The Emotional Intelligence of Jack Welch

My last blog was on 15 December 2022.  Today is 12 February 2023.  I will explain the delay in my next newsletter.

This blog is prompted by this terrific article in the New Yorker: Was Jack Welch the Greatest C.E.O. of His Day—or the Worst?

The article’s author, Malcolm Gladwell, is well-known for his best sellers such as Blink, The Tipping Point, and Outliers.  However even he is bemused ty the personality of Jack Welch.  Two incidents stand out.

The first is following a heart attack in 1995 and a quintuple by-pass.  When subsequently asked what he changed in his life, Jack replied that he had not spent enough money now when ordering wine at a restaurant and now it was always more than $100/bottle.  Previously he only ordered wine costing less than $100.  And that was the only change.

The second was when Gladwell listed off Jack Welch’s retirement benefits: “a pension of $7.4 million a year and a mountain of perks. He got the use of a company Boeing 737, at an estimated cost of $3.5 million a year. He got an apartment in Donald Trump’s 1 Central Park West, plus deals at the restaurant Jean-Georges downstairs, courtside seats at Knicks games, a subsidy for a car and driver, box seats at the Metropolitan Opera, discounts on diamond and jewelry settings, and on and on.”  Gladwell is gobsmacked especially when he notes that Welch also got GE to pay the monthly dues at the four golf clubs where he played.

If only Gladwell knew the 7MTF profiling system.  Welch is a wonderful example of a GoGetter–Politician (GP) in action.

GPs seek power through financial and material gain.  They like impressive surroundings and positions of importance.  Consequently, GPs spend more time than any other combination manoeuvring their way into management positions.  The problem with GPs is that if their Regulator is low then they may abuse the trust placed in them, and act to satisfy their personal interests alone.  They have a strong driving ambition that often leads them to achieve positions of importance.  They frequently achieve their goals by charm and flattery.  They are quick to accept positions of personal power.  They are best in positions that require dictatorial leadership such as managing a money market desk.

GPs can be offhand and ruthless in their treatment of others.  Unfortunately, they usually take a strong autocratic approach to management and may ride roughshod over their employees.  They do not tolerate opposition to their views so today, when a more participative approach is necessary, the management style of the GP may lead to dissent and turnover of staff.  If they lack Regulator, subordinates will often fear them.

Another weakness of GPs is that they may sacrifice the long-term for the short-term.  They may become so expedient in their decision making that they lead the organisation to the point of taking unacceptable risks.  This was certainly the case with Jack Welch as the GE stockprice slowly collapsed as it became evident it had overextended and was a House of Cards.

Out of interest I asked ChatGPT to write about the EQ of Jack Welch.

Jack Welch, former CEO of General Electric, was known for his leadership style and management skills. He was considered a highly successful leader, with a reputation for being demanding, direct, and results-oriented. In terms of emotional intelligence, Welch was known for his ability to connect with people and motivate them to perform at their best. He was also adept at understanding and managing his own emotions and those of his employees, which helped him navigate complex organizational dynamics and drive business success.

Somehow ChatGPT missed the New Yorker article. 🙂

This blog was first published on LinkedIn on 12 February 2023.

https://lnkd.in/gTihHkYV