Devoted to Managers and those that seek to improve their management skills

Manage it Like a Small Organization

Welch used to use a metaphor for General Electric (GE), calling it the "grocery store." Even though it may sound odd or even silly, it helped Welch to wrap his mind around the colossus in a way that let him get behind the counter and serve his customers.

The point he was making is that things really don't change just because your business is big, you still provide the same experience for your customers that you would if you were a small neighborhood grocery store; hold yourself to the same accountability you would be held to if you were serving up your neighbors, friends and family.

Welch said concerning this that "What's important at the grocery store is just as important in engines or medical systems, if the customer isn't satisfied, if the stuff is getting stale, if the shelf isn't right, or if the offerings aren't right, it's the same thing. You manage it like a small organization. You don't get hung up on zeros."

I think it's another way of saying that we need to keep a personal touch with our customers and employees like we would with a small business. When you lose touch with people, you lose touch with your purpose. Because Welch ran General Electric like it was a small store, he was able to keep the pulse of the company within his grasp, and pass on that same outlook to his fellow managers and workers.

It's a powerful concept and way of looking at it that we all need to see, especially when our businesses or departments start to grow.