Jack Welch, famed CEO of GE, one of the most successful well diversified and cash rich corporations in the world, spells out his formula for success in his autobiography, “Jack.” It’s brilliantly simple, direct, and we can all learn from his beliefs and his implementation of  successful strategy.

Simply stated, he says successful business is all about the right people. The people he hires are people who understand how to think outside the box, people who are creative, energetic and have a vision, and who are willing and capable of turning visions into reality.  That’s how he has enjoyed a life time of success… hiring the best people he could find.

However, that was not sufficient. After hiring the best, he encouraged them to take risks, make mistakes and strike out on occasion. No one bats .1000, said Jack, and the most important thing was to encourage a manager to take a risk in a new venture or product.  After the inevitable failed attempt, he made very certain that the manager did not lose his self confidence, did not dwell on the failure, but focused on what he learned and what mistakes he may have made and how to avoid these traps again.  Never did he allow them to get timid, conservative,or fail to get back up on the horse and ride again.

He encouraged his managers to do their best, and if it did not work out, he supported them in their second attempts. That’s why he says he was so successful in so many varied aspects of GE,  by following this simple rule. Hire the best and then support them through thick and thin, through failure and success.

Interestingly, in the book “The Toyota Way,” that describes the Japanese theory of management success, an enormous amount of time and effort is spent supporting their employees…considering them their most important asset.

Maybe Jack and Toyota have the right idea… are you following this advice?