Why did GE need a $300 billion bail out in 2008?

Though once upon a time GE was regarded as an iconic company with time its value drastically went down and eventually it came to a stage where the US government had to resort to a $300 billion bail out to revive GE during the 2008 financial crisis.

If we do a prognosis we will find the reason due to the once iconic Jack Welch leadership style.

Jack Welch was a perfect example of a finite minded leader who believed in quick short term oriented results.There were only two metrics he followed to judge people – Performance and Potential(Future performance) with no regards to TRUST or character.

The culture nurtured by him at GE had people pitted against each other , where people lacked trust and were demotivated.

In due course of time the short sighted structure built by Jack Welch collapsed since the primary emphasis was never “Will” of people but was always profits before people.

Adopted from Simon Sinek’s book The Infinite Game

Published by dipsviewpoints

Tech geek , food gourmet , preacher and seeker of motivation

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