For twenty years, John Francis Welch, Jr., better known as Jack Welch in the corporate world, served as the chairman and CEO of General Electric. The business executive, a certified chemical engineer, started his career as a junior employee of General Electric and is now retired. Despite not being happy during his first few years at the company, he ultimately started to appreciate his work and within a few years of starting, he was in charge of GE’s whole plastics division. From there, he experienced achievement after success, and the culmination of his lengthy and profitable tenure with the company was his selection as CEO. Under his direction, GE significantly grew its market share, and soon many CEOs of other firms started to adopt his strategies as well. By redefining leadership, Jack Welch set an example for others to follow. Despite being a highly successful CEO, he was not without his critics who said he was too inflexible and insensitive towards the working class people because he routinely fired them. His outstanding leadership abilities inspired him to publish books on the subject, many of which went on to become best-sellers around the world. Welch has also been involved in his fair share of problems, particularly following the highly publicized split from his second wife.
Early Childhood & Life
The son of John Welch and Grace Welch, he was born in Massachusetts on November 19, 1935. His mother oversaw the household while his father worked as a conductor for the Boston & Maine Railroad. His parents had only one child, him.
He showed financial savvy at a young age and, while still in school, worked summers as a newspaper boy, shoe salesperson, and golf caddy.
He was an accomplished athlete and went to Salem High School. He enjoyed playing sports including hockey, football, and baseball, and had a strong desire to win.
He attended the University of Massachusetts, where in 1957 he earned a Bachelor of Science in chemical engineering.
After that, he enrolled at the University of Illinois, where he graduated in 1960 with a Master’s and a PhD in chemical engineering.
Jack Welch’s Career
As a junior chemical engineer in the plastics division, he joined General Electric in 1960. He put in a year of hard work in the hopes of getting a significant pay boost. He was dissatisfied and prepared to resign when he received a raise that was less than what he had anticipated.
Reuben Cutoff, an executive, successfully convinced him to stay, and he reluctantly consented. In 1963, a circumstance nearly cost him his job. He oversaw an explosion at a factory facility, and he nearly lost his job as a result.
Only eight years after beginning his employment with GE in a junior position, he was promoted to vice president and named the division’s overall head of plastics.
Under his leadership, the plastics section, which had a $26 million business at the time, expanded quickly. He was in charge of marketing and production for the plastic goods Lexan and Noryl that were created in GE labs.
Welch also rose to the position of vice president of GE’s chemical and metallurgical divisions in 1971. He was a fantastic boss thanks to his chemical engineering training and sharp business sense.
He put in a lot of effort throughout the 1970s and quickly advanced from one position to the next, handling each demanding role with the same commitment and tenacity.
He was chosen to lead GE’s strategic planning department in 1973. He managed a $2 billion portfolio of companies in this role for the following six years.
He was appointed vice chairman in 1979 after serving as the vice president and director of the Consumer Products and Services Division from 1977. After joining GE, he advanced through several tiers within two decades, eventually landing one of the highest positions.
Jack Welch’s appointment as CEO to take over for Reginald H. Jones was announced in 1980. Welch, at 45, succeeded his predecessor in 1981 and became General Electric’s youngest chairman and CEO.
He was a capable leader but was also criticized for his harsh hiring practices. He usually let people go, and occasionally he was too tough with them. However, his management techniques were a success, and over time, the company’s sales quadrupled.
Many of his leadership and management techniques, such as the “Rank and Yank” strategy, were quickly copied by other businesses due to their success.
Between 1981 and 2001, he presided as the company’s chairman and CEO for 20 years. During his leadership, the company’s worth increased by 4000%, and he was regarded as one of the greatest US business executives in history.
Welch is also an author, having co-authored the 2005 best-seller “Winning” with his third wife, Suzy. He has published several books on management and leadership.
Jack’s Bigger Works
The most notable role of Jack Welch is that of General Electric’s chairman and CEO, which he held from 1981 until 2001. He transformed GE’s business practices and made it into one of the US’s fastest-growing firms. He was an excellent manager and leader.
Recognition & Achievements
In 1999, he received the “Manager of the Century” award.
He co-wrote the 2005 book “Winning” with Suzy Welch, and it quickly rose to the top of The Wall Street Journal’s bestseller list.
Personal Legacy & Life
In 1959, he wed Carolyn Osburn, with whom he had four kids. After 28 years of marriage, the pair were divorced in 1987.
In 1989, he tied the knot for a second time. Jane Beasley, his second wife, was a lawyer. After his wife learned about his romance with Suzy Wetlaufer, whom he would later marry, this marriage also ended in divorce in 2003.
He wed Suzy in 2004 and they are still together now.
Estimated Net Worth
At the time of his passing in 2020, Jack Welch was an American business executive, author, and former chemical engineer with a net worth of $750 million. One of the most celebrated and illustrious CEOs in history, Jack Welch is most known for serving as Chairman and CEO of General Electric from 1981 to 2001.
Thanks to his distinctive management techniques, which are referred to as The Welch Way, the company’s worth increased by 4000% while he was in charge.