Jack Welch

Introduction

Jack Welch was an American business executive, author, and chemical engineer. He served as the chairman and CEO of General Electric (GE) from 1981 to 2001.
During this time, he transformed the company into a global juggernaut that it is known as today. Hence, he is widely regarded as one of the most successful CEOs of all time.

Early Life

Welch was born on November 19 1935 in Peabody, Massachusetts to a working-class family. He was the only child of Grace (Andrews), a homemaker, and John Francis Welch Sr., a Boston & Maine Railroad conductor. Welch was an Irish American and grew up in a Catholic home.

Education

Welch attended Salem High School, where he participated in baseball, football, and captained the hockey team.
During his summers, Welch often took up side jobs as a golf caddie, newspaper delivery boy, shoe salesman, and drill press operator.
Welch graduated from the University of Massachusetts Amherst in 1957 with a bachelor’s degree in chemical engineering.
He then earned a master’s degree and a Ph.D. in the same field from the University of Illinois at Urbana-Campaign in 1960.

Career at GE

Welch joined GE in 1960 as a junior engineer and quickly rose through the ranks before eventually becoming the chairman and CEO of the company in 1981.

Business Innovations

Welch implemented a series of radical changes that reshaped the company’s culture, strategy, and operations.
He also adopted the “Six Sigma” quality program which aimed to reduce defects and improve customer satisfaction. He streamlined the company’s portfolio, divesting from low-performing businesses and acquiring new ones in emerging sectors.
Welch expanded the company’s global presence, especially in emerging markets. He fostered a performance-driven culture based on meritocracy and accountability.
He rewarded the top performers and eliminated the bottom 10% of the workforce every year.

Success at GE

Under Welch’s leadership, GE’s revenue grew from $25 billion in 1980 to $130 billion in 2000 and its market value increased from $12 billion to $410 billion, making it the most valuable company in the world at the time.

Personal Life

Welch was married three times. He married his first wife, Carolyn, in 1959. They had four children together before divorcing in 1987.
He married his second wife, Jane Beasely, a MA lawyer, in 1989. They divorced in 2003. Welch married his last wife, Suzy Wetlaufer, in 2004.

Death

Welch passed away in 2020 at the age of 84 after suffering from kidney failure.