It’s amazing to me, but looking back over more than a decade of writing I find posts that still impress, with information that is as useful now as when it was written.
Golden Oldies is a collection of what I consider some of the best posts during that time.
During his time at GE, Jack Welch was lauded and crowned as a god of leadership and management— How times have changed. Welch’s success was dominantly a function of GE’s financial services and he created one of the harshest cultures around—which would have failed miserably with today’s workforce.
Immelt sold off the financial stuff, totally changed the culture from one of suspicion to one of trust, dumped the forced rankings, just issued a directive that all new hires learn to code and has responded to the current worldwide protectionist mindset by moving from globalization to localization.
Immelt is a worthy role model.
Read other Golden Oldies here.
There is a sizable difference between accepting positional leadership when a company is at the bottom and there is no place to go but up and taking over when its at its height—even more so when what was the growth engine and source of extraordinary profits disappears from the economic landscape.
It is one thing to maximize what you have, wringing out every last possible dollar, and investing in innovation for sustainable growth in the future.
It is one thing to create a culture where public shame and the likelihood of termination for missing your numbers rules and changing that to a culture that encourages appropriate risk-taking and never kills the messenger when the risk doesn’t pan out; a culture that understands not every innovation will be a home run, but encourages and applauds the effort anyway.
These are the differences between Jack Welch and Jeff Immelt.
Welch had taken over when the company was in the bottom of an economic cycle. He took over GE in a recession, not at the height of a bubble.
Immelt got the job right after the end of the high-flying 1990s, an era which crowned CEOs with mythical, God-like crowns, and Welch was bestowed the biggest of them all.
Immelt had known before the meltdown the company needed to wean off the leveraged risk from finance that was begun under Welch. … He admitted mistakes, as any good leader must do, and GE more quietly if not humbly went about its business in making the company a 21st century sustainable and reliable profit engine.
Flickr image credit: laurita13