Trivial Pursuit

1
Trivial Pursuit

• How many of the original 12 companies listed in
  the original Dow Jones Industrial Average in 1896
  are still included in the Dow Jones Industrial
  Average today?

2
Jack Welch

• Former CEO of GE

3
Outline

• Born 11/19/35
• Chemical Engineering
• B.S. UMASS 1957
• M.S. and Ph. D University of Illinois 1960
• 1959 Got married
• 10/17/60 joined GE
• 12/15/80 named CEO
• 1987 Divorced
• 1989 Married Second Wife
• 1995 Heart Attack
• 2000 left GE
• Divorced 2003
• 2003 Married Third Wife

4
Personality Traits (as stated by Jack Welch)

• Brutally Honest
• Outspoken
• Abrasive
• Integrity
• Impatient
• Wants to be face to face, see passion, body
  language.
• Liked constructive conflict.

5
Climbing the Corporate Ladder

• Climbing Corporate Ladder
• 10/17/60 Chemical Engineer
• 1968 General Manager VP
• 1973 Group Executive
• 1977 Sector Executive
• 1980 Named CEO

6
GE 1980A super tanker - strong and steady in the
water

• 25 Billion Corp.
• Earned 1.5 Billion a year
• 411,000 Employees
• 10th largest corporation by size and market
  capitalization (Fortune 500)
• 9th most profitable (Fortune 500)

7
1980 Economy

• U.S. in recession
• Inflation Rampant
• Japanese imports increasing
• Oil projected to sell _at_ 100 a barrel.

8
Neutron Jack

• Redefined Social Contract
• life-time employment vs. life-time employability
• Differentiation
• Vitality Curve
• Three circle strategy
• Bureaucracy

9
Initiatives 1990s

• Globalization
• Services(-ing)
• Six Sigma
• E-Business

10
Results

• 1980 Revenue 25 Billion Earnings 1.5 Billion
• 2000 Revenue 130 Billion Earnings 12.7 Billion
• Operating Margins
• 1992 11.5
• 1996 14.8
• 2000 18.9
• Market Value 1981 12 Billion 2001 280 Billion
• Forbes Global 2000, GE is the worlds
  second-largest company.
• Jack was named Manager of the Century by
  Fortune Magazine in 1999

11
(No Transcript)
12
References

• Principal Source
• Welch Jr., Jack F. Jack Straight from the Gut.
  New York Warner Business Books, Inc. 2001.
• Additional Sources
• lthttp//www.isixsigma.com/sixsigma/six_sigma.aspgt
• lthttp//www.valuebasedmanagement.net/leaders_welch
  .htmlgt (market value statistic)
• lthttp//www.timewarner.com/corp/newsroom/pr/0,2081
  2,667526,00hmtlgt
• Photos
• Laddr_picture.jpg lthttp//www.proactivebengalis.co
  m/pb_career.htmlgt
• Nuclear Explosion lthttp//en.wikipedia.org/wiki/nu
  clear_explosiongt
• World Map lthttp//www.cia.gov/cia/publications/fac
  tbook/reference_maps/political_world.htmlgt
• GE Product/Symbol Photos from GEs corporate
  website lthttp//www.ge.comgt