Every employee was graded by his or her manager, peers and all subordinates on a 1 to 5 scale in areas such as teambuilding, quality focus, and vision. This shows that he was using fear as a motivator in order to gain respect and acceptance of his ideas. If the manager needed more information, he or she had to charter a team to get it by an agreed-upon decision date. Key Decision Being Faced GE has to determine who can become the next dynamic leader of this complex organization. If it did not, there was a great risk that its highly centralized and inflexible organizational processes and structure would leave it vulnerable to more dynamic firms. When the Canadians used the flexible job-shop techniques to increase productivity in their high-volume factory, the U.

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them. And this led to the gradual replacement of outside faculty by GE insiders acting as discussion leaders. Would you broaden this? Also, while shareholders may have confidence in the Board and Welch to elect a suitable successor and support their decision, this may be tested if the financial performance deteriorates in the short term as the re-organization is taking place. Will GE be able to sustain the success that it has realized during the past twenty years under Welch as the acting CEO once he departs?

The questions that GE as an organization has to ask itself are: In fact, the successor CEO needs to see change as opportunity for further improvement. Datastream and Capital IQ. Please find below the full details of the product you clicked a link to view.


We thought this was mysterious, Nobel Prize stuff, the studu of the wild-eyed and purple haired.

Jack Welch’s Leadership Like many other large companies in the U. Long regarded as a bellwether of American management practices, GE was constantly undergoing change.

GE’s Two-Decade Transformation Case Analysis

We quickly began to learn from each other: Those people that were let go were etudy with help finding a new job, or given training in a new skill to make them more marketable to other employers. To provide continuing momentum to the internationalization effort, in Welch appointed Paolo Fresco as head of International Operations and in made him a vice-chairman and member of his four-man corporate executive office.

Cite View Details Purchase Related. This is the individual who typically forces performance out of people rather than inspires it: Yet his commitment to keep building GE was undiminished, despite critics who continued to question if the company could keep adding value to such a highly diversified business portfolio.

InWelch eliminated the sector level, previously the powerful center of strategic control. Welch kept particularly close tabs on the upperall of whom had been appointed with his personal approval. See Exhibits 4a and 4b. While staff can certainly motivated to get behind a new initiative every few years such as Boundaryless and Six Sigma, there is little recognition within the organization of the need for massive restructuring along the lines of that which occurred twenty years prior.

The hottest trend in business is the rush toward breaking up multi-business companies. It is uncertain if GE will be able to sustain another transformational change similar to that which occurred under Jack Welch.


GE’s Two-Decade Transformation: Jack Welch’s Leadership

Frazier selected nine companies, including Ford, Hewlett Packard, Xerox, and Toshiba, with different best practices to study. The second solution has the potential to cause leadersbip upheaval during the transition period. Empower Others to Act on Vision Jack Welch empowered others to act on their vision by making them the idea champion, and telling the story throughout the organization.

Communicate the Vision Welch communicated his vision through employee suggestion programs, weekly or monthly meetings, and training sessions. Product details Share this page: His objective was to create the culture of a small company—a place where all felt engaged and everyone had voice. A decade from now, I would like General Electric to be perceived as a unique, high- spirited, entrepreneurial enterprise.

ge two decade transformation jack welchs leadership case study

It would be a tough act to follow. Reflecting his own early experience in GE b In GE, productivity was defined by the following calculation: Create a task force and pilot test. The third is one who misses commitments but shares the values.

ge two decade transformation jack welchs leadership case study

Suggest us how to improve StudyLib For complaints, use another form. Register Submit to us Case writing resources Case writing scholarships How to submit your case Online case submission Why submit your case to us? This initiative led to a new round of acquisitions. Skip to main content. GE Final Group Assignment.