Former CEO of GE

Varun Kumar Chaudhary – 11BM60019Ashwin Variyar – 11BM60039Soumitra Sahu – 11BM60067Avinash Singh – 11BM60089

Abhinav Minnala Mohan – 11BM60093

About Jack WelchCEO of GE from 1981 to 2001.

Grew GE from $ 24+ billion company to $

74+billion company.

Realigned goals and motivation and stretched

the managers under him to their limits.

Restructured GE into one of the world’s most

staid corporations

Strategies for Communicating Change• Jack Welch implemented an open

communication strategy.• He tried to maximize the organization’s

potential by creatively synthesizing executive’s initiatives and employee concerns.

• He not only disseminated information about the change, but also gave the employees a chance to contribute to the change.

• He allowed the employees to air their concerns about the change.

Skills for Communicating ChangeJack Welch took up the role of a Director

for communicating changeHe communicated an optimal amount of

information to his employees (The Why, What and How of the Change)

He emphasized on Therapeutic Listening, where one listens to the problems of the staff and helping them

He followed the Bottom Up Approach in bringing about the Organizational Change

Skills (contd.)Welch instituted a 30-odd member Corporate

Executive Council (CEC). This council has no formal authority, but has come to function effectively as GE’s political center. They act as “Toxic Handlers” and extend help relating to Organizational Pain

The most important of all, Jack Welsh stressed on Communicating to the External World.

He obtained information from other companies and used these inputs constructively to ensure the positive change in GE

Consolidating ChangeWelch’s leadership theory depends heavily on the power of

delegation. Team recommendations are presented to the responsible managers,

who must accept or reject proposals on the spot. Ideas that require further study are reviewed for a period of time agreed on by the team (usually less than a month) before a final decision is made. The process encourages responsive leadership and greater employee participation, which increases the rate of change throughout the organization.

He cut out all managers that simply gathered information from their subordinates and passed it up the line to senior management

Welch called for developing a corporate culture that encourages and rewards honest feedback. At GE, he put these principles into action by implementing a forced ranking system that divided employees into three distinct segments: the top 20 percent of performers, the middle 70 percent, and the bottom 10 percent.