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Legend: John F. “Jack” Welch Jr
John F. “Jack” Welch Jr. General Electric
Nicknamed ‘Jack’ by Fortune magazine, John F. Welch Jr. was also referred to as “manager of the century” by General Electric (GE), his latest and final employer, where he was in charge for 20 years, before his retirement in 2001. Welch began his stint with GE in 1960 as a chemical engineer for the company’s plastics division and went on to climb the ladder, eventually reaching the position of chairman and CEO in 1981, at the age of 45.
Within the first five years of taking the helm, Welch made many critical choices for the company. According to Welch’s GE-written Obituary, “Between 1983 and 1985, Welch entered GE into 118 acquisitions, joint ventures, and new companies, and disposed of 71 others.”.
Welch adopted Six Sigma principles through his efforts to simplify processes within GE (which he named the company in 1986). This move would enable the company to set specific targets and push all GE businesses to the first or second positions in their respective markets. When the market position of their companies became what he called “tired”, Welch strove to keep the company from stagnating by diversifying their operations. This led GE subsidiaries to open up positions in new markets, in which the company held less than 10% share.
Welch had a vision for the company, which could only be achieved through transparency. This meant every employee would be clear about each other's role and how their everyday work contributed to the company’s overall success. Judging by comments in a press release following his death, Welch had a strong presence that influenced the company’s ethos significantly during his tenure.
“Today is a sad day for the entire GE family. Jack was larger than life and the heart of GE for half a century. He reshaped the face of our company and the business world. Jack was a strong and constant influence throughout my career despite never having worked directly for him,” said Henry Lawrence Culp Jr., Chairman and CEO of General Electric.
