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Part - IV

Also Welch built more shareholders' wealth than any other corporate chief in history - from $13 billion in 1980 to $600 billion in 2000. His willingness to share the wealth of the company with a large number of employees increased the number of employees participating in the stock option plan from a few in 1980 to 30000 in 2000.

Rigorous succession planning was one of the driving factors behind GE's success. Welch started searching for his successor 6 years prior to his retirement and in November, 2000 he finally named his successor Jeff Immelt, the head of GE Medical Systems, who took over him in September, 2001.

By maintaining a consistent vision (number one - number two, global growth etc.) along with a consistent behavioral model (GE values), Welch succeeded on creating one of the world's most competitive enterprises. He also showed how learning can lead to self-actualization and how performance can be enhanced by free flow of ideas and best practices. With each phase built on the one preceding it, e.g. Work-Out was necessary for boundaryless and Six-Sigma paved the way for e-Initiative, Welch elevated the organization, transforming a century-old enterprise to a global powerhouse where ideas and intellect ruled.

Concluded.

* Contributed by -
Priyanka Ghosh,
PGP 2003 -2005,
XIM Bhubaneswar.