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Famous Work-Out change-management tool explained by the people who helped develop it. GEs legendary Work-Out program played a key role in the companys phenomenal success over the past decade and has been implemented in many other organizations. Now three executives and consultants who developed the original Work-Out approach at GE—often working directly with CEO Jack Welch—discuss the inner workings of Work-Out and their experiences at successfully implementing the program at GE. Filled with effective assessment and decisionmaking tools, The GE Work-Out provides concrete and realistic guidance for anyone who wants to implement Work-Out and break down bureaucracy and hierarchy within an organization.
How Does It Work?
How does Work-Out work? It starts when large groups of employees and managers from different levels of an organization come together to address various issues and concerns. Small teams are formed where people can voice their opinions about a problem, and come up with recommendations for improvements to "the way we've always done things."
These Work-Out teams present their recommendations to a senior manager in a "Town Meeting," where the manager leads the whole group in a discussion about the recommendations. Yes-or-no decisions are then made. Next, the recommendations that make it through this process are assigned to "owners" who volunteer to carry out the changes and follow through on them to getresults.
The Work-Out process helped to dramatically reduce bloated bureaucracies at GE by shortening meetings, reports and levels of approval, as well as substantially cut process times in product development and employee communication, among other positive changes. The process can also be applied to just about any other kind of organization, from General Motors to the state of West Virginia. Basically, the process revolves around getting the people who experience the problems involved in the solutions, using a public forum to decide on the solutions, and empowering the people who will carry them out.
The GE Work-Out begins with an overview of how this process evolved at GE, how managers and employees worked out its kinks, and the way they use it today. The book then delves into an explanation of why Work-Out is such a successful problem-solving tool for long-term transformation. To ensure that implementation of the process in your organization goes smoothly, the authors provide ways to help you get past resistance and move forward with the Work-Out.
The next section of The GE Work-Out provides a handbook for organizations that are ready to dive into the Work-Out approach. An overview of the system details the best way to create specific decisions, and how to move forward without losing ground.
Keeping the Plan Flowing
The authors remind their readers that this process will require some time to become ingrained in an organization, and they offer many charts and worksheets to help them keep the plan flowing. Tips for conducting the Town Meeting are combined with real-world examples of how other companies made progress. The roles and responsibilities of all the participants are also described, as are a number of variations in the process that have worked for others. A case study of Zurich Financial Services UK provides a detailed example of how Work-Out can deliver amazing results.
Long-term transformation is the topic of the book's last part, and it says that making Work-Out a natural component of an organization is the key to success. When the Work-Out is part of an organization's culture, the authors write that "natural acts" of better communication and decision making will naturally occur, and sluggish bureaucracies will naturally dissolve.
Why Soundview Likes This Book
The GE Work-Out provides a direct map to organizational transformation through a process that has taken many organizations into better communication and improved problem-solving. The lessons it delivers are thoroughly described, and inspirational messages of encouragement accompany the text to help smooth over rough spots on the path to implementation. The authors remove any uncertainty about the Work-Out process by organizing its principles, tools and actions into an easy-to-follow guide that not only makes using them easy, but provides a background for each step which makes that step seem logical and essential. Copyright (c) 2002 Soundview Executive Book Summaries
GE's legendary Work-Out program played a key role in the company's phenomenal success over the past decade and has been implemented in many other organizations. Now four executives and consultants who developed the original Work-Out approach at GE (often working directly with CEO Jack Welch) discuss the inner workings of Work-Out and their experiences at successfully implementing the program at GE.
Filled with effective assessment and decisionmaking tools, The GE Work-Out provides concrete and realistic guidance for anyone who wants to implement Work-Out and break down bureaucracy and hierarchy within an organization.
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'Work-Out' is the famous organizational process that General Electric, the greatest industrial firm in the world, used to bust bureaucracy - fast. At its core, Work-Out is a simple, straightforward concept for cutting out bureaucracy and solving organizational problems - fast. Large groups of employees and managers - from different levels and functions of the organization - come together to address issues that they identify or that senior management has raised as concerns. In small teams, people challenge prevailing assumptions about 'the way we've always done things' and come up with recommendations for dramatic improvements in organizational processes. The Work-Out teams present their recommendations to a senior manager in a 'town meeting', where the manager engages the entire group in a dialogue about the recommendations and then makes yes-or-no decisions on the spot. Recommendations for changing the organization are assigned to 'owners' who have volunteered to carry them out and follow through to get results. That's Work-Out in a nutshell. Work-Out can be applied to almost any type of problem. It was first used at GE to harvest the low-hanging fruit of OVERGROWN BUREAUCRACY by getting unnecessary and unproductive work out of the organizational system - e.g. reduce meetings, reports, and approval levels. They asked what procedures didn't make sense? Where were they wasting time? What activities seemed to add little value? Some of the bureaucratic procedures were expense reimbursements, making travel arrangements, obtaining office supplies, updating personnel data, taking education courses, upgrading software, and more. But also in the core functions, bureaucracy was found: filling out forms for deals, preparing presentations for approval meetings, keeping track of customer data, obtaining approval for materials purchasing, overwhelming amounts of extra analysis to justify various investments or initiatives. Some of the results were e.g. that expense accounts did not need multiple approvals, people could purchase approved software without going through the IT department, and a pre-deal process was established to see if deals were worth pursuing before going through all the analytics. Work-Out has been successfully adapted to any type of organization - public or private, commercial or non-profit, large or small. In all of these organizations, no matter what the issue, the process remains much the same. 1. Bring together the people from the organization who know the issues best 2. Challenge them to develop creative solutions 3. Decide on the solutions immediately in a public forum 4. Empower people to carry them out Despite its massive impact on GE and other firms; Work-Out is not a snake oil or magic elixir. It is a simple set of concepts, tools, and experiences. When stripped to its essence, Work-Out allows people to get some obstacles out of the way so they can do their work better. In many firms, that alone would be a significant gain. The real merit of this book is the practical approach. If you are - as I am - struggling with the challenges of continually keeping our organizations lean, then this book can help you. It contains many inspiring worksheets, action plans, tools, and hands-on case studies. The authors of this book helped GE create Work-Out. So don't expect theoretical contributions. Only sound advice. Co-author Dave Ulrich is one of my favourite HR experts. I can recommend many of his books, e.g. `Results-Based Leadership' and `Delivering Results'. To him, HR is about delivering business performance and organizational capabilities. Cause if you don't, you'll soon be out of business. The tricky part is balancing the soft and hard part of HR. Dave Ulrich has many good concepts to make that happen. This book is not a bad place to start, if you'd like to pick his brains... Peter Leerskov, M.Sc. in International Business (Marketing & Management) and Graduate Diploma in E-businessWas this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.