Essay about Ge’s Two–Decade Transformation: Jack Welch’s Leadership Case

2227 Words Aug 10th, 2011 9 Pages
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
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To achieve this, he launched two initiatives that changed the core values of the company and employees values. The first initiative was to create “Work-out”, a forum where employees speak their mind and as a result get immediate response. The goal was to create an ongoing drive for better productivity and efficiency. He empowered employees at all levels of the organization. This promoted communication and accountability. Employees started to realize that they were not just a number but an actual voice with the potential to enhance productivity. This initiative can be associated to the concept of Adhocracie on the flexible and spontaneous collaboration to solver problems and improve activities. The second initiative called “Best Practices”. The intention was to increase productivity by developing a process following several common characteristics of successful companies. This changed the way many employees managed and measured the business. Welch’s goal of creating an industry attractive company (corporate strategy) and a competitive advantage (business strategy) the next initiative was to expand GE horizons by going global. But to do that Welch uses a different strategy. Instead of forcing a corporate strategy, he demanded that each business take responsibilities for implementing the best plan for their needs. This initiative follows the concept of Multidivisional structure and
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