3An Absence of Candor

"Don't be afraid of opposition. Remember, a kite rises against, not with the wind."

Hamilton Wright Mabie

When Jack Welch became CEO of General Electric in April 1981, he found that the company had become incredibly bureaucratic and hierarchical. In some instances, 12 layers of management separated workers on the factory floor from the office of the CEO. Many managers, particularly those serving on the large corporate office staff, spent considerable amounts of time reviewing and approving plans, reports, and memos in a relatively passive manner.

The focal point of many strategy review sessions became GE's infamous, incredibly thick, planning books. Chock full of forecasts and calculations, these books passed through many ...

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