I enjoy challenging a person's ideas. No one loves a good and passionately fought argument more than I do. This isn't about being tough-minded and straightforward. That's the job. But so is sensing when to hug and when to kick. Of course, arrogant people who refuse to learn from their mistakes have to go. If we're managing good people who are clearly eating themselves up over an error, our job is to help them through it. That doesn't mean you have to take it easy on your top performers.

The best way to support dreams and stretch is to set apart small ideas with big potential, then give people positive role models and the resources to turn small projects into big businesses.

I wanted to change the rules of engagement, asking for more— from fewer. I was insisting that we had to have only the best people...If you wanted excellence, at a minimum, the ambience had to reflect excellence.

In GE every day, there's an informal, unspoken personnel review—in the lunchroom, the hallways, and in every business meeting. That intense people focus—testing everyone in a myriad of environments—defines managing at GE. In the end, that's what GE is. We build great people, who then build great products and services.

In manufacturing, we try to stamp out variance. With people, variance is everything.

Change has no constituency—and a perceived revolution has even less.

There are advantages to being the chairman. One of my favorite perks was picking out an issue and doing what I called a "deep dive." It's spotting a challenge where you think you can make a difference—one that looks like it would be fun—and then throwing the weight of your position behind it. Some might justifiably call it "meddling." I've often done this—just about everywhere in the company.

If you like business, you have to like GE. If you like ideas, you have to love GE. This is a place where ideas can flow freely from and through more than 20 separate businesses and more than 300,000 employees. Boundaryless behavior allows ideas to come from anywhere. We formalize our freewheeling style in a series of operating meetings that blend into one another.

Being a CEO is the nuts! A whole jumble of thoughts come to mind: Over the top. Wild. Fun. Outrageous. Crazy. Passion. Perpetual motion. The give-and-take. Meetings into the night. Incredible friendships. Fine wine. Celebrations. Great golf courses. Big decisions in the real game. Crises and pressure. Lots of swings. A few home runs. The thrill of winning. The pain of losing. It's as good as it gets! You get paid a lot, but the real payoff is in the fun.

Getting every employee's mind into the game is a huge part of what a CEO job is all about. Taking everyone's best ideas and transferring them to others is the secret. There's nothing more important.