We know where most of the creativity, the innovation, the stuff that drives productivity lies-in the minds of those closest to the work. It's been there in front of our noses all along while we've been running around chasing robots and reading books on how to become Japanese-or at least manage like them.

Protecting underperformers always backfires.

What's important at the grocery store is just as important in engines or medical systems. If the customer isn't satisfied, if the stuff is getting stale, if the shelf isn't right, or if the offerings aren't right, it's the same thing. You manage it like a small organization. You don't get hung up on zeros.

If GE's strategy of investment in China is wrong, it represents a loss of a billion dollars, perhaps a couple of billion dollars. If it is right, it is the future of this company for the next century.

It is better to act too quickly than it is to wait too long.

Willingness to change is a strength, even if it means plunging part of the company into total confusion for a while.

The team with the best players wins.