Essay on Jack Welch: General Electric’s Revolutionary
While analyzing the text “Jack Welch: General Electric’s Revolutionary”, I found that Welch made to thrive one of the largest and most complex companies in the world. He managed to do that as a CEOof General Electric (GE). In this paper work I am giving the characterization of this case and Jack Welch’s management innovations. That is the goal of my paper. At the end I conclude my work with summarizing all aspects previously stated.
Jack Welch was able to make difficult changes within GE due to his personal values and believes. According to his words, his character was made by his parents, who taught him to be independent, active and strong. That were his parents, especially mother, who draw a line of certain moral believes for him. Welch’s classmates remember him to be very demanding and that he trounced people by trying harder. Hockey-playing years in college had an influence on his management skills as well. The constructive conflict was often used by Jack Welch as a method by which he made his managers to defend their views.
Jack Welch took office in April 1981 and claimed that he will make General Electric the most profitable, highly diversified company on earth. That was a difficult task, because of numerous factors. A high level of competition and serious decline of economy in the U.S. had a pretty bad influence on General Electric. In spite of all that factors, Jack Welch was determined to reform all business strategy in order to make GE number onecompany in every business branch. In order to achieve these goals, Welch made the “three circle concept”.All businesses within GEwere divided into core, high technology, or service areas. The fifteen businesses that dominated their markets could be placed in a circle and other ones had to be divested. Welch developed directions for every circle of his business. Healso marched under the standard of destaffing. Ithelped reduce unnecessary bureaucracy.Jack Welch understood that removing unnecessary bureaucracy also requires cultural changes within the company. He wanted that all employees were thinking external. They were ought to compare their work results with the work results of their competitors, which are out there in the world.
Welchwas confident that good business leader should always listen to his employees. It is important to have certain vision, but it is even more important to be reachable for the employees. True leader is obliged to communicate with his people and he should always tell them the truth. Jack Welchstated that the effectiveness of the company depends on self-confidence of its managers. Insecure managers create complexity.Welch decided to compensate the capital changings within the company to his employees.He also wanted to give more recognition to individual contributors. That was the right thing to do from moral and ethical perspectives.
In 1989 Jack Welch implemented such important activity for managers as Work-Out. During Work-Out managers were able to solve different problems, list all their complaints, debate all the solutions and give their presentations at the final day. Work-Out helps to redefining the relationship between boss and subordinate; it also forces people to communicate with each other and that is very important in such a diversified company as GE.
Another one remarkable innovation of the GE was implementing Best Practices of other companies. Basically, Welch took all effective management ideas from other companies and implemented it to GE, with the consent of previously mentioned companies.There also has been made several changes in order to make GE boundary-less company.
In conclusion I would like to state that Jack Welch truly made a revolution within General Electric. He managed to transform it into a highly effective company and a perfect working place for free, creative and open people. At the same time Welch preserved dignity and corporate ethics within competitive market.
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