Just like Welch, Intel management team has had no compassion for its employees. Intel let the most hard working loyal employees go humiliating them on the way out and even after they were gone. However, when GE announced significant layoffs, with estimates of 60,000 to 80,000 jobs on the chopping block, the news accompanied positive quarter earnings reports and profits grew 16%, despite anticipated harsh treatment of its employees. The market believed in him in the pursuit of profit, at any cost. During Welch's tenure, GE's value rose 4,000%. As one post said, usually a bad news for employees translates to good news for the company value. Not in Intel's case, because the market does not believe in Intel's management. Let Intel stocks speak for itself. Since the layoff announcement about three weeks ago Intel's value has declined nearly 10%.
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A big part of GE's success was the culture developed by Jack Welch (in his book)
(1) Span: of 5 between lowest level employee and Jack Welch
(2) Expectations: Clear and consistent among ALL business groups - 20% growth in Net Profit Before Tax every year. Jack Welch doesn't care if you get there by going into new markets, technologies, services, M&A or cost cutting. Just don't do anything illegal that will cause GE stock to lose value while in your quest to hit the target.
(3) Decision Making: Management and employees are empowered to make decisions that meet the goal and everyone works together for a common goal
(4) Results and Accountability: If you make your targets you stay and get bonuses, if you (your group) cannot deliver, within 6 months the big honcho in the failing group will be gone and it's their fault for being unable to deliver. The attrition was horrendous but the good people will stay and those that cannot deliver measurable results will be gone.
(5) Conclusion: The way he set things up the company kept growing profits for a LONG period of time. People know what was expected and were empowered and rewarded to make it happen. This is why GE was an investor's darling stock while Jack Welch was at the helm.
At Intel
(1) Span: Today the span between lowest level employee and BK is ... what ... 15??? Translation = 10 layers of useless paper-pushing-zero-value-added management. No company needs that many.
(2) Expectations: are full of iconic meaning buzzwords tailored to meet BHAG Big Hairy Audacious Goals. No consistency across groups. Favorites have lower expectations and goals are tailored to cause some people/groups to fail and others to get better EB $$$.
(3) Decision Making : To avoid looking bad, Management throws road blocks in front of everything and bands together to make every decision into decision making by committee using the reporting "matrix". There isn't 1 decision maker, there are sometimes 10. That way if something fails there is plenty of blame to go around.
(4) Results and Accountability: If the results are good everyone takes credit even if it was caused by the economy getting better. If the results are bad, it is nobody's fault, because, well .... the committee decision. There is plenty of jockeying for fame and credit, but zero accountability for failure to deliver at the highest leadership level, you know, those who can actually shape business decisions. Look at what is happening now, the ones laid off are mostly individual contributors who have been there a long time and actually deliver work. Not punished are the layers of useless management. Even worse, rewarded are high level execs who have consistently failed to deliver - BK, RJ and AI lost billions but got big payouts. At GE they would have not lasted a year beyond their first business failure. But hey what is $10 billion down the drain but 20+% of annual revenues, right?
(5) Conclusion: BK as CEO has created a culture of fear, where brown nosing is the way to the top. There is no accountability (bad execs and managers stay). Decisions take forever to make. The company is unwieldy and too large. Doers are kicked out. Talkers that add zero value stay. There is no "PLAN" to get better other than layoffs. That's why Intel's stock price is stagnant and most likely going to fall.
Stock below $30 now. Good luck, I've been dumping since it hit $34 ... if it manages to go over $30 again, I'll sell more... better growth elsewhere.
BK couldn't run a lemonade stand if need be.
You're damn right that Bozo is no Jack Welch. He can't even shine Otellini's shoes. The least the board can do is stand up and hold themselves accountable for promoting the BK/RJ failed venture to CEO office.