The journey of GE from starting and with the success story of their youngest CEO Jack Welch.

1. Presented By:-
Ashis Kyal (PGDM3/1608

2. GE’s two-decade transformation:
JACK WELCH’S LEADERSHIP

3. OVERVIEW
1
2
3
4
FOUNDED
1878, Thomson Houston Electric Company (THEC)
MERGER
1892, Between GE and THEC formed General Electric
HEADQUARTERS
Fairfield, Connecticut, U.S
REVENUE
$ 123.700 Billion (as of 2016)

4. • Founded in 1878 by Thomas Edison.
• Focus on Generation , Distribution, and use of electric
power to become.
• 1978 – Power Generation , household appliances, lighting,
Aircraft engines, medical systems and Diesel Locomotives.
INTRODUCTION

5. SINCE 1973GE – CEOs

6. 1930
Centralized
1950
Decentralized
1960
strengthen
its corporate
staff and
develop
sophisticated
planning
systems

7. REG JONES (1973 - 1980)PREDECESSOR
strategic43
units: To
support
strategic
planning.
GE was
benchmark for
others companies
Imitated its SBU(
based structure &
planning process).
Unable to review
and approve
massive volumes of
Information
generated by 43
SBU’s.
Formed a covering
on GE’s
departments,
divisions, groups
and SBU’s with
“SECTORS”.
Country’s
leading business
statesman.
YEAR ACHIEVEMENTS
1970 “CEO of the Year” 3 times by his peers.
1979 “CEO of the Decade”
1981 “Management Legend” by WSJ

8. BRIEF INTRODUCTIONJACK WELCH
John Francis "Jack" Welch, Jr.
born( November 19, 1935), ALMA- MATER
•Salem High school
•University of Massachusetts (Bachelor of
Science in Chemical Engineering, 1957)
•University of Illinois at Urbana-
Champaign (M.S and PhD, 1960)
YEAR ACHIEVEMENTS
1997 National business hall of fame
1999 Manager of the 20th
century
2001-2004 Forbes 400 richest Americans

9. CHALLENGES AS A CEOJACK WELCH
3
1
2
ECONOMY IN
RECESSION
HIGHEST UNEMPLOYMENT
RATES SINCE DEPRESSION
HIGH INTEREST
RATES

10. WHAT IS WELCH’S REACTION TO
THESE CHALLENGES?

11. “Restructuring the Hard
Drive”
#1 or #2: Fix, Sell or Close
 Three Circle Concept
 DeStaffing & Real Time Planning
The Budgeting process was equally radically redefined
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
The Drastic Restructuring in the early-and mid-1980s earned Welch the nick
name “Neutron Jack”

12. “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
WELCH’s
VISION

13. THREE CIRCLE CONCEPTINITIATIVES
SERVICES
GECC Information
Construction & Engineering
Nuclear Services
CORE
Lighting
Major Appliance
Motor
Transportation
Turbine
Construction
Equipment
TECHNOLOGY
Industrial Electronics
Medical Systems
Materials
Aerospace
Aircraft Engines
-

14. VISION
• Mr. Welch started from day one of his tenure as CEO to change the
vision of GE as it relates to its employees, management and the aim of its
products.
• His major goal was to fixed those poor achieving product lines that
could be fixed, sell those product lines that could be sold but not fixed and drop
those product lines that could not be fixed or sold.
MISSION
• Mr. Welch mission was to downsize, de-staff and de-layer the GE organization to
streamline it to be more efficient and effective.

15. STRATEGIES
• Mr. Welch brought in various strategies; however, they all had three primary focus
points in mind.
• He wanted to centralize the chain of command structure, while taking out layers of
bureaucracy.
• He wanted input from all sectors of the GE family when determining how to do
jobs better.
• He wanted management to be responsive up as well as down the chain of
command.

16. STRATEGIES
• Mr. Welch brought in various strategies; however, they all had three primary focus
points in mind.
• He wanted to centralize the chain of command structure, while taking out layers of
bureaucracy.
• He wanted input from all sectors of the GE family when determining how to do
jobs better.
• He wanted management to be responsive up as well as down the chain of
command.

17. WORKOUT THE FIRST “SOFTWARE INITIATIVE
IMPLEMENTATIONOBJECTIVEOVERVIEW
• Implementation
team (24 consultant)
• Group of 40-100
employees
• 3 day sessions
• On the spot
• Decision on 80%
• proposals.
• To design a process
To get unnessary
bureaucratic workout
of the system.
• To create a culture
of a small company,
where all felt
engaged and
everyone had
voice.
• An open discussion
Forum employee
Could give ideas and
Suggestions on
Business and get
Immediate responses
to it.

18. BEST PRACTICES THE SECOND “SOFTWARE”
RESULT
Productivity Increase
Managers realized the
key focus area of
business
FOCUS MORE ON
HOW THINGS GET
DONE.
LEARNING FROM
OTHER INDUSTRIES IMPLEMENTATION

19. EMPLOYEES DEVELOPING LEADERS FOR TOMORROW
• Keeping close tabs on top 3000 executive
• Succession Planning
• Improved Packages/Stock options
• Training institute at Croton Ville
• 360 Degree Feedback

20. BOUNDARYLESS BEHAVIOR
Integrated Diversity
Boundary less
Company
The Boundaryless
company we envision
will remove the barriers
among engineering,
manufacturing,
marketing, sales, and
customer service; it will
recognize no
distinctions between
domestic and foreign
operation …..

21. STRETCH
•1990 , Welch Introduced the notion of “stretch”
to set performance targets and described it as
“using dreams to set business targets, with no
real idea of how to get there.”
•Stretch Targets did not replace traditional
forecasting and objectives-setting process.
ACHIEVING THE
IMPOSSIBLE

22. SYSTEMs PLANNING
Welch got rid of the laborious strategic planning system and its
corporate planning staff. He developed a simple one-page answer
to businesses five questions concerning current market dynamics.
Competitors key recent activities and GE business response. The
greatest competitive threat over the next three years and GE’s
planned response.

23. STAFF COMPETENCIES STAFF IN FOUR LIGHTS
 Those who delivered on commitments
Those individual who did not meet
commitments
Those individual that did not meet
commitments
Those individuals who met all
commitments

24. STAFFING AND STAFFING
DEVELOPMENT
Welch wanted to ensure that his staff understood
the culture he wanted implemented at GE. He
provided for the necessary training to help his
staff members develop into the leaders and
employees he felt GE needed to survive and
maintain productivity.
MAINTAIN PRODUCTIVIT

25. SIX SIGMA QUALITY INITIATIVE
• Employees were dissatisfied with the quality of its
product.
• GE was operating at error rates 10,000 times the six
sigma quality level of 3.4 defects/million costing $8
-$12 billion/year.
• Series of planning, resource allocation, review, and
communication meetings were done.
• Participation in initiative was compulsory, 40%
Bonus was tied with it.

26. SIX SIGMA IMPLEMENTATION
GREEN BELT BLACK BELT
MASTER
BALCK BELT
Training-4 weeks
Implementation-5
months project
aims at improving
the quality
Training-6 weeks
in statistics, data
analysis and other
six sigma tools.
Full time sig sigma
instructor

27. “A Players” with “Four E’s”RAISING THE
BAR
“A Players” “Four E’s”
• Individuals with vision
• Leadership
• Energy
• Courage
• Energy
• Energize other
• Edge
• execution

28. CONCLUSION
• Leaner and more
efficient
• Challenge for the future

29. ANALYSIS
• Customer focused vision
• Accountability and commitment
• Self confidence
• Passion for excellence
• Stimulate and relish change