Jack Welch is a celebrated, legendary CEO. In his two decades at the helm of General Electric, he grew revenues to $130 billion from $25 billion and profit to $15 billion from $1.5 billion. Market capitalization ballooned to $400 billion, growing by a multiple of 30.
His management became so revered that after he retired from General Electric, Welch launched the online-only business school, the Jack Welch Management Institute. This year, its MBA program was ranked one of the best by Princeton Review.
He's a veritable leadership guru. So what does he say is the key to being a successful leader? What is the secret to inspiring and motivating people to do their very best?
"The trick is building truth and trust," says Welch, speaking at the Synergy Global forum in New York City recently.
"If [your employees] trust you, they tell you the truth, and when you get the truth, you act quickly," the octogenarian management expert says. "And so truth and trust play an enormous role. People have to trust you. You have to build in trust for people."
As a business leader, building trust comes from doing the following three things, according to Welch.