Jack Welch General Electric By: Dan Wales Kennya Leal Chris Lage Richard Orsi Alexandra Pagliuca

"Neutron Jack"

Early Life Born in Peabody, Massachusetts. Father John was a Maine Railroad Conductor. Mother Grace was a Housewife. Was an Only Child He attributed many of the fundamental life lessons he learned to growing up in his Massachusetts neighborhood; some he learned from his parents, others from the neighborhood boys through sports. At an early age Welch discovered the premium he placed on winning and the bad taste left in his mouth by losing. Jack was a hard nosed competitor in three high school sports and had a fierce competitive nature. Credits his mother with shaping him with her witty conversations they had while waiting for his father at the train station.

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.

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. Tell story of executive that convinced him to stay. Reuben Gutoff, a young executive two levels higher than Welch, decided that the man was too valuable a resource for the company to lose. He took Welch and his first wife Carolyn out to dinner at the Yellow Aster in Pittsfield, and spent eight hours trying to convince Welch to stay. Gutoff vowed to work to change the bureaucracy to create a small-company environment. By 1968 Welch was running General Electric's entire plastics business, then a $26 million operation. He oversaw the production and marketing of Lexan and Noryl, trademarked materials developed in GE labs. The plastics became common in consumer goods thanks in no small measure to Welch's relentless sales efforts. The position was ideal for an energetic engineer with a doctorate in chemical engineering as well as an understanding of the business of science. Through the early 1970s Welch held increasingly challenging positions and moved swiftly through the company's ranks: he led the chemical and metallurgical division from 1971 to 1973; served as head of strategic planning for a $2 billion portfolio of businesses from 1973 to 1977; and was sector executive in the consumer-products division, a $4.2 billion operation, from 1977 to 1981.

Management Style

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.

Picking the right team First Impressions Making the interview Keeping the job

Benefits of being with Jack Known to fire the bottom 10% of his managers every year “Neutron Jack” Reward the top 20% with bonuses and stock options. Expanded employee stock options to include nearly one third . 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.

Benefits of being with Jack Opportunity to spread their wings Benefits of being with Jack Beliefs Boundaries within a company stifled the flow of information and ideas among employees Close supervision, control, and bureaucracy killed the competitive spirit “We are constantly amazed by how much people will do when they are not told what to do by management.” - Jack Welch

Looking up to Jack

Zero to Hero 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”

Got the Numbers to Prove It Has created more share holder value than anyone in history . He increased the market value of GE from $14 billion to $410 billion Reshaped GE with more than 600 acquisitions and pushed to enter newly emerging markets.

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

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

Jack Welch Style: Where does it come from? Since his retirement from General Electric in 2001 Jack Welch has still kept his place in the business world. Currently Jack is still an active business man, a professor, and an author. Continuing

Historical Significance: 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”

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

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

Leadership and Motivational Influences 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

Continuing to Leave Footprints In Business Leadership Since his retirement from General Electric in 2001 Jack Welch has still kept his place in the business world. Currently Jack is still an active business man, a professor, and an author.

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 MSNBC and CNBC. Jack and Suzy also have their own website that offers a variety of helpful resources related to business management. Jack Welch’s limited liability company has two parts. 1. Jack has been the financial partner in the private equity firm that was started in ????? 2. Interactive corp was started in ??? Jack became a consultant in ??? Throughout his career he has chosen to contribute to television networks that focus on business. Two of these networks are known as MSNC and CNBC. He was actually the person chosen for the commercial to promote CNBC.

Professor Jack Welch January 25th, 2006 September, 2006 July, 2009 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. January 25th 2006 Sacred Heart University named their business school after Jack welch. The name became John F. Welch College of Business. In September of 2006 Jack started teaching at MIT. The courses are taught by jack to a group of 30 hand picked students that are able to demonstrate leadership. Jack continues to be a leader by teaching his principles and management styles. The jack welch management institute is based solely on Welch’s management styles. The Chancellor University named the institute after him in July 2009. jakc also made a large donation to make the MBA program

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 Welch has written a philosophical and pragmatic book that is destined to become the bible of business for generations to come. It clearly lays out the answers to the most difficult and important questions people face both on and off the job. Welch's optimistic, no excuses, get-it-done mind-set is riveting. Packed with personal anecdotes and written in Jack's distinctive no b.s. voice, Winning is a great read and a great business book. But Winning: The Answers offers the next best thing, the opportunity to take the lessons of Jack's bible of business success one step further Jack Welch's Straight from the Gut is a book that both business leaders and those interested in the General Electric story will get something from. Welch keeps the reader entertained with interesting business stories, while also sharing many of his business philosophies that have worked for him over the years. **casual and flowing**

The Living Business Legend

Summary Competitive childhood events developed the foundations to his leadership styles throughout his business career. His energetic and passionate leadership style paved the road to GE’s success leaving no room for nonsense. His leadership style transformed GE and redefined the approach of managing a large corporation. Welch’s style culminated many of the best management theories. His contributions will undoubtedly make their mark on progressive management for many years to come. Jack Welch has become a huge role in making his leadership styles live beyond himself.

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)

Resources Thank You! Are there any questions or comments? "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>. Thank You! Are there any questions or comments?