Presented By:

Krishna Kumar(Batch 2011-13)

AIMS Institute of Management

Studies, Pune

JACK WELCH

Early Life

Jack Welch was born in Salem, Massachusetts and

was Only Child to his parents.

His Father John Welch was a Boston & Maine

Railroad Conductor.

His Mother Grace Welch was a Housewife.

Education

Jack attended Salem High School.

Graduated from Massachusetts

Amherst in 1957 with a Bachelor of

Science Degree in Chemical Engineering.

Welch went on to receive his M.S. and Ph.D at the

University of Illinois at Urbana-Champaign in 1960.

Early Jobs Joined General Electric in 1960 as a Junior Engineer in

Pittsfield, Massachusetts.

Very disappointed with strict bureaucracy within General

Electric, and planned to leave.

Later he was named Vice President of G.E. in 1972.

Named Senior Vice President in 1977.

Became Vice Chairman in 1979.

Hit his peak as CEO in 1982. The eighth and

youngest chairman and CEO in history of G.E.

Tenure as CEO of GE:

In an interview with the Financial Times on the Global financial

crisis of 2008–2009, Welch said, “On the face of it, shareholder

value is the dumbest idea in the world because Shareholder

value is a result, not a strategy... your main constituencies are

your employees, your customers and your products.”

He always pushed the managers of the businesses he kept to

become more productive.

He also expanded the broadness of the stock options program at

GE from just top executives to nearly one third of all employees.

GE had increased its market capital tremendously.

However, Welch eliminated basic research, closed

or sold off businesses that were allegedly under-

performing.

During the 1990s, Welch shifted GE business from

manufacturing to financial services through

numerous acquisitions.

Welch adopted Motorola's Six Sigma quality

program in late 1995.

In 1980, the year before Welch became CEO, GE

recorded revenues of roughly $26.8 billion.

Unique Outlook

“You Can’t grow long term if you can’t eat short term”

– Jack Welch

“Anybody can manage short…. Anybody can manage

long... Balancing those two things is what management

is”

– Jack Welch

“An organization's ability to learn, and translate that

learning into action rapidly, is the ultimate competitive

advantage”

-Jack Welch

Criticism:

Some industry analysts claim that Welch is given too much

credit for GE's success. They contend that individual

managers are largely responsible for the company's success.

Welch has also received criticism over the years for an

apparent lack of compassion for the middle class and

working class. By his actions during acquisitions and

wholesale shutdowns of GE business units Welch proved

that his technique of only keeping the units your company

is "good" at you can maximize ROI for the short term.

Jack had four children with his first wife, Carolyn.

They divorced amicably in April 1987 after 28 years

of marriage.

His second wife, Jane Beasley, was a former

mergers-and-acquisitions lawyer. She married Jack in

April 1989, and they divorced in 2003.

While Welch had crafted a prenuptial agreement,

Beasley insisted on a ten-year time limit to its

applicability, and thus she was able to leave the

marriage with an amount believed to be in the range of

$180 million.

Personal Life of Jack Welch:

The third wife of Jack Welch is Suzy Wetlaufer,

who co-authored his 2005 book Winning as Suzy

Welch.

He formerly spent time on the golf course.

Other personal interests such as modern art,

international travel, teaching and attending Red Sox

games.

Leaders relentlessly upgrade their team, using every

encounter as an opportunity to evaluate, coach, and build

self-confidence.

Leaders make sure people not only

see the vision, they live and breathe it.

Leaders get into everyone's skin,

exuding positive energy and optimism.

Leaders inspire risk taking and learning by setting the

example.

What Leaders Do..?

Continuing to Leave Footprints

In Business Leadership

In August 2010, Jack Welch was interviewed by Bill

Hybels on the topic of leadership during The Global

Leadership Summit, which is hosted by Willow Creek

Association.

Jack Welch as Professor:

On January 25, 2006, Welch gave his name to Sacred Heart

University's College of Business, which will be known as

the "John F. Welch College of Business".

Since September 2006, Welch has been teaching a class at

the MIT Sloan School of Management to a hand-picked

group of 30 MBA students with a demonstrated career

interest in Leadership, 2009

BOOKS:

“Winning’’ was a book he co-wrote with his wife Suzy

Welch

Winning the answers: confronting 74

of the toughest questions in business

today.

“Jack, straight from the gut”

#1 National Best Seller List.

“ The Welch Way” a weekly news column

co-written by Jack & Suzy Welch.

Published approximately in 45 various

business magazines.