by: dan wales kennya leal chris lage richard orsi alexandra pagliuca jack welch general electric
TRANSCRIPT
By: Dan Wales Kennya Leal
Chris Lage Richard Orsi
Alexandra Pagliuca
Jack WelchGeneral Electric
"Neutron Jack"
Early Life
Born in Peabody, Massachusetts.
Father John was a Maine Railroad Conductor.
Mother Grace was a Housewife.
Was an Only Child
EducationJack 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.
Early JobsJoined General Electric in 1960 as a Junior
Engineer in Pittsfield, MA.Very disappointed 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 eighth and
youngest chairman and CEO in history of G.E.
Management Style
Rules to Manage byCreate a culture where risk is rewarded and
accountability and measurable goals are paramount.
Provided outside rewards to those that demonstrate exceptional performance.
If something or some one is not working out kill the project or fire the employee.
Candor and trust are king in building a competitive and efficient work place.
Picking the right team
First Impressions
Making the interview
Keeping the job
Benefits of being with Jack
Known to fire the bottom 10% of his managers every year
“Neutron Jack”
Reward the top 20% with bonuses and stock options. Expanded employee stock options to include
nearly one third
BeliefsBoundaries within a company stifled the flow of
information and ideas among employees
Close supervision, control, and bureaucracy killed the competitive spirit
“We are constantly amazed by how much people will do when they are not told what to do by management.”
- Jack Welch
Benefits of being with Jack
Opportunity to spread their wings
Looking up to Jack
Zero to Hero
Made it to the top despite his working class background
Set a new model for the corporationCreated informality at a big company Calls GE the “Grocery Store” Manages GE like a small organization “you don’t
get hung up on zeros”
Got the Numbers to Prove It
Has created more share holder value than anyone in history .He increased the market value of GE from
$14 billion to $410 billion
Reshaped GE with more than 600 acquisitions and pushed to enter newly emerging markets.
Unique Outlook
“You Can’t grow long term if you can’t eat short term” – Jack Welch“Anybody can manage short. Anybody can
manage long. Balancing those two things is what management is” – Jack Welch
Fierce believer in the power of his peopleSpends more than half his time devoted to
people issues
Quote that Defines the Man
“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
Jack Welch Style: Where does it come from?
Historical Significance:Theories and Concepts
Elements of Management Jules Henri Fayol (1841-1925)
William H. Newman (1909-2002) George R. Terry (1909-1979)
Douglas McGregor (1906-1964) Peter F. Drucker (1909-2005)
Organizational Structure Chester I. Barnard (1886-1961)
Leadership and Motivation Abraham Maslow - Hierarchy of Needs David McClelland (1917-1998) – “Needs Theory” “Equity Theory” James McGregor Burns (1918-) – “Transformational
Leadership”
Elements of ManagementFunction of Management
PlanOrganizeCommand CoordinateControl
Key Factors:Management Skills can be TrainedEliminate Incompetent EmployeesFoster Unity, Energy, Initiative, & Loyalty
Theory YManagement by Objectives
Organizational Structure
Chester I. Barnard (1886-1961)
Define Organizational PurposeCommunicationGroup Dynamics - Recruiting“Informal” Environment – High MoraleRecognition and RewardsMaintain Performance and Training
Leadership and MotivationalInfluences
Leadership and MotivationAbraham Maslow - “Hierarchy of Needs”
Esteem Self Actualization
David McClelland (1917-1998) – “Needs Theory” Power Affiliation Achievement
“Equity Theory”James McGregor Burns (1918-) –
“Transformational Leadership” Change Leadership Employee Empowerment
Continuing to Leave Footprints
In Business Leadership
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 MSNBC and CNBC.
Jack and Suzy also have their own website that offers a variety of helpful resources related to business management.
Professor Jack Welch
January 25th, 2006 Sacred Heart University Business became the
John F. Welch College of Business.
September, 2006MIT Sloan School of Management.
July, 2009Jack Welch Management Institute @
Chancellor University in Ohio.
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
The Living Business Legend
SummaryCompetitive childhood events developed the
foundations to his leadership styles throughout his business career.
His energetic and passionate leadership style paved the road to GE’s success leaving no room for nonsense.
His leadership style transformed GE and redefined the approach of managing a large corporation.
Welch’s style culminated many of the best management theories. His contributions will undoubtedly make their mark on progressive management for many years to come.
Jack Welch has become a huge role in making his leadership styles live beyond himself.
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)
Resources "GE Past Leaders: John F. Welch Jr., Biography." GE : imagination at work. Web. 04 Oct. 2009.
<http://www.ge.com/company/history/bios/john_welch.html>. "Sitemap - Jack Welch Management Institute." Jack Welch Management Institute at Chancellor
University. Web. 16 Sept. 2009. <http://www.jwmi.com/what_leaders_do.html>. "The Welch Way - Jack Welch Biography." The Welch Way - The Official Website of Jack Welch
and Suzy Welch. Web. 16 Sept. 2009. <http://www.welchway.com/About-Us/Jack-Welch/Biography.aspx>.
Wren, Daniel A., and Arthur G. Bedeian. The Evolution of Management Thought. 6th ed. Hoboken, NJ: John Wiley & Sons, Inc., 2009. Print.
Baldwin, Timothy T., William H. Bommer, and Robert S. Rubin. Developing Management Skills - What Great Managers Know and Do. New York: McGraw-Hill Irwin, 2008. Print.
Byrne, John A. "06/08/98 HOW JACK WELCH RUNS GE." BusinessWeek - Business News, Stock Market & Financial Advice. Business Week Magazine, 8 June 1998. Web. 16 Sept. 2009. <http://www.businessweek.com/@@1w2fjIQAHbJcdAAA/1998/23/b3581001.htm>.
"Assessing Jack Welch." Wally Bock's Monday Memo Newsletter: Author, Keynote Speaker. 10 Sept. 2001. Web. 16 Sept. 2009. <http://www.mondaymemo.net/010910feature.htm>.
"Jack Welch: Management Evangelist." BusinessWeek - Business News, Stock Market & Financial Advice. Web. 16 Sept. 2009. <http://www.businessweek.com/magazine/content/04_43/b3905032_mz072.htm>.
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