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JACK WELCH

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JACK WELCH

JACK WELCH Presented byS.Nagarajan

BackgroundJack Welch was born on 19th November in 1935 inMassachusetts in America.He attended the Salem High School and then graduated from the university of Massachusetts Amherst in the year 1957.He did his graduation in chemical engineering.He received aMSandPhDat theUniversity of Illinois at Urbana-Champaignin 1960.Welch joined General Electric in 1960. He worked as a juniorchemical engineer.

At General ElectricsIn 1963 an explosion at the factory under his management blew off the roof of the facilities, and he was almost fired for that episode. In 1961, Welch planned to quit his job as junior engineer because he was dissatisfied with the raise offered to him and was unhappy with the bureaucracy he observed at GE. Welch was persuaded to remain at GE by Reuben Gutoff, an executive at the company, who promised him that he would help create the small company atmosphere Welch desired.Welch was named a vice president of GE in 1972. He became senior vice president in 1977 and vice chairman in 1979. Welch became GE's youngest chairman and CEO in 1981, succeeding Reginald H. Jones. One of his primary leadership directives was that GE had to be No. 1 or No. 2 in the industries it participated in or else leave it completely.

As a CEONicknamed Neutron Jack by Newsweek magazine for restructuring strategies.Each year, Welch would fire the bottom 10% of his managers, irrespective of absolute performance and earned a reputation for brutal candor in his meetings with executives. He rewarded those in the top 20% with bonuses and stock options. GE had increased its market capital tremendously. Welch reduced basic research, and closed or sold off businesses that were under-performing.In 1986, GE acquired RCA NBC television networks.The year before Welch became CEO, GE recorded revenues of roughly $26.8 billion which were increased to $130 billion after he became the CEO.

SIX SIGMA MODELWelch adopted Motorola'sSix Sigmaquality program in late 1995.Six Sigmais a set of techniques and tools for process improvement. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizingvariabilityin manufacturingandbusiness processes. It uses a set ofquality managementmethods, includingstatistical methods, and creates a special infrastructure of people within the organization ("Champions", "Black Belts", "Green Belts", "Yellow Belts", etc.) who are experts in the methodsA six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects.

Leadership TraitsAdhocratic LeaderOptimistic LeaderMotivating LeaderHe used to critique himself & his employees honestlyDecision making ability-having an edge to say yes or noNever give up attitude-highly competitiveChampion of Innovation, Quality & learning.

4 Es of Jack WelchEnergiseEnergisersEdgeExecute

Management Lessons 20 X 70 X10Jack Welch introduced a system that was aimed to reward high achievers in the company and eliminate low achieversHe followed this guidelineThe top 20% were rewarded with bonuses and stock options The middle 70% received no special rewards The bottom 10% were released

After GEFollowing Welch's retirement from General Electric, he became an adviser to private equity firmClayton, Dubilier & Riceand to the chief executive ofIA,Barry DillerIn addition to his consulting and advisory roles. Welch has been active on the public speaking circuit, and co-wrote a popular column forBusinessWeekwith his wife, Suzy.In 2005, he publishedWinning, a book about management co-written with Suzy Welch, which reached number 1 onThe Wall Street Journalbestseller list,and appeared onNew York Times'Best Seller list.On January 25, 2006, Welch gave his name toSacred Heart University's College of Business, which will be known as the "John F. Welch College of Business". Since September 2006, Welch has been teaching a class at theMIT Sloan School of Managementto a hand-picked group of 30 MBA students with a demonstrated career interest in leadership.In 2009, Welch founded theJack Welch Management Institute, a program atChancellor Universitythat offered an online executive MBA degree.Welch has been actively involved with the curriculum, faculty and students at the online business school since its launch.

Awards & RecognitionsBy 1999 he was named "Manager of the Century" by Fortune magazine.Jack Welch received high military honors for his contributions as an assistant secretary of the Air Force during the Reagan and George H.W. Bush administrations.His awards included the W. Stuart Symington Award, the highest honor to a civilian in the field of national security; and the Air Force's Distinguished Service Medal.In 1990, the Air Force created the John J. Welch Award in recognition of excellence in acquisition leadership.

Books Authored by Jack WelchWinning 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

Famous QuotesIf you pick the right people and give them the opportunity to spread their wings and put compensation as a carrier behind it you almost don't have to manage them.The desire and the ability of an Organization to continuously learn from any source, anywhere and to rapidly convert this learning into action is its ultimate competitive advantageSimple messages travel faster, simpler designs reach the market faster and the elimination of clutter allows faster decision makingWe are constantly amazed by how much people will do when they are not told what to do by the management

Do you believe Jack Welch style of leadership is still applicable for todays business leaders?

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