Jack Welch

Chairman & CEO of General Electric (1981–2001)

Net worth: US$750 million (May 2012

John Francis Welch, Jr., better known as Jack Welch in the business world, was the chairman and CEO of General Electric for a period of two decades. Now retired, the business executive is a qualified chemical engineer who began his career in a junior position at General Electric. Though he was not happy during his initial years at the company, he eventually began to enjoy his work and became the head of GE's entire plastics division within a few years of joining. From there he went from success to success and his long and fruitful journey with the company finally culminated in his being selected the CEO. Under his leadership GE increased its market share manifold and soon many CEOs of other companies too began following his policies. Jack Welch redefined the concept of leadership and created a model for others to follow. In spite of being such a successful CEO he was not without his detractors who felt he was too rigid and uncaring towards the working class employees as he was known to dismiss employees frequently. His brilliant leadership skills prompted him to write books on the very subject, many of which became international bestsellers. Welch has also had his share of controversies, especially at the time of his much publicized divorce from his second wife.

· He joined General Electric in 1960 as a junior chemical engineer in the plastics division. He worked diligently for a year and was hoping for a big raise. When he got a raise of less than what he had expected, he was disappointed and planned to quit.

· He was persuaded to stay by an executive, Reuben Gutoff, and reluctantly agreed. An incident that happened in 1963 almost cost him the job. There was an explosion at a factory building under his management and he was almost fired for this.

· He continued working for GE and was made the vice president and head of GE’s entire plastics division in 1968, just eight years after he had joined the company in a junior position.

· The plastics division, at that time a $26 million operation, grew rapidly under his management. He oversaw the production and marketing of Lexan and Noryl, which were plastic products, developed in the GE labs.

· In 1971, Welch also became the vice president of GE's metallurgical and chemical divisions. His background in chemical engineering combined with his astute business acumen made him a brilliant manager.

· Throughout the 1970s he worked relentlessly and was promoted from one position to another in quick succession, managing each challenging post with the same dedication and determination.

· In 1973, he was appointed as the head of strategic planning for GE. He held this position for the next six years, managing a $2 billion portfolio of businesses.

· He was named the vice president and head of Consumer Products and Services Division in 1977; he became the Vice Chairman in 1979. Within two decades of joining GE he had risen through various ranks to attain one of the top most positions.

· It was announced in 1980 that Jack Welch would succeed Reginald H. Jones as the CEO. In 1981 the 45-year-old Welch took over the reigns from his predecessor to become General Electric's youngest chairman and CEO.

· He was an able leader, though also considered brutal for his firing policies. He would frequently fire employees and sometimes could be too strict on them. Yet his leadership strategies worked wonders and the company increased its revenues manifold over the years.

· Many of his management and leadership strategies, including his ‘Rank and Yank’ policy became very popular and soon other companies were following him.

· He served as the CEO and chairman of the company for 20 years from 1981 till his retirement in 2001. The company's value rose 4000% during his tenure and he was hailed as one of the greatest ever business leaders in the US.

· Welch is also an author who has written several books on management and leadership, including the 2005 bestseller, ‘Winning’ which he co-wrote with his third wife, Suzy.

Change before you have to.

~Jack Welch