Jack Welch General Electric

By: Kennya Leal Chris Lage

Richard Orsi Alexandra

Pagliuca Dan Wales

Jack WelchGeneral Electric

"Neutron Jack"

Early LifeBorn in Peabody, Massachusetts.

Father was a Maine Railroad Conductor.

Mother was a Housewife.

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.

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.

Management Style

Looking up to Jack

“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

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.

Fierce believer in the power of his people

Created informality at a big company

Manages GE like a small organization

“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

Relation to Chapters 14 & 15

Jack Welch Key Management Themes

Informal Communicative EnvironmentCut BureaucracyBuild EfficiencyFoster CreativityDevelop PeopleClearly Communicate Visions &

ExpectationsCut Your Losses from MediocritySix Sigma Methodology

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

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

Fayol: Key Command Concepts

Thorough Knowledge of Employees

Eliminate Incompetent Employees

Make Unity, Energy, Initiative, & Loyalty Prevail

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

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)

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.

Continuing to Leave Footprints

In Business Leadership

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.

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.

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

The Living Business Legend

SummaryJack wants people to become the best

leaders they can be.

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?

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