True Measures: Jack Welch style

May 19, 2009

I ran across a story from Jack Welch recently, I wish I could remember where.  I’m paraphrasing for now.

It went something like this:

When trying to figure out which HQ functions to eliminate, a good thing to look at is the phone records.  If the group receives a lot of calls from the field, what they’re doing may be of some value.  If they call the field more often looking for data to report, then they probably aren’t adding a lot of value.

Most corporate cutters would interview the group leaders and benchmark the operations against other companies.  In that case, the workers in that group on are the mercy of how well their boss sells them, whether they fit into a group that’s at other companies and the whims of the decision makers at interpreting the analysis.  They wouldn’t think about looking at true evidence  of their value.


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