1. business and industrial

Jack Welch
General Electric
By: Dan Wales
Kennya Leal
Chris Lage
Richard Orsi
Alexandra Pagliuca
"Neutron Jack"
Early Life
 Born in Peabody, Massachusetts.
 Father John was a Maine Railroad Conductor.
 Mother Grace was a Housewife.
 Was an Only Child
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.
Early Jobs
 Joined 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 by
 Create 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
Opportunity to
Benefits
spread
of being
their wings
with Jack
Beliefs
 Boundaries within a company stifle the flow of information and
ideas among employees
 Close supervision, control, and bureaucracy kill competitive spirit
 “We are constantly amazed by how much people will do
when they are not told what to do by management.”
- JackWelch
Looking up to Jack
Zero to Hero
 Made it to the top despite his working class
background
 Set a new model for the corporation
 Created informality at a big company
 Calls GE the “Grocery Store”
 Manages GE like a small organization “you don’t get hung up on
zeros”
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 people
 Spends 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)
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Leadership and Motivation
Abraham Maslow - Hierarchy of Needs
David McClelland (1917-1998) – “Needs Theory”
“Equity Theory”
James McGregor Burns (1918-) – “Transformational Leadership”
Elements of Management
 Function of Management
 Plan
 Organize
 Command
 Coordinate
 Control
 Key Factors:
 Management Skills can be Trained
 Eliminate Incompetent Employees
 Foster Unity, Energy, Initiative, & Loyalty
 Theory Y
 Management by Objectives
Organizational Structure
 Chester I. Barnard (1886-1961)
 Define Organizational Purpose
 Communication
 Group Dynamics - Recruiting
 “Informal” Environment – High Morale
 Recognition and Rewards
 Maintain Performance and Training
Leadership and Motivational
Influences
 Abraham 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, 2006
 MIT Sloan School of Management.
 July, 2009
 Jack 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
Summary
 Competitive childhood events developed the foundations to
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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 JackWelch and SuzyWelch. 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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