JACK WELCH & GE

PRESENTED BY-
AKILA (03)
FARAZ (14)
GEETHA (17)
AJAY (42)
JABEZ (43)

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KEY FOCUS…
 HARDWARE & SOFTWARE PHASE
 JACK WELCH IN THE PATH OF MAKING GE
GLOBAL
 JACK WELCH & 4Es
 12 LEADERSHIP LESSONS TO THE WORLD
 ACQUISITIONS & WELCH’S GLOBAL
INITIATIVES
 GLOBAL IMPACT & REFECTION OF JACK
WELCH
 DID WE KNOW??
 PERFORMANCE OF GE UNDER WELCH
 GLOBAL TRAINING 08/28/09 2
JACK WELCH’S VISION
“A decade from now, I would like
General Electric to be perceived as a
Unique, high-spirited,
Entrepreneurial enterprise…the
most profitable, highly diversified
company on the earth, with world
quality leadership in every one of its
product lines”. -- Jack Welch

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HARDWARE PHASE

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THREE CIRCLE VISION-STEP IN MAKING G.E.
A GLOBAL COMPETITOR

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#1,#2 (Early 1980s)
FIX, CLOSE OR SELL
DELAYERING
DOWNSIZING

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 SOFTWARE PHASE
Soft values involve issues related to morale,
values, and communication
Primary focus -restore confidence to GE’s
ranks
Center of Welch’s software phase was
Work-Out
Primary task -leverage the “bigness” of GE
(its global reach, vast human resources,
capital, etc.)
Maintain an environment in which “people
can reach their dreams.”
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JACK WELCH IN PATH OF
MAKING G.E. GLOBAL
BEST PRACTICE
BOUNDARYLESS
E-BUSINESS
GLOBALIZATION
SIX SIGMA
WORKOUT
NIH
DIVESTMENT

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JACK WELCH & 4ES
Energetic
Energizes
Edge
Executes

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12 LEADERSHIP LESSONS TO
THE WORLD FROM JACK WELCH
LEAD , not MANAGE
GET LESS FORMAL
Don’t tolerate BUREAUCRACY,
BLOW it up!
Face REALITY. Stop ASUMING
SIMPLIFY things
CHANGE- an opportunity, not
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CONTD…
Lead by ENERGIZING others,
not managing by authority
DEFY, not respect tradition
Don’t make hierarchy rule, but
intellect
Pounce everyday. Don’t move
cautiously
Put VALUES first, not numbers
 08/28/09 11
 ACQUISITIONS & WELCH’S
GLOBAL INITIATIVES
KIDDER PEABODY
TIME CARD SCANDAL
COMPRESSOR PROBLEM IN
REFRIGERATOR
HONEYWELL
THOMSON-CGR
RCA
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GLOBAL IMPACT &
REFLECTION OF WELCH
DIVESTMENT & BEST PRACTICES
STRATEGY ( VERITAS, WIPRO)
BOUNDARYLESS (DELL)
E-BUSINESS (TCS)
SIX SIGMA (DELL)
DELAYERING (DELL)
WORKOUT ( WIPRO)
REWARD (TCS, DELL)

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 DID WE KNOW?
JACK WELCH AND PETER DRUCKER
GE AND PIMS
JACK WELCH AND BCG MATRIX
JACK WELCH AND MCKINSEY’S
MODEL

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PERFORMANCE OF GE
(REVENUE)

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STOCK SPLIT

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SHARE PRICES

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SHARE VOLUMES

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GLOBAL TRAINING
Attitude is ‘‘be global or die’’
“If you do not control your destiny someone else
will”
Welch’s US strategy
Each GE business had to be No. 1 or No. 2 in its
markets, and if not they had to be ‘‘fixed, closed,
or sold’’
He did not see people in the companies he took
over in Europe as English, Italian, Swedish,
Hungarian, or Russian. He saw them as valued
GE employees in a ‘‘boundaryless’’ organization
that knew no borders or constraints, whether
these were internal or geographical.
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BIBLIOGRAPHY
n http://www.schulersolutions.com/leadership_self_
n http://money.cnn.com/magazines/fortune/fortune_
n http://www.ge.com
n http://money.cnn.com/magazines/fortune/fortune_
n http://www.cnnmoney.com
n http://www.nni.nikkei.co.jp/FR/TNKS/TNKSHM/w
n JUDGMENT by, Noel M. Tichy & Warren G.
Bennis

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THANK

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