CoolRich59
Thinks s/he gets paid by the post
I was in a couple of those insurance companies after acquisition as a consultant. They were interesting companies who had some very unique free thinking people. [emoji12]
I have no doubt!
I was in a couple of those insurance companies after acquisition as a consultant. They were interesting companies who had some very unique free thinking people. [emoji12]
“My success will be determined by how well my successor grows it in the next 20 years” - Jack Welch
I lived thorough Welch's ABC ranking system at MegaMotors. Absolutely soul draining.
Their ideas were that every year they would get rid of 10% of the workforce and add new blood. So draining and demeaning.
Our company was bought out and we were invaded by the GE managers . All from Boston or the far east coast . Several had went to the Jack Welch management school . Their ideas were that every year they would get rid of 10% of the workforce and add new blood. So draining and demeaning. The result was they bought a 5 billion company and ran it into a 1 billion dollar company . They would walk away from low margin business with a major in one area thinking because they were GE management that they would get the high margin business elsewhere . The majors laughed at them . No love for those people and no love for GE . What happens to GE is what they brought on .
Do you not like forced ranking systems in general or, was it the implementation you didn’t like?
Well said.I do not have a problem with the rankings, what I do have is that you have to get rid of 10% each year...
It is rare, but I was on a budgeting team that had all good people... nobody was a slacker.... but there was some very talented people.... also, they knew what to expect because they had done it for years... it would be foolish to get rid of someone who is doing what is needed to be done just to get rid of 10%....
I also do not believe in keeping deadwood around... this was on a different group, but there was one guy who just could not pull his weight... at the end of the budget season the manager had a word with the guy and worked to get him moved into a different job where his skills would be more useful... if he did not want to move he was out... that is how to manage people...
The really fun part was that this was year after year. Sure, you might have found 10% deadwood initially, but it very quickly got to the point of someone being the sacrificial lamb. I've never seen such disgusting sucking up and pandering as prior to these ranking meetings.I do not have a problem with the rankings, what I do have is that you have to get rid of 10% each year...
It is rare, but I was on a budgeting team that had all good people... nobody was a slacker.... but there was some very talented people.... also, they knew what to expect because they had done it for years... it would be foolish to get rid of someone who is doing what is needed to be done just to get rid of 10%....
I also do not believe in keeping deadwood around... this was on a different group, but there was one guy who just could not pull his weight... at the end of the budget season the manager had a word with the guy and worked to get him moved into a different job where his skills would be more useful... if he did not want to move he was out... that is how to manage people...
The other fun part was the maximum of 10% top ratings. In departments where the manager really worked hard to have a top notch team, I saw good talent move to the competition when they were down rated to meet the 10% maximum goal.
Same stuff at Mega, all adding to the soul sucking...........so when the ratings got to the wing commander's desk, he "made things right" for his O Club pal.)
I believe Low Cost Country sourcing was also a GE mantra. Our supply management folks were challenged to source at least 30% of new parts on one of my projects from LCC. After a toe-to-toe meeting, I was not so politely informed that they were not going to miss that 30% goal, and were willing to pay up to 130% to hit that target. What was even sadder, most of those suppliers could not meet our quality goals. By the time they found suppliers that could come close to the goals, the project costs were in a serious over-run.
You would think that there would be some learning and adjustment, but no. By the time the tragedy hit, the Supply Management MBAs had already celebrated their victory and moved on to the next assignment, or left the company headed to their next great adventure!
Not to cross threads, but there is a lot of manufacturing that could come back into this country. All it would take is to get a new Harvard Journal article and we would have new tee-shirts and slogans!
All of the discussion above helps me understand where my Megacorp's behavior came from. I'd rather not reveal Mega's name, so I'll just say that a few of our top 5 officers are formerly of GE. Explains a lot! Explains why I am getting the hell out.Instead of being productive, you are constantly trying to CYA and claim features to make sure you stay out of the bottom 10%.
Ballmer was a failure. Microsoft has gone from $30/share to $100 share since he left.
I was in a couple of those insurance companies after acquisition as a consultant. They were interesting companies who had some very unique free thinking people. [emoji12]
They didn't let us talk to knowledge workers. We were changing how the back office folks worked. Away from paper onto images and our system will tell you what work your going to do next. Insurance was challenging in the early days, we didn't have enough resources for some of the larger documents. Computer performance was my specialty.If you were in KS between 2003-2012 we may have crossed paths! When the Six Sigma gurus came in it was interesting. A few "got" insurance and they were fantastic, as were the people who had an insurance background and got advanced Six Sigma credentials. The others were a joke. I swear their projects came up with conclusions such as "Write coverage for smaller buildings because they have lower average losses". Another genius concluded that loss amounts didn't follow a normal distribution. Any baby actuary could have told them that- and that in many cases the LOGS of the loss amounts follow a normal distribution.
And don't get me started on their attitudes towards loss reserves- a significant portion of any insurance company's liabilities and subject to a lot of judgment and uncertainty. The GE guys would book the lowest number they could browbeat an actuary into accepting (the actuary has to sign off on whatever is booked and can be disciplined by his/her professional society if the reserves turn out to be grossly inadequate). To them reserves were a cookie jar that could be used to help them make the numbers. When they sold my unit they had to make a significant concession on the sale price because the acquiring company wanted more adequate reserves.
No use at all for Welch and his groupies.
I was more surprised by Walgreen's being the replacement.
GE out, Walgreens in. Hopefully this isn't metaphoric.