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Jack Welch
SPEAKS
Wit and Wisdom from the World’s
Greatest Business Leader
JANET LOWE
JANET LOWE
Acknowledgments xi
Introduction 1
AN AMERICAN ODYSSEY 24
Growing Up in Salem 24
The First to Go to College 29
Sports Were Everything 33
Ice Can’t Form on a Swift-Moving Stream 37
Take This Job and Do It 46
vii
SUMMING UP 250
General Electric and Jack Welch—
A Chronology 252
Endnotes 259
Permissions 287
xi
a ball over the net. He slams his points home like a bridge
player holding high cards in the trump suit. He speaks in
short, incomplete sentences marked by the accent of a
Boston cop. He was famous for interrupting subordinates
when they hesitated momentarily. He is sometimes
“excitable to excess,” former GE vice chairman Edward
Hood once observed.6
Even ill health hasn’t slowed him down. In May 1995,
he underwent quintuple-bypass heart surgery. He returned
to work on Labor Day, 1995. After his retirement, Welch
had three back surgeries; but he remarried for the third
time and remains a globe-trotting writer, speaker, and
consultant. One small concession: He’s given up his
beloved golf.
The Washington Post once called Welch an “unlikely
prophet”; yet despite the stuffy image the company had
when Welch took over, GE has long been dedicated to
management innovation. Notions such as strategic plan-
ning, decentralization, and market research all arose
from the fertile brains of GE managers. It is no surprise,
then, that sound management flows from GE culture, a
company that promised to “bring good things to life.”
Yet few people expected the originality and daring that
Welch brought to the job.
Indeed, Welch did not follow a traditional career path at
the company. He started out in a plastics Skunk Words
(research and development services) and deftly sidestepped
One last similarity: The two men share their ideas lib-
erally. Buffett’s Berkshire Hathaway annual report has
become a best seller among professional and invidual
investors. The Washington Post reported that Welch’s
“annual letter to shareholders has become closely
watched by other corporate leaders and business pro-
fessors for news on the latest thinking on management,
and his techniques are being adopted throughout corpo-
rate America.”7
Welch often explains that the business world is rid-
dled with paradoxes and that successful business leaders
in the future will accept paradox as normal. Well, Jack
Welch is a paradox himself; and said Dr. Steve Kerr, GE’s
former chief learning officer, that is the most interesting
thing about him. His complexity makes him unique,
sometimes exasperating, but always intriguing.
Welch clearly has blemishes and blind spots. He had a
tendency to fight too long for lost causes, such as his
refusal to accept public and government demands that
GE clean up pollutants it put in New York’s Hudson River.
While he talked about giving opportunity and encour-
agement to women and minorities, his management
team remained overwhelmingly male and white. Jeffrey
Immelt, who followed Welch as GE chairman, said he
has been haunted by a group photograph of GE upper
management and the obvious imbalance. He’s vowed to
improve the picture.
“Birger, what is the Swedish for ‘Go to the devil?’ I cannot make
these little brutes of boys understand me,” shouted the Captain, who
was not in the best of humours, having already made half a dozen
slips on very dangerous ground. In all Sweden, there is not a more
slippery bit of turf than that which clothes the cliffs and highlands of
Trollhättan. The bank along which he was scrambling to get a good
view of the falls rounded itself off gradually, getting more and more
out of the horizontal and into the vertical at every step, till at last it
plunged sheer into the foaming turn-hole of the middle fall, in which
the very best of swimmers would have had no more advantage over
the very worst than that of keeping his head above water till he
went down the third leap, and got knocked to pieces on the rocks
below. There was not a root to hold on by stronger than those of the
dwarf cranberries, whose smooth leaves only aided the natural
slipperiness. Heather is not common anywhere in Sweden; but here
there was quite enough not only to give a purple brown hue to the
scenery, but also to add to the difficulty of keeping one’s feet, in a
way which any one who has walked the side of a highland hill in very
dry weather will fully be able to appreciate. It was very irritating
when one at last had attained a point of view—after traversing what
to a leather-shod stranger was really a dangerous path—to have the
current of one’s thoughts interrupted by a parcel of bare-footed
urchins, who came frolicking over the very same ground, and
insisting that the visitor should see everything, from the orthodox
point of view set down by Murray, and from no other whatever, and
moreover should pay for being tormented and unpoeticised, the
regulated number of skillings.
The rush of waters was certainly very grand and very magnificent.
Much has been written about it in books of travels, and much more
in the album kept at the inn for the purpose of enshrining and
transmitting to posterity the extasies of successive generations of
travellers; but the Parson, who ought to have been lost in admiration
—to his shame be it spoken—appeared chiefly solicitous to procure
bait, which he and Torkel had been diligently hunting for in the
shallows. It was not without considerable difficulty that a trout
sufficiently small to fit the snap-hooks of the trolling-litch could be
found, and when it was found, we are happy to say, it met with no
more success than it deserved; for though at very considerable
personal risk he tried as much of the rushing water as his longest
trolling-rod would command, he was not rewarded with a single run.
But for all that, there certainly are fish in all the pools about these
tremendous falls, and that he had the opportunity of satisfying
himself about before he left off; for just as he was giving it up for a
bad job, Torkel, who had an eye for a fish like that of a sea-eagle,
caught sight of something alive that had poked itself into one of the
runs from the saw-mills, a place not three feet across; and
unscrewing the gaff which he was carrying, and substituting for it
the five-pronged spear, he plunged it into the water and brought out
a black trout (salmo ferox) of ten pounds weight at the end of it.
From the nature of the water it is impossible that trout can abound
at Trollhättan in any great numbers. The river has scarcely any
tributaries below the falls; and as it is absolutely impossible for a fish
to surmount them, the breeding ground is very limited; but, on the
other hand, the clearness of the water is precisely that which best
suits the constitution of a trout; bleak and gwinead, which form their
principal food, are very plentiful, and from the depth of the water,
there is scarcely any limit to the growth of the fish; a man, who is
satisfied to catch now and then a monster, will do very well at
Trollhättan, and in the course of the season will have a few stories to
tell, which in England will be set down as altogether fabulous,—but
it does not answer for a day’s fishing. The traveller may as well
make up his mind to admire the scenery at his leisure,—it will not
answer his purpose to wet a line there.
The Parson having convinced himself of this, and, moreover,
having had one or two very narrow escapes, reeled up his line and
contentedly sought out his friends, who, by this time, had succeeded
in explaining to the swarms of guides that their services were not
required, and were sitting on a heathery bank feathered with birch,
exactly in front of the middle falls, comfortably eating gooseberries,
which grow there in such plenty that, though the place swarms with
children—a whole regiment of soldiers with their wives and families
being hutted in the vicinity,—the bushes were still full of them.
“That is a curious cave,” said the Captain, pointing to a hole which
seemed to enter the face of the precipitous rock by the side of the
great fall, and to penetrate it for some distance; at least, the depth
was sufficiently great to be lost in darkness; the bottom of it was on
a level with the water, and was not accessible without a boat.
“That!” said Birger, “that is Polheim’s grave.”
“Do you mean to say that any man was buried there?”
“Not the man himself, only the best part of a man—his reputation.
Polheim was an engineer, and when the first idea of making a
practicable communication between the Wener and the sea was
entertained, he attempted to carry it into effect by burrowing out
that hole. If he had succeeded in boring through the rock, he would
have accomplished the largest jet d’eau in the world. However,
Government were wise enough to put a stop to it, and to employ a
cleverer man. Polheim died—it is said of grief,—his body buried at
Wenersborg; what became of his soul, I will not take upon me to
say; but as for his reputation, there is no doubt about that—that lies
buried there.”
“That canal certainly is a wonderful work for a country like yours,
where the extent of land is so great, and the produce from it so
small.”
“It would have been more wonderful still,” said Birger, “for it would
have been done when the country was still poorer, had it not been
for the Reformation.”
“The Reformation!” said the Captain. “What, in the name of
Tenterden Steeple and the Goodwin Sands, has the Reformation to
do with the Gotha Canal?”
“Not much with the canal, but a good deal with Bishop Brask who
planned it—the man whom Geijer calls, and very deservedly, ‘the
friend of liberty, and the upright friend of his country.’ The present
canal, nearly as you see it now, was sketched out in a letter still
preserved, which was written in the year 1526, by the Bishop, to
stout old Thurè Jensen, whom men called King of East Gothland—
that gallant old fellow, who, when he saw how the Diet of Westeras
was going, struck up his drums and marched forth, swearing that no
man in Sweden should make him heathen, Lutheran, or heretic.
Before the Bishop’s scheme could be converted into a reality, stout
old Thurè was a headless corpse, and Brask a voluntary exile. But
the good which men do, lives after them. Gustavus, who had always
respected Brask, and would fain have retained him in his See of
Linköping, carried out many of his plans—and in the course of time
this, as you see, was carried out too, though it was not for a
hundred years or more after the successful king and the deprived
bishop had gone to their respective accounts.”
“Jacob has just been giving us another version of the story,” said
the Captain, “something about Gefjon and Gylfi.”
“O, the Gylfa-Ginning. Stupid old fool!—that did not happen here,
but down in the south, between Sweden and Denmark. So far,
however, he is quite right,—at least, if you believe the Prose Edda;
the Goddess Gefjon was the first canal maker in Sweden, and the
event happened in the reign of King Gylfi.
“Thus it was:—
“King Gylfi ruled over the land of Svithiod (Sweden), and at that
uncertain date which is generally known as ‘once upon a time,’ he
recompensed a strange woman, for some service she had done him,
with as much land as she could plough round with four oxen in a day
and a night; but he did not know, till the share struck deep into the
earth and tore asunder hills and rocks, that it was the Goddess
Gefjon that he was dealing with. So deep were the furrows, that the
place where the land had been became water, for the oxen, which
had come from Jötenheim (the land of the Goths), were really her
sons, whom she had yoked to her plough.”
“Phew-w-w,” whistled the Parson.
“What is the matter?” said Birger.
“Only that as Gefjon is the northern Diana, I thought you might
have made a mistake; her nephews, possibly, not her sons?”
“O, that goes for nothing in Sweden,” said the Captain, laughing;
“there are plenty of cases in point. I have no doubt Birger is quite
right.”
“Well, if you come to scandalising national divinities,” retorted
Birger, “I am sure that story about Endymion was never cleared up
very satisfactorily.”
“Clear up your own story, at all events, and place the oxen in any
relationship to the maiden goddess which you may think best suited
to her fair fame.”
“Then I will call them what the Edda calls them,” said Birger,
gallantly, “her sons, and never sully the fair fame of the maiden
Gefjon either. The whole is an allegory. Sweden achieved the sea-
path, or inland navigation by the labour of her own sons, and that is
what the old Skald Bragi means when he likens them to oxen, and
says—
And now Gefjon and her sturdy sons have been at work again. The
whole south of Sweden is an island now, and it is this canal from the
Cattegat to the Baltic that makes it so.”
“Well, so it is; and though it is a long while since the days of the
Goddess Gefjon, or even of good Bishop Brask, the work is complete
at last, and a very creditable work it is. I think, by-the-way, that we
English had something to do with it.”
“England had a hand, and a very considerable one, in the other
end of it,” said Birger, “but these locks are home manufacture, and
the thing really has answered very well. See what a trade it has
opened with the Wener only, which was the original plan; the
communication with the Baltic being a sort of after-thought of the
Ostergöthlanders, carried out by Count Platen. This part of the
canal, which was opened in 1800, has made four of our inland
counties, Wenersborglan, Mariestadslan, Carlstadslan, and Orebrö,
into so many maritime states; and now the other end has done the
same for Jonköping and Linköping. In national wealth, it has paid a
dozen times over. There is no one who has ever lived, since the days
of Oxenstjerna, to whom we owe so much as we do to Count Platen.
In the very heat of the war—that is to say, in 1808—he conceived
the idea of prolonging the water communication to the Baltic. He
went over to England to inspect, with his own eyes, the Caledonian
canal. He engaged Telford, returned to Sweden, and, within two
months, sent in his plans, with their specification and estimates,
which, strange to say, have not been exceeded in the execution. It is
this old part of the canal, however, which is, at all events, the most
showy job; here are two miles of solid rock cut through, and, as you
see, these falls are pretty high—not less than a hundred and twenty
feet of them, besides the rapids,—they require, therefore, a good
many locks; in fact, as you see, it looks more like a staircase than
anything else.”
“It certainly was a singular sight,” said the Captain, “to see our
steamer high above our heads, and the masts of the brigs sticking
out from the tops of the rocks, and far above the highest trees.”
“This part of the canal is the most showy,” said Birger; “no doubt
but Platen’s work was not altogether so easy as it looks. Any one can
appreciate the skill of an engineer, who sees a great body of water
surmounting a steep wall of rock; but a still greater amount of skill is
evidenced in laying out a plan; so as to render such tedious and
expensive works unnecessary. When I was a youngster, I was sent
by the Kongs-Ofwer-Commandant’s Expedition, to survey, by way of
practice, the two lines from our fortress of Wanås-on-Wettern to the
two seas, and I really do not know which is the most wonderful
conception. The original plan was only eight feet deep, but they are
deepening it two feet more, and making the width of the locks
twenty-two feet throughout. We shall see the Linköping battalion at
work on this to-morrow. I must go and pay them a visit while we are
staying at Gäddebäck. I know a good many of the officers.”
“It is a military work, then?”
“Not exactly, though, like most other large undertakings, it is done
by soldiers. It is a speculation, something like those in your own
country, which is taken in hand by shareholders, with a board of
directors, though I believe Government gives them a lift of some
sort or other; but in this country, in time of peace, you can always
get as many soldiers as you want for labourers, from a corporal’s
party up to a battalion, or a brigade, for matter of that. You lodge so
much money in the hands of the Government officer appointed for
that purpose, and a regiment, or a company, or a detachment,
receives orders to march and hut themselves in such a place. Your
engineer, or foreman, or bailiff, as the case may be, gives his orders
to the officer in command, who sees them carried into effect. It
costs more in hard money—and, what is a worse thing for us
Swedes, ready money—than any other sort of labour, but it answers
exceedingly well for those who can afford the first outlay, for the
men are under military discipline, and Government are responsible,
not only that you shall have so many men to work, but so many
sober men, fit to work, which, in this country, as you know, is not
exactly the same thing.”
“And how do the soldiers like it?” said the Captain, who, though he
did not say so, certainly was thinking that it was not precisely the
situation of an officer and a gentleman, to do duty as foreman of the
works for some speculating farmer, or builder, or engineer.
The idea never seemed to strike Birger, who, by-the-way,
belonging to the Royal Guards, was himself exempt from such
service. “It is rather popular,” said he, “with all classes; the men like
it because they have a considerable increase of pay, and as for the
officers, except one or two who are on duty for the day, they have
but a short morning and evening parade, just to see that their men
are all right, and then they may do what they please. They lose
nothing, either, for all places are equally dull in the summer, when
everybody is at work; there can be no festivities going on anywhere,
and so they shoot, or fish, or lounge, or make love, at their leisure.
But here we are at the parade-ground,” he continued, as they came
upon a cleared space in the forest, surrounded by very neat and
compactly-built huts, some of considerable pretensions, framed with
trunks of pines, and walled and roofed with outsides from the saw-
mills, arranged as weather-boards; others, more humble, were
constructed of pine-branches and heather; but all alike compact,
neat, firm, tidy-looking, and arranged in military order, in straight
lines, with their officers’ huts in front.
The sun was not far from its setting, and the soldiers having put
aside their tools, were throwing on their belts in a way that certainly
would not have satisfied an English adjutant, and were hurrying,
with their muskets in their hands, to their respective posts. There
was a short private inspection by the non-commissioned officers,
while the band, a pretty good one, were tuning their instruments;
after which the companies formed into line, faced to the west, and
as the lower limb of the sun touched the horizon, the officers saluted
with their swords, the men presented arms, and accompanied by the
band, sang in chorus, every man of them joining in and taking his
part in it, the beginning of Grundtvig’s glorious hymn to the Trinity.
Hávamál.
The day had been oppressively hot, more actual heat, perhaps—
reckoning by the degrees of Reaumur or Farenheit—than had been
experienced on the fjeld of the Tellemark;—but that was dry,
bracing, exhilarating heat, such as is felt on the mountain side; this
was the moist, feverish warmth, caused by the sun’s rays acting on
the wide expanse of the Wener Sjön and its marshy shores, and
secretly and imperceptibly drawing up vapours, which would
eventually fall in rain,—not, perhaps, on the spot from which they
had been raised, but on the cold distant mountains of Fille Fjeld,
which at once attracted and condensed them. There was not a cloud
in the sky, but the sun would not shine brightly or cheerily either.
The long summer’s day was, however, drawing to a close, and the
party were sitting at the extreme end of a little jetty which Moodie
had built out into the river on piles of solid fir. This was covered with
an awning of striped duck,—of little use as an awning so late in the
day, for the sun was low enough to peep under it, but still kept up,
partly to tempt the air of wind, which every now and then fluttered
its vandyked border, and partly as a preservative against the dews,
which would be sure to fall as soon as the sun dipped below the
horizon.
From a flag-staff, stepped on the outermost pile, hung a huge red
English ensign, every now and then stirring in the breeze, half
unrolling its lazy folds and then dropping motionless against its staff.
Moodie was very particular about this flag, and hoisted it every
morning with his own hands,—for ever since he had fairly turned his
back upon his native land, he had become intensely national.
In the front and beneath them the broad, clear, deep, still,
brimming river, full four hundred yards from bank to bank, glided
quietly along with a calm unbroken surface, and a motion hardly
sufficient to bring a strain upon the chain cable of the little cutter
that was moored some twenty yards off the head of the pier, with
her triangular burgee fluttering out in the breeze that was not strong
enough to move the heavier ensign, and displaying the red cross
and the golden R.Y.S. so well known in every port in Europe. It was
a singular thing to see it here though, a hundred miles in the heart
of Sweden, with the tremendous Falls of Trollhättan between it and
the sea.
Made fast to the rails of the jetty were half a dozen boats, of all
shapes and sizes—from the long narrow galley with its four well-
scraped ashen oars, to the little white flat-bottomed duck-punt,—for
Gäddebäck, though not, strictly speaking, an island, except during
the freshets of early summer, was so perfectly insulated by the
sluggish brook and the marshy ground through which it flowed, as to
make all communication with the main land, except by boat,
extremely precarious.
Dinner had been over for some time, and the party had adjourned
to the jetty, as the coolest place they could find. They were sitting
with their wine glasses before them, while two or three bottles of
light claret were towing overboard, suspended in the cool water of
the river by as many night-lines.
“Upon my word,” said the Captain, throwing open his waistcoat,
“the West Indies is a fool to this; and it is not unlike a tropical
climate either,—moist, damp, and hot,—stewing rather than
broiling.”
“To tell you the truth,” said the Parson, “I am surprised at your
selecting this spot for your residence, beautiful as it certainly is; with
all this marsh land about it, it cannot fail to be unhealthy.”
“Well, I do not know,” said Moodie, “they do talk of agues,
certainly, but these things never hurt me, and the place suits me
well enough; there is plenty of shooting—ducks and snipes without
end; and on the other side of that range of heights, not three miles
from us, is a royal forest, well preserved, in which I have full
permission to kill anything I like, except stags, elks, and perhaps
peasants, though they do not make much fuss about a man or two
either; and, besides, the Ofwer Jagmästere is a particular friend of
mine. And as for fishing, it is not altogether such as I should choose,
no doubt, for it is mostly trolling,—but there is some capital fishing,
such as it is. I will show you what we can do to-morrow at the upper
rapids,—we have not been there yet. It is a singular sort of sport,
certainly; but if you are half the poacher you used to be, you will like
it for its novelty. However, the greatest attraction that the place has
in my eyes, lies in its situation: this river is the high road from
Gotheborg to Stockholm, and steamers pass it every day. Living on
this Robinson Crusoe island of mine, I can command the best market
in the country, and in fact, I do realize a very fair income by my fish
and my game. Look at my yacht, too, where else could I put it to so
great use. A short canal and a single lock passes me into the great
lake Wener, where I command some of the best rivers and some of
the best bear-country in Sweden. If I want to smell salt water again,
I have but to put my cutter in tow of the market-tug, and to steam
away to Gotheborg; and when I want to be sulky, here I am, looking
after my menagerie of Scandinavian birds and beasts, and adding
odds and ends to my museum. I dare say people wonder at the old
flag ‘that braved a thousand years, the battle and the breeze,’ as
they pass backward and forward in the steamers; but no one stops
here, and you may be sure no one would find me out by land. This is
just the place for me; besides, it is not always so hot as it is now,—I
have driven my cariole across this river, many a time.”
“By the way, what do you do with yourself in the winter?” said the
Captain; “you were never very much given to reading, and your
shooting and fishing must fail you then.”
“Fishing, yes; shooting, no,” said Moodie; “the finest bear shooting
is in the winter.”
“What! do you meet with bears in the forest?”
“Pooh, nonsense! you Englishmen are always fancying that we
kick bears out of every bush in Sweden.”
“You Englishmen!” said Birger, glancing at the flag.
“Well, well,—you Johnny Raws, I should say,—you freshmen—you
griffins. I was just as bad myself, though: I remember the day I
landed at Gotheborg, marching off with my gun over my shoulder to
a little wooded valley at the back of the town where the Gotheborg
cockneys have their villas, and attacking a Swede, dictionary in
hand, with ‘Hvar er Bjornerne’—how the scoundrel laughed.”
“Well, but what do you mean by bear shooting then,—where do
you meet with it?”
“Why, you travel a hundred miles to get a shot at a bear, and think
little of it too. The bear hunter must keep up a correspondence with
the Ofwer Jagmästerer of the different provinces, and get
information whenever the peasants have ringed a bear as they call it
—that is to say, ascertained that he is within a certain circle, and
then out with the sledge and the dogs, and the rifles, and away up
the river, or across the lake, as it may be. You do not meet with a
bear at every turning, I can assure you. I have killed a pretty many
though, one way or other, since I have been here.”
“That you have,” said the Captain,—“at least, if all those trophies
that ornament your walls are honestly come by; but by your own