Jack Welch
Candlefocus EditorBefore joining GE, Welch had been trained as an engineer and was a business professor at the Harvard Business School for seven years and worked for GE for 21 years prior to becoming CEO. He quickly earned a reputation as a tough and fearless leader who was unafraid to take risks, confront difficult issues and make bold changes.
Welch espoused an ambitious vision once he became chairman of GE. He declared his goal to be "Number one or two" in every business that GE conducted operations in, and cut back those that weren't competitive. To reach his goals, Welch closed factories, laid-off hundreds of thousands of workers, and implemented strategies to stimulate growth in a slow-growth economy.
Welch earned a number of nicknames during his tenure at the helm of GE including "Neutron Jack" (due to the fact that his cost-cutting tactics left no employees behind) and "TheManager of the Century" (due to his ability to quickly turn GE into an industrial giant). He also became well-known across the business world for instituting a "Six Sigma" standard of excellence, and also for initiating GE's "Work-Out" process in which employees were encouraged to look for areas to improve work processes and to identify cost savings.
Welch's twenty-year run at GE was hailed as one of the most successful in American business history, leaving the company stronger and more profitable than it had ever been. Welch retired in 2001 with the ringing endorsement of renowned investors Warren Buffett and Steve Schwarzman.
In retirement, Welch was active as a writer and public speaker, penning the 2005 memoir, Winning, which provided insight into his business philosophy and leadership style. Jack Welch died on March 1, 2020, at the age of 84. He was remembered for his enormous contributions to the business world and for his role in transforming GE into one of the leading companies in the world. Welch's impact can be seen in the way that businesses approach growth, cost control, and innovation. It is certain that his legacy will continue to shape the business practices of the future.