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Tag: Jack Welch

Posted on March 2, 2020June 29, 2023

‘Most relevant and topical HR thinker’ Jack Welch dies

Jack Welch leadership

As I search the online archives of Workforce.com for “Jack Welch” in the wake of his death today at age 84, I have come across literally seven pages worth of stories (about 20 stories on each page) that reference the business titan and former head of General Electric.

That’s not surprising, given his strong connection to championing the cause of human resources. In 2009, Welch, who in 2000 was named “Manager of the Century” by Fortune, was the opening keynote speaker at the annual Society for Human Resource Management conference in New Orleans. Before the conference opened, my former boss here at Workforce, John Hollon, summarized Jack Welch’s influence on the HR profession in a blog post.

To recognize Welch’s passing today, I wanted to share a portion of John’s thoughts on Jack Welch from 2009. 

Here’s a question you may want to ponder: How important is Sunday’s SHRM conference general session speaker, former General Electric CEO Jack Welch

Answer: He’s probably the most relevant and topical HR thinker to address the conference in at least the last five years — maybe the most relevant one ever.

Here’s just one example, from the BusinessWeek column he writes along with his wife, Suzy Welch: “HR should be every company’s ‘killer app.’ What could possibly be more important than who gets hired, developed, promoted, or moved out the door? Business is a game, and as with all games, the team that puts the best people on the field and gets them playing together wins. It’s that simple.”

Or this, also from a recent BusinessWeek column: “Look, we’ve written before about HR and the game-changing role we believe it can — and should — play as the engine of an organization’s hiring, appraisal, and development processes. We’ve asserted that too many companies relegate HR to the mundane busy-work of newsletters, picnics, and benefits, and we’ve made the case that every CEO should elevate his head of HR to the same stature as the CFO. HR matters enormously in good times. It defines you in the bad. … If there was ever a time to underscore the importance of HR, it has arrived.”

A 2005 “Last Word” column in Workforce Management put it this way, and it’s still true today: “In Jack Welch’s world, HR is not only a key part of the business, but HR people in the organization need to have special qualities to help the managers throughout the organization build leaders and careers.”

Some might disagree with this assessment, because Welch is also known for creating the infamous 20-70-10 employee assessment plan (known by its critics as “rank and yank”), where the top 20 percent of GE’s workforce each year got big raises, while the bottom 10 percent were shown the door.

In fact, Welch was frequently critical of human resources, according to former General Electric HR chief Bill Conaty.

But as critical as he can be, Welch also appreciates what HR means to a high-performing organization. Welch has said that HR leaders should not be “kingmakers or cops, but big-leaguers, men and women with real stature and credibility.”

He will undoubtedly have a message on Sunday that SHRM conference attendees really need to hear.

Posted on August 2, 2007March 2, 2020

Managing the CEO Sweepstake at GE

In 2000, there was a very public horse race going on at GE. Who would succeed Jack Welch? Here, GE’s Bill Conaty discusses how he and Welch handled the business world’s equivalent of the Kentucky Derby, with the media betting on one of three CEO candidates: Robert Nardelli, who at the time was CEO of GE Power Systems, and who recently stepped down as CEO of Home Depot; James McNerney, then-CEO of GE Aircraft Engines, who went on to be CEO of 3M and now is president and CEO of Boeing; and Jeff Immelt, then-CEO of GE Medical Systems, who ultimately won the top job.

    WM: How did you keep morale up when everyone in the media was making bets on who would win?
Conaty:
We just banned running for office. In fact, running for office still is the kiss of death at GE, because when you have people running for office you have competition going on within the house. We are competitive as hell, but we want to direct that at our real competitors. So when the media got involved, we just let them do their thing. But internally, we just kept drilling down and watching the top three individuals at the time.

    WM: But how did you make sure that the three candidates didn’t start competing with each other in a negative way that affected morale?
Conaty:
Jack told them within the final six months that, No. 1, we were putting their replacements on the job. There would be one winner, and the two that didn’t get the job would have to leave. Putting their replacements on six months in advance was more of a shocker for them than it was for us. We also got the opportunity to see how they managed their successors.

    WM: These individuals represented some of your strongest talent. Isn’t there something to be said for trying to keep the two candidates who didn’t get the CEO position?
    Conaty: There is, but in this case we felt—and Jack felt stronger than I did on this—that the level of interest in the candidates as future CEOs of other major companies would just be intolerable for us. While I personally was trying to make the case that we could retain two of the three, Jack listened to me, gave me my day in court, but decided that the pressures to leave would be too intense. And he was absolutely right. There were companies that were holding their CEO positions open at the time—3M was one of them, so was Home Depot. And there were a couple of others. I think Jack felt that when he took over as CEO, there was an internal horse race. There were five or six candidates in the running and he just found that environment and internal competition to be distasteful and dysfunctional for the company. He also felt that you have to give one person the job and not have somebody looking over their shoulder hoping they slip on a banana peel.

Workforce Management, July 23, 2007, p. 28 — Subscribe Now!

 


 

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