"Through the 1980s, Welch barnstormed through GE shutting factories, paring payrolls, and hacking mercilessly at its lackluster old-line units."
There are two important aspects of why Jack Welch did what he did above. While it wasn't an easy task to execute, it had to be done if General Electric (GE) was to not only survive, but thrive in the changing global economy of the time.
He did what he had to do, even though people battled him and took the lower route in personal attacks and giving him the "neutron Jack" label. It's a good thing he had the stomach for it, as he laid the foundation for and extraordinary period of growth for the company, making it into an international behemoth, able to compete in any international market.
So first, Welch had to steamline the company before he started thinking of growth. Growth without fiscal discipline would have been pointless and meaningless. He needed and wanted a lean company.
From there, he started to build out his international strategy, expanding around the globe.
What that did was put the company on a disciplined, but powerful growth pattern, which has let the company to be worth over $410 billion today.
Welch knew many of the old-line divisions and companies had to have some strong medicine applied to them in order for the to survive and thrive in the 21st century. He had the will and guts to do what it took to make it happen.
Anybody can say what they want about him, he executed his plan and brought General Electric into the 21st century as one of the premiere companies in the world. It remains that to this day because of his guts and insight, along with the willingness to do what was needed no matter what people and the press said about him.
Other Jack Welch Resources:
Jack Welch's advice to MIT Sloan students
Remember to Sign up for my feed
Sponsored link: The outsourcing every manager requires - Tampa Locksmith
Comment Preview