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 Gelles
My rating: 5 of 5 stars
Best business related book that I have read this year…This book is an indictment of Jack Welch, “welchism” and capitalism in general. Jack Welch is not here to defend himself but the author presents a very compelling narrative supported by numbers that Welch was very overrated as a CEO, role model and strategist.
Welch quelched efforts at innovation, long term planning and corporate responsibility so he can meet or exceed quarterly numbers. Welch’s primary business objectives were to please his stockholders and become very personnaly wealthy.
Very well written book. Interesting stories and business analysis…Good investment of my book purchase…
Notes from the book:
Welch employed three main tools in his crusade: downsizing, dealmaking, and financialization.
Welch developed a new policy, colloquially known as “rank and yank.” Each year, managers rated their employees. Those who were in the bottom 10 percent were let go.
GE stock fell 80 percent in the years after Welch retired, becoming the worst performer in the Dow Jones Industrial Average.
Welchism has at its heart the conviction that companies must prioritize profits for shareholders above all else, that executives are entitled to enormous wealth and minimal accountability, and that everyday employees deserve nothing more than their last paycheck.
From runaway climate change to steep inequality, to hollowed-out communities abandoned by companies seeking cheap labor elsewhere, it can at times seem like corporations do as much harm as they do good.
The chief executive of a major American company now makes in one year what it would take a typical worker in that company 320 years to earn.