• Palace Intrigue
   President-Elect Obama's appointments of the highly-qualified Senator Clinton to the position of Secretary of State, Timothy Geithner to Treasury and Lawrence Summers to head the National Economic Council are certainly commendable.  They also carry the potential for what politics and corporations can be wracked with – palace intrigue.  With Senator Clinton comes a cadre of what have been known as "Clintonistas" – former members of President Clinton’s staff who bring with them the potential for all kinds of gossip and jockeying for position.  With the appointments of Geithner and Summers, you will have two organizations vying for the President’s ear, and the credit that goes with any successful economic policy initiative.  While all three may have good intentions, their subordinates will be working full time to position their bosses.  The only way that President Obama will be able to solve the political infighting will be to set a tone that it is not acceptable – just like any CEO in the corporate world.  He will have to punish this behavior with public embarrassments.  If he asks people to leave because of it, there can be no subtlety about why they left, i.e., “to spend more time with the family.” -Jack Welch, December 2, 2008

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  m rahman
  12/9/2008 8:06 AM
  
  Thank you Jack for voicing the issues as you see from your own vast and exemplary tenure of leadership in GE. Successes at GE came with many tough decisions and leadership principles. While admiring the Obama success in election, his performance maybe extremely difficult in governance specially in a tough situation. As we saw President Carter struggle aftermath of Nixon/Ford era, I am hoping and praying Obama does much better. I am sure he could use your counsel more than Al Gore, but that's my personal opinion. Thanks for continuing to enlighten us and the world from your wisdom.
  
  

   

  Carter Franklin
  12/15/2008 4:21 PM
  
  J&S, I'm a huge fan but you blew it with your 'politics' column (BW 20081222). John Kotter explains why politics is a necessary part of business and, yes, politics in his little known Power in Management (1979). Politics, like conflict, can be either positive or negative (functional or dysfunctional). A more nuanced view is called for here.
  
  

   

• Avoiding an Auto Bailout
  The union and the auto companies have testified for two days, and in my opinion, they have not made the case for a bailout. Painful as it will be,  a carefully orchestrated, government-supported bankruptcy remains my recommended path. (See our Business Week column for more on this issue) -Jack Welch, November 20, 2008

  
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  lalit kedia
  11/20/2008 12:44 PM
  
  jack, I was inspired by your book straight from the gut. I fully agree that GM, chrysler does not need a bail out but they have hit a point of strategic inflection and unless the strategy is remade they will die the natural death. there is a TOMA effect among employees on the past glory and they do not want to improve on design, fuel efficiency , future technology. it shall be good if they can change large number of their middle and top by non automobile brains who can bring in a new strategy. I wish we indians can do something to re inject life into these American monuments.
  
  

   

  Bala Raguraman
  11/20/2008 2:44 PM
  
  I am positive that the $25B, even if given, would be put to good use by the management of the Big 3. Having read your comment on this and your various books, I can safely say that you have some great ideas which unfortunately are not very Washington friendly, such as your H1B cap increase. The same is the case with this - Washington is beyond what we see on CSPAN as you and I know. None knows what happens behind closed doors, and no - nobody cares about the taxpayers. So, although not giving $25B is the right way, I am skeptical if that will happen. I am guessing that they will get the money they want and still go under water eventually. Too bad for the taxpayers, but that's how the system works.
  
  

   

  Mark Montgomery
  11/21/2008 12:43 PM
  
  Hi Jack, I agree that a prepackaged bankruptcy is the way to go- 11 is the only method our system has to tackle such entrenched issues. Caught you on CNBC this morning as well. I wanted to share a white paper we just released on the broader issues facing innovation in many- apparently most, large companies. Unfortunately we even have structural protectionist issues in venture capital these days, and of course the very same corp cultures are making the decisions on what to adopt- usually influenced as is gov by protecting their own turf. It's never been as difficult to bring innovation to some markets, even for those of us with strong networks. The good news is that the white paper has been received very well from all over the world, but then that's the easy part..... Unleash the innovation within www.kyield.com/publications.html Thanks for the continued contributions, and kind regards, Mark Montgomery markm@kyield.com
  
  

   

  Tim Hassett
  11/21/2008 4:10 PM
  
  Jack as one of your former GE empolyees, I know the power of boundaryless thinking and actions it can yield. The automotive industry should look at the lessons learned from when you restructured GE, flatlined management, created an atmosphere of performace business units and entrenched the teams to use "Work Out" to have all voices and opinions heard. This is the time that the automotive industry, especially B.N.at Chrysler, uses lessons learned on how use the opportunity that is clearly infront of them, face reality and make the tough decision to embrace change and never look back again at what was.
  
  

   

  Robert Weeks
  11/22/2008 1:17 PM
  
  Jack Welsch should contact George Bush immediately and offer his service to go to Detroit under the auspices of the president and get things moving in this direction before Congress flushes another %25 billion of tax payer money down the drain. It's useless to ship money up there unless there are some meaningful change in the operations. Jack, get out your famous circle and fill in the ins and outs. Get moving.
  
  

   

  Erick
  11/25/2008 4:19 AM
  
  Hi thanks for your blog.please i have 20 computers wth internet connection and willing to start online business like data entry,typing services,form filling and order processing.Please i don't know how,where to find this opportunities.Can you help me.Erick from Kenya in East Africa
  
  

   

  Frank Hodits
  11/25/2008 3:56 PM
  
  I have been an avid fan of you with your tenur at GE. However, I was disapponted with your commnents with regard to the auto industry. It is easy for you muti millionare to set their and say let them go bankrupt and get rid of the legacy cost. Bur all you do is shift it somewhere else and hurt those that helped pay your salary and hugh parachute. Why not push for Health are relief or support. That is big cost for both present and past associates. Why not support subsidies to help re tool like other countries and keep the $s here. And yet not forget:To All, this one needs to be forwarded to as many people as possible as a reminder of who is actually taking care of business at home. Considering the recent news and events regarding the Big 3, and what's at stake for current, and future jobs for millions of people, and the risk of losing technological advances, knowledge, and experience of our manufacturing capabilities. > For the record... > > Ford, Chrysler and GM's contributions after 9/11 > > > An interesting commentary...You might find this of > interest: > > > 'CNN Headline News did a short news listing regarding Ford > and GM's > contributions to the relief and recovery efforts in New > York and Washington. > > The findings are as follows..... > > 1. Ford- $10 million to American Red Cross matching > employee contributions of the same number plus 10 > Excursions to NY Fire Dept. The company also offered ER > response team services and office space to displaced > government employees. > > 2. GM- $10 million to American Red Cross matching employee > contributions of the same number and a fleet of vans, > suv's, and trucks. > > 3. Daimler Chrysler- $10 million to support of the children > and victims of the Sept. 11 attack. > > 4. Harley Davidson motorcycles- $1 million and 30 new > motorcycles to the > New York Police Dept. > > 5. Volkswagen-Employees and management created a Sept 11 > Foundation, > funded initial with $2 million, for the assistance of the > children and victims of the WTC. > > 6. Hyundai- $300,000 to the American Red Cross. > > 7. Audi-Nothing. > > 8. BMW-Nothing. > > 9. Daewoo- Nothing. > > 10. Fiat-Nothing. > > 11. Honda- Nothing despite boasting of second best sales > month ever in > August 2001 > > 12. Isuzu- Nothing. > > 13. Mitsubishi-Nothing.. > > 14. Nissan-Nothing. > > 15. Porsche-Nothing. Press release with condolences via the > Porsche website. > > 16. Subaru- Nothing. > > 17. Suzuki- Nothing. > > 18. Toyota-Nothing despite claims of high sales in July and > August 2001. > Condolences posted on the website > > Whenever the time may be for you to purchase or lease a new > vehicle, keep > this information in mind. You might want to give more > consideration to a car manufactured by an American-owned > and / or American based company. Apart from Hyundai and > Volkswagen, the foreign car companies contributed nothing > at all to the citizens of the United States ... > > It's OK for these companies to take money out of this > country, but it is apparently not acceptable to return some > in a time of crisis. I believe we should not forget things > like this. Say thank you in a way that gets their attention.. BUY YOUR NEXT VEHICLE FROM GM, FORD OR CHRYSLER and maybe even support GE!
  
  

   

  Mike Mitchell
  11/27/2008 6:36 AM
  
  Jack, in your scenario of bankruptcy, regardless of merger, it is imperative for the bankruptcy judge to require a new Board of Directors of hard headed businessmen, as the current bunch of the CEO's toadies deserve as much or more of the blame for where they are. Mike
  
  

   

  Ann Popovich
  11/29/2008 8:56 PM
  
  First, I agree with Frank Hodits comments below. Second, the attitude toward shareholders of GM stock and GMAC bondholders to just let them lose everything, so they can wipe the slate clean of these responsibilities! Not fair or honest!! Do you realize how many mutual funds hold these same securities?
  
  

   

  Andy Karabinos
  12/1/2008 4:23 PM
  
  Your article in BW Dec. 8 2008 about introverts. Very good, except as a long standing introvert who overcame the malady, here is a suggestion. The introvert is that way because they are not sure. The cure is to over prepare for any exercise. Have confidence you are the expert. Be patient (not pushy) and before long, other will recognize you as the expert. Be sure to not over react. I missed a lot of good promotions and jobs because of mt shyness. It took about 40 years to make it work. Jack I have been a great fan of yours for about 15 years. I believe quality of management is the most important quality in a successful company. so do you. Andy Andy
  
  

   

  AKM
  12/1/2008 6:21 PM
  
  Hi Jack, I worked with GE for 7 years and have read through many of your articles and books. I recently heard your keynote at CA World and it is always a pleasure to experience the way you think. It is impossible to predict when the magic moment will return in the US economy, but I think it is high time that the US government has to get a plan out to the people. We all dont want to see "young people die because they lost health care". I think you said it right, companies need to look at 2009 to be even dreadful and if they plan it correctly and one day some day in 2010 US might be back to normal in economy (Hope is the word again). I would love to hear from you about what you think? I think US Economy needs a 12 Sigma plan to come out of this crisis.
  
  

   

  Hari Haran Subramanian
  12/2/2008 3:27 AM
  
  Jack, Yes.As you say, Its time to shed incrementalism and bring in fresh minds.A managed bankruptcy, by the goverment should perhaps include key innovation ideas.For eg:- a company called Moller International is coming up with flying cars.Radically different, as this is, innovations like this can perhaps be looked at, by the GM,chrysler merger.It might also help America in its quest to maintain technology leadership. Having said that, its also important that the US govt plans its bail out spending well.Who really gets the bail out money and who should not?The broad chain of entities(home owners, fannie mae, freddie mac, investment banks, clients of these investment banks etc..)make up a, let us call a 'transaction stack', that is too complicated to fathom/analyze, especially in an economy that runs on 'derivatives'.In this stack, which are the 'entities of interest' that should get the bail out money?Conventional wisdom says that it should first go to corporates which are man-power intensive organizations, preferably the ones that produce tangible goods and services.Having said that, the 'transaction stack' is too complicated and warrants analysis by a software system.For eg:- IBM research labs in US, I believe, has a group of mathematicians, who study real world problems from a mathematical perspective.Some analysis of the stack by such mathematicians might help.The effort can perhaps complement the conventional wisdom of economists.This economy and the complicated transaction stack require software systems to have better 'oversight mechanisms' to guard against systemic collapse.While regulations can help, nobody is quite sure how much of regulations should be brought in?Its, at least, worth a study. We should perhaps have a long term plan to develop such a system that aims to achieve 'singularities', so that the system can 'learn' from the market and analyze the data and forewarn, if required.Too complicated a task this one, but we have to make a beginning somewhere. Rgds, Hari
  
  

   

  Janusz Bryzek
  12/2/2008 3:55 PM
  
  It is very depressing to have the US auto industry leaders systematically losing market share due to their lack of vision and implementation of the followers' strategy instead of leading the world. I believe the restructuring should involve the plan to build world's most desired and best cars in every category. We have a very good example of creating the world's most desired products at Apple. We need somebody like Steve Jobs (perhaps himself???) to define the cars to be most desired and to run the restructured US auto companies.
  
  

   

  m rahman
  12/3/2008 9:52 PM
  
  Hi Jack: What auto industry needs visionary leaders with long tenures like youuand bankcruptcy will and bail-out will not!
  
  

   

  Ron Stotler
  12/4/2008 9:04 AM
  
  I am confused about the automobile industry. I have watched countless commercials and see the same offers as last year at a time when they need to move inventory. I always assumed that these companies had forecasters that forecasted economy, trends, future cost etc. evidently these people have either completely failed or top level management has not listened. Either way management needs to be changed to those who will make the tough decisions and smart decisions. I think that the economy has made people think about all of the waste that we pay for in the products that we buy, not only in these industries but also in entertainment. It is a we will build it, we will put it on a stage regardless of the cost and the people will pay for it.
  
  

   

  Lawrence Coyne
  12/5/2008 11:49 AM
  
  Congress set the bar when they gave a blank check to the financial sector, in particular AIG, which is an insurer. But the automotives are easier targets - no foreign banks or international repercussions to deal with. I live in the Detroit area, drive a Ford and have had no problems with my 5 year old car. In fact, my next car will likely be a Ford but not if Ford goes into bankruptcy. No way, no thanks! Buying a car and booking a flight from an insolvent company are nowhere near the same thing. Bankruptcy for a car company is like inoperable cancer.
  
  

   

  JSW
  12/6/2008 9:53 PM
  
  "government-supported bankruptcy remains my recommended path" ....I call bull here. No way do they need a bailout. Restructure all of them. All unions out of the picture. Lean introduced and last.....better management at all levels. Accomplish all of this in the first year. But lets look at the other side. Who is buying there cars? Do they have the sales? Like you said, be #1 or #2 or get out!!
  
  

   

  donald buckley
  12/8/2008 2:09 PM
  
  As I recall when I was wounded in Viet-man and my sister believed I was dead for a few days. I was fighting and spilling blood at that moment in time to prevent a domino effect that would engulf all south east Asia and Japan. I saw a few South Koreans no Japanese, well let's just say all the heavy lifting was being carried by the 58000+ American soldiers that were KIA's. Now Shelby from Alabama and Corker from Tennessee are saying the Auto industry must get competitive. Rick Wagoner is a poor CEO. (not true) The legacy cost of health care and our pensions are to much of a burden. They openly praise and lobby for tax gifts and breaks and no legacy cost or union interference in the foreign auto companies they brought to their states at the detriment of UAW workers in Alabama and Tennessee. What about German legacy cost of the Seventh Armor Corp maintaining European stability for the last 67 continuous years but count world war One and many other acts of well being Marshall plan and so forth. Rick wagoner just paid 110 billion in legacy cost. Where's Japan's and Germany's and let's not forget South Korea Or China's: Barchevsky trade deal with China was the greatest economic boom for them since the Great Wall was built. When is their legacy cost money gonna be ponied up. The American worker bails out all these foreign companies pays their legacy cost provides their security and even as we speak today American blood still flows throughout the world and Shelby and Corker taunt them on the floor of the US senate asking more of them and more for foreign automakers .
  
  

   

  Gerald Schmidt
  12/8/2008 7:18 PM
  
  Just a note of appreciation for your doing to GE long ago what the auto companies have failed to do -- restructure for market conditions. GE today would have far worse troubles than it does.
  
  

   

• China's Capital Infusion
  China’s approximately 600 billion dollar infusion of capital into their market is critical for the global economy, as well as China's own stability. While Chinese manufacturing exports will be down dramatically because of the global slowdown, this infusion for infrastructure and consumer spending in the rural areas will keep jobs growing even though the exports segment is slowing. I had lunch with the CEO of a major Chinese appliance company on Friday, who told me about the subsidization of appliance sales to the rural regions, and he was confident that, with this government intervention, China would grow 8% in 2009. It’s nice to have a strong trade balance that allows the country to infuse capital from its own reserves.
  -Jack Welch, November 10, 2008

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  David Marion
  11/16/2008 10:44 AM
  
  Your recent article on "Three Reasons Obama Won" shows a slightly slanted view. Your comments are from someone who hasn't been in the trenches. By saying this I mean you have always had money and support big business. Reading between the lines it is almost like you are bitter that McCain lost. Remember, great leaders like yourself have great ideas, but it is the people beneath you, as they say, that really make it happen. I read your columns and you preach this, but I don't think you truly believe it.
  
  

   

  Dr. Robert S. Smith
  11/16/2008 5:16 PM
  
  Dear Mr. and Mrs. Welch, Although I am a fan of your commentaries in BusinessWeek, from which I have learned valuable business-related and on some occasioins life lessons, your recent summarization of McCain's loss (Nov. 17) was decidely biased and surprisingly unsophisticated - traits uncommon to most of your articles. Because of your overwhelming influence due to your positions of authority as trusted voices, I expected a more reasoned, and a far less party-influenced article. Your article would have read much more convincingly if you had admitted that most presidential candidates give very little precision on their actual platforms and instead rely on emotionally driven catch phrases(i.e. family values, small government, patriotism...etc.) to win elections. If McCain lacked a precise and clearly articulated vision, this was in-line with past presidential campaigns (Democrat or Repiblican). While most people want to avoid a stinging reality, one I am sure you too will dismiss, the truth is Obama was forced to offer such precision in vision because America's racial politics demanded that a black presidential candidate be overwhelemingly precise and concrete. As is also the case in business, ethnic minorities and women routinely must outperform their white male counterparts in much the same way. I do, however, agree that Obama's team was simply more prepared and ran an overall better campaign from start to finish. They had no choice, for the same reason. Further, I was very disturbed by your argument that Obama's relationship with the media served as a benefit and that the media "downplay(ed) controversies invoving him." This is simply a bald assertion, and a borderline lie. I would appreciate more evidence for this statement if you have it, and if so, it should have been included in the article. Making such arguments without evidence degraded your article into the pit of far-right, shock-jock material. In contrast to that point, the nedia inundated the public with the Rev. Wright scenario, and Obama was called to answer for Wright's comments about America's racist past and present. Instead of acknowledging race and racism, which the Obama team stayed clear of because our nation remains in denial, the media encouraged the casting of Obama as a disciple of a race-bating demogogue. The media failed to acknowledge how a religious leader in the most viciously segregated city in the US, and a city that was once home to a racist political machine, might need to encourage black solidarity opposite racism in an effort to keep his congregation energized to face those very circumstances - in their social lives and at work. And, the media pelted Obama on his previous drug use. Our current president never had to answer for his drug-related issues, and McCain was received only as a war hero (which he certainly is) by the media. If there was any such bias in favor of Obama, you should have taken the initiative to better explain such relationships and how they injured Senator McCain and thus benefitted President-elect Obama. Your media argument is also weakened by the presence of far-right leaning news and radio outlets that serve to exacerbate issues of race and class in this nation. If Obama deserves criticism for this supposed nedia favoritism, then your fellow Republicans should be criticized for their rampant misuse of the media which petuates so many of our nation's social ills. This became more apparent during the presidential race of course. Maybe, Mr. and Mrs. Welch, those from the media who connected with or supported Obama did so because he offered substance above mis-direction; after 8 years of mis-direction, you may consider how some found this refreshing. The media may have also adored him because he rose above the pithy attack. When Senator Clinton and Senator McCain resorted to such actions, Obama simply rose to prominence. Maybe one business lesson everyone should take away from this election is that indeed, substance is always better than misdirection. Our current economic crisis serves as evidence to this fact. Respectfully Submitted, Dr. Smith
  
  

   

  John E. Anderson
  11/17/2008 5:00 PM
  
  Jack, Please add my E-Mail to your site,I enjoyed your books and would like to hear what your Business thoughts are. "Thank You so much for your consideration". Jack Anderson,Pres. Anderson Motors Inc.,170 Amaral St.,East Providence,RI,02915-2223
  
  

   

  Billy
  11/18/2008 9:59 AM
  
  I agree with Jack's view that China's capital infusion will prop up the GDP, but what will it do for China's economy two, five and ten years from now? Will it lead to a Greenspan-ish admission five years later that "I made a mistake" five years ago? Pouring money into infrastructure constructions will certainly absorb much of the laborers cast out of work by the tens of thousands of failed businesses, but what kind of quality work can these untrained laborers do? The subway collapse in Hangzhou this very week turned up workers who were recruited from their inland homes straight into the subway without any proper training. And who would use all those roads and airports? Even today, you may have to wait ten minutes before you see a car or truck passing through one of its many spanking new highways in China's hinterland. The huge airport in Zhuhai, a city butting Macau, today draws serious traffic only during the bi-annual airshows.
  
  

   

  Suresh Nair
  11/20/2008 9:14 PM
  
  Dear Sir, I emjoy reading your commentaries and often quote them to my colleague for which makes me more intellectual .I am from India and would like to know your views on India . Thanking you in anticipation.
  
  

   

  Mike Mitchell
  11/27/2008 6:40 AM
  
  Jack, the $600 billion should be easy for China to find without having to print the money. All they have to do is stop buying our Federal debt! Mike
  
  

   

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