GETwo-

DecadeTr
ansf
ormat
ion:JackWel
ch’
sLeader
shi
p

1A.Visi on.Mr .Wel chst artedf rom dayoneofhi st enur easCEOt ochange
the
visionofGEasi tr elatest oi tsempl oyees, managementandt heai m ofi ts
product s.Hi smaj orgoal wast of ixedt hosepoorachi ev i
ngpr oductl ines
that
coul dbef ixed, sel lthosepr oductl inest hatcoul dbesol dbutnotf ixed
anddr op
thosepr oductl inest hatcoul dnotbef ixedorsol d.
B.Mi ssi on.Mr .Wel chmi ssionwast odownsi ze, de- staf fandde- l
ay ert heGE
or gani zat iont ost reaml inei ttobemor eef ficientandef fective.
C.St rategi es.Mr .Wel chbr oughti nv ariousst rategi es; howev er ,theyal lhad
thr eepr imar yf ocuspoi nt si nmi nd.Hewant edt ocent rali
zet hechai nof
commandst ruct ur e,whi let akingoutl ay ersofbur eaucr acy.Hewant ed
inputf rom al l sect or soft heGEf ami lywhendet er mi ninghowt odoj obs
bet ter .Hewant edmanagementt ober esponsi v eupaswel lasdownt he
chai nofcommand.
D.Or gani zat ional St ruct ure.Mr .Wel chknewhebadl yhadt oi mpl ementa
cul tur al changei fhei ntendedt osust ainhi ghpr oduct ivity.Hewant edt o
repl icat easmal l busi nesscul ture, wher ei deal swer ef reelyshar edwi t
h
managementanddeci sionswer emadeont hespot .Hest artedan
initiat i
v ecal led“ Wor k-out ,”wher eempl oy eeswi tht hehel pofaf aci li
tat or
putt hei ri deal sonpaper .Oncet heempl oy eei deal swer ecapt ur edon
paper ,managementwascal l
edi nt oheart hepr oposal sandt omakea
deci si onont hespot .Heal sost ar tedani nitiativei nconj unctionwi th
“Wor k-out ”cal led“ Bestpr actices”wher eheputt oget herat eam t ol ear n
from compani est hatwer eachi ev i
nghi gherpr oduct ivitygr owt ht hanGE.
Thet eam woul dl ookatt hosecompani eswi thsuccessesanddet er mi ne
howt heycoul dmi rrort hosei deal swi thi nt heGEor gani zation.Wel chwas
commi t
t edt odev el opinghi sleader st oembr acehi scul turalmi ndset
change.Heensur edhi sl eader sgothonestpr ofessi onal f
eedback,
reasonabl eexpect ationsaboutf ut ureposi t i
onst heycoul dhol dand
speci ficski l
lst ogett hereandt heywoul dbegi vent henecessar yt raining
toachi ev et hosegoal s.
E.Sy st ems.Wel chgotr i
doft hel abor i
ousst r ategi cpl anni ngsy st em andi t
s
cor por at epl anni ngst aff.Hedev elopedasi mpl eone- pageanswert o
busi nessesf ivequest i
onsconcer ningcur rentmar ketdy nami cs.
Compet itor skeyr ecentact ivit
iesandGEbusi nessr esponse.Thegr eatest
compet itivet hreatov ert henextt hr eey ear sandGE’ spl annedr esponse.
F.St affcompet enci es.Wel chsawhi sst af finf ourl ight s: (1)Thosewho
del iver edoncommi tment s–f i
nanci al orot herwi seandshar edv al uesof
theGEcompany .Theout l
ookf ort hisi ndi vidual iseasy-onwar dand
upwar d.( 2)Thosei ndiv i
dual whodi dnotmeetcommi tment sorshar e
companyv alues, thei rfut urei seasyt ocal l too, theyar eoutofaj ob.( 3)
Thosei ndi v i
dual t
hatdi dnotmeetcommi t
ment s, butshar ethecompany
 valueswi l
lbeputi nanot herposi ti
ont hatbet terfitt heirqual i
ti
esandski l
l
s.
(4)Thosei ndi vidual swhometal lcommi tment s,butdonotshar e
companyv alues.Wel chsetoutt oweedoutt hist ypef ourl eader sbecause
hesawt hem ast hebi ggestpr oblem wi t
hinhi sor gani zati
on.I tisalway s
hardt odi smi ssi ndivi
dual swhoar emeet ingt heircommi tment s; howev er,
hepl acedahi gherv alueont hosewhoshar edhi scompanyv alues.
G.Staff ingandSt af fi
ngdev elopment .Wel chwant edt oensur ethathi sst aff
under stoodt hecul turehewant edi mpl ement edatGE.Hepr ov i
dedf orthe
necessar ytrainingt ohelphi sst affmember sdev el opi ntot heleader sand
empl oy eeshef eltGEneededt osur v
iveandmai nt ainpr oduct i
v i
ty .
H.Leader shipst y l
e.Wel chputi npl acepr ocessest hatchal lengedl eadership
agai nstt hest at usquoandpushedt hem t ot hinkout sidet hebox.Wel ch
i
nitiat iv
e“ Wor k-out ”challengedl eader st olistent oempl oy eesi dealsand
mandat edt hatt heyactupont hem wi thay esornov oteont hespotwi t
h
theiri mmedi at ebossl i
steningi nt othedi al
ogue.
I
. Cor por ateCul tur e.Wel chsetoutt ochangecor por atecul turef rom the
verybegi nninghet ookov erasCEOofGE.Hesetoutt oinst il
lloy al
tyand
honestdi al
ogueupanddownt hechai nofcommand.Hewant ed
empl oy eest of eel liketheywer ewor kingatasmal l businesswheni tcame
downt oget tingt heiridealsdi scussedwi thmanagementf orimmedi ate
deci sions.

2.GEt ransf ormat i

onbr oughtaboutal eanerandmor eef fi
cientcompany
thatenhancedi t
spr oduct i
vit
y.GEpr oductear ni ngssubsequent lyrose
andpr ov idedall stakehol derswi t
hf inanci algains.
3.GEt ransf ormat i
onbr oughtaboutnumer ouslay offsi niti
allyand
uncer t
ai ntywithini t
sr emai ni
ngempl oy eesandmanagement .Dur i
ng
Wel ch’ si ni
ti
alCEOt enur eGEpr oduct snotper for mingwer ecut ,whi ch
causedcompanyi nstabi l
it
y.
4. SinceJackWel chr etired,9/11occur red, GEst ocksl ippedandt henew
CEOoft hecompanyhadt odeal wi thJackWel chov er sizedf ootstepst o
follow- in.The9/ 11t er rori
stattackshadamaj oref fectonal lbusinesses,
GEi ncluded.Thesement i
onedev ent shadanegat ivei mpactonGEabi l
it
y
tocont inuei t
st ransfor mat i
onev ol utions, becauseGEhadt odeal with
shr i
nki ngst ocksanddownwar dpr oduct i
vit
yt or egainshar ehol ders
conf idence.Thesei t
emswer eoft heut mosti mpor tancet ot akecar eof
andt ransf ormationwasputatal owerpr iori
tyf orthecompany .
5.GE’ sgr eat estchallengei nthef uturewi llbet osust ai nWel ch’sener gyand
transf or mationef forts.Newl eader shi pwi l
lbet ornbet weenbuy ingi nt
o
Wel chi deal sorchangi ngcour seandhav i
ngcompanyf ailandbl ame
managementf ornotl eadi ngasWel chwoul dhav eled.Wel chwasa
pioneerandhi sf ootst epswi l
lbehar df oranynewCEOt of oll
ow.The
cultur eofGEi sacul tur ethatJackWel chbui l
taf t
er20y earsofhar dwor k
anddedi catedef fort.Wi l
lthenewCEOsetoutt obui ldanewcor porate
cultur eorsetoutt orei nventGE’ scul ture?