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  • 1. Jack Welch and Jeffry immelt:Continuity and change in strategy, Style, and culture at GE
    Niati Dixit
    MdZeeshan Farooqui
  • 2. Introduction to GE
    Founded by Thomas Alva Edison as EGEC in 1878.
    Merged with THEC in 1892 to form GE.
    First formal CEO Charles Coffin 1894.
    In 1896, General Electric was one of the original 12 companies listed on the newly formed Dow Jones Industrial Average.
    Acquired more than 350 companies, including mammoth players like- National Electric Lamp Association (NELA) , reacquired RCA, NBC television network .
  • 3. GE at present
    Operates in 100+ countries worldwide
    300,000+ employees worldwide
    2009 revenue - $174 billion
    2009 earnings - $31.4 billion
    One of original six companies still remains listed after 114 year on Dow Jones index
  • 4. Who is Jack Welch?
    1935: born in Salem, Massachusetts
    1957: BS in Chemical Engineering
    1960: MS and PhD in Chemical Engineering
  • 5. Jack Welch
    1999: Named “Manager of the Century” by Fortune
    Named one of the three most admired business leaders in the world by Financial Times
    September 7, 2001: Retired as CEO
    Published autobiography, “Jack, Straight from the Gut”
  • 6. Jack Welch and GE
    1960: Joined GE as a junior engineer
    10 Years later he audaciously wrote in his annual performance review that his long-term goal was to become CEO
    1972: Elected GE’s youngest VP
    1977: Become senior vice president
    1979: Vice Chairman
    April 1, 1981: Became the 8th Chairman and CEO of General Electric
  • 7. Taking Over GE’s CEO
    Challenges from outside of GE
    • Economic recession
    • 8. High interest rates
    • 9. Highest unemployment rate since the depression
    Challenges from GE
    Massive information and inefficient macro-business
  • 10. Welch’s Vision
    “A decade from now, I would like General Electric to be perceived as a Unique, high-spirited, Entrepreneurial enterprise…the most profitable, highly diversified company on the earth, with world quality leadership in every one of its product lines”. -- Jack Welch
    Three-Circle Vision for GE
  • 11. “Restructuring the Hard Drive”
    Challenged everyone to be “better than the best”
    Sold more than 200 businesses and made over 370 acquisitions
    Insisted GE become more “lean and agile” resulting
    Delayering: elimination of the “sector” level
    Downsizing: elimination of about 123,450 jobs
    Divestiture: elimination of an additional 122,700 jobs
    Replaced 12 of his 14 business heads
  • 12. Initiatives - Objective
    Cut the companies spending on R & D.
    Work-Out – Group of 50 employees companies policy and process.
    Best Practices – Involving all employees in the quality process.
    Going Global
    Six Sigma - In late 1995
  • 13. Passing the Torch
    Retirement – September 2001
    Lengthy process of succession
    Internal candidates only
    Never named candidates
    No strategic vision
    No common measure for candidates
    Long list of candidates
  • 14. GE under Jack Welch
    • Welch – a hard task-master.
    • 15. Surprise visits – a part of his style of functioning.
    • 16. Under Welch, GE functioned as a true meritocracy.
    • 17. The Annual ‘C’ session meetings.
    • 18. Promoted the idea of ‘Boundary – less corporation’ at GE.
    • 19. Jack Welch’s – Theory of Leadership – The 4E’s + P.
  • Theory of Leadership – The 4E’s + P
  • 20. GE under Jack Welch
    Concept of borrowing unpatented ideas from other corporation.
    Sig Sigma, Demand Flow Technology, Bullet Train Thinking, Quick market Intelligence, etc.
    Bottom 10% least effective employees were fired.
    Tendency to jump to conclusions about people.
    An extremely demanding boss – “What have you done for me lately?”
  • 21. GE Under Jack Welch
    Revenues shot up from 28 billion to 129.8 billion (1981 – 2001)
  • 22. The Immelt Revolution
  • 23. Who was Jeff Immelt?
    • Joined GE Plastic in 1982 (MBA from Harvard University)
    • 24. Various global leadership positions over year career in GE
    • 25. GE Electronics, GE Medicals, International Marketing
    • 26. Elected as CEO to begin tenure in September 2001
    Release of Annual Report in March 2002.
    Redesigning of CEO Compensation Package.
    Acquisition with Vivendi Universal’s American assets value at US$ 14 billion.
    Invested in various Research centres.
    Promoted external communications.
    Cultural shift from performance to customer satisfaction and value
  • 27. Continued….
    External Recruitment for senior positions.
    Diversity in work force.
    “People Oriented” approach.
    Establishment of a Commercial Council.
    “Innovative Break-through” program.
    Launch of projects ranging from creating microjet engines to desalination.
  • 28. What are differences ?
  • 29. Conclusion
  • 30. THANK YOU