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Case Overview: GE is faced with Jack Welch's impending retirement and whetheranyone can sustain the blistering pace of change and growth characteristic of the Welchera. After briefly describing GE's heritage and Welch's transformation of the company'sbusiness portfolio of the 1980s, the case chronicles Welch's revitalization initiativesthrough the late 1980s and 1990s. It focuses on six of Welch's major change programs:The "Software" Initiatives, Globalization, Redefining Leadership, Stretch Objectives,Service Business Development, and Six Sigma Quality.Subjects Covered: Business policy; Change management; Conglomerates; Corporatestrategy; Executives; Implementing strategy; Leadership; Organizational change;Organizational culture; Organizational development
Case Questions:
1. How difficult a challenge did Welch face in 1981? How effectively did he take charge?
2. What is Welch's objective in the series of initiatives he launched in the late1980's and early 1990's? What is he trying to achieve in the round of changes heput in motion in that period? Is there a logic or rationale supporting the changeprocess?
3. How does such a large, complex diversified conglomerate defy the critics andcontinue to grow so profitably? Have Welch's various initiatives added value? Ifso, how?
4. What is your evaluation of Welch's approach to leading change? How importantis he to GE's success? What are the implications for his replacement?
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