Thus Spake Jack. Review on Straight from the Gut - Jack Welch

It’s difficult to come across another business leader who has left such a deep impact on the face of corporate management as Jack Welch did in the last century. Agreed that he was not a “start up entrepreneur” who built a conglomerate from scratch. Most critics argue that when JW was made the CEO of General Electric, he was given everything on a platter and all that he had to ensure was not to screw it up from there onwards.

What JW did in his 20 year stint as the CEO of GE is a smarting blow to all his critics. He changed GE radically beyond recognition, taking many harsh measures on the way and today he is acclaimed as a genius with a head for success and an eye on the future. As a matter of fact, the single biggest factor that resulted in his phenomenal success in changing GE and making it what it is today was his foresight or vision.

Not content with what GE was, the first thing he did after becoming the CEO was to chart out a plan that would make GE a force to reckon with, not 2-3 years later but 20 years down the line! Rather than being content with its current lines of business, he hived off which he believed would not add value to the company as a whole in the future and bought new ones. Managing a behemoth that has over 100 different businesses in 80 countries across the world was no easy task.

As management students, some of us would had read snippets and articles in magazines like “The Harvard Business Review” about his style of running the company and the new practices that he fostered in it but reading his autobiography is a totally different experience. Welch reveals every intricate detail of his 40 year association with GE, the first and last company that he ever worked for. People not too familiar with the world of business may find the book unexciting but the no-holds barred, brutal honesty and candour with he bares every aspect of his corporate life is sure to hit home with all those who read it.

JW starts off by recounting his early childhood days and dwells briefly on the most influential person in his life – his mother. Grace Welch was instrumental in shaping a young Jack and instilled in him 2 qualities that would stand him in good stead many years later – self-esteem and an insatiable drive to excel in everything he did.

Except for the first few chapters where he gives us a peek into his life, the remainder wholly concentrates on GE and his 40 years of sweat and toil that resulted in his and GE’s growth. His fighting qualities are brought to the fore in his first few years at GE when he gets a normal salary hike – the same as any other average worker. That steels his mind into proving his real worth that he was clearly a cut above the rest and the rest as they say, is history.

For a substantial portion of the book, Jack sermonizes about his pet themes of a “Boundaryless” organization, “Six Sigma” and “Differentiation”. His deepest passion however was his pet mantra of ''We must be No 1 or No 2 in every business we are engaged in. If not, then we must either ''fix, sell or close'' the business''. His initial enthusiasm in disposing off all those businesses where he didn’t see value met with a lot of criticism both within and outside the company. Afterall, laying off thousands of employees in one shot will never go down well with anyone concerned. As a responsible employer, JW ensured that as few people as possible were rendered jobless when such hivings happened.

Jack also did a commendable job of slimming down the large bureaucratic structure at GE and with the help of a carefully hand-picked team, transformed it into a nimbler form that was more responsive towards its employees and rewarded them better by way of promotions, bonuses and stock options.

The book is greatly enhanced by the insertions of sketches, diagrams, memos, letters and photographs. The book is not all about Jack trumpeting his lengthy list of successes in front of the world. With an amazing sense of humility, he also discloses full details of the blunders he committed, both as a normal worker and as the CEO. All his business decisions were based on the simple fact that they must enhance shareholder value in the future. That’s a refreshing change from modern day CEOs who concentrate more on keeping their company afloat in times of recession and earning their salaries with the perks and bonuses that come with the job.

Thus Spake TiC

The style of narration is smooth which makes it a pleasure to read. The influences of Peter Drucker and ''The sage of Omaha'' - Warren Buffet, on his ideologies are not difficult to miss at a few places. This is perhaps the second best autobiography by a CEO that I’ve ever read, on par with Akio Morita’s “Made In Japan” and right behind Lee Iacocca’s AB.

One must realize that there’s plenty at stake when the CEO of a company that has 370 billion dollars worth of assets decides to write a book on his professional life and times. All those blunders, the stamped toes and corporate boardroom battles are all disclosed by JW without any reservations. Its also refreshing to see that he hasn’t used the book as a vehicle to proclaim his own greatness and capabilities to the world. Wherever applicable, he gives ample credit to all those who worked with him during his long stint at GE.

This book is best recommended for management students and for professionals with a strong bent of mind towards corporate fiefdom. There are lessons aplenty to learn from Welch. Despite not having any Godfather, his rapid rise to the top of the GE pile is a classic saga of resolve and ambition.

One would have loved to read more about the person that Jack was outside GE but Welch doesn’t dwell much on that. On reading the book, one can’t help noticing that his entire life revolved around the company he loved so much. He virtually lived and breathe GE for every single second of his long stay at GE.

As autobiographies by corporate big shots go, this one is assured of a forefront place in the annals of business world.

The book was written by Jack Welch in association with “Business Week” journalist, John Byrne and was published by Warner Books on…hold your breath, SEPTEMBER 11, 2001! Priceed at Rs. 250 or so, it can be bought for as low as Rs. 100 from a roadside bookwallah.