Bounderyless Leadership Essay

958 words - 4 pages

When Welch became a CEO, the GE was delayered and distaffed to a great extent. One of the first important steps Jack took was reorganizing the company. By removing seven layers in the company with hundreds of subgroups and divisions with many managers within each group, Welch reconfigured the structure so that there were only three layers which made the communication with each division direct and open. This helped to improve control and free flowing communication and allowed sharing the high responsibilities between everyone in the company.This approach helped to incorporate diversity called “bounderyless” company. Bounderaless company is the one described as “an open, anti-parochial environment friendly toward the seeking and sharing of new ideas, regardless of their origins” (Bartlett, 2004, p. 8). During the interview, Jack Welch said: “Bounderaless was to remove all the barriers among different functions (engineering, manufacturing, marketing and the rest). We knocked down external walls with our suppliers just as we knocked out the less visible walls of race and gender internally. Simply put, bounderyless thinking meant we were open to the best ideas and practices from anywhere - another colleague, another department, another country or even another company. It changed our thinking and broadened our awareness” (Byrne, 2007).With this new system, the members of the team shared ideas and learned quickly from each other which lead to a successful cooperation and improved effectiveness of team work in GE. The way this system was implemented is by sharing hundreds assessments through posting in order to guide manager of any part of the company, who is in charge of implementing a new operation. Some of the examples are controlling an account, reorganizing a process, using common practices not only to be efficient but also “to increase the organization's intellect and, thus, its effectiveness” (Byrne, 2007).This strategy that was adapted and implemented by Welch in ‘80s has changed the company’s operations dramatically. It’s success today depends on it. When Jack took over in 1981 “GE was worth $13 billion. In 2000, the company became the first in history to shatter the $600 billion barrier” (Krames, 2000, p. A26).In order to keep the bounderyless a part of company’s culture and extend employees’ performances, GE enhanced its compensation system. “Today, 22,000 individuals, at all levels, have stock options, and thereby have a clear financial incentive for driving total company performance by doing everything they can to help their colleagues” (Welch, 1996, p.5)While GE removed “boundaries” for the information to flow easily within the company by using “bounderyless” strategy, National Beverage has different methods. National Beverage Corp is in a business where it’s critical to have strong networking system within the company. From...

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