JACK WELCH AND THE

4ES OF LEADERSHIP

THE 4 ES OF LEADERSHIP

 Energy Individuals with energy love to go, go, go. These people
possess boundless energy and get up every day ready to attack the job
at hand. High energy people move at 95 miles-per-hour in a 55 mileper-hour world.
Energizers know how to spark others to perform. They outline a
vision and get people to carry it out. Energizers know how to get
people excited about a cause or a crusade. They are selfless in giving
others the credit when things go right, but quick to accept
responsibility when things go awry.
Edge Those with edge are competitive types. They know how to
make the really difficult decisions, such as hiring, firing and
promoting, never allowing the degree of difficulty to stand in their
way.
Execute The key to the entire model. Without measurable results,
the other Es are of little use. Executers recognize that activity and
productivity are not the same and are capable of converting energy
and edge into action and results.

LEADERSHIP DEFINITION

A good leader or high performance leader is described, by

Jack Welch,
as someone who Has (Energy),
Can articulate a vision and inspire others to perform
(Energizes),
Makes the tough decisions(Edge),
Has the skill to deliver(Executes),
And,
Never fails to deliver the financials.

EXAMPLE OF 4ES FROM JACK

WELCH LIFE

ENERGY:
Welch joined General Electric in 1960. He
worked as a juniorchemical
engineerinPittsfield, Massachusetts, at a
salary of $10,500
By 1968, Welch became the vice
president and head of GE's plastics
division
Welch was named senior vice president
and head of Consumer Products and
Services Division in 1977
In 1979 he became the vice chairman of
GE

ENERGIZER:
Welch pioneered a policy of informality
at the work place, allowing all employees
to have a small business experience at a
large corporation.
Welch's public philosophy was that a
company should be either No. 1 or No. 2
in a particular industry, or else leave it
completely.
The key aspect of Welch's philosophy is
"candor this is almost as much a
trademark of the man as the Welch Way.

EDGE:
He rewarded those in the top 20% with bonuses
and stock options.
Welch would fire the bottom 10% of his
managers, regardless of absolute performance
GE had 411,000 employees at the end of 1980,
and 299,000 at the end of 1985. Of the 112,000
who left the payroll, 37,000 were in businesses
that GE sold, and 81,000 were reduced in
continuing businesses. In return, GE had
increased its market capital tremendously.
Welch reduced basic research, and closed or
sold off businesses that were under-performing.

Execute:
Under Welch's leadership, GE increased
market value from $12 billion in 1981 to
$280 billion.
making 600 acquisitions while shifting
intoemerging markets.
By 1999 he was named "Manager of the
Century" byFortunemagazine.
The 20+ years that Welch ran GE, it
became the most valuable corporation in
the world, increased in value over thirty
times and under his leadership turned out
more Fortune 500 CEOs than any other