By: Kennya Leal Chris Lage

Richard Orsi Alexandra

Pagliuca Dan Wales

Jack WelchGeneral Electric

"Neutron Jack"

Early Life

Born in Peabody, Massachusetts.

Father John was a Maine Railroad Conductor.

Mother Grace was a Housewife.

Was an Only Child

EducationJack 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 JobsJoined General Electric in 1960 as a Junior

Engineer in Pittsfield, MA.Very disappointed 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 eighth and

youngest chairman and CEO in history of G.E.

Management Style

Rules to Manage byCreate a culture where risk is rewarded and

accountability and measurable goals are paramount.

Provided outside rewards to those that demonstrate exceptional performance.

If something or some one is not working out kill the project or fire the employee.

Candor and trust are king in building a competitive and efficient work place.

Pick the right peopleJack had no problem in this arena. He was

known to fire the bottom 10% of his managers every year and reward the top 20% with bonuses and stock options. He expanded the stock options program to include nearly one third of all employees as opposed to just executives. He took care of the employees he had, and if they didn’t perform or they weren’t team players, he got rid of them. Jack was even known as “Neutron Jack” in the 1980s, referring to his reputation of eliminating employees in entire buildings like a neutron bomb.

Opportunity to spread their wings

Jack believed that boundaries within a company stifled the flow of information and ideas among employees. believed that close supervision, control and bureaucracy killed the competitive spirit of the company. He was once quoted as saying, “We are constantly amazed by how much people will do when they are not told what to do by management.” He believed in managing less and leading more – creating vision and empowering people to make their own decisions.

Looking up to Jack

WHY HE IS RESPECTED

Physical Reasons Made it to the top despite his working

class background

Set a new model for the corporationCreated informality at a big company Calls GE the “Grocery Store” Manages GE like a small organization “you don’t

get hung up on zeros”

Physical Reasons Has created more share holder value

than anyone in history .He increased the market value of GE from

$12 billion to $280 billion

Reshaped GE with more than 600 acquisitions and pushed to enter newly emerging markets.

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

Fierce believer in the power of his peopleSpends more than half his time devoted to

people issues

Quote that Defines the Man

“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 GoalsField Only the Best TeamEliminate BureaucracyDevelop People – Reward Their

SuccessCut LosersRemain AgilePlay 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)

Leadership and Motivation Abraham Maslow - Hierarchy of Needs David McClelland (1917-1998) – “Needs Theory” “Equity Theory” James McGregor Burns (1918-) – “Transformational

Leadership”

Elements of ManagementFunction of Management

PlanOrganizeCommand CoordinateControl

Key Factors:Management Skills can be TrainedEliminate Incompetent EmployeesFoster Unity, Energy, Initiative, & Loyalty

Theory YManagement by Objectives

Organizational Structure

Chester I. Barnard (1886-1961)Define Organizational PurposeCommunicationGroup Dynamics - Recruiting“Informal” Environment – High MoraleRecognition and RewardsMaintain Performance and Training

Leadership and MotivationalInfluences

Leadership and MotivationAbraham 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, 2006MIT Sloan School of Management.

July, 2009Jack 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

SummaryJack Welch has become a huge role in

making his leadership styles live beyond himself.

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 Thank You! Are there any questions or comments?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 Jack Welch and Suzy Welch. 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>.