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The GE Work-Out Summary

5 min read ⌚ 

The GE Work-Out SummaryHow to Implement GE’s Revolutionary Method for Busting Bureaucracy and Attacking Organizational Problems – Fast!

In today’s post, we will talk about the Work-Out program which General Electric (GE) used to successfully cut costs, reduce bureaucracy and create a better corporate culture.

Stay with us for the next thousand words, and find out how you can achieve the same.

Who Should Read “The GE Work-Out”? and Why?

It is clear that the Work-Out system is efficient since it helped General Electric immensely. However, many companies still do it wrong.

“The GE Work-Out” is an introductory guide that explains what the Work-Out is, and summarizes the success story of Jack Welch who introduced it in GE.

We recommend this book to all readers who are thinking about embracing change.

About Dave Ulrich, Steve Kerr and Ron Ashkenas

Dave Ulrich, apart from being an author, also teaches at the University of Michigan School of Business.

Steve KerrSteve Kerr, is a former vice president of leadership development and chief learning officer of GE. He is currently head learning officer and managing director of Goldman Sachs.  

Ron Ashkenas is an author and a managing partner in the Robert H. Schaffer & Associates consulting firm.

“The GE Work-Out Summary”

During the 80s and 90s, GE was under the governance of CEO Jack Welch, otherwise known as “Neutron Jack.” These were the times when the Work-Out program appeared.

Welch got his nickname because of the ruthless cuts of bureaucracy and levels of management, and his management principles by which GE either had to be the top one company of each market it ever entered or else it stopped doing business in the market.

By the end of his glory days, he had got rid of more than 200 000 people.

The seed of the Work Out idea was rooted during some of the listening sessions he had with GE’s Crotonville development campus.

Listening to the managers talking about the changes that were happening in GE Welch realized that although he decreased the number of administrative levels and had financially improved results, the culture of GE screamed “bureaucracy.”

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