20 years after Jack Welch, does GE still have a PIP culture?
I know this is archaic, but as a kid I always heard of this guy as an entrepreneur, leader etc... as I was reading about it again, I saw he had some kind of PIP stack ranking way before Amazon became famous. Thoughts? https://www.npr.org/2022/06/01/1101505691/short-term-profits-and-long-term-consequences-did-jack-welch-break-capitalism "Neutron Jack, as he became known, had a practice of ranking employees and automatically firing the bottom 10 percent every year [...] But ultimately, Welch's leadership did not lead to long-term profits [...] " 320 @GE @amazon
Fresh Air
Look at the company’s stock price before and after the year 2000. He ran the place from ‘81 to ‘01. Maximum short term thinking.
hmm I may agree that he didn't bring long term profits, but in 2000 there was the dot com bubble burst too
Ge wasn’t a dot com. Company. Apparently got got screwed during 9/11. Bc they had to pay insurance out insurance on the building or something
He did financial engineering and pumped the stock. Fraud.
Doesn't Elon engage in similar practices with his companies?
Yeah it still exhist. I interned at ge appliances and it’s hella toxic even though ge sold it to haier.
I'm sorry for his kids. Might have been really tough
I had a family member who worked for Jack Welch directly in the 80s. He said Jack was alarmingly intelligent but ruthless and people were very afraid of him. My family member said he felt like the outsourcing decision was a pure union-busting move but had disastrous consequences for industry long-term and sort of overshadowed all of the good that bar-raising had done at GE to raise the company’s performance. You can say he was a jerk because he was decisive and his decisions were harsh but he could operate on his own and that’s a skill that the modern CEO completely lacks, as most modern CEOs are just puppets for the board. The last CEO in recent history who even comes close was Ballmer but even he was a board puppet at times.
Hmm. Apparently, both Jack and Ballmer are hated not just by employees but also by the wallSt. So what did they achieve?
Jack Welch turned GE into a titan of industry and a household name. Today GE is one of the most successful companies in history, with a market cap of over two trillion dollars. Ballmer produced Windows Vista, the Zune platform, and Windows Phone 7. Thanks to his swift-thinking and ruthless efficiency, Microsoft was able to maintain its dominant position through the transition into the web and mobile eras, and it's poised to dominate the upcoming VR space.
let go of the past boomers culture isn't like that now it's more like a startup if you're in the technical unclassified space & outside of MSO / EW WLB is amazing expectations are high but what else is new
That leadership works great in an industrial manufacturing age.. it’s wreck havoc in the knowledge economy where psychological safety is the fuel that feeds innovation, wellbeing and belongings.