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Ge's Two Decade Transformation: Jack Welch's Leadership

823 words - 3 pages

CENTRAL ISSUEHow to sustain the dynamic change and growth of GE after Jack Welch's tenure as CEO?II. AREAS OF CONSIDERATIONA.Jack Welch's leadership - aggressive, demanding and effective management style as articulated in his four (4) strategic initiatives namely:1.Globalization - by acquisition of foreign corporation and divestiture which in turn made GE earn global revenues which are three times higher than its domestic US sales.2.Services Business - reduce dependence on traditional industrial products; move away from providing "goods" to providing "service."3.Six Sigma - opportunity for growth, increased profitability and individual employee's satisfaction.4.E-Business - digitalizing the company and engaging into e-business.5.Existing 4-layered organizational structure consisting of only the corporate staff departments and business divisions all reporting directly to the CEO.B.Corporate Values and Culture1.Welch's three equally-rated values: speed, simplicity, and self confidence.2.Continuous upgrading of the quality of management through globalizing the intellect of the company and weeding out people whose commitment and values do not meet the organization's expectations.3.Management's techniques to build a nurturing environment for employees and its stance on the importance of people investment which are all geared towards development of leaders and making empowered employees. These strategies are seen through:a.Participation of employees during "Work-Outs" and "Best Practices" forums;b.Availability of opportunities for personal and professional growth;c.Development of resources and building structures conducive for a working atmosphere (e.g. Crotonville);d.Application of human resource tools;e.Conduct of Session C's;f.Implementation of the Six Sigma Quality Initiative;g.Overhauling the compensation package andh.Promotion of the 'boundaryless' organization.C.Successor1.Has adopted GE's established corporate value and culture.2.The challenge of maintaining the effective management practice of the predecessor.D.Employees1.Imbibed the work culture developed by the present management.2.Reaction towards the introduction of new strategies by a different management style of the new CEO.E.Company Performance1.Excellent performance of the company at 23% per annum total shareholder return which Welch has delivered in his two decades of leadership.2.Increasing sales and revenue performance of the three eras (Borch, Jones and Welch).3.Annual growth rate of 15% on global revenues and 6% in domestic sales.F.Environment Trend1.Emergence of the digital age and engagement of companies in e-business.2.Existing business trends which practice globalization.3.Implementation of a new strategy which is service-oriented (moving away from providing only goods to providing services).III. ALTERNATIVE COURSES OF ACTIONA.Jack Welch's Leadership1.Keep Welsh as the consultant / mentor of the organization2.Maintain the effective and operational 2-decade leadership...

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