At Any Cost: Jack Welch, General Electric, and the Pursuit of Profit

When GE's massive downsizing took place in Pittsfield, MA, I was a frustrrated local official trying to find out what was going on. GE officials furnished little information. Eventually it was thought the GE must have done it to simply stay competitive in the new global economy. Thomas O'Boyle furnishes the answer. The layoffs and plant closings were Jack Welch's idea of a corporate revolution. He was at the cutting edge of a major business philosophy which discarded post-WW II corporate paternalism in favor of downsizing chic. Layoffs and plant closings, formerly the last options of businesses in trouble, became fashionable fiist options in the pursuit of higher profits. Welch, according to O'Boyle, created a work place of purposeful job insecurity. The profit outcome mattered more than people. GE managers had to hit a home run to be number one in profits or they were out. This quest to be number one, wrote O'Boyle, was a major reason for GE, as one of the Pentagon's 100 largest defense contractors, to become the leading corporate criminal in cheating the government to show larger profits. GE could have remained in my city and stayed competitive in comsumer electronic products, but the profits would not have been high enough for Welch's quest to be number one. My city is a long way from recovering from the economic blow of losing about 9, 000 GE jobs. I take serious issue with such revewiers as NY Times, Roger Lowenstein that O;Boyle is wrong and that , "America has reaped a huge dividend (from the layoffs and plant closings): the added goods and services that GE's former workers contribute in other lines of work" Mr. Lwenstein should come to my city to see how wrong he is. Unfortunately GE's corporate practices are now the standard for business in this country. And so long as GE's and other stockholders are happy with their returns on a surging stock market these corporate practices will continue. However, O'Boyle has shown the bad effects of this corporate practice and one has to hope that hope that eventually some corporate leaders, and there are some according to O'Boyle, who will begin to realize they have a duty to their workers and the community and not only stockholders. O'Boyle raises the interesting question of who will follow Welch soon as the new CEO at GE and more importantly what will be his management style. GE does not have to be number one in profits. It can and should show the way in leading us back to a corporate world of responsibiltiy for its workers and the communities it does business in. I hope the next GE leader takes O'Boyle's book seriously and tries to remedy the bad employee and communtiy practices of Welch

This is an accurate accounting of how Welch ruined the very heart and soul of a wonderful company--one which employees were proud of their association before Welch. I worked many years for GE, both before Welch was CEO and after, and the book read like "this is your life". It is so sad that other executives appear to be on the edge of their chair waiting for every word spoken by Welch and to learn from him the theme of the year or the latest corporate slogan to espouse. I do hope this book becomes a best seller as it would give me confidence that more people would understand the depth of the problems Jack has created. And lastly, I would hope that our business schools would make this required reading to best illustrate how NOT to run a business.

O"Boyle exposes an excellent example of what is wrong with the American business climate today. Corporate profiteers concerned with short term gain at the expense of everything else. Well written, easy to read, very enlightening, this book strikes out at the venerable institutions which though held in high esteem, should be looked on with contempt. Extremely well researched, the only thing missing from this book is a response from Jack Welch. Boy, I'm glad I don't work for General Electric.

Is the most profitable and valuable US company spiritually dead? That seems to be Thomas O'Boyle's thesis in "At Any Cost." His riveting book is the first that I have read which chronicles the dark side of Jack Welch's restructuring of the General Electric Company. In an introductory note, O'Boyle expresses regret that Welch and other executives "were unwilling to be interviewed" or to respond to his serious efforts to solicit their comments to issues and concerns raised in his book. His note is to explain the extremely negative views of Welch and GE that O'Boyle gleaned from mountains of court and government records and from interviews with restructuring and down-sizing loosers. Predictably, corporate and business reviews dismiss the book as "muckraking." It is also predictable, however, that this book will have an impact on the eventual replacement of Welch and re-restructuring of GE.Although O'Boyle closes his book speaking of Welch and GE in the past tense, I believe that his objective is to help. If O'Boyle and Welch haven't, I urge these Irish-Catholic gentlemen to read "The Spirit of Democratic Capitalism" by Michael Novak, a leading Catholic theologian. I am not a student of such matters, but Novak's and O'Boyle's books arrived on my bedstand almost simultaneously as result of absolutely unrelated activities. The possibility that this confluence of books was ordained prompts me to share my observations.