GEs Two Decade Transformation: Jack Welchs Leadership Harvard Case Solution & Analysis

Question 3

The complex, diversified business consist of 10 groups, 46 divisions  and  190 departments  that  supports the 43 strategic business units  designed to maintain the strategic planning of the  General Electric. Furthermore, all these business units of the organization suffered during the period of economic recession in the United States. These changing, uncertain conditions in the industry increased the competition among the companies.

This increased competition realized the new CEO of the organization that in order to overcome these challenges, it necessary to have exceptional leadership and brave strategies. He focused not only development of the strategy that based on achieving sustainable advantage but also included to build the strategies that responded timely to counter its rivals as well as the flexibility to create continuous advantages over its rivals. Jack Welch had made successful continuous changes at a speedy pace among all the levels of the organization which helped the General Electric to cope up with the growing rivalry in the industry. 

Normally, during the time of recession cost cutting strategies are mainly adopted by most of the businesses that are not effective for the companies sometimes. However, investment in the right brand offerings help the companies to perform better at the time of recession. Jack Welch divided the businesses of the organization into three parts known as Three Circle Concept.

The focus of the Jack Welch was to make the General Electric “lean and agile” that resulted in the disciplined destaffing process, reduction in the level of bureaucracy and also reduction of the layers of hierarchy that were the obstacles for the organization in term of growth, operations, profitability and production efficiency.

The key aim of the organization was to operate effectively in the industry by transforming the organizational structure. In addition to this, Jack Welch focused on the businesses that enhanced the growth as well as developed the staff in a way that helped them perform efficiently. Furthermore, the employees at the organization were allowed to share their creative ideas in order to contribute to the General Electric values.

The critics of the organization saw their strategies of continued changes in all the level of organization from structural change to the employee skill development as unsafe and hazardous particularly during the time of uncertain conditions of the economy. The initiatives of the Jack Welch had added various values to the organization processes.

As the reduction in the level of bureaucracy resulted in more effective production and efficient processes for the organization operation. He also expanded business operations from the domestic level to the international level that enhanced the organizational growth and productivity. In addition to this, the value added also included the changing culture of the General Electric towards more sharing of ideas, knowledge, learning, self-confidence and the commitment to the values and objectives of the organization. His initiatives also provided value, he saw the challenges and economic difficulties in other countries as an opportunities for the organization in order to make new investments and expansions worldwide.

Question 4

The main objective of the Jack Welch was to restructure the organization in order to develop the ground for long-term growth of the General Electronic as well as among one of the leading players in the market. He continuously implemented changes as he also expected from this workforce to adopt the changes that were successfully made in the organization. He also challenged each member of the organization to be “better than the best” in order to enhance their performance and growth. He developed good strategies for the long-term growth of the organization that resulted in recognition of opportunities, getting rid of obstacles and involvement of the employees throughout organizational changes.

Additionally, he focused on the continuous improvement of the functions and operations of the General Electric. He introduced an organizational culture where everyone can learn from each other by sharing the ideas, knowledge and information. Also, he changed the compensation package of the General Electric from the traditional compensation system in the process in which stock options became the primary element of management. He started aggressive allocation of incentives, bonuses and options that based on the individual performance in order to motivate the members of the organization to perform exceptionally well that added value to the business. The introduction of the program “Work Out” created opportunities for both the employees and managers by communicating with each other to create new and creative ways to perform the work.....................................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution

Share This

SALE SALE

Save Up To

30%

IN ONLINE CASE STUDY

FOR FREE CASES AND PROJECTS INCLUDING EXCITING DEALS PLEASE REGISTER YOURSELF !!

Register now and save up to 30%.