Jack Welch
General Electric
By: Kennya Leal
Chris Lage
Richard Orsi
Alexandra Pagliuca
Dan Wales
"Neutron Jack"
Early Life
 Born in Peabody, Massachusetts.
 Father was a Maine Railroad Conductor.
 Mother was a Housewife.
Education
 Jack attended Salem High School.
 Graduated from UMASS Amherst in 1957 with a B.S. in
Chemical Engineering.
 Graduated from the University of Illinois in 1960 with a M.S.
and Ph.D. also in Chemical Engineering.
Early Jobs
 Joined General Electric in 1960 as a Junior Engineer in
Pittsfield, MA.
 Very disapointed with strict bureaucracy within General
Electric, and planned to leave.
 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 youngest chairman and
CEO in history of G.E.
Management Style
Looking up to Jack
 “You Can’t grow long term if you can’t eat short term” –
Jack Welch
 Made it to the top despite his working class background
 Set a new model for the corporation
 He increased the market value of GE from $12 billion to
$280 billion
 Has created more share holder value than anyone in history .
 Reshaped GE with more than 600 acquisitions and pushed to
enter newly emerging markets.
 Fierce believer in the power of his people
 Created informality at a big company
 Manages GE like a small organization
 “He’s able to get people to give more of themselves because
of who he is. He lives the American dream. He wasn’t born
with a silver spoon in his mouth. He got himself out of the
pile. He didn’t just show up” - Brian Nailor
Jack Welch Style: Where does it
come from?
Jack Welch
No Nonsense Management
 Clearly Define the Goals
 Field Only the Best Team
 Eliminate Bureaucracy
 Develop People – Reward Their Success
 Cut Losers
 Remain Agile
 Play to Win
Historical Significance:
Theories and Concepts
Elements of Management
 Jules Henri Fayol (1841-1925)
 William H. Newman (1909-2002)
 George R. Terry (1909-1979)
 Douglas McGregor (1906-1964)
 Peter F. Drucker (1909-2005)
Organizational Structure
 Chester I. Barnard (1886-1961)
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Leadership and Motivation
Abraham Maslow - Hierarchy of Needs
David McClelland (1917-1998) – “Needs Theory”
“Equity Theory”
James McGregor Burns (1918-) – “Transformational Leadership”
Elements of Management
 Function of Management
 Plan
 Organize
 Command
 Coordinate
 Control
 Key Factors:
 Management Skills can be Trained
 Eliminate Incompetent Employees
 Foster Unity, Energy, Initiative, & Loyalty
 Theory Y
 Management by Objectives
Organizational Structure
Chester I. Barnard (1886-1961)
 Define Organizational Purpose
 Communication
 Group Dynamics - Recruiting
 “Informal” Environment – High Morale
 Recognition and Rewards
 Maintain Performance and Training
Leadership and Motivational
Influences
Leadership and Motivation
 Abraham Maslow - “Hierarchy of Needs”
 Esteem
 Self Actualization
 David McClelland (1917-1998) – “Needs Theory”
 Power
 Affiliation
 Achievement
 “Equity Theory”
 James McGregor Burns (1918-) – “Transformational Leadership”
 Change Leadership
 Employee Empowerment
Continuing to Leave Footprints
In Business Leadership
Jack is
Business
 Jack Welch LLC.
 A partner for the private equity firm Clayton, Dubilies and
Rice.
 Consultant for Interactive Corp
 Jack also contributes to a couple business television networks
such as MSNC and CNBC.
 Jack and Suzy also have their own website that offers a
variety of helpful resources related to business management.
Professor
Jack Welch
 January 25th, 2006
 Sacred Heart University Business became the John F. Welch
College of Business.
 September, 2006
 MIT Sloan School of Management.
 July, 2009
 Jack Welch Management Institute @ Chancellor University in
Ohio.
Written by
Jack Welch
 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 in approximately
45 various business magazines
The
Living Business Legend
Summary
 Jack wants people to become the best leaders they can be.
WHAT LEADERS DO
-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 establish trust with candor, transparency, and credit.
-Leaders have the courage to make unpopular decisions and gut calls.
-Leaders probe and push with a curiosity that borders on skepticism, making
sure their questions are answered with action.
-Leaders inspire risk taking and learning by setting the example.
-Leaders celebrate.
- Adopted from "Winning" by Jack and Suzy Welch (HarperCollins)
Thank You! Are there any questions or comments?
Resources

"GE Past Leaders: John F. Welch Jr., Biography." GE : imagination at work. Web. 04 Oct. 2009.
<http://www.ge.com/company/history/bios/john_welch.html>.

"Sitemap - Jack Welch Management Institute." Jack Welch Management Institute at Chancellor University. Web. 16
Sept. 2009. <http://www.jwmi.com/what_leaders_do.html>.

"The Welch Way - Jack Welch Biography." The Welch Way - The Official Website of JackWelch and SuzyWelch. Web. 16
Sept. 2009. <http://www.welchway.com/About-Us/Jack-Welch/Biography.aspx>.

Wren, Daniel A., and Arthur G. Bedeian. The Evolution of Management Thought. 6th ed. Hoboken, NJ: John Wiley
& Sons, Inc., 2009. Print.

Baldwin, Timothy T., William H. Bommer, and Robert S. Rubin. Developing Management Skills -What Great
Managers Know and Do. New York: McGraw-Hill Irwin, 2008. Print.

Byrne, John A. "06/08/98 HOW JACK WELCH RUNS GE." BusinessWeek - Business News, Stock Market &
Financial Advice. Business Week Magazine, 8 June 1998. Web. 16 Sept. 2009.
<http://www.businessweek.com/@@1w2fjIQAHbJcdAAA/1998/23/b3581001.htm>.

"Assessing Jack Welch." Wally Bock's Monday Memo Newsletter: Author, Keynote Speaker. 10 Sept. 2001. Web. 16
Sept. 2009. <http://www.mondaymemo.net/010910feature.htm>.

"Jack Welch: Management Evangelist." BusinessWeek - Business News, Stock Market & Financial Advice. Web. 16 Sept.
2009. <http://www.businessweek.com/magazine/content/04_43/b3905032_mz072.htm>.