About Jack Welch 1981

About Jack Welch 1981

Major changes from traditional to

See how company progress,

during the early ceo Reg Jones also going good

Exhibit 1

Revenue from 27240 bil to 129,853 b more than 400% increase in revenue

Employee more than 400 000 to 313000 – decrease almost 100k

Employee in united state n other country- almost equal during 2000 there are very serious n commited n serious about going global (2000/2001 internet start getting place)

Total asset from 1981 from 20,942 to 437,006billion

Dividen from 715 to 5,647- investor/shareholder happy

This is the self

He inlead a gread leader

Transformational Leaders- we should refer Welch Jack

This person doing pas way  surgery 3time

Become more egernatic after bypass, want to do more n more

Neutron Jack given nickname (caj) the whole being charge by jack, that why his nickname neutron jack

GE is founded by Thomas Edison

Acknowledgement – was given wall street

The concern by shareholder if JW can continued

Age 45 as CEO..

What was his 1st Strategy?

Become no 1 or 2 or fix it or sales it

Each biz standard 1 & 2 interm of performace of the biz

Be a leader in industry

Exhibit 2- The three Circle

Core Biz,  technology (cash cow for them) and service (later on )

If biz Is core- priority to invest and

Services- start to take over company in good servis sector incl ins company

He reorganized

Lot of birokrasi

He resturturing, empower his people

  Scrape

Strategic planning for company

He prefer direct dealing, direct information n direct

Exhabit 4a n 4b

Less layer

He realize how important is his people, the uniqness of his people

He become engage to his people

He want flow information, birokrasi to be remove

Remove sector ganti dgn 3 circle.. no manager biz unit

Focus must on managing the people not product or everything. We have people to look after that (product)

 If not take care of people, u have the good product the end of the day u cannot create competitive advantage.

People can emitted anything product, but people cannot being emitted. Identify the next

Neutron Jack- The change!! U have to make decision, cannot living with people who will pull u down.. the survival off biz is more important then individu.. dr 40 2 je yg tinggal.

He believe in lean (no waste) and agile (flexible) anytime can change

He don’t want people who not into it

Manager have 6-7

300 people u don’t have time, 1-1 no time

Less manager report

SECOND STAGE OF THE ROCKET

CulturalChange

Work-Out & Best Practice

Work-Out- type of workout such as :-

1. Birokrasi reduce

2. Which one to eliminate- he assign the person Baughman

                        - off-site meeting and open-forum

-3 day sessions began with unit boss. Boss leave the session afer that n come back to hear

Session with people, have solution

Best Practice

Best way to do it better. Come out with some

Knowledge should be share, abdopted, apply by others. Don’t shy to learn drom other

GOING GLOBAL

Exhibit 3

Changes in the GE biz portfolio

Buy ins company..

He not so excited until 1989- appointed Paolo Fresco as a head og International Operation

JV with foreign (Thomson S.A)-Franch base

Toshiba (japan)

Need a partner to going global

Most revenue from outside. He see the opportunity going global

 3 time higher than domestic revenue