Submitted By: Group 4,

FT1730 Section- 3
08
AKANKSHA AHUJA
FT1730
22
ASHUTOSH VIJAY
FT1730
36
GAURAV GODARA
FT1730
50
MANOJ T
FT1730

How difficult a challenge did Welch face in 1981? How

effectively did he take charge?
Mammoth Challenge- radical restructuring of GE amidst the
problems in U.S. Economy
Recession
High interest rates
Highest unemployment rate
Effective initiatives taken by Jack Welch
Hardware Initiatives
o #1 or #2: Fix, Sell or Close the three circle concept
o Downsizing, Destaffing and delayering
Software Initiatives
o Work-Out
o Best Practices

What is Welchs objective in the series of initiatives he

launched in the late 1980s and early 1990s? What is he trying
to achieve in the round of
changes he put in motion in that period? Is there a logic or
Objective rationale supporting the change process?
Create a culture of small company (increased employee engagement)
No bureaucracy
What he is trying to achieve
Instil new management values
A willingness to break the old GE culture
An ability to take charge and bring about the change
Shun the incremental and go for the leap
Learn from the best practices of successful companies
Realigning the skill sets and mind-sets while going global
Harness deep commitment towards organization
Integrated diversity
Boundary less behaviour
Employee empowerment

 Logic or rationale supporting the change

Set a new benchmark for GEs sustained success
Make it better than the best
A players with four Es
Giving a voice to every employee to put forth his opinion/idea
Growing beyond boundaries would require more and efficient
leaders
Understanding that the modern business requires more focus
on customer delight rather than on product enhancement
Realizing that bureaucratic models were prone to promoting
sluggishness
Ensuring that employee satisfaction is not affected in process
of creating fulfilling customer needs
Creating an environment that gives employees a sense of
belonging to the organization

How does such a large, complex diversified conglomerate defy

the critics and continue to grow so profitably?
Have Welchs various initiatives added value? If so, how?
Welch understood that in turbulent times, strategy was not just about
building a position of sustained competitive advantage but rather
formation and implementation of a strategy centred on the
development of timely responses and flexibility to create
successive temporary advantages

Getting rid of businesses in which GE is not a market leader and

continuing with only those in which they excel (#1 or #2: Fix, Sell or
Close)
Perform or Perish(Downsizing)
Understanding their shortcomings
Deep commitment in developing people- Welch himself travelled to
impart leadership qualities to executives, hand-picked by him.
Open discussion forum and on-the-spot decisions (Work Out)
Open to learn from other successful companies (Ford, HP, Xerox,
Toshiba)
Eagerness to improve
4E strategy Energy, Energize, Edge, Execution
Pushing the limits (Goal Stretch)

What is your evaluation of Welchs approach to leading

change? How important is he to GEs success? What
implications for his replacement?
Eager to adopt strategies to enhance customer delight
Employee empowerment and motivation
Quality is nothing without efficiency Adoption of Six Sigma
approach
Real time planning and decision maker
Encouraged open communication forums and allowed employees
of all levels and backgrounds to contribute to the firms cause.
Down to earth nature allowing him to learn from equally successful
companies in other domains
Long term vision and disciplined approach towards achieving it
Customer orientation rather than a product/service orientation
Believed in less bureaucracy and more transparency
Very rationale and pragmatic approach towards business
Influential and highly motivated towards leading environmental
changes