In this assignment, you need to read:
1-Jack Welch case.
2-Step 3 &4 from “The Heart of Change” book by John P. Kotter and Dan S. Cohen, 2002, Harvard Business School Publishing.
3- Some PowerPoint for this course.
There are 8 Steps discussed in Kotter’s book, I want from you reed step 3&4 carefully from the book and you will use these concepts to analyze the Jack Welch case. However, the quality of your analysis and your knowledge of course concepts as you answer the following questions will determine your grade.
In your paper, for each of the steps you will need to:
a) Discuss what was new that you learned, ideas that may have surprised you, and ideas that really resonated with you.
b) Describe what you think would be difficult in the implementation of the Step;
c) With examples discuss how Jack Welch effectively addressed the Step in his management of change at GE; and
d) Your recommendations as to how he could have implemented the Steps more effectively. Complete your analysis (a,b,c,d,) for your first step before you present your analysis for your second step.
GE s Two-Decade Transformation: Jack Welch s
Leadership
On September 7, 2001, Jack Welch stepped down as CEO of General Electric. The sense of pride
he felt about the compan}/‘s performance during the previous two decades seemed justified judging
by the many accolades GE was receiving. For the third consecutive year, it had not only been named
Fm‘tune’s “Most Admired Company in the United States,” but also Financial Times’ “Most Admired
Company in the World.” And, on the eve of his retirement, Fortune had named Welch “Manager of
the Century“ in recognition of his personal contribution to GE’s outstanding 20 year record.
Yet while the mood at GE’s 2001 annual meeting had clearly been upbeat, some shareholders
wondered whether anyone could sustain the blistering pace of change and growth characteristic of
the Welch era. And specifically, many worried if any successor could generate the 23% per annum
total shareholder return Welch had delivered in his two decades leading GE. It would be a tough act
to follow. (See Exhibit 1 for financial summary of Wc,lch’s era at GE.)
The GE Heritage
Founded in 1878 by Thomas Edison, General Electric grew from its early focus on the generation,
distribution, and use of electric power to become, a hundred years later, one of the worId’s leading
diversified industrial companies. A century later, in addition to its core businesses in power
generation, household appliances, and lighting, the company was also engaged in businesses as
diverse as aircraft engines, medical systems, and diesel locomotives.
Long regarded as a bellwether of American management practices, GE was constantly undergoing
change. in the 19305, it was a model of the era’s highly centralized, tightly controlled corporate form.
By the 19503, GE had delegated responsibility to hundreds of department managers, leading a trend
towards greater decentralization. But a subsequent period of ”profitless growth” in the 19605 caused
the company to strengthen its corporate staffs and develop sophisticated strategic planning systems.
Again, GE found itself at the leading edge of management practice.
Wlien Reg lones, Welchfs predecessor, became CEO in 1973, he inherited, the company that had
just completed a major reorganization. Overlaying its 10 groups, 46 divisions, and 190 departments
were 43 strategic business units designed to support the strategic planning that was so central to (3E’s
Research Assor:iate Meg W<‘:2tny prepared tlris case under the s:,ipera°isi<>ri of Professor Christopher Bartlett. l’fBS are developed solely