Jack Welch

Redefining Leadership

The Growth of Jack Welch

Nov 19, 1935- Jack Welch is born

1960- Welch Receives Ph.D.

1960- Welch starts his career at G.E. 1961- The Reuben Gutoff persuasion 1961- Welch receives $1000 raise after the first year 1972- Welch becomes the Vice President of G.E.

 1973- Welch expresses his long term goal of becoming CEO of G.E. 1977-Welch becomes Senior Vice President 1979- Welch becomes youngest ever CEO of G.E. 1981- Welch as Neutron Jack Fired the bottom 10% of his Managers, bonuses to the top 20%) !982- Welch disassembles much of the earlier management(some of GEs 350 businesses were closed and the management structure was reduced from twenty-nine levels to only six), instrumental in G.E.s acquisition of NBC

 1990- Welch is instrumental in G.E.s modernization (Shifted from Manufacturing to

Financial Services through numerous acquisitions

1995- Welch adopts Motorolas Six Sigma programme (increase efficiency and quality to produce zero defective products). Massive revenues for G.E. recorded

1999- Welch is named Manager of the Century

2001- Welch writes a best selling Memoir Sept 7, 2001- Welch retires

The Results
Made GE one of the most profitable companies in the world. General Electrics market value increased while under Welchs control more than any other company headed by any other CEO. G.E.s value increased from $12 billion to an amazing $280 billion, which made it one of the largest and most profitable businesses in the world.

Jack Welchs Leadership Tactics

LEAD, Not MANAGE Welchs goal is to lead, create a vision and make people passionate about their work. Articulate a vision and lead others to execute it Dont manage very little details Involve everyone and welcome great ideas GET LESS FORMAL Informality inspires people to have more ideas and it is one of the keys to GEs success. Brainstorm with colleagues and bosses Hold more informal meetings Consider occasional informal get-togethers

Dont TOLERATE Bureaucracy, BLOW it Up! Welch stressed that each employee should work on getting rid of bureaucracy every day. Drop unnecessary work Work with colleagues to streamline decision making Make your workplace more informal
Face REALITY. Stop Assuming When Welch joined GE, the company was assumed to be in good shape, but Welch saw a sinking ship -the company was losing its market value and there was too much bureaucracy. He laid out strategies and initiatives that made things better. Look at things with a fresh eye Dont fall into the false scenarios trap Leave yourself with several options

SIMPLIFY Things Welchs goal at GE was to de-complicate work. He developed and initiated a signature program that made GE a simpler organization. Simplify the workplace Make meetings simpler Eliminate complicated memos and letters CHANGE- An Opportunity, Not a Threat Welch initiated the necessary changes to make GE a far more flexible and competitive organization. He made change a part of GEs shared value. Know that change is here to stay Expect the least expected, but move quickly to stay a step ahead Prepare those around you for the inevitable change that will affect their lives Lead by Energizing Others, not Managing by Authority Welch called his leadership ideal boundary less. He did not support the i-am-the-boss-andyou-will-do-what-i-say style. He preferred inspiring others to want to perform. Never lead by intimidation Let others know exactly how their efforts are helping the organization Send handwritten thank-you notes to colleagues and customers

Defy, not Respect Tradition Welch made the riskiest move - defying most every aspect of the companys history to make GE the most competitive enterprise in the world. To him, what worked in the past would not necessarily work in the future. Hold a why do we do it that way? meeting Invite colleagues from to contribute one idea on changing something important at the company Dont be afraid to buck conventional wisdom Dont Make Hierarchy Rule, but Intellect Welch believed business is about capturing intellect and that the organization must encourage people to articulate their ideas and solutions. Welch turned GE into a learning organization in which ideas and intellect rule over tradition and hierarchy. Spend 1 hour per week learning what competitors are doing Offer a reward for the best idea

Pounce Everyday, Dont Move Cautiously Welch wanted his employees to pounce everyday, move faster than competitors to win business, please customers and snap up opportunities. His strategies were to remove the shackles from employees feet so they could move quickly. Live with a sense of urgency Make decisions faster Work harder Put Values First, not Numbers GEs values are not based on antiquated ideas about etiquette and proper behavior. Instead, the values include pleasing customers, disdaining bureaucracy, thinking globally and being open to ideas. Dont harp on the numbers Lead by examples Let values rule

Dont try to Manage Everything, Manage Less Welch avoided micro managing details. Dont get bogged down in meaningless details Manage less Empower, delegate, get out of the way

If leadership is an art, then surely Welch has proved himself a master painter.
Business Week, May 28, 1998.

Thank You