GE’s

TWO DECADE
TRANSFORMATION

SECTION D - Group 5
MONICA SYAL
MARGESH PATEL
JACK WELCH’S VISHNU ANAND
KAJAL BALASAHEB PATIL
LEADERSHIP NAVNEET SINGH RANA
SUSMITA SAHU
ANUP SHARMA
OVERVIEW Jack Welch
GE Brief Introduction

Founded in1878 by Thomas Edison

ALMA- MATER
John Francis "Jack" •Salem High school
Welch, Jr. (born November
Reg Jones (1973-1980) 19, 1935), Peabody, M •University of Massachusetts
(Bachelor of Science in
Chemical Engineering, 1957)
•University of Illinois at Urbana
Champaign (M.S and PhD,
1960)

Jack Welch (1980-2001)

Challenges Welch’s Early Real Time
as CEO Priorities Planning
Current
Hardware Current
Market
Market
Initiatives Dynamics
Dynamics

#1 or #2 - Fix, Sell or
Close
o Three Circle Concept Greatest
Economy in High Interest Compe
Compe
o De-Staffing & Real competitive
competitive Key R
Recession Rates threat
threat over
over
Time Planning Activ
next 3 years 5 Page Activ

strategy
Playbook
Highest
Unemployment
Software
Rate Since Initiatives
Depression
o Speed, Simplicity, GE’s
GE’s The GE
Openness Business’s
Business’s Business
Business
Planned
Response
Response
o Work Out Response
Response
o Best Practices
 GE Goes Global
International revenues of
GE acquires 16
Welch appoints Paolo $42.8 Billion (double the level
companies in
Fresco as Head of of 1993)
Mexico as the Peso
International Operations Global Revenues
collapses
growing at 3x the 1998
rate of domestic
1989 1995 sales
Results

1987 1989-95 1997-98

GE sells its consumer
electronics business in
exchange for Thompson
S.A.’s (French) medical
imaging business
GE invests $17.5 2000
GE invests $15 Billion in
Billion In Europe
Japan during major economic
during a recession
crisis International revenue
accounted for 50% of total
revenue (20% in 1985)
Changing Employee Relatio
ns
Tearing Down Boundaries
Provide
Change workers Welch encouraged
compensation with honest each employee to • “boundary less”
structure performance become
feedback

• Goals beyond the minimum

Stretch Goals •Forced each aspect of the
company to dream big
Invested heavily in
improving 360° feedback
Crotonville • Welch felt the conglomerate
process
management
Strength in business model, when run
effectively, could be more
development Numbers efficient then the free market
facility
Creating a Reputation for Excellence
Six Sigma Quality Initiative
Goal:
1 • Become highest quality producer in the industry,
• eliminate inefficiencies throughout the company through
sharing information
Green Belt

Bring in the best

• Use high wages, benefits, and career growth opportunities
Black Belt 2 to attract only the best talent available

Master
Black Belt Rank Employees based on 4 E’s
• Edge, energy, execution, ability to energize
• Sorted employees at all levels into groups 1-5 based on
3 talent, potential
• Actively identified future leaders
 Results Summary
23% annualized increase in shareholder value
during Welch’s tenure
Thank You