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GE - Jack Welch's Leadership: Varun Aggarwal Roll No. 202

Jack Welch led a massive restructuring and transformation of GE during his tenure. [1] He restructured GE by focusing the company on its core businesses and divesting others, establishing a decentralized structure. [2] Welch then rebuilt GE's culture by implementing software initiatives to reduce bureaucracy and develop leaders. [3] He shifted GE's focus to services and global expansion, establishing boundaryless behavior and a culture of stretch goals.

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Varun Aggarwal
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45 views9 pages

GE - Jack Welch's Leadership: Varun Aggarwal Roll No. 202

Jack Welch led a massive restructuring and transformation of GE during his tenure. [1] He restructured GE by focusing the company on its core businesses and divesting others, establishing a decentralized structure. [2] Welch then rebuilt GE's culture by implementing software initiatives to reduce bureaucracy and develop leaders. [3] He shifted GE's focus to services and global expansion, establishing boundaryless behavior and a culture of stretch goals.

Uploaded by

Varun Aggarwal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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GE – Jack Welch’s

leadership

Varun Aggarwal
Roll No. 202
Agenda

 Heritage
 Phase 1 : Restructuring
 Phase 2 : Rebuilding
 Phase 3 : The Third Wave
 Raising the Bar
Heritage

 Founded in 1878, early focus on generation, distribution and use of electric power
 Diversification : Household appliances, lighting, medical systems, aircraft engines,
locomotives
 Highly Centralized -> Decentralized Structure -> Strategic Planning Systems
 SBU Based Structure : Consumer products, power systems, technical products
 Improved relations with Government : Reg Jones became leading business statesman
Restructuring

 Fix, Sell or Close : Become 1st or 2nd player or disengage


 Three Circle Concept
 Core : Reinvest in productivity and quality

 High-Tech : Invest more in R&D

 Services : Add outstanding people & make acquisitions

 Recessionary environment led to change in GE Business Portfolio


 Lean and agile organization
 Removed bureaucracy : Real time planning
 Budgeting Proposals : Externally benchmarked and measured
 Reduced hierarchical levels : Direct Businesses to CEO reporting
Phase 2 : Rebuilding

 Rebuild the company to overcome culture shock and management exhaustion


 Software Initiatives :
 Workout : A forum to combat bureaucracy and encourage brainstorming to

discuss business issues and find solutions


 Platform to address concerns and foster swift decision making to plug gaps

 Best Practices : Learn the tricks of the trade from leading companies globally

 Identify common practices among successful organizations and replicate them

 Focus on “how to do” instead of “what to do”


 Global Foray : Market leadership 1 st or 2nd to be measured on a global level
Phase 2 : Rebuilding

 Developing Leaders : Change of focus from “perceived lifetime employment” to


“Jobs at GE are the best in the world for people willing to compete”
 Session C : Succession Planning initiatives, 360 degree feedback
 Stock Options : Compensation, Aggressive bonus awards
 GE Crotonville Mgmt Development Facility : Powerful engine of change
 Identified 4 levels of Managers : Aim was to Eliminate Type 4
The Third Wave

 Boundaryless Behavior
 Integrated diversity

 Open , anti-parochial environment

 Transcend national boundaries and cross-functional barriers

 Stretch
 Setting stretch goals as a part of GE culture

 Encouraged problem solving and challenging the status quo

 Service Businesses
 Changing portfolio : Major chunk of profits from services (60%)

 Inverted pyramid : services , processes and information as the base for products

 Changing focus from products to services and “selling products” to “helping customers

win”
Raising The Bar

 Six Sigma Quality Initiative


 Brought in best practices from market biggies like Motorola

 Identified gaps in GE’s Quality Systems

 Bonus tied to Six Sigma initiatives to propel the employees

 Green , Black and Master Black Belts to drive quality through the processes

 Making Quality the “DNA”

 “A Players” with “4 E’s”


 Energy

 Energize

 Edge

 Execution

 Harness talent and groom leaders for the future: Corporate Executive Council
 Strategic Initiative : E-Business : Identifying change as an opportunity
Thank You

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