Leadership and change management

1. A True Art of Winning
in Business
A Comprehensive Analysis of GE and Walton Bangladesh
Prepared for: Dr. Iftekhar Ghani Chowdhury
Professor, IBA

2. Group 5
A.M Al-Amin
Roll: 54
National PPP Project
Development Expert
Asian Development Bank
Sheikh Hasin Fayez
Roll: 41
Manager
Digital Financial Services
Eastern Bank PLC
Shamama Shahrin
Roll: 47
Associate Manager
SME Banking Division
BRAC Bank PLC

3. Table of contents
01
05
04
02
06
03
Introduction
Welch as a Leader Change
Management
About Jack Welch
Comprehensive
Analysis between
GE and Walton
Bangladesh
Book Summary

4. Introduction
The finest strategies for an individual to succeed in the corporate world are
illustrated in Jack Welch's book ‘Winning’ published in April 2005 co-
authored with his wife Suzy Welch.
Jack Welch gives the guidelines to follow, rules to consider, assumptions to
adopt and mistakes to avoid
When companies win, people thrive and grow
01

5. Who is Jack Welch
Born on November 19, 1935, Jack Welch is a former chemical engineer, business leader,
and writer.
Became GE’s CEO in 1981 at the age of 45
Transformed the organization from a $13 billion (USD) maker of appliances and lightbulbs
into one of the most valuable companies in the world
Transformation and innovation are keys for survival
1981 to 1990, GE freed up over $11 billion by selling off more than 200 underperforming
businesses
The value of GE increased 4000% during his leadership, and upon his retirement, he was
paid $417 million in severance benefits
02

6. Key Points of Winning
03
"Before you are a leader, success is all about growing
yourself. When you become a leader, success is all about
growing others."
— Jack Welch

7. Winning in Four Sections
Basic Management principles
business philosophy and
values
Leadership, Hiring, People
Management, Parting ways
Strategy, Budgeting, Change,
Six Sigma, Organic Growth,
Mergers and Acquisitions
The right job, Getting
promoted, Hard spots, Work
life balance
Underneath it all Your Company
Your Competition Your Career

8. Jack Welch as a role model of a Leader
04
Biggest dirty little secret in
Business
Hiring
Differentiation
Candor
Hiring good people is hard.
Hiring great people is
brutally hard
It is important to manage a
parting of ways with as little
pain and damage as possible
encourages people to voice
their opinions through the
“Work‐Out” process
Encouraging employees to
seek out and share new
ideas
Voice and Dignity
Parting Ways Boundaryless Behavior
a process where a company
supports the mighty and culls
the weak

9. Candor
 Candor works because candor unclutters
 Clear thinking and quick decision-making are impeded by a lack of
transparency
 Sincerity encourages conversation, which leads to the development of ideas.
Since fresh ideas are discussed and brought forward rapidly, candor also
promotes speed
 Lastly, openness reduces costs by doing away with unnecessary meetings and
reports that staff members already know are useless.

10. Differentiation
 With an organization’s limited managerial time and budget, Welch recommends
differentiation – a process where a company supports the mighty and culls the weak.
 Although many people argue it’s immoral and harsh, Welch asserts that it can transform
businesses dramatically.
 Every company has strong business or product lines and weak one and some in between.
Differentiation requires managers to know which is which and invest accordingly.
 In terms of the “people part,” differentiation requires managers to evaluate employees
and separate them into three performance categories: top 20%, middle 70%, and bottom
10%.

11. Voice and Dignity
 Companies that don’t allow voices to be heard aren’t heading in the right
direction since this blocks people from engaging in anything passionately. GE,
on the other hand, encourages people to voice their opinions through the
“Work‐Out” process where employees meet regularly to eliminate
bureaucracy and find better solutions.
 Some people have better ideas than others, some people are smarter or more
experienced or more creative. But everyone should be heard and respected.
They want it and a company needs it.

12. Hiring
The Acid Tests
1. Integrity
2. Maturity
3. Intelligence
4 E
Framework
1. Energy
2. Energize
3. Edge
4. Execution
Hiring from the top
1. Authenticity
2. Ability to see around
corners
3. Strong penchant to
surround themselves
with people better and
smarter than they are
4. Heavy duty resilience

13. Parting Ways
Reasons
1. Integrity violations
2. Layoffs
3. Non-performance
3 Big Mistakes of
Firing
1. Moving too fast
2. Not using enough
candor
3. Taking it too long
Getting it right
1. No Surprises
2. Minimum
humiliation

14. Boundaryless Behavior
 In the 1990s, Welch created a new strategic concept called ‘integrated
diversity’ and worked to make GE ‘a boundary-less company,’ which he
described as “a company where we knock down the walls that separate us
from each other on the inside and from our key constituencies on the outside.”
 To make this happen, he changed the way bonuses and options awards were
delivered to honor innovative and resource-sharing efforts. Moreover, Welch
also introduced the notion of ‘stretch’ to set performance targets to motivate
higher levels of performance of managers, which he described as “using
dreams to set business targets, with no real idea of how to get there.”

15. “Change before you have to”
05
Hiring true believers who can genuinely embrace changes
Getting rid of people who resist even if they perform well
Attaching change with a clear goal that makes people understand why it’s
occurring in the first place.
Expecting unpredictable events and preparing ahead while
grabbing opportunities when they come your way

16. Budgeting
▪ Welch disagrees with the way Budgeting is done. He urges companies to adopt a
new way that not only improves growth but also inspires people.
▪ Firstly, companies need to question themselves as to how they can beat the
previous year’s performance. Next, they need to identify competition and seek
solutions to overcome them.
▪ If these two questions are asked, then it can pave the way for both parties –
headquarters and field members – to engage in discussions that will focus more on
opportunities and obstacles.

17. Organic Growth
3 Common Mistakes
1. Not to flood start up ventures
with adequate resources
2. Too little fanfare of the
promise and importance of the
new venture
3. They limit the new ventures
autonomy
3 Antidotes
1. Spent plenty upfront and put
the best, hungriest and most
passionate people in
leadership roles
2. Make an exaggerate
commotion about the potential
and importance of the new
ventures.
3. Err on the side of freedom; get
off the new ventures back

18. Mergers and Acquisitions
▪ Mergers often come with a lot of elation, but veterans will tell you that the battle
has only begun for both the acquirer and acquired.
▪ The buyer is usually worried about the loads of work that lies ahead of them, and
the acquired is more nervous because of the layoffs and adjustments that go hand
in hand with mergers.
▪ Acquisitions spell faster, profitable growth and provide opportunities for new
customers and products, but they can still fail if it isn’t handled properly.

19. Six Sigma
▪ It is an effective program that not only helps you improve your customer’s
experience, but you can also lower your costs at the same time. Additionally, it
also refines the design processes and makes your company more competitive.

20. Comparing Leadership and Change
Management: Walton vs. Winning
6

21. Walton Bangladesh
 Newly appointed Chairman SM Shamsul Alam, Vice
Chairman SM Ashraful Alam, and Managing Director S M
Mahbubul Alam have been instrumental in Walton's
explosive expansion as senior directors. "We set a target
to increase the export volume to $3 billion within 2025 as
part of this," stated the CEO of Walton.
 The organization is presently advancing in the global
market under the motto "Go Global 2030." By the end of
this decade, Walton hopes to rank among the top five
worldwide electronics brands. The group has been working
toward the aim by implementing a roadmap that includes
short, mid, and long-term strategic strategies.
 Walton aims to export $5 billion worth of goods by
2030. The powerhouse of Bangladeshi electronics is
targeting $7 billion in sales at the same time.

22. ● Limited R&D: The emphasis on technical
R&D, as opposed to market research
and development, suggests a potential
disconnect from evolving customer
needs.
● Leadership Program: The absence of
dedicated leadership programs could
restrict the cultivation of future leaders
within the organization.
● Retention: Poor retention signifies
challenges in maintaining a skilled and
motivated workforce.
● Low cost vs Hight Cost: To be cheaper,
sometimes quality is compromised
● Selection of Higher Management: Gulam
Murshed's appointment exemplifies a
focus on internal promotion, potentially
overlooking external talent with fresh
perspectives.
● Salary Structure: The low salary
structure might hinder attracting and
retaining top performers.
● Segmentation: Targeting the broad
middle class might limit opportunities in
niche markets with higher margins.
Comparative Analysis

23. Discussion
While "Winning" offers valuable insights, it's
crucial to recognize the contextual
differences between Walton and General
Electric. Here are some points to consider
for successful adaptation:
Resource Constraints
Walton might not have access to the
same resources as GE. Adapting
"Winning" strategies should be done
strategically within the existing
resource limitations.
Scalability
Programs and initiatives should be
designed to be scalable as the
company grows, ensuring long-term
sustainability.
Cultural Fit
The leadership style and change
management practices implemented at GE
might need adjustments to align with
Bangladeshi work culture to ensure
employee buy-in.

24. Conclusion
“You can't grow long-term if you can't eat short-term. Anybody can manage short. Anybody can
manage long. Balancing those two things is what management is.” – Jack Welch
 The applicability of Welch's principles in the Bangladeshi context requires careful consideration.
 By fostering a culture of innovation, attracting top talent, and remaining customer-centric, Walton can position
itself to thrive in the ever-evolving Bangladeshi market.
 "Winning" by Jack Welch is a powerful guide to achieving success in business and leadership. In this book, Welch,
former CEO of General Electric, shares his insights and strategies for winning in the competitive business world. The
key takeaway from "Winning" is the importance of strong leadership, effective management, and relentless pursuit of
excellence.

25. THANK YOU