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Jack Welch General Electric

Jack Welch General Electric. By: Kennya Leal Chris Lage Richard Orsi Alexandra Pagliuca Dan Wales. "Neutron Jack". Early Life. Born in Peabody, Massachusetts. Father John was a Maine Railroad Conductor. Mother Grace was a Housewife. Was an Only Child.

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Jack Welch General Electric

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  1. Jack WelchGeneral Electric By: Kennya Leal Chris Lage Richard Orsi Alexandra Pagliuca Dan Wales

  2. "Neutron Jack"

  3. Early Life • Born in Peabody, Massachusetts. • Father John was a Maine Railroad Conductor. • Mother Grace was a Housewife. • Was an Only Child

  4. Education • Jack attended Salem High School. • Graduated from UMASS Amherst in 1957 with a B.S. in Chemical Engineering. • Graduated from the University of Illinois in 1960 with a M.S. and Ph.D. also in Chemical Engineering.

  5. Early Jobs • Joined General Electric in 1960 as a Junior Engineer in Pittsfield, MA. • Very disappointed with strict bureaucracy within General Electric, and planned to leave. • Named Vice President of G.E. in 1972. • Named Senior Vice President in 1977. • Became Vice Chairman in 1979. • Hit his peak as CEO in 1982. The eighth and youngest chairman and CEO in history of G.E.

  6. Management Style

  7. Rules to Manage by • Create a culture where risk is rewarded and accountability and measurable goals are paramount. • Provided outside rewards to those that demonstrate exceptional performance. • If something or some one is not working out kill the project or fire the employee. • Candor and trust are king in building a competitive and efficient work place.

  8. Pick the right people • Jack had no problem in this arena. He was known to fire the bottom 10% of his managers every year and reward the top 20% with bonuses and stock options. He expanded the stock options program to include nearly one third of all employees as opposed to just executives. He took care of the employees he had, and if they didn’t perform or they weren’t team players, he got rid of them. Jack was even known as “Neutron Jack” in the 1980s, referring to his reputation of eliminating employees in entire buildings like a neutron bomb.

  9. Opportunity to spread their wings • Jack believed that boundaries within a company stifled the flow of information and ideas among employees. believed that close supervision, control and bureaucracy killed the competitive spirit of the company. He was once quoted as saying, “We are constantly amazed by how much people will do when they are not told what to do by management.” He believed in managing less and leading more – creating vision and empowering people to make their own decisions.

  10. Looking up to Jack

  11. WHY HE IS RESPECTED

  12. Physical Reasons • Made it to the top despite his working class background • Set a new model for the corporation • Created informality at a big company • Calls GE the “Grocery Store” • Manages GE like a small organization “you don’t get hung up on zeros”

  13. Physical Reasons • Has created more share holder value than anyone in history . • He increased the market value of GE from $12 billion to $280 billion • Reshaped GE with more than 600 acquisitions and pushed to enter newly emerging markets.

  14. Unique Outlook • “You Can’t grow long term if you can’t eat short term” – Jack Welch • “Anybody can manage short. Anybody can manage long. Balancing those two things is what management is” – Jack Welch • Fierce believer in the power of his people • Spends more than half his time devoted to people issues

  15. Quote that Defines the Man • “He’s able to get people to give more of themselves because of who he is. He lives the American dream. He wasn’t born with a silver spoon in his mouth. He got himself out of the pile. He didn’t just show up” - Brian Nailor

  16. Jack Welch Style: Where does it come from?

  17. Jack Welch No Nonsense Management • Clearly Define the Goals • Field Only the Best Team • Eliminate Bureaucracy • Develop People – Reward Their Success • Cut Losers • Remain Agile • Play to Win

  18. HistoricalSignificance:Theories and Concepts Elements of Management • Jules Henri Fayol(1841-1925) • William H. Newman (1909-2002) • George R. Terry (1909-1979) • Douglas McGregor (1906-1964) • Peter F. Drucker (1909-2005) Organizational Structure • Chester I. Barnard (1886-1961) Leadership and Motivation • Abraham Maslow - Hierarchy of Needs • David McClelland (1917-1998) – “Needs Theory” • “Equity Theory” • James McGregor Burns (1918-) – “Transformational Leadership”

  19. Elements of Management • Function of Management • Plan • Organize • Command • Coordinate • Control • Key Factors: • Management Skills can be Trained • Eliminate Incompetent Employees • Foster Unity, Energy, Initiative, & Loyalty • Theory Y • Management by Objectives

  20. Organizational Structure Chester I. Barnard (1886-1961) • Define Organizational Purpose • Communication • Group Dynamics - Recruiting • “Informal” Environment – High Morale • Recognition and Rewards • Maintain Performance and Training

  21. Leadership and MotivationalInfluences Leadership and Motivation • Abraham Maslow - “Hierarchy of Needs” • Esteem • Self Actualization • David McClelland (1917-1998) – “Needs Theory” • Power • Affiliation • Achievement • “Equity Theory” • James McGregor Burns (1918-) – “Transformational Leadership” • Change Leadership • Employee Empowerment

  22. Continuing to Leave FootprintsIn Business Leadership

  23. Jack is Business • Jack Welch LLC. • A partner for the private equity firm Clayton, Dubilies and Rice. • Consultant for Interactive Corp • Jack also contributes to a couple business television networks such as MSNC and CNBC. • Jack and Suzy also have their own website that offers a variety of helpful resources related to business management.

  24. Professor Jack Welch • January 25th, 2006 • Sacred Heart University Business became the John F. Welch College of Business. • September, 2006 • MIT Sloan School of Management. • July, 2009 • Jack Welch Management Institute @ Chancellor University in Ohio.

  25. Written by Jack Welch • Winning 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

  26. The Living Business Legend

  27. Summary • Jack Welch has become a huge role in making his leadership styles live beyond himself. • Jack wants people to become the best leaders they can be.

  28. WHAT LEADERS DO -Leaders relentlessly upgrade their team, using every encounter as an opportunity to evaluate, coach, and build self-confidence. -Leaders make sure people not only see the vision, they live and breathe it. -Leaders get into everyone's skin, exuding positive energy and optimism. -Leaders establish trust with candor, transparency, and credit. -Leaders have the courage to make unpopular decisions and gut calls. -Leaders probe and push with a curiosity that borders on skepticism, making sure their questions are answered with action. -Leaders inspire risk taking and learning by setting the example. -Leaders celebrate. - Adopted from "Winning" by Jack and Suzy Welch (HarperCollins) Thank You! Are there any questions or comments?

  29. Resources • "GE Past Leaders: John F. Welch Jr., Biography." GE : imagination at work. Web. 04 Oct. 2009. <http://www.ge.com/company/history/bios/john_welch.html>. • "Sitemap - Jack Welch Management Institute." Jack Welch Management Institute at Chancellor University. Web. 16 Sept. 2009. <http://www.jwmi.com/what_leaders_do.html>. • "The Welch Way - Jack Welch Biography." The Welch Way - The Official Website of Jack Welch and Suzy Welch. Web. 16 Sept. 2009. <http://www.welchway.com/About-Us/Jack-Welch/Biography.aspx>. • Wren, Daniel A., and Arthur G. Bedeian. The Evolution of Management Thought. 6th ed. Hoboken, NJ: John Wiley & Sons, Inc., 2009. Print. • Baldwin, Timothy T., William H. Bommer, and Robert S. Rubin. Developing Management Skills - What Great Managers Know and Do. New York: McGraw-Hill Irwin, 2008. Print. • Byrne, John A. "06/08/98 HOW JACK WELCH RUNS GE." BusinessWeek - Business News, Stock Market & Financial Advice. Business Week Magazine, 8 June 1998. Web. 16 Sept. 2009. <http://www.businessweek.com/@@1w2fjIQAHbJcdAAA/1998/23/b3581001.htm>. • "Assessing Jack Welch." Wally Bock's Monday Memo Newsletter: Author, Keynote Speaker. 10 Sept. 2001. Web. 16 Sept. 2009. <http://www.mondaymemo.net/010910feature.htm>. • "Jack Welch: Management Evangelist." BusinessWeek - Business News, Stock Market & Financial Advice. Web. 16 Sept. 2009. <http://www.businessweek.com/magazine/content/04_43/b3905032_mz072.htm>.

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