Case Study:
GE’s Two–Decade Transformation: Jack Welch’s Leadership Case
Group 3

Executive Summary The purpose of this report is to provide an analysis of GE’s revitalization efforts during the tenure of their infamous CEO Jack Welch. This detailed examination of the impact of Mr. Welch’s leadership style and the changes he implemented will be supported by our strategic recommendations aligned with our course lectures. The learning objective is to understand the evaluation of Welch’s strategy and how it impacted the company. There is no question that Welch had a positive and important effect on GE’s long-term success. It is, however, important to note that this did not come without controversies. Though Welch did …show more content…

As a result the international revenues doubled in 5 years. With so many changes and the company growing so fast, Welch also focused on developing its employees. He wanted to realign the skills sets and mindset of the almost 290,000 employees. He wanted to create an environment in which people could be the best. He changed the way the employees were reviewed and focused on incentives. He paid attention to the upper 500 executives and prioritize the development of leaders aligned with the new vision of GE. He created four categories for his leaders and the main goal was them share the values of the company. Welch effectively took charge by putting people first. Though he created much controversy for himself when he laid-off his employees when he sold the GE businesses, he also provided those same employees with help in finding new jobs. Welch also invested a lot into the training of his existing employees which earned him the love and respect of many of the GE staff. His vision of building a profitable and stable organization began with his employees. Once the cultural transformation was on solid footing, Welch really began to set his focus on growing the company. Beginning in the 90s he developed a strategy that focus on an integrated approach for the company. He wanted the company to become a “boundaryless” institution that allowed all of its different businesses and department to operate without barriers between them.