This PPT contain a biopic of jack Welch. This is on a book named as jack straight from the gut.

1. • Abhirup
Anand
• Karthik
Goel
• Rishabh
Jain
• Rupjyoti
Borah
• Shipra
Sinha(
Presented
By:-
Group A9

2. JACK WELCH
John Francis Welch
“He is not only a leader , but a leader who
has made many leaders and the legacy
continues…”
“Own destiny or someone else will.”

3. His autobiography , Jack: Straight from the Gut, is an insightful
look into the traits and attitude of a leader.
Jack Welch(Nicknamed as the Neutron Jack) was the president of
General Electric in the 80s and 90s. He was named one of the
most influential people of the twentieth century and “Manager of
the Century” by Forbes in 1999.
He’s an exemplary business leader who came from humble
beginnings and rose to the top of G E with his skills ,
determination and ability to take risks.

4. EARLY LIFE
 Born on November 19, 1935 at Peabody, Massachusetts
 His father was a bus conductor and mother a homemaker.
 Studied at :
Salem High School ,
University of Massachusetts Amherst (BS)
University of Illinois at Urbana Champaign (MS,
PhD)
 In his childhood ,his mother was a source of
inspiration & constant motivation to push the
extreme. He learnt to go beyond boundaries which
made him the leader he was.

5. HIS JOURNEY AT GE
 1960 : Joined as a Junior Chemical Engineer
 1962 : Factory Manager
 1968 : Vice President , Head Plastics Division
 1971 : Vice President and Head Metallurgical and Chemical
division
 1973 : Head of Strategic Planning
 1977 : Senior VP , Head of Consumer Products & Services
Division
 1979 : Vice Chairman
 1981: Welch became GE's youngest chairman and CEO,
succeeding Reginald H. Jones

6. “I wanted GE to stay only in
business that were No.1 or
No.2 in their markets.”
~Jack Welch
BUILDING A PHILOSOPHY

7. CHALLENGES
 A sudden rush of responsibility being the CEO of a
big company like GE.
 Insecurities from within
 Too many executives and managers handling the
same role.
 The corporate environment .
 Less efficiency and improper utilisation of resources.
 The sheep mentality in the company.

8. TOUGH CALLS
 Huge layoff
 Changing the way corporate board meetings
were held
 Investing in so called “non productive” things
, eg : fitness centre, recreational activities ,
guest house etc.

9. THE NEUTRON JACK
1,18,000 people (including
37000 in businesses that
were sold) were fired within the
first 5 years.
Spending millions on buildings that made nothing ,
while closing down uncompetitive factories that
produced goods.
Paying the highest wages , while having the lowest
wage cost.
Managing long-term , while “eating “ the short-term.
Needing to be hard in order to be soft.

10. THE RCA DEAL
 It was the biggest non oil deal in history , at that
time.
 GE collaborated with RCA after coming close to
buying CBS.
 Finally, GE bought RCA for a total of $6.3 billions in
cash , which was much higher than its market
value.
 The RCA deal proved to be a change in fortune for
GE as the logistics and semi-conductor business
soared to new heights.

11. THE VITALITY CURVE
“We build great
people, who than
build great
products and
services.”
~Jack
Welch

12. 4E AND P
&

13. The
Ups
and
Downs
• Acquisition of Kidder
• $350 Million Theft
• Launch of GE Capital
• Mixing NBC with
Light Bulbs

14. THE SIEGEL CONTROVERSY: KIDDER
 GE bought Kidder in the 1980s
 Kidder’s operations included investment
banking, brokerage, and trading.
 GE had to recover from the illegal trading
scam done by Marty Siegel, before GE
acquired Kidder.
 In a few years, GE recovered from losing $32
million to making $170 million.

15. $350 MILLION THEFT
 In 1994, Joseph Jett made a series of
fictitious trades to inflate his own bonus.
 The fraudulent trades artificially boosted
Kidder’s reported income.
 This loss affected the GE economy
drastically and Welch had to resort to pooling
of cash from employees.

16. GE CAPITAL: THE GROWTH ENGINE
 In June 1998, Welch decided to revamp GE
Capital in a board meeting.
 GE Capital bought $1.1 Billion of auto loan in
Thailand from a group of failed financers
seized by the Govt.
 By 2000, GE Capital made $5.2 Billion, 41%
of GE’s total income.
 Welch’s dream of being No 1 or 2 in each
market was achieved.

17. THE GAME CHANGERS
• Effect of globalisation
• Built a large power plant in Japan
• Signed deals with Mitsui Petrochemicals and
AKU in mid 1960s.
 Getting through the GE bureaucracy.
 Building of the GE Asia Brand

18. GROWING SERVICES
 GE Services were all about people.
 Supplying spare and replacement parts for
the aircraft engines, locomotives
 Transformation of nature of their business
 Sustained Growth

19. SIX SIGMA AT GE
 Six Sigma implementation at
General Electric started with
a heavy emphasis on training
the workforce for data-based
problem analysis.
 It gave the company a major
share in global market for
new power plants

20. HONEYWELL
 Divestiture of Honeywell’s aircraft business
set new fortunes rolling for GE.

21. WHAT THIS CEO THINGS IS ALL ABOUT ?
 Integrity
 The corporation and community
 Maximizing on organization’s intellect
 People first strategy second : Owning the
people
 Self Confidence and Passion
 Strategy analysis: Competitors and the field

22. WHAT THIS CEO THINGS IS ALL ABOUT ?
 Market vs mindset
 Be self-confident. Have the courage to be
open, to welcome change and new ideas.
Don’t be afraid to have your views
challenged
 Employee survey ,Upgrading a function
 Brand building
 Your back room is somebody else’s front
room

23. THE LESSONS FROM JACK WELCH

24. CONCLUSION
Welch's simple and direct approach
is apparent throughout Jack:
Straight from the Gut. As an expert
on building world-class teams, his
teamwork tips and ideas on
creating a self-confident and
energized work force show
managers how to create similar
solid results. Welch's personal
stories form the framework of a
self-help management guide.