GE under Jack Welch *

Abstract:

The case 'GE and Jack Welch' talks about the leadership style of Jack Welch, ex-Chairman and CEO of General Electric. Jack Welch joined GE in 1960, and was named the CEO in 1981. In the initial years as CEO, Jack Welch initiated a restructuring plan, which included massive job cuts, positioning the various businesses as number one or number two in the respective segments, and selling off unprofitable ones. He dismantled the 29 layers of hierarchy and made GE an informal company. The case also throws light on some of the other important aspects of Jack Welch's strategies like six sigma, globalization, boundaryless organization etc.

Issues: » Social Strategies of Jack Welch that transformed GE into the most valuable company in the world.

Questions for Discussion:

1. Some Wall Street analysts and academics described Jack Welch as 'the most important and influential business leaders of the 20th Century.' Analyze the various aspects of Jack Welch's leadership style.
2. Analysts felt that where most top executives lost their effectiveness in ten years or less, Jack Welch was an exception, staying on the job and driving GE to elevated levels of accomplishment for 20 years. Analyze the strategies used by Jack Welch, which made GE the most valuable company in the world.

Key words:
Case, GE, Jack Welch, leadership, style, Jack Welch, Chairman, CEO, General Electric, Jack Welch, GE, 1960, 1981, restructuring plan, job cuts, positioning, number one, number two, respective segments, selling off, unprofitable ones, 29 layers, hierarchy, informal company, six sigma, globalization, boundaryless organization

*Note : This case is a simplified version of a longer case study, and is intended for learners for whom English is a foreign language. The longer version of this case study (LDEN002) is available at: http://www.icmrindia.org/casestudies/catalogue/Leadership%20and%20Entrepreneurship/LDEN002.htm