Showing posts with label Jack Welch. Show all posts
Showing posts with label Jack Welch. Show all posts

Friday, July 26, 2024

What happened to GE, formerly one of top companies in US, what Jack Welch has wrought?

Every generation needs a revolution - an entrepreneurial revolution

GE used to be darling of Wall St.   It was tops of the top 20 companies 20 years ago.

What caused its decline:

1.  Investing too much in non core business:   lending, health care.  The GE capital was badly hurt by 2008 crisis.   They had to be bailed out to the tune of $100 billion   It stood against the management principle of focus, on core business.  What was GEs core business:    Jet Engines, power generation.   They could have been growth more.  The acquistions distracted them from core businesses

2.  They engaged in too much acquisition .  However they financed this by cutting off employee payroll.
They destroyed their human capital.  The staff worried too much in being laid off.

Jack Welch was an idol before in management.  It seems it was a misplaced adulation.  


 




Sunday, June 9, 2024

Bottom up or top down? Which is a better approach?

Every generation needs a revolution - an entrepreneurial revolution

Time and time again, we have heard empowerment, bottoms up approach is better.  Even at lowest level.  The presumption is that Theory Y works:   staff will develop themselves, will engage in self improvement.  But in reality that rarely works.  Even at supervisory and managerial level.

Every one wants to be secure, not take risk, not cross the line, and only do the routine.

It is sad and very embarrassing but the top guys should really make it a point to follow up - to flames underneath the executive chairs.   

The Jack Welch boys said it right -  Follow up.   Top down