Ge jack welch
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Publicado: 15 de marzo de 2012
II
Mr. Welch´s objective in the late 80´s and early 90´s was to move past the ¨Neutron Jack¨ stage characterized by a ¨hardware¨ approach of organizational restructuring anddownsizing of his early tenure, towards a deeper ¨software¨ cultural change implementation. The purpose of the cultural change of the late 80´s was two fold 1) sustain a highproductivity over time based on principles of ¨speed, simplicity and self-confidence¨ (GE Case, page 572) while appealing to values of ¨openness, candor and facing reality¨ (idem) and 2)Re-Design work processes on basis of benchmarks with top performers within the global industry.
To implement this cultural change, Jack launched two closely linked initiatives:¨Work-Out¨ and ¨Best Practices. Both were strategic initiatives aimed to impact GE culture and generate higher efficiency, performance and customer satisfaction. A third (and integralaspect) was the global perspective that was established in GE during the late 80`s. GE began to seek competitive advantage in a global market and therefore benchmarked against otherglobal firms in terms of market performance and best practices. The rationale was to close the gap between the actual and desired organizational state, based on specific leverage pointsof a) performance and b) best practices.
It can be argued that the cultural change was effective , given that the ¨software¨ did in fact generate positive results and was inline with key aspects of change implementation (Jick & Peiperl, Page 214): Shared vision was established, GE separated from its past, cross functional enabling structures wereimplemented, employees were heavily involved and change was institutionalized via results measurement.
What would be the next step to maintain competitiveness in a global market?
Mr. Welch´s objective in the late 80´s and early 90´s was to move past the ¨Neutron Jack¨ stage characterized by a ¨hardware¨ approach of organizational restructuring anddownsizing of his early tenure, towards a deeper ¨software¨ cultural change implementation. The purpose of the cultural change of the late 80´s was two fold 1) sustain a highproductivity over time based on principles of ¨speed, simplicity and self-confidence¨ (GE Case, page 572) while appealing to values of ¨openness, candor and facing reality¨ (idem) and 2)Re-Design work processes on basis of benchmarks with top performers within the global industry.
To implement this cultural change, Jack launched two closely linked initiatives:¨Work-Out¨ and ¨Best Practices. Both were strategic initiatives aimed to impact GE culture and generate higher efficiency, performance and customer satisfaction. A third (and integralaspect) was the global perspective that was established in GE during the late 80`s. GE began to seek competitive advantage in a global market and therefore benchmarked against otherglobal firms in terms of market performance and best practices. The rationale was to close the gap between the actual and desired organizational state, based on specific leverage pointsof a) performance and b) best practices.
It can be argued that the cultural change was effective , given that the ¨software¨ did in fact generate positive results and was inline with key aspects of change implementation (Jick & Peiperl, Page 214): Shared vision was established, GE separated from its past, cross functional enabling structures wereimplemented, employees were heavily involved and change was institutionalized via results measurement.
What would be the next step to maintain competitiveness in a global market?
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