Transformational Leadership Jack Welch Tribute

JACK WELCH - TRANSFORMATIONAL LEADERSHIP CASE STUDY & A TRIBUTE

John F. Welch, Jr., (November, 19, 1935-March,1, 2020) was an American Business Executive, a chemical engineer from Massachusetts, and writer. His book “Winning”, Straight from Gut & the Real-Life MBA was his bestsellers. In 1981, Welch became GE's youngest Chairman and CEO, succeeding Reginald H. Jones at GE. By 1982, Welch had dismantled much of the earlier management team and complicated layers put together by Jones with aggressive simplification and

consolidation of practices. One of his primary leadership directives was that GE had to be No. 1 or No. 2 in the industries it participated in. The bottom performing companies he ruthlessly hived off. The story (Trichy & Charan, n.d.) of GE’s business transformation under the leadership of Jack Welch

is unique. In 1981, Welch declared that the company would focus its operations on three “strategic circles”—core manufacturing units such as lighting and locomotives, technology-intensive businesses, and services—and that each of its businesses would rank first or second in its global market. GE has achieved world market-share leadership in nearly all of its 14 businesses. In 1988, its 300,000 employees generated revenues of more than $50 billion

and net income of $3.4 billion. As a Chairman and CEO of General Electric, he led one of the world’s most profound fortune corporations. GE became a highly differentiated corporation from the one he inherited in 1981. GE is now built around 14 distinct businesses—including aircraft engines, medical systems, engineering plastics, major appliances, NBC television, and financial services. They reflect the aggressive strategic redirection which Welch unveiled soon after he became CEO. GE’s strategic reorientation had taken shape by the end of 1986. Since then, Welch had embarked upon a more daunting challenge: building a revitalized “human engine” to animate GE’s formidable “business engine.” His programme had two central objectives:  First, he championed a company-wide drive to identify and eliminate unproductive work in order to energize GE’s employees. He developed procedures to speed decision cycles, move information through the organization, provides quick and effective feedback, and evaluate and reward managers on qualities such as openness, candour, and self-confidence.  Second, and perhaps of even greater significance, Welch led a transformation of attitudes at GE to release “emotional energy” at all levels of the organization and encourage creativity and feelings of ownership and self-worth. His ultimate goal was to create an enterprise that can tap the

authored and complied by niket karajagi

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