A reconsideration of Jack Welch's managerial legacy

Abstract

Purpose

In this paper, the authors will examine Welch's legacy and aftermaths, both for GE and more broadly within management practice and academic thought. As a complex character, indeed a person of many contradictions, the authors try to avoid polemics in this, instead focusing on his accomplishments and the unanswered questions about his impact.

Design/methodology/approach

This paper is a historical case using secondary and published materials to assess the case of Jack Welch's leadership of General Electric over the period 1981–2001.

Findings

Welch's proponents suggest he emphasized controlling corporate destiny, being open to new ideas, pursuing quality and low cost, having confidence, a vision founded on reality, a global focus and possessing energy and enthusiasm. However, his short-termist perspective undermined the long-term success of the company and his “win at any cost” mantra predisposed some employees to cutting ethical or environmental corners. As the market capitalization gains evaporated that had been used to justify the “end justifies the means” rationale, little is left of his legacy.

Research limitations/implications

The paper discusses the implications of the GE case for issues associated with corporate governance, financialization and human resource management.

Originality/value

This is a timely reconsideration of the Jack Welch legacy two years after his death. In avoiding polemics and seeking a considered assessment of his positive and negative outcomes, the paper is an important addition to the research on Welch and American management thought.

Citation

Rice, J., Martin, N., Raziq, M.M. and Fieger, P. (2023), "A reconsideration of Jack Welch's managerial legacy", EuroMed Journal of Business, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/EMJB-02-2023-0055