acceptance, clearly explain the purpose and benefits of change, backed by data. Communicate the vision relentlessly and hire “change agents” who champion new ideas enthusiastically.

However, not everyone will follow. Welch advises isolating and removing resisters because they slow down momentum. Surrounding yourself with believers allows your team to adopt the new direction more effortlessly.

At GE, Welch promoted leaders who embraced innovation and progress, while sidelining those clinging to old ways. This strategy ensured smoother transitions during strategic shifts and mergers.

Examples

• Change agents helped introduce and expand new markets within GE.
• Relentless communication minimized fear when the company overhauled operations.
• Resistance decreased when clear leadership signaled a winning focus.

9. Great careers come from relentless self-exploration.

Not everyone knows their dream job early in life, but discovering a meaningful career requires trying different paths. Welch advises asking yourself what matters most—growth, money, creativity—and using that to guide your decisions. Stay persistent and never settle for work that leaves you uninspired.

Look for positions where you mesh well with people, enjoy growth opportunities, and find purpose in your contributions. Avoid falling into careers that others expect of you, even if they provide prestige or wealth.

Welch recalls meeting employees at GE who thrived in unexpected roles because they gave themselves the freedom to explore. The happiest workers aligned their jobs with personal passions, making work feel rewarding each day.

Examples

• A GE executive found fulfillment in environmental product development.
• Iterative career moves helped employees identify areas where they excelled naturally.
• An employee left finance to pursue a lifelong interest in designing renewable energy sources.

Takeaways

1. Foster a culture of candor by openly encouraging opinions and rewarding honest feedback.
2. Use employee evaluations like the 20-70-10 method to constantly grow a top-tier workforce.
3. Approach strategy, ventures, and change with clear plans, the right people, and adaptability.