GE’s Two-Decade Transformation: Jack Welch’s Leadership Harvard Case Solution & Analysis

GE's Two-Decade Transformation: Jack Welch's Leadership Case Study Solution

Recommending same or different approach to change

One of the written-about, most observed and admired CEO, it is inevitable that the action and style of Jack Welch have been widely imitated. As such, Jack Welch is one of those leaders that tend to create the legacy in developing leaders. Under his leadership at General Electric, the value of the company has increased over 4000 percent. He has exceptionally pioneered the policy of informality with an organization, which has allowed the employees to have small business experience at large corporation. From de-layering of organization to the six sigma, he had adopted techniques and concepts from prevailing management practices and from other companies. He has created the corporate system of control and coordination and corporate culture that tend to foster entrepreneurship, innovation, best practice sharing, cooperation, motivation and human resource development.

Imperatively, Jack Welch has pushed various principle initiates as a chairman during his tenure. The leadership style that he had adopted and changes in the strategy are exceptional and generate various desirable benefits for the benefit of the company. The table shows the changes in the strategy, changes in the management system and changes in organizational structure.

Under the leadership of Welch, the company has been absolutely emphasized on creating shareholder value and such objectives have reinforced by the performance management and culture that has made company strongly oriented towards the goal of value creation as well as profit maximization. The company’s financial control and the system of connecting the remuneration of divisional CEO to the value creation has resulted in the internal system of the company which provides incentives and rewards to the business level managers that has been effective in driving value creation. He has recognized and values the fact that the performance driven management need to be in change on consistent basis.

In short, it is to state that without bringing significant change within the organizational structure, strategy and management, the company could not have as successful as it is now. Jack Welch has assured the success of the company through creating performance oriented company, long term envelopment and consistency, possessing the most effective and sophisticated system for training, appraising, selecting and planning the manager’s careers. The leadership style of Welch was more than a reflection of his beliefs and personality. It is to note that the leadership style and change theory has embodied the main tenants of complexity theory specifically the combination of the evolutionary leaps / organizational changes and incremental improvements (through strategic planning and standard financial system). So, Jack Welch could not have obtained the same results by following a different sequence of change.

Conclusion

To sum up, it is to conclude that the General Electric was founded by Thomas Edison in 1878. It is one of the third largest company all around the world and fifth largest best international global brand. The company is faced with the impending retirement of former head of GE i.e. Jack Welch and whether anyone would be capable to sustain and manage the blistering pace of anticipated growth and overall change characteristics of the former head era.The leadership of Welch was started beginning in 1981 during the economic recession. He has used the best fields to operate with effectiveness which was to assure that there was a new formation of the business unit under the General Electric management. He has played the crucial role in strengthening the valuable company’s resources that has created effectiveness and efficiency.

In addition to this, Jack Welch has intended to fix the poor achieving products line that could be fixed, drop those products that could not be sold or fixed and sell those products that could not be sold but fixed. The leadership style of Welch was more than a reflection of his beliefs and personality. It is to note that the leadership style and change theory has embodied the main tenants of complexity theory specifically the combination of the evolutionary leaps / organizational changes and incremental improvements (through strategic planning and standard financial system........

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