Jack Welch Essay

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Jack Welch - Leadership Secret 1- Harness the Power of Change

It is important in today’s changing economy that business leaders are not afraid to make necessary changes to succeed. When Jack Welch became CEO of General Electric in 1981, it was a lethargic business, satisfied with its output and entangled in bureaucracy. He understood the competition that overseas markets presented and the need for a new global strategic plan. He was able to envision the true potential of his resources and implemented drastic changes such as the Stretch, Work-Out, and Number One, Number Two business concepts (which will be discussed later) to achieve his goals.

- Leadership Secret 2- Face Reality

This is the most important rule in Jack
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A leader needs to set up a framework for the company and not a detailed plan for every entity or situation. Business leaders should also establish a set of core values that will always remain constant with the company’s long-term goals.

- Leadership Secret 6- Nurture the Employees Who Share The Company’s Values

A company’s values must remain constant. They highlight how a company treats its employees, customers, and competition. And, having employees that professionally live by these values is essential in maintaining a company’s vision. Jack Welch separates managers into three different categories: Category A managers meet their goals and share in the company values. Their future is bright in the company. Category B managers don’t always achieve good numbers but do share in the values. These managers should be encouraged to improve and should be assured security in the company. Category C managers always make the numbers but do not follow the company’s values and beliefs about business. These managers usually run a dictatorship type operation with little respect for their employees’ work and knowledge. Although, they are reaching their goals, they need to be let go before they unravel the continuity and respect that is essential for success.

Part II- Igniting a Revolution: Strategies for Dealing with

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