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JACK WELCH Presented By: Krishna Kumar(Batch 2011-13) AIMS Institute of Management Studies, Pune
Early Life Jack Welch was born in Salem, Massachusetts and was Only Child to his parents. His Father John Welch was a Boston & Maine Railroad Conductor. His Mother Grace Welch was a Housewife.
Education Jack attended Salem High School. Graduated from Massachusetts Amherst in 1957 with a Bachelor of Science Degree in Chemical Engineering. Welch went on to receive his M.S. and Ph.D at the University of Illinois at Urbana-Champaign in 1960.
Early Jobs Joined General Electric in 1960 as a Junior Engineer in Pittsfield, Massachusetts. Very disappointed with strict bureaucracy within General Electric, and planned to leave. Later he was 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.
Tenure as CEO of GE: In an interview with the Financial Times on the Global financial crisis of 2008–2009, Welch said, “On the face of it, shareholder value is the dumbest idea in the world because Shareholder value is a result, not a strategy... your main constituencies are your employees, your customers and your products.” He always pushed the managers of the businesses he kept to become more productive. He also expanded the broadness of the stock options program at GE from just top executives to nearly one third of all employees.
GE had increased its market capital tremendously. However, Welch eliminated basic research, closed or sold off businesses that were allegedly under- performing. During the 1990s, Welch shifted GE business from manufacturing to financial services through numerous acquisitions. Welch adopted Motorolas Six Sigma quality program in late 1995. In 1980, the year before Welch became CEO, GE recorded revenues of roughly $26.8 billion.
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 “An organizations ability to learn, and translate thatlearning into action rapidly, is the ultimate competitiveadvantage” -Jack Welch
Criticism: Some industry analysts claim that Welch is given too much credit for GEs success. They contend that individual managers are largely responsible for the companys success. Welch has also received criticism over the years for an apparent lack of compassion for the middle class and working class. By his actions during acquisitions and wholesale shutdowns of GE business units Welch proved that his technique of only keeping the units your company is "good" at you can maximize ROI for the short term.
Personal Life of Jack Welch: Jack had four children with his first wife, Carolyn. They divorced amicably in April 1987 after 28 years of marriage. His second wife, Jane Beasley, was a former mergers-and-acquisitions lawyer. She married Jack in April 1989, and they divorced in 2003. While Welch had crafted a prenuptial agreement, Beasley insisted on a ten-year time limit to its applicability, and thus she was able to leave the marriage with an amount believed to be in the range of $180 million.
The third wife of Jack Welch is Suzy Wetlaufer, who co-authored his 2005 book Winning as Suzy Welch. He formerly spent time on the golf course. Other personal interests such as modern art, international travel, teaching and attending Red Sox games.
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 everyones skin, exuding positive energy and optimism. Leaders inspire risk taking and learning by setting the example.
Continuing to Leave FootprintsIn Business Leadership In August 2010, Jack Welch was interviewed by Bill Hybels on the topic of leadership during The Global Leadership Summit, which is hosted by Willow Creek Association.
Jack Welch as Professor: On January 25, 2006, Welch gave his name to Sacred Heart Universitys College of Business, which will be known as the "John F. Welch College of Business". Since September 2006, Welch has been teaching a class at the MIT Sloan School of Management to a hand-picked group of 30 MBA students with a demonstrated career interest in Leadership, 2009
BOOKS: “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 approximately in 45 various business magazines.