General Electric: From Jack Welch to Jeffrey Immelt

This case describes the leadership initiatives of two of General Electric’s (GE) chief executive officers: Jack Welch and Jeffrey Immelt. Under Jack Welch’s leadership, GE, one of the most admired firms in the world, began its transformation from a manufacturing conglomerate to one that focused on services. Welch’s stature as a management leader grew as GE’s stock price increased. Many of Welch’s management practices were adopted by U.S. and global organizations. While his changes resulted in excellent financial performance sustained over a long period of time, not everyone in GE agreed with his methods. Welch’s departure in 2001 triggered a steep decline in GE’s stock price. His successor, Jeffrey Immelt, took over the company days before the terrorist attacks in September 2001 and spent the following years preparing the firm for its next stage of growth.