Straight from the Gut

by Jack Welch

The book Straight from the Gut is an autobiography by Jack Welch, an ex-CEO of GE, and one of the most respected business leaders. He was the CEO of GE for 20 years from 1981 to 2001, during his tenure the market value of GE increased from $14 billion to $410 billion and became the most valuable company, globally.

The quote by Jack Welch that I like that most is "change before you have to", I think that this quote shows a characteristic of his which he demonstrates throughout his career. He became well known for championing a lot of effective and innovative business practices at that time, like six sigma, stockholder value and 'boundaryless' culture. He was a famous proponent of globalization, traveling to several countries including China, India and Japan and Eastern Europe, and he didn't hesitate to invest in parts of the world that were in flux and showed promise.

Welch's philosophy was that a company should be either #1 or #2 in a particular industry, or else should leave it completely. Welch earned the moniker 'Neutron Jack' after the headcount of GE was reduced by over 100,000 after he took over at GE. At the same time, he believed very strongly in nurturing and training people, and that the top performers should be handsomely rewarded. He put a lot money and time into developing the main training facility of GE called 'Crotonville'.

I read this book a few years ago, it was one of the first autobiographies that I had read. I expected the book to be dry, but to my surprise I found that that was not the case. I found this book to be as engaging and hard to put down as a good work of fiction. The book offers us a tantalizing glimpse into the inner workings of a company like GE at the highest levels, and it is a great choice for both people who are familiar with business concepts and those who are not.

Reviewed by: Prasuna Hemanth Raj