Jack Welch Death: What entrepreneurs should learn from World’s biggest CEO

Following the demise of one of the greatest Chief Executive Officers (CEOs) in the history of America, John Francis Welch, an American business magazine, Forbes has revealed major lessons entrepreneurs should learn from the business tycoon.

Welch death was announced in a statement by General Electric CEO, Larry Culp on Tuesday.

“Today is a sad day for the entire GE family. Jack was larger than life and the heart of GE for half a century. He reshaped the face of our company and the business world.

‘’Jack was a strong and constant influence throughout my career despite never having worked directly for him.

“Welch died on Sunday,’’ Culp said.

Welch was an American business executive, chemical engineer, and writer. He was chairman and CEO of General Electric (GE) between 1981 and 2001.

Welch, who was named “Manager of the Century” by Fortune magazine in 1999, massively increased the scope and financial might of GE (GE) during his time at the top of the company. The market value of the stock rose from $14 billion to more than $400 billion, an increase of more than 2,700%, during those 20 years.

Forbes in a recent report, said that one major lesson to be learnt from Welch was courage.

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‘’Welch was famously tough and combative. That isn’t the courageous aspect of his character. Courage allowed him to do what he thought necessary, even though it would draw criticism to him and GE.

‘’Jettisoning businesses that weren’t wining in their sector takes courage of conviction. This is especially true when the leader who acquired them is also the one to say, “This isn’t working.” Often leaders find it hard to give up on something they previously thought pretty great.

‘’The courage to give relevant, face-to-face feedback, is rare. Often leaders wait until they are flaming mad to be candid. At this point, the message comes colored with anger and frustration that makes it difficult to hear the essence. Welch’s messages to his team have been described as lengthy and thoughtful. Even a critical message is more likely to be heard when it is relevant to the job at hand,’’ the report noted.

Forbes also noted that his speed in business was very paramount to note. It explained that Welch was criticized for the speed at which he acted, perhaps especially when he reduced the workforce at GE dramatically. He avoided the damage done by inaction or act taken too slowly, which can sink an enterprise, not just public companies.

Welch’s tendency appears to have been action, but he also had resources to support good decisions, not merely fast ones. The right information, meaning that which is relevant to your decisions, combined with decisiveness, enables leaders to take advantage of opportunities that others miss.

In matters of people and performance, Welch is reported to have spent an extraordinary amount of time. Speed isn’t always about being faster. It’s about using the right speed given the destination and conditions.                

The report also advised that believing in Luck is also a driving force for business growth.

Welch’s successor, Jeff Immelt faced the head winds from the financial market meltdown early in his tenure. The circumstances outside of Immelt’s control are not a complete explanation for GE’s loss of value. Nor are the more positive conditions under which Welch led the only cause of his success. Neither man is completely understood if we look only at the financial results of GE.

According to the report, ‘’circumstances change, markets shift, fears of novel viruses disrupt supply chains and upend plans. Welch led GE at an auspicious time. While it’s worth studying what he did well, ignoring luck as a factor gives a partial view.

‘’The human cognitive tendency is to simplify events, results, and people because it’s much easier than working to understand things with their variations and external factors.

‘’If we are to learn from Welch, it is important to understand the man beyond the labels. If business schools do not teach students about Welch in a wholistic way, it cheats students out of the opportunity to practice thinking in a way that will be of far greater value to them than any mythologized version. 

‘’Wise teachers caution their students against blind followership and idol worship. Wise leaders know that they are teachers and that over-simplifying leads to as many faulty decisions as over-complicating. Welch knew he was a teacher as evidenced by his actions while leading GE and in retirement. We can learn from what he explicitly taught and from observing what he did.’’