Jack Welch General Electric
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Transcript of Jack Welch General Electric
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By: Kennya Leal Chris Lage
Richard Orsi Alexandra
Pagliuca Dan Wales
Jack WelchGeneral Electric
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"Neutron Jack"
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Early LifeBorn in Peabody, Massachusetts.
Father was a Maine Railroad Conductor.
Mother was a Housewife.
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EducationJack attended Salem High School.
Graduated from UMASS Amherst in 1957 with a B.S. in Chemical Engineering.
Graduated from the University of Illinois in 1960 with a M.S. and Ph.D. also in Chemical Engineering.
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Early JobsJoined General Electric in 1960 as a Junior
Engineer in Pittsfield, MA.Very disapointed with strict bureaucracy
within General Electric, and planned to leave.
Named Vice President of G.E. in 1972.Named Senior Vice President in 1977.Became Vice Chairman in 1979.Hit his peak as CEO in 1982. The youngest
chairman and CEO in history of G.E.
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Management Style
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Looking up to Jack
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“You Can’t grow long term if you can’t eat short term” – Jack Welch
Made it to the top despite his working class background
Set a new model for the corporation
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He increased the market value of GE from $12 billion to $280 billion
Has created more share holder value than anyone in history .
Reshaped GE with more than 600 acquisitions and pushed to enter newly emerging markets.
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Fierce believer in the power of his people
Created informality at a big company
Manages GE like a small organization
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“He’s able to get people to give more of themselves because of who he is. He lives the American dream. He wasn’t born with a silver spoon in his mouth. He got himself out of the pile. He didn’t just show up” - Brian Nailor
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Relation to Chapters 14 & 15
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Jack Welch Key Management Themes
Informal Communicative EnvironmentCut BureaucracyBuild EfficiencyFoster CreativityDevelop PeopleClearly Communicate Visions &
ExpectationsCut Your Losses from MediocritySix Sigma Methodology
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Historical Parallels
Jules Henri Fayol (1841-1925)Began Career in EngineeringElevated to General Manager Level
Closed or Reorganized Non-productive Business Units
Acquired New Business Units to Promote Diversification and Integration
Pioneer in Management TheoryManagerial Ability vs. Technical AbiityDeveloped 1st Principles of Management
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Fayol’s Key Elements of
ManagementPlanning – Define & Communicate ObjectivesOrganizing – Providing Knowledge and
Resources to AchievePeople and not structure make the differencePromoted Management Training
Command – “Get the optimum return from all employees”
Coordination – Harmonize Activities for Success
Control – Measure Performance and make Adjustments
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Fayol: Key Command Concepts
Thorough Knowledge of Employees
Eliminate Incompetent Employees
Make Unity, Energy, Initiative, & Loyalty Prevail
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Chester I. Barnard Executive Functions
Formulate a PurposeProvide Systems of CommunicationPromote & Secure Essential Efforts
Recruit compatible employees – Group Dynamics
Maintain morale & “Informal” environmentMaintain inducements & rewardsMaintain controls – training and performance
measures
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Henry A. Murray (1893-1988)
Developing People - Factors of MotivationPower – Welch empowered Managers &
Business Units to control their own destinyAffiliation – CEC sessions (top 500 execs),
Crotonville training sessions (rising stars)Achievement – 25% pay increases, 20%-70%
bonuses, stock options (27,000 employees)¹
¹ - Source: Business Week – June 8, 1998 (http://www.businessweek.com/1998/23/b3581001.htm)
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Scientific Management & The Hawthorne Studies
Linked to Six Sigma MethodologyStatistically define, measure, analyze, design,
verify Create the best environments to accomplish
workEliminate factors that reduce quality and that
waste time & energyImplement conditions with the best opportunity
for SuccessSix Sigma goes maximizes employee
contribution and the effectiveness of designs, systems, and processes.
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Continuing to Leave Footprints
In Business Leadership
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Jack is Business
Jack Welch LLC.A partner for the private equity firm Clayton,
Dubilies and Rice.Consultant for Interactive Corp
Jack also contributes to a couple business television networks such as MSNC and CNBC.
Jack and Suzy also have their own website that offers a variety of helpful resources related to business management.
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Professor Jack Welch
January 25th, 2006 Sacred Heart University Business became the
John F. Welch College of Business.
September, 2006MIT Sloan School of Management.
July, 2009Jack Welch Management Institute @
Chancellor University in Ohio.
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Written by Jack Welch
Winning was a book he co-wrote with his wife Suzy Welch
Winning the answers: confronting 74 of the toughest questions in business today“Jack, straight from the gut” #1 National Best Seller List.
“ The Welch Way” a weekly news column co-written by Jack & Suzy Welch.
Published in approximately 45 various business magazines
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The Living Business Legend
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SummaryJack wants people to become the best
leaders they can be.
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WHAT LEADERS DO -Leaders relentlessly upgrade their team, using every encounter as an
opportunity to evaluate, coach, and build self-confidence. -Leaders make sure people not only see the vision, they live and breathe it. -Leaders get into everyone's skin, exuding positive energy and optimism. -Leaders establish trust with candor, transparency, and credit. -Leaders have the courage to make unpopular decisions and gut calls. -Leaders probe and push with a curiosity that borders on skepticism, making sure their questions are answered with action. -Leaders inspire risk taking and learning by setting the example. -Leaders celebrate. - Adopted from "Winning" by Jack and Suzy Welch (HarperCollins)
Thank You! Are there any questions or Thank You! Are there any questions or comments?comments?
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Resources http://www.ge.com/company/history/bios/
john_welch.html http://www.jwmi.com/what_leaders_do.html http://www.welchway.com/About-Us/Jack-Welch/
Biography.aspx
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