Ge Transformation

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1 GE’s Two Decade Transformation

Team Globalization Case Analysis GE’s Two Decade Transformation: Jack Welch’s Leadership

Yasmine Abdo Al-Kouraishi Muhammad Howard Steven D. Johns Kenneth V. Oliver Kimberly N. Lomax

AMBA 670 Managing Strategy in the Global Workplace July 25, 2012

2 GE’s Two Decade Transformation

Executive Summary Team Globalization has conducted an in depth analysis on General Electric's (GE) two decade transformation achieved by the company’s former Chief Executive Officer (CEO) Jack Welch. This report consists of a reflective examination performed by the team, incorporating perspective gained through professional experience and key concepts gleaned from selected course reading selections. As CEO of GE, Jack Welch's …show more content…

Welch hoped to create an environment which optimized “openness, candor, and … reality (Bartlett & Wonzy, 2005, p.4).” Additionally, “speed, simplicity and self-confidence (Bartlett & Wonzy, 2005, p.4)” were the characteristics he expected to dominate the culture. Welch had always been a teacher often leading sessions at the Management Development Institute. These sessions afforded managers with an open-forum, allowing them to vent concerns about change implementation and resulting complications. With the help of James Baughman, Director of Management Development, Welch decided to institutionalize these open forums, giving every employee the opportunity to become part of the discussions, honestly and openly. Employees gathered in groups to respond to their unit bosses’ challenges and agendas in general. Facilitators were empowered to walk these groups through a process wherein problems were laid out, discussed, potential solutions identified, and final presentations produced for presentation to unit bosses. This process was dubbed the “Work-Out”. When the bosses returned, they were required to listen to the proposals and make a decision in front of the group to at least 80% of the total proposals. As a result of these standardized processes, productivity increased two-fold.

6 GE’s Two Decade Transformation

The “Best Practices” program was assigned to the Business Development department.

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