Massachusetts Institute of Technology
Sign in

A Conversation with Jack Welch and Alex D'Arbeloff

04/12/2007 12:00 PM
Jack Welch, Founder Jack Welch Management Institute ; Alex d'Arbeloff, '49, Professor of Practice, MIT Sloan School of Management; Honorary

Description: You won't catch Jack Welch changing his tune on the basics of business success, at least not in this conversation with Alex D'Arbeloff. He dismisses criticism in the business press that his ideas need revision, and repeatedly hammers home his central themes. -Your job in a business environment is no different than managing a sports team: you want to field the best players," says Welch. -Weed out the weak, encourage the average to bet better and show them how and let the top people know how much your love them and care about themThat is the game." There's too much concern about eliminating poor performers, says Welch. -Why focus on the losers? It's society's little guilt trip." The key is getting the top tier of employees excited, giving them the self-confidence to reach and do more. -If you're a boss and a bore, slap yourself," he continues. Leaders of organizations must structure rigorous appraisal and training regimens, so employees know where they stand. -Candor is the biggest thing we build," notes Welch. He offers additional observations and insights in response to questions from D'Arbeloff and the audience. Welch is concerned by the current brain drain of the nation's best and brightest MBAs, who head to six-figure starting salaries at hedge funds and private equity firms rather than building careers in companies. He scoffs at the notion of -work-life balance," insisting on the word -choice" instead, since he believes that flush companies try to buy off employees with flex time -and massages at 3 o'clock," rather than offering appropriate compensation and intrinsic job value. Also, telecommuting -is another fad that will die of no success," since without face time, employees aren't entitled to move up the ladder. Welch declares there will be -no new age employees in my start up. I want players who are sweating, animals, people who don't take no for an answer, who are there 24/7." Welch spies a -massive opportunity" in the green movement, and says CEOs today have no option but to believe in global warming, and drive their organizations and products in that direction. -That's what your job is. Sense it early and move before the trend, and have your products out there." He's also betting that the U.S. will ultimately outrun China in economic growth. -The ability to have hungry, innovative people matched up with liquidity allows us to have an entrepreneur class unmatched anywhere," concludes Welch.

About the Speaker(s): Jack Welch received a B.S. in chemical engineering from the University of Massachusetts in 1957, and his M.S. and Ph.D. in chemical engineering from the University of Illinois. He joined General Electric in 1960 as a junior engineer.

He became a vice-president of GE in 1972, senior vice-president in 1977, vice-chairman in 1979 and became the corporation's youngest Chairman and CEO in 1981. During his 20-year tenure, the company's market value grew from $12 billion to $280 billion. He was known for eliminating red tape and bureaucracy.

Welch has written two books, including Jack: Straight from the Gut (2001), and his most recent, with wife Suzy Welch, Winning (2005).

Host(s): Sloan School of Management, MIT Sloan School of Management

Comments (0)

It looks like no one has posted a comment yet. You can be the first!

You need to log in, in order to post comments.

MIT World — special events and lectures

MIT World — special events and lectures

Category: Events | Updated 11 months ago

December 13, 2011 18:56
All Rights Reserved (What is this?)
Additional Files

9733 times

More from MIT World — special events and lectures

Managers Not MBAs: Debating the Merits of Business Education

Managers Not MBAs: Debating the Mer...

Added almost 5 years ago | 00:58:47 | 4097 views

Learning 3.0: Why Technology Belongs in Every Classroom

Learning 3.0: Why Technology Belong...

Added almost 5 years ago | 00:48:32 | 7008 views

Islam and the Challenge of Democracy

Islam and the Challenge of Democracy

Added almost 5 years ago | 01:21:00 | 3346 views

Imperative of Science and Technology in Accelerating African and Rwandan Development

Imperative of Science and Technolog...

Added almost 5 years ago | 01:11:00 | 3910 views

Form from the Formless: The Awesome Power of the Embryo

Form from the Formless: The Awesome...

Added almost 5 years ago | 01:02:00 | 4270 views

Quantum Computing: Origins and Directions

Quantum Computing: Origins and Dire...

Added almost 5 years ago | 01:15:00 | 5478 views