Description
The ppt is about the general electric jack welch leadership.
GE’s Two-Decade Transformation: Jack Welch’s Leadership
Leader or Manager?
? ? ? ? ?
1. TRUE or FALSE: I think more about immediate results than I do about mentoring others. 2. TRUE or FALSE: People will be motivated if you pay them enough. 3. TRUE or FALSE: It’s nice to know about people’s long-term goals, but not necessary to get the job done. 4. TRUE or FALSE: If you have a consistent recognition system that rewards everyone in the same way, then that is enough. 5. TRUE or FALSE: The best way to build a team is to set a group goal that is highly challenging, maybe even ?crazy.? 6. TRUE or FALSE: My greatest pleasure in my job comes from making the work process more effective. 7. TRUE or FALSE: I spend more of my time and attention on my weaker performers than I do on my top performers, who basically take care of themselves. 8. TRUE or FALSE: It’s better not to know anything about the personal lives and interests of the people who report to me. 9. TRUE or FALSE: Sometimes, it’s almost as if I’m a ?collector of people? because I’m always recruiting and getting to know new people. 10. TRUE or FALSE: I like to surround myself with people who are better at what they do than I am. 11. TRUE or FALSE: I am a lifelong student of what makes other people tick. 12. TRUE or FALSE: People talk about ?mission? too much – it’s best just to let people do their work and not try to bring values into the conversation. 13. TRUE or FALSE: It’s my job to know everything that goes on in my area. 14. TRUE or FALSE: I pay close attention to how and where I spend my time, because the priorities I put into action are the ones that other people will observe and follow. 15. TRUE or FALSE: I’ve worked hard to get along with or understand people who are very different from me.
?
? ? ? ? ? ? ? ? ?
What it takes to be a Leader
? ? ?
?
? ?
Drive Leadership motivation Integrity Self-Confidence Knowledge of the business Ability to perceive the needs and goals of others and to adjust one’s personal leadership approach accordingly
Leaders
? ?
&
? ?
Managers
Don’t rock the boat Deal with ongoing dayto-day ? Monitoring activities Planning and budgeting routines
? ?
Key Behaviors
Challenge the process
Inspire a shared vision ? Enable others act
?
Model the way Encourage the heart
?
Short-term profits
Followers
? ? ? ?
Capable of independent thinking Are actively committed to organizational goals instead of their own interests Willingness to tell the truth Hold performance standards higher than required
Leaders, Managers, Followers
?
An individual can exemplify both processes (leadership, management), one or the other or neither
It is vital for a company to have both, leaders and effective managers
?
?
How well followers follow is also key for success
Innovation=Imagination
Six businesses, each with a number of business units aligned for growth
Infrastructure Commercial Finance
Industrial
Healthcare Consumer Finance
NBC Universal
GE Global Research: First Industrial Lab in the U.S.
?
Began in Schenectady, New York in 1900 Founded with the focus to improve businesses through technology One of the world’s most diverse industries 1900
?
?
?
Cornerstone of GE’s commitment to technology
2006
A History of Innovation
1909 1913 1932 1942 Ductile Tungsten Medical X-Ray Langmuir Nobel Prize in Chemistry First US Jet Engine
1952
1955 1973 1983
LEXANTM Polycarbonate
Man-Made Diamonds Giaever Nobel Prize in Physics Magnetic Resonance Imaging
1995
1999 2003
GE90®, The World’s Most Powerful Jet Engine
Digital X-Ray H Turbine
Innovation-Key of GE culture
?
?At GE, we consider our culture to be among our innovations. Over decades our leaders have built GE’s culture into what it is today — a place for creating and bringing big ideas to life. Today, that culture is the unifying force for our many business units around the world?-GE
?
How important is innovation for leadership? If leaders don’t have innovation, what happens to the company?
GE –a Bellwether of American Management Practices
?1930s,
highly centralized, tightly controlled corporate form
?1950s,
decentralization
?1960s,
strengthen its corporate staff and develop sophisticated planning systems
?1970s,
SBU-based structure and sophisticated planning processes
?1980’s-2001,
period
three waves in Welch’s
Reg Jones -1970’s
Strategy-SBU based structure and planning processes
? ? ?
10 groups, 46 divisions, 190 departments, and 43 strategic business units Develop a constructive business-government dialogue Wall Street Journal proclaimed him as a ?management legend?
Success
?
?
?
Sales more than doubled ($10 billion to $22 billion) and earnings grew even faster ($572 million to $1.4 billion) A major thrust into international markets Expansion of world trade and restoration of U.S. competitiveness
Questions
?
Shareholders:
Employees:
What are your concerns regarding the new leadership and the financial success of GE?
What are your concerns regarding the culture, benefits, work environment under a new leader?
?
?
Potential CEO:
What challenges do you see coming into a successful corporation?
Who is Jack Welch?
1935: born in Salem, Massachusetts ? 1957: BS in Chemical Engineering ? 1960: MS and PhD in Chemical Engineering
?
Jack Welch and GE
? ? ? ?
1960: Joined GE as a chemical engineer 1972: Elected GE’s youngest VP 1979: Vice Chairman April 1, 1981: Became the 8th Chairman and CEO of General Electric
Taking Over GE
?
Challenges from outside of GE
? ? ?
?
Massive information and inefficient macrobusiness
Challenges from GE
Economic recession High interest rates Highest unemployment rate since the depression
What is Welch’s reaction to these Challenges?
Welch’s Vision
?A decade from now, I would like General Electric to be perceived as a Unique, highspirited, Entrepreneurial enterprise…the most profitable, highly diversified company on the earth, with world quality leadership in every one of its product lines?. -- Jack Welch
Three-Circle Vision for GE
?Restructuring the Hard Drive?
? ? ?
Challenged everyone to be ?better than the best? Sold more than 200 businesses and made over 370 acquisitions Insisted GE become more ?lean and agile? resulting
? ? ?
Delayering: elimination of the ?sector? level Downsizing: elimination of about 123,450 jobs Divestiture: elimination of an additional 122,700 jobs
?
Replaced 12 of his 14 business heads
?Willingness to change is a strength, even if it means plunging part of the company into total confusion for a while.? ~ Jack Welch
Initiatives - Objective
? ? ? ? ? ?
Work-Out Best Practices Going Global Boundaryless Behavior Six Sigma E-Business
?We bring together the best ideas – turning the meetings of our top managers into intellectual orgies.? ~ Jack Welch
Did it work?
?
Revenue
? Culture?
Jack Welch
? ?
? ?
1999: Named ?Manager of the Century? by Fortune named one of the three most admired business leaders in the world by Financial Times September 7, 2001: Retired as CEO Published autobiography, ?Jack, Straight from the Gut?
Leadership Styles
?
Autocratic
?
Makes decisions alone
• Yields higher performance
?
Democratic
?
Solicits input from group for decisions
• Yields positive attitude
?
Laissez Fair
?
Absence of managerial decision making
• Yields negative attitudes
Type of Power
?
Authority
?
Legitimate Power
• Was CEO: Position to tell others what to do
?
Reward Power
?
Control over Rewards:
• Performance reviews, pay increases, bonus
-foxnews.com
?
Coercive Power
?
Control over punishment
• Implementation of policies and administration of disciplinary action
?
Expert Power
?
Has expertise or knowledge over the business
• Had been with the company for 20 years when he became CEO
?Followership?
?
Success depends on how well followers follow Not just Jack’s Company
?GE’s 100-year-plus track record is simply about having the very best people at every single position. That is its number one core competency. No one has better people. When you get the best people, you don’t have to worry about execution, because they make it happen.? -Larry Johnston, CEO of Albertsons
Former CEO of GE Appliances (1991-2001)
?
Passing the Torch
?
?
Retirement – September 2001
Lengthy process of succession
? ? ? ?
Internal candidates only Never named candidates No strategic vision No common measure for candidates
?
Long list of candidates
The New Guy
?
Jeff Immelt
? ? ?
-ge.com
GE Corporate Marketing - 1982 Plastics, Appliance, Medical President & CEO, GE Capital Board - 2000
?GE hit a home run with Welch and wanted to try again. More profoundly, [Immelt] demonstrated a superior capacity to grow, which was the most important criterion in the choice…They just knew he would have to rethink and reinvent GE? -Geoffrey Colvin (Fortune)
The End of an Era
?
Reg Jones era (1981)
Built up immense financial strength ? Saw profits and growth
?
?
Jack Welch era (1981-2001)
Superior leadership ? Profitable and immense growth
?
Challenges for Immelt?
Jack Welch and Jeff Immelt -USA Today
?Whole New Levels?
?
New Values
? ? ? ?
Imagine Solve Build Lead
?
New Businesses
?
?
Energy Customized Medicine
-rollingstone.com
GE Now
?
? ?
?
?
Operates in 100+ countries worldwide 300,000+ employees worldwide 2006 revenue - $163.4 billion 2006 earnings - $20.8 billion One of original six companies still listed on Dow Jones index
Success Continues
?
? ? ?
Continually finding ways to improve
Accountability of managers Developing leaders Rewarding leaders
Leadership Continues
?At the top, we don’t run GE like a big company. We run it like a big partnership, where every leader can make a contribution not just to their job, but to the entire Company.?
-Jeff Immelt, CEO Letter to Investors 2005 Annual Report
Bibliography
?http://www.schulersolutions.com/leadership_self_test_answers.html ?http://money.cnn.com/magazines/fortune/fortune_archive/1989/03/27/7183/index.htm ?http://www.ge.com ?http://money.cnn.com/magazines/fortune/fortune_archive/2001/01/08/294478/index.htm ?http://www.cnnmoney.com ?http://www.nni.nikkei.co.jp/FR/TNKS/TNKSHM/welch/index.html ?Abetti,
P,(2006), Creativity and innovation Managerment, “Case study: Jack Welvh’s Creative revolutionary Tranformation of General Electric and Thermidorea Reaction (1981-2004), V15 no.1, p74.
doc_712190337.ppt
The ppt is about the general electric jack welch leadership.
GE’s Two-Decade Transformation: Jack Welch’s Leadership
Leader or Manager?
? ? ? ? ?
1. TRUE or FALSE: I think more about immediate results than I do about mentoring others. 2. TRUE or FALSE: People will be motivated if you pay them enough. 3. TRUE or FALSE: It’s nice to know about people’s long-term goals, but not necessary to get the job done. 4. TRUE or FALSE: If you have a consistent recognition system that rewards everyone in the same way, then that is enough. 5. TRUE or FALSE: The best way to build a team is to set a group goal that is highly challenging, maybe even ?crazy.? 6. TRUE or FALSE: My greatest pleasure in my job comes from making the work process more effective. 7. TRUE or FALSE: I spend more of my time and attention on my weaker performers than I do on my top performers, who basically take care of themselves. 8. TRUE or FALSE: It’s better not to know anything about the personal lives and interests of the people who report to me. 9. TRUE or FALSE: Sometimes, it’s almost as if I’m a ?collector of people? because I’m always recruiting and getting to know new people. 10. TRUE or FALSE: I like to surround myself with people who are better at what they do than I am. 11. TRUE or FALSE: I am a lifelong student of what makes other people tick. 12. TRUE or FALSE: People talk about ?mission? too much – it’s best just to let people do their work and not try to bring values into the conversation. 13. TRUE or FALSE: It’s my job to know everything that goes on in my area. 14. TRUE or FALSE: I pay close attention to how and where I spend my time, because the priorities I put into action are the ones that other people will observe and follow. 15. TRUE or FALSE: I’ve worked hard to get along with or understand people who are very different from me.
?
? ? ? ? ? ? ? ? ?
What it takes to be a Leader
? ? ?
?
? ?
Drive Leadership motivation Integrity Self-Confidence Knowledge of the business Ability to perceive the needs and goals of others and to adjust one’s personal leadership approach accordingly
Leaders
? ?
&
? ?
Managers
Don’t rock the boat Deal with ongoing dayto-day ? Monitoring activities Planning and budgeting routines
? ?
Key Behaviors
Challenge the process
Inspire a shared vision ? Enable others act
?
Model the way Encourage the heart
?
Short-term profits
Followers
? ? ? ?
Capable of independent thinking Are actively committed to organizational goals instead of their own interests Willingness to tell the truth Hold performance standards higher than required
Leaders, Managers, Followers
?
An individual can exemplify both processes (leadership, management), one or the other or neither
It is vital for a company to have both, leaders and effective managers
?
?
How well followers follow is also key for success
Innovation=Imagination
Six businesses, each with a number of business units aligned for growth
Infrastructure Commercial Finance
Industrial
Healthcare Consumer Finance
NBC Universal
GE Global Research: First Industrial Lab in the U.S.
?
Began in Schenectady, New York in 1900 Founded with the focus to improve businesses through technology One of the world’s most diverse industries 1900
?
?
?
Cornerstone of GE’s commitment to technology
2006
A History of Innovation
1909 1913 1932 1942 Ductile Tungsten Medical X-Ray Langmuir Nobel Prize in Chemistry First US Jet Engine
1952
1955 1973 1983
LEXANTM Polycarbonate
Man-Made Diamonds Giaever Nobel Prize in Physics Magnetic Resonance Imaging
1995
1999 2003
GE90®, The World’s Most Powerful Jet Engine
Digital X-Ray H Turbine
Innovation-Key of GE culture
?
?At GE, we consider our culture to be among our innovations. Over decades our leaders have built GE’s culture into what it is today — a place for creating and bringing big ideas to life. Today, that culture is the unifying force for our many business units around the world?-GE
?
How important is innovation for leadership? If leaders don’t have innovation, what happens to the company?
GE –a Bellwether of American Management Practices
?1930s,
highly centralized, tightly controlled corporate form
?1950s,
decentralization
?1960s,
strengthen its corporate staff and develop sophisticated planning systems
?1970s,
SBU-based structure and sophisticated planning processes
?1980’s-2001,
period
three waves in Welch’s
Reg Jones -1970’s
Strategy-SBU based structure and planning processes
? ? ?
10 groups, 46 divisions, 190 departments, and 43 strategic business units Develop a constructive business-government dialogue Wall Street Journal proclaimed him as a ?management legend?
Success
?
?
?
Sales more than doubled ($10 billion to $22 billion) and earnings grew even faster ($572 million to $1.4 billion) A major thrust into international markets Expansion of world trade and restoration of U.S. competitiveness
Questions
?
Shareholders:
Employees:
What are your concerns regarding the new leadership and the financial success of GE?
What are your concerns regarding the culture, benefits, work environment under a new leader?
?
?
Potential CEO:
What challenges do you see coming into a successful corporation?
Who is Jack Welch?
1935: born in Salem, Massachusetts ? 1957: BS in Chemical Engineering ? 1960: MS and PhD in Chemical Engineering
?
Jack Welch and GE
? ? ? ?
1960: Joined GE as a chemical engineer 1972: Elected GE’s youngest VP 1979: Vice Chairman April 1, 1981: Became the 8th Chairman and CEO of General Electric
Taking Over GE
?
Challenges from outside of GE
? ? ?
?
Massive information and inefficient macrobusiness
Challenges from GE
Economic recession High interest rates Highest unemployment rate since the depression
What is Welch’s reaction to these Challenges?
Welch’s Vision
?A decade from now, I would like General Electric to be perceived as a Unique, highspirited, Entrepreneurial enterprise…the most profitable, highly diversified company on the earth, with world quality leadership in every one of its product lines?. -- Jack Welch
Three-Circle Vision for GE
?Restructuring the Hard Drive?
? ? ?
Challenged everyone to be ?better than the best? Sold more than 200 businesses and made over 370 acquisitions Insisted GE become more ?lean and agile? resulting
? ? ?
Delayering: elimination of the ?sector? level Downsizing: elimination of about 123,450 jobs Divestiture: elimination of an additional 122,700 jobs
?
Replaced 12 of his 14 business heads
?Willingness to change is a strength, even if it means plunging part of the company into total confusion for a while.? ~ Jack Welch
Initiatives - Objective
? ? ? ? ? ?
Work-Out Best Practices Going Global Boundaryless Behavior Six Sigma E-Business
?We bring together the best ideas – turning the meetings of our top managers into intellectual orgies.? ~ Jack Welch
Did it work?
?
Revenue
? Culture?
Jack Welch
? ?
? ?
1999: Named ?Manager of the Century? by Fortune named one of the three most admired business leaders in the world by Financial Times September 7, 2001: Retired as CEO Published autobiography, ?Jack, Straight from the Gut?
Leadership Styles
?
Autocratic
?
Makes decisions alone
• Yields higher performance
?
Democratic
?
Solicits input from group for decisions
• Yields positive attitude
?
Laissez Fair
?
Absence of managerial decision making
• Yields negative attitudes
Type of Power
?
Authority
?
Legitimate Power
• Was CEO: Position to tell others what to do
?
Reward Power
?
Control over Rewards:
• Performance reviews, pay increases, bonus
-foxnews.com
?
Coercive Power
?
Control over punishment
• Implementation of policies and administration of disciplinary action
?
Expert Power
?
Has expertise or knowledge over the business
• Had been with the company for 20 years when he became CEO
?Followership?
?
Success depends on how well followers follow Not just Jack’s Company
?GE’s 100-year-plus track record is simply about having the very best people at every single position. That is its number one core competency. No one has better people. When you get the best people, you don’t have to worry about execution, because they make it happen.? -Larry Johnston, CEO of Albertsons
Former CEO of GE Appliances (1991-2001)
?
Passing the Torch
?
?
Retirement – September 2001
Lengthy process of succession
? ? ? ?
Internal candidates only Never named candidates No strategic vision No common measure for candidates
?
Long list of candidates
The New Guy
?
Jeff Immelt
? ? ?
-ge.com
GE Corporate Marketing - 1982 Plastics, Appliance, Medical President & CEO, GE Capital Board - 2000
?GE hit a home run with Welch and wanted to try again. More profoundly, [Immelt] demonstrated a superior capacity to grow, which was the most important criterion in the choice…They just knew he would have to rethink and reinvent GE? -Geoffrey Colvin (Fortune)
The End of an Era
?
Reg Jones era (1981)
Built up immense financial strength ? Saw profits and growth
?
?
Jack Welch era (1981-2001)
Superior leadership ? Profitable and immense growth
?
Challenges for Immelt?
Jack Welch and Jeff Immelt -USA Today
?Whole New Levels?
?
New Values
? ? ? ?
Imagine Solve Build Lead
?
New Businesses
?
?
Energy Customized Medicine
-rollingstone.com
GE Now
?
? ?
?
?
Operates in 100+ countries worldwide 300,000+ employees worldwide 2006 revenue - $163.4 billion 2006 earnings - $20.8 billion One of original six companies still listed on Dow Jones index
Success Continues
?
? ? ?
Continually finding ways to improve
Accountability of managers Developing leaders Rewarding leaders
Leadership Continues
?At the top, we don’t run GE like a big company. We run it like a big partnership, where every leader can make a contribution not just to their job, but to the entire Company.?
-Jeff Immelt, CEO Letter to Investors 2005 Annual Report
Bibliography
?http://www.schulersolutions.com/leadership_self_test_answers.html ?http://money.cnn.com/magazines/fortune/fortune_archive/1989/03/27/7183/index.htm ?http://www.ge.com ?http://money.cnn.com/magazines/fortune/fortune_archive/2001/01/08/294478/index.htm ?http://www.cnnmoney.com ?http://www.nni.nikkei.co.jp/FR/TNKS/TNKSHM/welch/index.html ?Abetti,
P,(2006), Creativity and innovation Managerment, “Case study: Jack Welvh’s Creative revolutionary Tranformation of General Electric and Thermidorea Reaction (1981-2004), V15 no.1, p74.
doc_712190337.ppt