CHARLIE ROSE 00:00
Take for a tangent for a second Jack Welsh, Lee Iacocca what is it they have? You would go around and do a self-analysis of companies. And you would look for things that you could identify where and know that they had the potential to grow.
PETER LYNCH 00:18
CHARLIE ROSE 00:18
And they have a culture to grow and they had a plan to grow. What do great managers do?
PETER LYNCH 00:24
Well, there's two types. You have Fred Smith who comes up with an idea called Federal Express. Then he had to grow it. And that's really tricky sometimes people just to the idea part, he did all the parts.
Then there's Lee Iacocca had to turn around a troubled Chrysler. And even more challenging, a giant company like General Electric to makes something good, better. That's really hard.
So all these people basically were problem solvers and they had to manage people and one of the things that's surprised people, they don't understand the definition of management. It's getting things done through others. It's a lot easier to do something yourself.
Get somebody else do it, lots of people, and all of a sudden you're managing people. And sometimes you have to encourage them and sometimes you have to push a little harder.
CHARLIE ROSE 01:03
Inspire and motivate, encourage.
PETER LYNCH 01:05
But you have to understand what they want, you have to work with them, you have to explain yourself, you have to set goals and you have to be a leader yourself. And you have to put a lot of effort into it.
And you have to be – make – say you make mistakes and there's a real amazing difference between being persistent and being stubborn. And I think great leaders can say –
CHARLIE ROSE 01:22
Persistence is good, stubborn is bad.
PETER LYNCH 01:23
Persistence is terrific, stubborn is terrible.
CHARLIE ROSE 01:25
Yes but do great managers listen?
PETER LYNCH 01:27
Yes they do. Absolutely, categorically.
CHARLIE ROSE 01:29
I've come to know and believe that listening is a principle, essential quality.
PETER LYNCH 01:35
Yes and sometimes managers get so high up that people around them aren't giving them ideas.
CHARLIE ROSE 01:38
I know exactly right yes.
PETER LYNCH 01:39
It shielded and filter everything else. They don't have a chance to listen.
CHARLIE ROSE 01:42
And the best manager will make sure they do hear the best things.
PETER LYNCH 01:46
And they go out on their own and do their own research independent of the people around them.
What great leaders do?
1. Come up with new idea
2. Be a problem solver
3. Be a good listener
4. Lead by example