Welcome to the Monthly Newsletter by Amer Kaissi 

Edition #31, July 2022

Everyone quotes Jack Welch. I’ve done it many times. We think of him as the management guru who revolutionized GE (General Electric) and turned it into the most valuable company on earth. But the truth can be very different from the myth, as is shown in the new book: “The Man Who Broke Capitalism: How Jack Welch Gutted the Heartland and Crushed the Soul of Corporate America—and How to Undo His Legacy” by David Jelles.

Before Welch took over as CEO at GE, it was commonly referred to as “Generous Electric” because of the caring way it treated its employees. By the time he retired, Welch had turned GE from a company with high employment engagement and unparalleled innovation, to a giant conglomerate made up of a hodgepodge of acquired companies with no soul or creativity.

Welch’s leadership style had all the hallmarks of toxic masculinity: High on yelling, and low on empathy. He was an unpredictable and merciless bully who cared only about maximizing shareholder value above all else. His decisions were all focused on short-term profits over long-term financial health and employee loyalty. During his tenure, he was responsible for closing dozens of factories that were the lifeblood of their communities. While executives at GE were amassing tens of millions of dollars in compensation, thousands of employees were getting laid off every year to keep costs down.

In short, Welchism revolved around three principles that became ingrained in corporate America long after Welch retired: 1) Maximize shareholder value above all else; 2) Executives are entitled to large wealth with little accountability; and 3) Employees are owed nothing except the paycheck for yesterday’s work.

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Dr. Amer Kaissi is a Top Leadership Keynote Speaker. He speaks about leadership, teams and culture.