GE Two-Decade Transformation: Jack Welch’s Leadership
1A. Vision. Mr. Welch started from day one of his tenure as CEO to change the
vision of GE as it relates to its employees, management and the aim of its
products. His major goal was to fixed those poor achieving product lines that
could be fixed, sell those product lines that could be sold but not fixed and drop
those product lines that could not be fixed or sold.
B. Mission. Mr. Welch mission was to downsize, de-staff and de-layer the GE organization to streamline it to be more efficient and effective.
C. Strategies. Mr. Welch brought in various strategies; ...view middle of the document...
He ensured his leaders got honest professional feedback, reasonable expectations about future positions they could hold and specific skills to get there and they would be given the necessary training to achieve those goals.
E. Systems. Welch got rid of the laborious strategic planning system and its corporate planning staff. He developed a simple one-page answer to businesses five questions concerning current market dynamics. Competitors key recent activities and GE business response. The greatest competitive threat over the next three years and GE’s planned response.
F. Staff competencies. Welch saw his staff in four lights: (1) Those who delivered on commitments – financial or otherwise and shared values of the GE company. The outlook for this individual is easy - onward and upward. (2) Those individual who did not meet commitments or share company values, their future is easy to call too, they are out of a job. (3) Those individual that did not meet commitments, but share the company values will be put in another position that better fit their qualities and skills. (4) Those individuals who met all commitments, but do not share company values. Welch set out to weed out this type four leaders because he saw them as the biggest problem within his organization. It is always hard to dismiss individuals who are meeting their commitments; however, he placed a higher value on those who shared his company values.
G. Staffing and Staffing development. Welch wanted to ensure that his staff understood the culture he wanted implemented at GE. He provided for the necessary training to help his staff members develop into the leaders and employees he felt GE needed to survive and maintain productivity.
H. Leadership style. Welch put in place processes that challenged leadership against the status quo and pushed them to think outside the box. Welch initiative “Work-out” challenged leaders to listen to employees ideals and mandated that they act upon them with a...