Jack Welch & Jeff R.

Immelt
LEADERSHIP STYLES

Jack Welch Leadership Style

SHORT HSTORY

Jack Welch - Short History

Born on 9th November, 1935 in Massachusetts, USA Working class family Graduated from University of Massachusetts in 1957, B.S. in Chemical Engineering

M.S. and Ph.D. University of Illinois in1960

Jeff R. Immelt - Short History

Born on 19th February 1956 in Cincinnati Ohio, USA Father managed the General Electric Aircraft Engines Division Graduated from Dartmouth College in 1978, B.S. in Mathematics M.B.A from Harvard in1982

Jack Welch - Jeff R. Immelt Career at GE

Jack Welch

Joined G.E. in 1960 chemical Engineering, Vice President of GE in 1972 Vice chairman in 1977 Chairman & CEO of GE in 1981 Retired in September 2001

Jeff. R. Immelt

Joined GE Plastics , Sales & Marketing 1982 Vide President of GE Appliances consumer services, 1989 Vice President and general manager of GE Plastics Americas, 1993 Senior Vide President and chief Executive Officer of GE Medical Systems, 1996 GE president and chairman elect in 2000 CEO in 2001

Jack Welch - Leadership Style

Task oriented Autocratic Personality

Six traits of leadership, Jack has all

Ambition and energy Desire to lead

Honesty & Integrity

Self confidence Intelligence

Jack Welch - Leadership Style

Management Skills

Simplicity, leaner organization Speed, act quick

Best People, company values are important not just the numbers
Ideas, employees have good ideas Candor is important, be honest to your employees

Jack Welch - Leadership Style

Change before it is too late An openness to change...

Accept change as leader

Teach employees how important change is..

Be ready to rewrite your agenda

What changed in GE

Be number ONE or number TWO else sold off or shutdown

Make each day fist day of your job Employees have good ideas too Cost-cutting, efficiency and deal-making skills are encouraged..

Jack Welch - Leadership Style

Face Reality and act quickly on that reality

Reorganize GE, GE should focus on the strongest business Acquire RCA, GE needed this acquisition to push high-tech growth Work-out program to address the need for employees voices in running the company

Legendary 6-sigma program, GEs quality program was not working

Jack Welch - Leadership Style

Managing less is managing better The Welch paradox of management

Arent managers supposed to manage

Welchs answer was Relax..

Stop bogging employees in to bureaucracy.. Let them perform..

Instill confidence Get out of the way Emphasize vision, not supervision Managing is allocating people and resources, give them what they

need and get out of way

Jack Welch - Leadership Style

Create Vision

Vision about how things can be done better

Manager lead with vision;

They must persuade others through the force of vision.

Set out only a few clear and general goals consistent with company values, create values consistent with vision..

Prussian military strategist did not expect a plan of operation to survive beyond the first contact with the enemy. They set only the broadest of objectives and emphasized seizing unforeseen opportunities as they arose

Strategy did not written in to stone, instead would evolve over time.

Jack Welch - Leadership Style

Always give employees more responsibility, they will make better decisions.

Nurture employees who live up to company values even if they dont make their numbers

Eliminate employees who do not live the company values, even if their numbers are good

Jeff Immelt - Leadership Style

People oriented

Paternal like personality

Democratic leadership Risk taking and innovative thinking Immelts keys to great leadership

Personal responsibility,

Leader can not accomplish everything by himself, team building and placing others first will bring success

Leave a few things unsaid,

Listen fellow GE employees to make better decisions

Like People

Try to understand and fair to employees. Encourage them to fulfill their personal goals.

Jeff Immelt - Leadership Style

Immelts keys to great leadership

Simplify constantly

Every leader should clearly explain to three things the organization is working on.

Understand Breadth, Depth and Context

How your company fits in with the world and how you respond to it.

Importance of alignment and time management

At the end of every week, leaders should spend time around important things; set priorities, measure outcomes and reward them.

Learn constantly and learn how to tech

A primary role for a leader is to teach.

Jeff Immelt - Leadership Style

Immelts keys to great leadership

Stay true to your own style

Leadership is about being self-aware. Use your own style to do things.

Manage by setting boundaries with freedom in the middle

Boundaries are commitment, passion, trust and teamwork. There is plenty of freedom across these four boundaries

Stay disciplined and detailed

Good leaders are never afraid to intervene personally on things that are important.

Leadership Style - Conclusion

Both are great leaders with different leadership styles and strategies for the company

Jack promoted internal communication, made it easy to communicate

at every level

Jeff focused on external communication, communicate with investor and third parties

Jeff focus more on abstract aspects of the business rather than focus on performance and strictly quantifiable results like Jack.

Jeff removed emphasis from the bottom line to get employees to take risks and develop more innovative ideas.

Leadership Style - Conclusion

Jeff brought outsiders, he believes outsiders will bring new ideas, creative energy and perspective to company.

Jack focused on production, Jeff shifted focus from production to

marketing

Jeff did GE more environmentally conscious and invested heavily on eco friendly products. Jeff noticed the opportunity in environmental products.

But there are similarities also;

Fix it, Sell it or close it Fire least effective %10 each year.

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