"Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others." - Jack Welch

1. “Before you are a leader, success is all about growing yourself.
When you become a leader, success is all about growing others.”
~ Jack Welch
Manoj Bhargava

2. The Art of
Leadership
William Muir’s Chicken
Experiment

3. EXAMPLES OF DIFFERENTTYPES OF LEADERSHIP

4. EXAMPLES OF DIFFERENTTYPES OF LEADERSHIP

5. GE’STWO-DECADETRANSFORMATION:
JACKWELCH'S LEADERSHIP
 Founded in 1878 byThomas Edison
 General Electric is one of the world’s leading diversified industrial companies. GE’s primary
business divisions include: Power &Water, Oil & Gas, Energy Management, Aviation,
Healthcare,Transportation, Capital and Digital
 GE underwent many changes prior to Jack Welch Leadership, In 1930 it was considered as
highly centralized, tightly controlled corporate form.
 1950’s to greater extent GE decentralized its hundreds of departments
 1960 was the duration when profitless growth become the concern and caused the company to
strengthen its staff and corporate strategy
 During 1970 and 80’s Reg Jones raised strategic planning to an art form and made GE the
benchmark for hundred of companies
 In 1981 Jack Welch’s performance and earnings record ultimately won him the position over six
other candidates. Even though he had no formal master plan for GE's reorganization, he did
have a vision of what he wanted the company to be.

6. Welch: Leadership Style
Vision: Build a market-leading company
• Lead more, Manage Less
• Motivating Employees
• Constantly identifying other leaders at GE
• Aggressive Leadership
• Communication
• Charismatic
• Stayed visible at GE
• Succession Planning
 Jack Welch was born in Peabody, Massachusetts
 America's most recognized and controversial chief executives
 Qualified chemical engineer
 Began his career in a junior position at General Electric
 During his 41 years at General Electric (GE)Welch rose from his position as an
entry-level junior engineer to become the company's youngest vice president
and later its youngest CEO and chairman

7. Make company more lean and agile
GE’s employee strength declined from
404,000 in 1980 to 2,92,00 by 1989
Revenues increased modestly through
this downsizing but profits increased
considerably
Welch built a new team of managers
who innovative, committed to target &
company values & were ready to take
the responsibility
Destaffing
Welch set the standard for each business
to become the #1 or #2 competitor in its
industry - or to disengage
This management practice helped GE to
free up of over 11billion of capital by
selling around 200 business between
1981-1990 but at the same time they
also acquired 370 business by investing
over 21 billion to some major purchases
#1 Or #2: Fix, Sell, Or Close

8. RealTime
Planning
• Welch developed a five page playbook for each business
Re-structuring
of budgeting
process
• Welch wanted his managers to compare sales figure with respect to market share &
competitive cost advantage of operating margins
Work -Out
• A forum through which employees can share their honest, energetic & innovative ideas
• This eventually led to a considerable increase in the growth rate of GE
Best Practices
• Identify the tool and practices adopted by successful companies and implement the same
• This policy ended up in making employees realize that they should focus on how things got
done than just what got done

9. GOING GLOBAL
 Welch Challenged his manager to focus towards evaluation of "#1 or #2"
concept on world market position.
 GE started acquiring numerous international business
 Every economic downturn was seen as a fresh opportunity to acquire new
business.
 By 1998 international revenues were 42.8billion, just double the value 5 years
back.
 Globalisation lead to generation of global revenues which were growing at 3
times more than domestic sales rate

10. The compensation package was
made more rewarding through
stock option allocation
Welch increased number of such
allocation from 300 to 3000
REWARDING COMPENSATION
PACKAGE
Use of session c in Welch's style
Top most executives were asked
to identify the future leaders,
outline training and
development plan etc
This policy helped managers
across GE to develop their staff
& understand their coaching
needs
Developing Leaders

11. IDENTIFYING AND ELIMINATE RANK4
MANAGERS
 Welch ranked managers into 4 categories
 Category 1: Delivered on commitment and shared company value
 Category 2: Failed on commitment and failed on sharing company value
 Category 3: Failed on commitment but shared company value
 category 4: Delivered on commitment but failed on sharing company value
 Welch devised a mechanism to evaluate managers not only on the basis of
some quantifiable targets but also to the extent to which they lived GE values.
 This practice was used by other managers to rank their employees & identify
their coaching needs & if coaching failed, they were eliminated.
 Eventually this practice evolved into a 360 degree feedback process

12. Concept of stretch was
introduced
Managers not only had to hit
the basic target, set
depending upon current
situation but also during the
budgetary cycle targets were
increased
ACHIEVINGTHE IMPOSSIBLE
An environment where people
would learn & share ideas
irrespective of the
geographical boundary, class
of employee or line of
business
GE now rewarded its
employees not only for idea
creation but also for idea
sharing & idea seeking
Boundaryless Behaviour

13. ADDVALUETO PRODUCTS-SERVICE
BUSINESS
 Concept of in-site was introduced.
 GE through some automation technologies started producing on line
monitoring &diagnostic support to its products like MRI SCANNER,JET
ENGINES & many more.
 Welch stressed on the fact that their service business can grow only by making
their customer’s business more profitable through innovative service supports.
 By 1996 GE had developed 8 billion service based business which was growing
much faster than their underlying product business
 The service business finally started contributing for two thirds of GE’s revenue

14. FOCUS ON QUALITY IMPLEMENTATION OF
SIX SIGMA
 Analysis showed that GE was losing 8-10 billion a year in efficiencies and lost
productivity
 Objective behind six sigma-improved quality, lower cost & increased productivity
 Six sigma was launched describing it as “biggest opportunity for growth”
 Six sigma was made mandatory for all employees
 Massive training programme were introduced & employee were categorized into
green belt, Black belt and master Black belt in six sigma quality
 Implementation of six sigma helped GE to significantly increase the operating life
of many of its products and further give the company unexpected return of 750
million over an investment of 500 million for implementation of six sigma

15. A programme entitled byWelch as
destroyyourbusiness.com was launched
Fundamental support for E-business –
strong brands, top product reliability,
great fulfilment capability and excellence
service quality
Launch of E-Business
Welch wanted only “A Players” with 4 “E’s”
in GE
4 “E’s” – energy ability to energies others
edge & execution
New appraisal system was launched -
every manager was required to rate their
employees into one of five categories
based on their long time performances
> >Top 10%-1s
>> Strong 15% - 2s
>> MostValued 50% - 3s
>> Borderline 15% - 4s
>> Least effective 10% -5s
“A players” with 4”E’s”

16. THANKYOU!!
“Leaders must be close enough to relate others,
but far enough ahead to motivate them.”
~ John C Maxwell