( Editorial of the March 2020 BMD written by Prof. Ajantha Dharmasiri,Member – Editorial Board,Business Management Digest)
Much was written of Jack Welch, a legendary leader who passed away recently.
This issue of BMD carries a comprehensive article on Jack Welch who transformed
General Electric (GE) by converting it from “good to excellence”. As he said,
excellence is “doing better than the best”. Strengths and shortcomings of his style of
managing and leading offer multiple insights for all of us.
John Francis Welch Jr. (popularly known as Jack Welch) was a chemical engineer
who ended up as a top business tycoon. He was chairman and CEO of GE between
1981 and 2001. The way Welch led GE, resulted in GE increasing its market value
from $12 billion in 1981 to $410 billion when he retired. He was instrumental in
making 600 acquisitions while shifting into emerging markets. He is famous for
pioneering a policy of informality at the work place, allowing all employees to have
a small business experience at a large corporation. The way he transformed General
Electric (GE) a currenttly US$ 82 billion worth American Conglomerate, is an
amazing story about “winning,”, the title of his bestselling book.
As the article elaborates, a transformational leader inspires, influences and initiates
in transforming his/her team members as empowered leaders. He/she essentially
is a leader breeder. As opposed to a transactional leader who is more interested in
results than relationships, he/she will ensure the right combination of tasks and talent
in focusing on team-based achievements. We can see much evidence from Welch’s
words and deeds as to how he demonstrated transformational leadership in action.
According to Prof. Paul Argenti of Tuck School of Business, “he was great at defining
and executing a strategy and changing it when it needed to change. He was the
consummate leader of his time.”
The challenge of becoming a role model in practicing what you preach is a major
challenge. It goes with the popular saying of Gandhi, “you must be the change you
wish to see in the world”. The world today, full of false idols, yearns for authentic role
models. We lost one with the demise of Welch. “Be candid with everyone”, was what
Welsh did through his actions.
‘There are no good or bad institutions but only well-managed or ill-managed
institutions”. What Peter Drucker said makes profound sense to us today. It is
applicable to nations as well. Sri Lanka is once again at crossroads with elections
looming large. We need to ensure professionalism at all fronts with right leadership
in action. “Well-done Welch” will be a source of inspiration for Sri Lankan business
leaders and administrators alike to demonstrate “speed, simplicity and self-confidence” in achieving stellar results.
_Prof. Ajantha Dharmasiri