Jack Welch General Electric

1. Jack WelchGeneral Electric By: Kennya Leal Chris Lage Richard Orsi Alexandra Pagliuca Dan Wales

2. "Neutron Jack"

3. Early Life • Born in Peabody, Massachusetts. • Father was a Maine Railroad Conductor. • Mother was a Housewife.

4. Education • Jack 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.

5. Early Jobs • Joined 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.

6. Management Style

7. Looking up to Jack

8. “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

9. 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.

10. Fierce believer in the power of his people • Created informality at a big company • Manages GE like a small organization

11. “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

12. Relation to Chapters 14 & 15

13. Jack Welch Key Management Themes • Informal Communicative Environment • Cut Bureaucracy • Build Efficiency • Foster Creativity • Develop People • Clearly Communicate Visions & Expectations • Cut Your Losses from Mediocrity • Six Sigma Methodology

14. HistoricalParallels • Jules Henri Fayol(1841-1925) • Began Career in Engineering • Elevated to General Manager Level • Closed or Reorganized Non-productive Business Units • Acquired New Business Units to Promote Diversification and Integration • Pioneer in Management Theory • Managerial Ability vs. Technical Abiity • Developed 1st Principles of Management

15. Fayol’s Key Elements of Management • Planning – Define & Communicate Objectives • Organizing – Providing Knowledge and Resources to Achieve • People and not structure make the difference • Promoted Management Training • Command – “Get the optimum return from all employees” • Coordination – Harmonize Activities for Success • Control – Measure Performance and make Adjustments

16. Fayol: Key Command Concepts • Thorough Knowledge of Employees • Eliminate Incompetent Employees • Make Unity, Energy, Initiative, & Loyalty Prevail

17. Chester I. Barnard Executive Functions • Formulate a Purpose • Provide Systems of Communication • Promote & Secure Essential Efforts • Recruit compatible employees – Group Dynamics • Maintain morale & “Informal” environment • Maintain inducements & rewards • Maintain controls – training and performance measures

18. Henry A. Murray (1893-1988) Developing People - Factors of Motivation • Power – Welch empowered Managers & Business Units to control their own destiny • Affiliation – 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)

19. Scientific Management & The Hawthorne Studies • Linked to Six Sigma Methodology • Statistically define, measure, analyze, design, verify • Create the best environments to accomplish work • Eliminate factors that reduce quality and that waste time & energy • Implement conditions with the best opportunity for Success • Six Sigma goes maximizes employee contribution and the effectiveness of designs, systems, and processes.

20. Continuing to Leave FootprintsIn Business Leadership

21. 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.

22. Professor Jack Welch • January 25th, 2006 • Sacred Heart University Business became the John F. Welch College of Business. • September, 2006 • MIT Sloan School of Management. • July, 2009 • Jack Welch Management Institute @ Chancellor University in Ohio.

23. 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

24. The Living Business Legend

25. Summary • Jack wants people to become the best leaders they can be.

26. 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 comments?

27. 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