Another reason why the United States should have universal healthcare. The well being of workers needs to be taken out of the hands of corporate executives. The incentives to minimize costs at the expense of worker well-being are just too great. It would be good for business as well because executives really should be spending time running their business and not trying to scheme ways to nickel and dime the costs of worker benefits.
@27:10 "This a part of how we got there." Yeah. also I would like to ask if this is how America got into so much poverty could we say that the 2008 crash was caused by people like Welch who just got a wild hair up thier ass and indiscriminately fired people from time to time to feel good about themselves. This guy said you should fire ten percent of your work force every year. He is a poster Child of why we should really break up and BUST UP all corporations bigger then a regional conglomerate THEY HAVE TOO MUCH POWER!!!!! How Many of those people were older and had mortgages to be paid? How many actually deserved to be let go? It's too bad these same newspapers won't give credit to the great resignation that ensued after COVID as a generation or two decided to take covid money instead of working... Can we blame them??? NO! We cannot!!
Putting input to Welch´s way of doing things "“Neutron Jack” cut head count and instituted an annual employee ranking scheme that required that employees in the lowest decile be fired. The company’s business units had to be No. 1 or 2 in their market or they were jettisoned. Meanwhile, Welch chased new growth opportunities in financial services and media - soon, GE Capital alone accounted for more than half of the company’s profits." So, more and more, as the crisis of the 80´s and its politics moved on, the shareholder return view became less of a popular view of the world. I wonder how exactly GE Capital turned so much profit? Are the banking activities of such big and old money companies the only reason? If so, it would be surprising to know how such activities turn up profits.
Neutron jack destroyed GE. I agree with that. Immelt didn’t do them any favors either. I believe that welch and immelt are lessons in what not to do. I put welch and immelt in the same bucket as ibm, Gersner, palmisano, and romenity. It is incredibly important to invest in r&d. IBM and ge are lessons in what happens when you don’t invest in in r&d. Sure, it all works great for a while, but when you don’t have products coming along, companies fail. Ge, ibm, sears, etc are a lesson in this disaster. That is what this woke report is missing and why his reasoning is wrong. Yes, right answer, but wrong reasoning to get there. I refer to this problem as shareholder value vs customer value. If you optimize for shareholder value, the company downturns and fails. If you optimize for customer value, the customer buys more and the customer and shareholders both benefit.
I am no expert but I think the problem in this approach could be that results from investments into R&D take time. Most CEO are judged on their YOY results rather than long term plans. So, for the benefit keeping their own jobs, most of the CEOs do not go this route. Why would a CEO take this risk and lose their job only for their successor to reap the benefits. My argument is not a defence for a CEO. That's what they are paid for, taking risks, but this might be a deterrent for the less courageous CEOs.
@@N_i_k-16 I hear you. The problem is the payback time definitely. However, what NeutronJack did was that he sold off companies and closed divisions that were not 1st or 2nd in whatever segment that they competed in. That definitely propped up the stock prices for a while. He returned cash to investors, which I support. He also left ge as a skeleton of itself. Immelt was a welch confidant who did the same things. By the time the two of them were done, ge had no up and coming products across companies. When the market shifts and ge needs to provide a next generation product, it has problems. Ge lighting is not owned by ge. Ge applicances is a Chinese company not owned by ge. The thinkpad, which I consider the best laptop in the PC market is not owned by ibm, but a Chinese company named Lenovo. IBM, ge, sears, these companies are shadows of their former selves because they all did what jack welch did, and they all forgot about the customer. That’s all my point is. The customer and the product matter. I’m not arguing with you. Come to quora and you can read more of my thoughts on shareholder v customer value.
I think it is really easy to say whatever about someone after his death. I work at ge and I don’t agree with what you say. I think it is really sad for you.
Mariana Olivera, Did you ACTUALLY READ the book? If you had, you would have learned how Neutron Jack DESTROYED GE. You say you work at GE, but it is hard to believe you were there when Jack implemented his promote-retain-fire policies among GE's engineering research employees.
Derivatives. If we want to see the ugly side of Capitalism look there. It's a global investment market with little effective evaluation. Did someone forget 2008?
Jack Wealch was on CNBC often. They thought 💭 he was a god. History is showing that his short term style of management just bought forth a GE that fell apart , literally, His emphasis on financial endevors at the expense of manfacturing failed. The stock collapsed and the company has been restructured into three smaller companies. May his tarnished memory bring wisdom to the future of what not to do.
Great talk. All the more relevant today seeing what has happened under Calhoun's leadership at Boeing.
Another reason why the United States should have universal healthcare. The well being of workers needs to be taken out of the hands of corporate executives. The incentives to minimize costs at the expense of worker well-being are just too great. It would be good for business as well because executives really should be spending time running their business and not trying to scheme ways to nickel and dime the costs of worker benefits.
Not to mention, these fools ( Corp leadership) don't seem to understand no one with out money is buying your Shit!
No. Socialized health care is poor. US should have the South Korean health system.
EXCELLENT insights! THANK YOU for sharing! Congratulations Mr. Gelles for your courage!!!! THANK YOU!
EXCELENT
CONGRATULATIONS
THANK YOU FOR SHARING
THANK VERY VERY. MUCH
GOOD. LUCK OUT. THERE
@27:10 "This a part of how we got there." Yeah. also I would like to ask if this is how America got into so much poverty could we say that the 2008 crash was caused by people like Welch who just got a wild hair up thier ass and indiscriminately fired people from time to time to feel good about themselves. This guy said you should fire ten percent of your work force every year. He is a poster Child of why we should really break up and BUST UP all corporations bigger then a regional conglomerate THEY HAVE TOO MUCH POWER!!!!! How Many of those people were older and had mortgages to be paid? How many actually deserved to be let go?
It's too bad these same newspapers won't give credit to the great resignation that ensued after COVID as a generation or two decided to take covid money instead of working...
Can we blame them??? NO! We cannot!!
Putting input to Welch´s way of doing things "“Neutron Jack” cut head count and instituted an annual employee ranking scheme that required that employees in the lowest decile be fired. The company’s business units had to be No. 1 or 2 in their market or they were jettisoned. Meanwhile, Welch chased new growth opportunities in financial services and media - soon, GE Capital alone accounted for more than half of the company’s profits."
So, more and more, as the crisis of the 80´s and its politics moved on, the shareholder return view became less of a popular view of the world. I wonder how exactly GE Capital turned so much profit? Are the banking activities of such big and old money companies the only reason? If so, it would be surprising to know how such activities turn up profits.
To skip the long intro: @3:50
At least that girl is hot.
Great book!
Immelt destroyed GE by being to worst capital investor. Selling businesses at lows and buying businesses at the highs.
Terimakasih banyak
If a company have excessive profit, there is something wrong, they will not last, i will not invest in that company.
Exactly! Go INVENT (NOT just buy start-ups) something worth selling!!
Neutron jack destroyed GE. I agree with that. Immelt didn’t do them any favors either. I believe that welch and immelt are lessons in what not to do. I put welch and immelt in the same bucket as ibm, Gersner, palmisano, and romenity. It is incredibly important to invest in r&d. IBM and ge are lessons in what happens when you don’t invest in in r&d. Sure, it all works great for a while, but when you don’t have products coming along, companies fail. Ge, ibm, sears, etc are a lesson in this disaster. That is what this woke report is missing and why his reasoning is wrong. Yes, right answer, but wrong reasoning to get there.
I refer to this problem as shareholder value vs customer value. If you optimize for shareholder value, the company downturns and fails. If you optimize for customer value, the customer buys more and the customer and shareholders both benefit.
I am no expert but I think the problem in this approach could be that results from investments into R&D take time. Most CEO are judged on their YOY results rather than long term plans. So, for the benefit keeping their own jobs, most of the CEOs do not go this route.
Why would a CEO take this risk and lose their job only for their successor to reap the benefits.
My argument is not a defence for a CEO. That's what they are paid for, taking risks, but this might be a deterrent for the less courageous CEOs.
@@N_i_k-16 I hear you. The problem is the payback time definitely. However, what NeutronJack did was that he sold off companies and closed divisions that were not 1st or 2nd in whatever segment that they competed in. That definitely propped up the stock prices for a while. He returned cash to investors, which I support. He also left ge as a skeleton of itself. Immelt was a welch confidant who did the same things. By the time the two of them were done, ge had no up and coming products across companies. When the market shifts and ge needs to provide a next generation product, it has problems. Ge lighting is not owned by ge. Ge applicances is a Chinese company not owned by ge. The thinkpad, which I consider the best laptop in the PC market is not owned by ibm, but a Chinese company named Lenovo. IBM, ge, sears, these companies are shadows of their former selves because they all did what jack welch did, and they all forgot about the customer. That’s all my point is. The customer and the product matter.
I’m not arguing with you. Come to quora and you can read more of my thoughts on shareholder v customer value.
sears got bought by some fuckass billionaire who turned it into his debt dump. kodak is more fitting in that list.
Lol a NYT reporter has the solution to fixing capitalism 😅
I think it is really easy to say whatever about someone after his death. I work at ge and I don’t agree with what you say. I think it is really sad for you.
Cope neolib
Mariana Olivera,
Did you ACTUALLY READ the book? If you had, you would have learned how Neutron Jack DESTROYED GE.
You say you work at GE, but it is hard to believe you were there when Jack implemented his promote-retain-fire policies among GE's engineering research employees.
I am with you
I said it when the loser was alive.
This is a disgusting rewriting of history of a man who just recently died and isn't able to defend himself.
I don't think this book 📗 was written because Jack Wealth died. He thought 💭 he was doing the right thing but it looks like he was mistaken.
Derivatives. If we want to see the ugly side of Capitalism look there. It's a global investment market with little effective evaluation. Did someone forget 2008?
I hope there's a special place in hell for him!!!
@@troys6096 they are about to soon be reminded. (2008)
Jack Wealch was on CNBC often. They thought 💭 he was a god. History is showing that his short term style of management just bought forth a GE that fell apart , literally, His emphasis on financial endevors at the expense of manfacturing failed. The stock collapsed and the company has been restructured into three smaller companies. May his tarnished memory bring wisdom to the future of what not to do.
I’m appalled. Perhaps Stanford needs to be closed down.