GE and Jack Welch

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Jack Welch's Leadership Style

Analysts felt that Jack Welch's profound grasp on GE stemmed from knowing the company and those who worked for it. More than half of his time was devoted to "people issues". Most importantly, he had created something unique at a big company - Informality. The hierarchy that Jack Welch inherited with 29 layers of management was completely changed during his tenure. Everyone, from secretaries, to chauffeurs to factory workers, called him 'Jack'. Everyone could expect - at one time or another - to see him. Analysts felt that Jack Welch gave employees a sense that he knew them. Commenting on the informality at GE, Jack Welch said, "The story about GE that hasn't been told is the value of an informal place. I think it's a big thought. I don't think people have ever figured out that being informal is a big deal." Making the company "informal" meant violating the chain of command, and communicating across layers. Analysts felt that it had to do with Jack Welch's charisma and the way he used company's meetings and review sessions to great advantage. When he became the CEO, Jack Welch inherited a series of obligatory corporate events, which he had transformed into meaningful levels of leadership.

There were meetings in early January with GE's top 500 executives in Boca Ration, Fla., and monthly teaching sessions at Crotonville. These meetings allowed Jack Welch to set and change the corporation's agenda, to challenge and test strategies and people. They also helped him to make his presence and opinion known to all.

Analysts felt that Jack Welch knew the value of surprise. Every week, he made unexpected visits to plants and offices. There were luncheons with managers several layers below him, and many handwritten notes. Said a marketing manager of industrial products, "We're pebbles in an ocean, but he knows about us."

In April every year, Jack Welch undertook an annual review of personnel of the executive level and above, called the Session C meetings. The meetings ran for 20 days. This process started every February when every employee filled a self-assessment review, which was later discussed with the review manager. The manager sent the assessment up the management chain. Jack Welch with his vice chairpersons and senior human resources personnel, met with the business leaders at their respective headquarters. Salaries were not discussed at these meetings. Only questions like - who is retiring? Who do you want to promote? Who should attend executive classes at Crotonville? - were discussed. At these meetings that Jack Welch and his senior colleagues devoted full attention to the human resources side of the business (Refer Box for purpose of Session C Meetings).

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