Jack Welch is a highly recognized CEO because of his leadership
abilities, his management style, and his successes. He took GE from non-
profit to profit during his tenure as CEO from 1981 to his retirement in
2001. His "Six-Sigma" program is still one of the most popular programs in
American management. One writer notes, "Under Welch's leadership, GE rose
to be ranked No. 1 among the world's most valuable companies based on a
combination of revenues, profits, market value, and assets" (Strohmeier,
Welch faced a myriad of problems when he took over. In 1981, GE was
facing many business failures. Many of the company's departments were not
producing profits, and the business had not seen the wisdom of
globalization, most of the company's markets were still national. The
company did not respond quickly to changes in the marketplace, or to
Welch looked at the problems and began to overcome them. He brought
"reengineering" to the company, which simply meant he repeatedly
restructured the organization when it was necessary, often laying off
workers. As he downsized the workforce, he also sold of subsidiaries not
creating a profit. He also condensed many functions, and ultimately formed
thirteen various segments of the corporation, which included Aerospace,
Aircraft Engines, Appliances, Electrical Distribution and Control,
Financial Services, Information Services, Lighting, Medical Systems,
Motors, NBC, Plastics, Power Systems, and Transportation Systems
(Strohmeier, 1998, p. 16). Under Welch's guidance, GE became a cost-
effective and impressive corporation with one of the finest balance sheets
in the world. To accomplish this, "he insisted that GE be number one or
two in each business--not just hold onto businesses that were always there"
(Hargrove, 2001, p. 35). Finally, Welch created a nurturing environment
for management as he continually included them
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