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Case Study: Jack Welch Corporate Change Leader |
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By Vadim Kotelnikov, Founder, Ten3 BUSINESS e-COACH – Innovation Unlimited, 1000ventures.com
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"Change before you have to." – Jack Welch |
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Case Study Jack Welch, GE, Transformational Leadership, Case Study Jack Welch, GE, Transformational Leadership, Case Study Jack Welch, GE, Transformational Leadership, Case Study Jack Welch
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Corporate Leadership: the Jack Welch Way Jack Welch has been with the General Electric Company (GE) since 1960. Having taken GE with a market capitalization of about $12 billion, Jack Welch turned it into one of the largest and most admired companies in the world, with a market value of about $500 billion, when he stepped down as its CEO 20 years later, in 2000. Although Jack Welch is "the celebrated leader of a global manufacturer often noted for its technological prowess, he has utilized a very human process to drive change through GE's vast organization. Having respect for the individual as a pivotal force in organizational change, Welch created a model of exceptional performance every corporate leader can learn from. The Role of the Leader in the New Economy
As Jack Welch wrote in a letter to shareholders:
"In the old culture, managers got their power from secret knowledge: profit
margins, market share, and all that... In the
new culture, the role of the leader is to express a
vision, get buy-in, and implement it. That calls for open, caring
relations with every employee, and face-to-face communication. People who
can't convincingly articulate a vision won't be successful.
But those who can will become even more open – because success breeds self-confidence." Welch believed that great business leaders have to:
Welch moves from meeting to meeting, conveying that message – and the host of other ones as well, some of which have become his trademarks:3
Prescription for Winning in Business: 3Ss Jack Welch summed up his prescription for winning in three words: More5 Strategic Question According to Jack Welch, to understand where your business is going, you should ask the following five questions:
Strategies for Leading Breakthroughs So what separates extraordinary leaders from proponents of the status quo? They break the rules. Except, not in an arbitrary or capricious way. When you look at examples of extraordinary leadership, like the Founding Fathers of the United States or Jack Welch of GE, certain practices or principles become apparent. To start, there is a declaration of what the future will be. There is also a purpose, something to stand for. And finally, there is a clearly articulated commitment... More Employee Empowerment Under Welch's leadership, managers had wide latitude in building their GE units in entrepreneurial fashion. Determined to harness the collective power of GE employees, Jack Welch redefined also relationships between boss and subordinates. He wrote: "The individual is the fountainhead of creativity and innovation, and we are struggling to get all of our people to accept the countercultural truth that often the best way to manage people is just to get out of their way. Only by releasing the energy and fire of our employees can we achieve the decisive, continuous productivity advantages that will give us the freedom to compete and win in any business anywhere on the globe."
Jack Welch's Recipe for Winning Employees' Hearts and Minds... Understanding Strategic Issues... Asking Effective Questions... Redesigning Organization... Creating Change... Leading Transformational Change... Business Innovation... Transforming the Old Management Model... Getting Rid of Bureaucracy... Turning Managers into Leaders... People Power... Employee Empowerment... Energizing Employees... Attitude Motivation... Build a Star Team, Not a Team of Stars... Harnessing the Power of Diversity... Organizational Transformation... Building a Learning Culture... Learning Organization... Idea Management... Creativity Management... Entrepreneurial Organization... Behave Like a Small Company... Systemic Innovation... Creating Vision... Setting Stretch Goals... Stretching Business Strategy... Setting Objectives... The Four E's of Leadership... Venture Strategies... Speed... Simplicity... GE Leadership Effectiveness Survey (LES)...
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