Question

General Electric case:   What is your assessment of Jack Welch's performance as CEO of GE for his first several months? For his first three-and-half years? How does he compare with Reg Jones?

Answer 1

Jack Welch was a actin based leader. And he tried to reinforce leadership in GE’s DNA. For the first several months he was instrumental in identifying non performing companies under GE’s umbrella and then sold them.

In his first three years he stressed on No-1, No-2 rule which was , if the company is not no-1 or 2 in its market segment, it is better to sell the company. He was also instrumental in laying of managers who were not effective and hence in his first three year GE work force reduced by around 30-40%.

Reg Jones was a visionary who gave a strategic push to GE’s line of thought. He was instrumental in setting up leadership goal for GE and set up the baseline for Welch to take the company to new heights. In true sense Welch was perfect successor of Reg Jones.