Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
For other people named Jack Welch, see Jack Welch reaucracy he observed at GE. Welch was persuaded to
(disambiguation).
remain at GE by Reuben Guto, an executive at the company, who promised him that he would help create the
[9]
John Francis "Jack" Welch, Jr. (born November 19, small-company atmosphere Welch desired. In 1963, an
explosion at the factory which was under his management
1935) is a retired American business executive, author,
of the facilities, and he was almost red
and chemical engineer. He was chairman and CEO of blew o the roof[10]
for that episode.
General Electric between 1981 and 2001. During his
tenure at GE, the companys value rose 4,000%.[2] In By 1968, Welch became the vice president and head
2006, Welchs net worth was estimated at $720 million.[1] of GEs plastics division, which at the time was a $26
When he retired from GE he received a severance pay- million operation for GE.[6] Welch oversaw production
ment of $417 million, the largest such payment in as well as the marketing for the GE-developed plastics
history.[3]
Lexan and Noryl. Not long after, in 1971, Welch also became the vice president of GEs metallurgical and chemical divisions.[6] By 1973, Welch was named the head of
strategic planning for GE and he held that position until
1 Early life and education
1979, which involved him now working from the corporate headquarters, exposing him to many of the big sh
Jack Welch was born in Peabody, Massachusetts, the son he would one day be among.[11] Not long after his proof Grace (Andrews), a homemaker, and John Francis motion to head of strategic planning, Welch was named
Welch, Senior, a Boston & Maine Railroad conductor.[4] senior vice president and head of Consumer Products and
Jack is Irish American. His paternal and maternal grand- Services Division in 1977, a position he held until 1979
parents were Irish.[5]
when he became the vice chairman of GE.[6]
Throughout his early life in middle school and high In 1981, Welch became GEs youngest chairman and
school, Jack found work in the summers as a golf caddie, CEO, succeeding Reginald H. Jones. By 1982, Welch
newspaper delivery boy, shoe salesman, and drill press had dismantled much of the earlier management put tooperator.[5] Welch attended Salem High School, where gether by Jones with aggressive simplication and conhe participated in baseball, football, and captained the solidation. One of his primary leadership directives was
hockey team.[5]
that GE had to be No. 1 or No. 2 in the industries it
participated in.[12]
2.1 CEO
Through the 1980s, Welch sought to streamline GE. In
1981, he made a speech in New York City called Growing fast in a slow-growth economy.[13] Under Welchs
leadership, GE increased market value from $12 billion
in 1981 to $280 billion, making 600 acquisitions while
shifting into emerging markets. Welch pioneered a policy of informality at the work place, allowing all employees to have a small business experience at a large
corporation.[9] Welch worked to eradicate perceived inefciency by trimming inventories and dismantling the bureaucracy that had almost led him to leave GE in the past.
He closed factories, reduced pay rolls and cut lackluster
units.[14] Welchs public philosophy was that a company
should be either No. 1 or No. 2 in a particular industry,
or else leave it completely.
General Electric
2
GEs plants and oces.[9] Welch popularized so-called
"rank and yank" policies used now by other corporate
entities. Each year, Welch would re the bottom 10%
of his managers, regardless of absolute performance.[15]
He earned a reputation for brutal candor. He rewarded
those in the top 20% with bonuses and stock options. He
also broadened the stock options program at GE, extending availability from top executives to nearly one third of
all employees. Welch is also known for abolishing the
nine-layer management hierarchy and bringing a sense of
informality to the company.[16]
LATER LIFE
3
on New York Times Best Seller list.[27][28]
Legacy
REFERENCES
Jack Welch instilled an organizational behavior that he [7] John F. Welch, Microscopic Study of Dropwise Condencalled boundaryless. He called such a company, a
sation, PhD Thesis, University of Illinois, 1961
boundaryless company. He dened it as, removing the
barriers between traditional functions, and nding great [8] Past Leaders. Retrieved 2014-05-14.Past Leaders.
Retrieved 2014-05-14.
ideas, anywhere within the organization, or from outside
the organization, and sharing them with everyone in the [9] How Jack Welch Runs GE. Businessweek.com. May
company.[58][59][60][61] General Electric under CEO Je
28, 1998. Retrieved 2010-07-12.
Immelt has realigned itself becoming more specialized,
cutting o ties with older businesses, and is now more [10] Failure 101: A class students could use. New York City:
MSNBC. November 5, 2009. Retrieved 2009-11-09.
focused on services in nance, health care, and aircraft
engines.[61]
[11] Welch, Jack; Byrne, John. A. (2001). Jack: Straight from
the gut. New York: Warner. ISBN 0446690686.
An article from the New York Times highlights the fact
that General Electric after the era of Jack Welch is more [12] Jack Welch - Manager of the Century. Anti Essays. Refocused on core businesses after a spin-o of its North
trieved 29 September 2014.
America retail nance business. After selling a fraction
of its business, Immelt planned to use the proceeds to [13] Betsy Morris, 'Tearing up the Jack Welch playbook'
(11.7.2006) Fortune at CNNmoney.com
build the capital as a standalone company, resulting in
[62]
a boost for shareholders.
[14] Jack Welchs Encore. Businessweek.com. June 14,
1997. Archived from the original on January 1, 2010. Retrieved 2010-07-12.
Popular culture
See also
General Electric
Vitality curve
Jack Welch Management Institute
References
[1] Storrs, Francis (March 2006). The 50 Wealthiest Bostonians. Boston Magazine. Retrieved 2008-10-03.
10 Further reading
Jack: Straight From The Gut, by Jack Welch
- Warner Business Books (2001)(ISBN 0-44669068-6)
Winning by Jack and Suzy Welch HarperCollins
(April 2005), (ISBN 0-06-075394-3)
11
Winning: The Answers by Jack and Suzy Welch
Harper (2006) (ISBN 0-00725264-1)
Jack Welch and the GE way : management insights and leadership secrets of the legendary CEO
by Robert Slater - McGraw-Hill (1988) (ISBN
0070581045)
The New GE: How Jack Welch Revived an American
Institution, by Robert Slater - McGraw-Hill (1992)
(ISBN 1-55623-670-0)
Jacked Up: The Inside Story of how Jack Welch
Talked GE into Becoming the Worlds Greatest Company by Bill Lane McGraw Hill (2008), (ISBN
978-0-07-154410-8)
At Any Cost: Jack Welch, General Electric, and the
Pursuit of Prot, Thomas F. O'Boyle, - Vintage
(1999) (ISBN 0-375-70567-8)
Control Your Destiny or Someone Else Will: How
Jack Welch is Making General Electric the Worlds
Most Competitive Company by Noel Tichy and
Strat Sherman - Doubleday (1993)(ISBN 0-38524883-0)
11
External links
EXTERNAL LINKS
12
12.1
12.2
Images
12.3
Content license