Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
“Before you are a leader, success is all about growing yourself.
When you become a leader, success is all about growing ot...
The Art of
Leadership
William Muir’s Chicken
Experiment
EXAMPLES OF DIFFERENTTYPES OF LEADERSHIP
EXAMPLES OF DIFFERENTTYPES OF LEADERSHIP
GE’STWO-DECADETRANSFORMATION:
JACKWELCH'S LEADERSHIP
 Founded in 1878 byThomas Edison
 General Electric is one of the wo...
Welch: Leadership Style
Vision: Build a market-leading company
• Lead more, Manage Less
• Motivating Employees
• Constantl...
Make company more lean and agile
GE’s employee strength declined from
404,000 in 1980 to 2,92,00 by 1989
Revenues increase...
RealTime
Planning
• Welch developed a five page playbook for each business
Re-structuring
of budgeting
process
• Welch wan...
GOING GLOBAL
 Welch Challenged his manager to focus towards evaluation of "#1 or #2"
concept on world market position.
 ...
The compensation package was
made more rewarding through
stock option allocation
Welch increased number of such
allocation...
IDENTIFYING AND ELIMINATE RANK4
MANAGERS
 Welch ranked managers into 4 categories
 Category 1: Delivered on commitment a...
Concept of stretch was
introduced
Managers not only had to hit
the basic target, set
depending upon current
situation but ...
ADDVALUETO PRODUCTS-SERVICE
BUSINESS
 Concept of in-site was introduced.
 GE through some automation technologies starte...
FOCUS ON QUALITY IMPLEMENTATION OF
SIX SIGMA
 Analysis showed that GE was losing 8-10 billion a year in efficiencies and ...
A programme entitled byWelch as
destroyyourbusiness.com was launched
Fundamental support for E-business –
strong brands, t...
THANKYOU!!
“Leaders must be close enough to relate others,
but far enough ahead to motivate them.”
~ John C Maxwell
Upcoming SlideShare
Loading in …5
×

Leadership - Jack Welch (GE Transformation)

4,263 views

Published on

"Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others." - Jack Welch

Published in: Business

Leadership - Jack Welch (GE Transformation)

  1. 1. “Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others.” ~ Jack Welch Manoj Bhargava
  2. 2. The Art of Leadership William Muir’s Chicken Experiment
  3. 3. EXAMPLES OF DIFFERENTTYPES OF LEADERSHIP
  4. 4. EXAMPLES OF DIFFERENTTYPES OF LEADERSHIP
  5. 5. GE’STWO-DECADETRANSFORMATION: JACKWELCH'S LEADERSHIP  Founded in 1878 byThomas Edison  General Electric is one of the world’s leading diversified industrial companies. GE’s primary business divisions include: Power &Water, Oil & Gas, Energy Management, Aviation, Healthcare,Transportation, Capital and Digital  GE underwent many changes prior to Jack Welch Leadership, In 1930 it was considered as highly centralized, tightly controlled corporate form.  1950’s to greater extent GE decentralized its hundreds of departments  1960 was the duration when profitless growth become the concern and caused the company to strengthen its staff and corporate strategy  During 1970 and 80’s Reg Jones raised strategic planning to an art form and made GE the benchmark for hundred of companies  In 1981 Jack Welch’s performance and earnings record ultimately won him the position over six other candidates. Even though he had no formal master plan for GE's reorganization, he did have a vision of what he wanted the company to be.
  6. 6. Welch: Leadership Style Vision: Build a market-leading company • Lead more, Manage Less • Motivating Employees • Constantly identifying other leaders at GE • Aggressive Leadership • Communication • Charismatic • Stayed visible at GE • Succession Planning  Jack Welch was born in Peabody, Massachusetts  America's most recognized and controversial chief executives  Qualified chemical engineer  Began his career in a junior position at General Electric  During his 41 years at General Electric (GE)Welch rose from his position as an entry-level junior engineer to become the company's youngest vice president and later its youngest CEO and chairman
  7. 7. Make company more lean and agile GE’s employee strength declined from 404,000 in 1980 to 2,92,00 by 1989 Revenues increased modestly through this downsizing but profits increased considerably Welch built a new team of managers who innovative, committed to target & company values & were ready to take the responsibility Destaffing Welch set the standard for each business to become the #1 or #2 competitor in its industry - or to disengage This management practice helped GE to free up of over 11billion of capital by selling around 200 business between 1981-1990 but at the same time they also acquired 370 business by investing over 21 billion to some major purchases #1 Or #2: Fix, Sell, Or Close
  8. 8. RealTime Planning • Welch developed a five page playbook for each business Re-structuring of budgeting process • Welch wanted his managers to compare sales figure with respect to market share & competitive cost advantage of operating margins Work -Out • A forum through which employees can share their honest, energetic & innovative ideas • This eventually led to a considerable increase in the growth rate of GE Best Practices • Identify the tool and practices adopted by successful companies and implement the same • This policy ended up in making employees realize that they should focus on how things got done than just what got done
  9. 9. GOING GLOBAL  Welch Challenged his manager to focus towards evaluation of "#1 or #2" concept on world market position.  GE started acquiring numerous international business  Every economic downturn was seen as a fresh opportunity to acquire new business.  By 1998 international revenues were 42.8billion, just double the value 5 years back.  Globalisation lead to generation of global revenues which were growing at 3 times more than domestic sales rate
  10. 10. The compensation package was made more rewarding through stock option allocation Welch increased number of such allocation from 300 to 3000 REWARDING COMPENSATION PACKAGE Use of session c in Welch's style Top most executives were asked to identify the future leaders, outline training and development plan etc This policy helped managers across GE to develop their staff & understand their coaching needs Developing Leaders
  11. 11. IDENTIFYING AND ELIMINATE RANK4 MANAGERS  Welch ranked managers into 4 categories  Category 1: Delivered on commitment and shared company value  Category 2: Failed on commitment and failed on sharing company value  Category 3: Failed on commitment but shared company value  category 4: Delivered on commitment but failed on sharing company value  Welch devised a mechanism to evaluate managers not only on the basis of some quantifiable targets but also to the extent to which they lived GE values.  This practice was used by other managers to rank their employees & identify their coaching needs & if coaching failed, they were eliminated.  Eventually this practice evolved into a 360 degree feedback process
  12. 12. Concept of stretch was introduced Managers not only had to hit the basic target, set depending upon current situation but also during the budgetary cycle targets were increased ACHIEVINGTHE IMPOSSIBLE An environment where people would learn & share ideas irrespective of the geographical boundary, class of employee or line of business GE now rewarded its employees not only for idea creation but also for idea sharing & idea seeking Boundaryless Behaviour
  13. 13. ADDVALUETO PRODUCTS-SERVICE BUSINESS  Concept of in-site was introduced.  GE through some automation technologies started producing on line monitoring &diagnostic support to its products like MRI SCANNER,JET ENGINES & many more.  Welch stressed on the fact that their service business can grow only by making their customer’s business more profitable through innovative service supports.  By 1996 GE had developed 8 billion service based business which was growing much faster than their underlying product business  The service business finally started contributing for two thirds of GE’s revenue
  14. 14. FOCUS ON QUALITY IMPLEMENTATION OF SIX SIGMA  Analysis showed that GE was losing 8-10 billion a year in efficiencies and lost productivity  Objective behind six sigma-improved quality, lower cost & increased productivity  Six sigma was launched describing it as “biggest opportunity for growth”  Six sigma was made mandatory for all employees  Massive training programme were introduced & employee were categorized into green belt, Black belt and master Black belt in six sigma quality  Implementation of six sigma helped GE to significantly increase the operating life of many of its products and further give the company unexpected return of 750 million over an investment of 500 million for implementation of six sigma
  15. 15. A programme entitled byWelch as destroyyourbusiness.com was launched Fundamental support for E-business – strong brands, top product reliability, great fulfilment capability and excellence service quality Launch of E-Business Welch wanted only “A Players” with 4 “E’s” in GE 4 “E’s” – energy ability to energies others edge & execution New appraisal system was launched - every manager was required to rate their employees into one of five categories based on their long time performances > >Top 10%-1s >> Strong 15% - 2s >> MostValued 50% - 3s >> Borderline 15% - 4s >> Least effective 10% -5s “A players” with 4”E’s”
  16. 16. THANKYOU!! “Leaders must be close enough to relate others, but far enough ahead to motivate them.” ~ John C Maxwell

×