Tuesday, March 03, 2020
Legacy
Is the struggling General Electric of today a legacy of recently departed Jack Welch? Welch's hand-picked successor, Jeff Immelt, never could take the reins firmly enough. He was the wrong choice. Welch was described by skeptics as the CEO of a finance company that had a sideline in manufacturing. He depended on the stellar growth of the finance arm to make up for the slower expanding manufacturing businesses. As finance got into trouble in 2008-2009, Immelt couldn't recover and the company went into a downward spiral where it is worth a fraction of what it was in Welch's day. It's a lesson for PR practitioners to avoid hyping a CEO until time proves worth. Yes, recite accomplishments because that is what a CEO has done. But, do it with care. The media hyped Welch relentlessly and he lapped it up. He needed a counter-balance, which he didn't get until after he left the CEO suite. That was a pity. His legacy going forward will now always be mixed.
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