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

DipsUnplugged

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…

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