Best Practice:
The most efficient way of doing something and a key component of Welch’s learning culture: “GE began to systematically roam the world, learning better ways of doing things from the world’s best companies.”Welch worked to eliminate NIH, or “Not Invented Here” (see NIH), by insisting that GE look outside its halls for good ideas. In December 1989,Welch launched an all-out Best Practices movement that included three-day workshops. In an effort to find the best ideas from everywhere, he assigned one of his business development managers the task of identifying companies that GE should study (Ford and Hewlett-Packard were two of those on the list in the late 1980s).Welch worked “to move Best Practices” around the company in order to create a learning culture. He loved “A ideas” and urged GE employees to emulate the best ideas, regardless of where they originated see also “A” Ideas).
BEST PRACTICES: A VITAL INGREDIENT IN A LEARNING ORGANIZATION
Over the years,Welch has been quick to give credit to the many firms that GE has learned from. Lessons learned from IBM and Johnson & Johnson, he said, helped GE break into the market in China. He credits Motorola as being the true pioneer of Six Sigma, and gives thanks to companies like Canon and Chrysler for teaching GE some of their productlaunching techniques. Identifying best practices and spreading them around GE is one of the fundamental assumptions of a learning organization.
Best Practices: Lessons for spreading knowledge
1. Best Practices begins with the assumption that a company does not have all of the answers: Ironically, GE created “NIH” (Not Invented Here), and Welch did away with it (see NIH). The GE CEO was the first to admit that he did not have all of the answers.
2. Engage everyone: In order to make sure no one was left out of the process of generating new ideas and searching for a better way of doing things,Welch urged all of GE to “engage and involve every mind in the company.”
3. Devise a system for identifying best practices: GE made it a part of their culture to scan the environment for a better way of doing things. Over the years, the company targeted Best Practices from companies like Sanyo, Toshiba,AMP, Xerox, and Honda.
4. Invite “competitors” to teach your managers: Welch invited other CEOs to address his managers and engage in a meaningful dialogue. Ex-GE executive Larry Bossidy was invited back to the company and played a role in convincing Welch to launch the Six Sigma quality program. Other speakers included the Cisco Systems CEO, John Chambers.
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