Richard Cronin

There’s a book coming out "The Man Who Broke Capitalism”. It’s about Jack Welch and how his management style and priorities led to the destruction of General Electric. I also saw how Jack Welch’s practices infected my DuPont.

Both G.E. and DuPont are shells of their former selves. Two of the premier industrial giants in history, now mere shadows.

Jack Welch insisted that each business be #1 or #2 in sales for their business sector. Sales were everything. Marketing was everything. Everything else took a back seat.

Jack Welch also established G.E. Capital. He wrapped his manufacturing businesses around G.E. Capital and for a short time made major bucks. He would finance power plants around the world. G.E. electrical gear was almost an afterthought.

Jack also brought in the practices of Six Sigma. Everything measured by statistical magic. Kinda like the climate models. And of course everyone cooked the numbers to get the desired answer.

Finally, to make margins on all those sales, Jack really pushed outsourcing and offshoring. Domestic manufacturing was gutted.

As his final contribution to G.E.’s destruction, Jack Welch anointed Jeff Immelt as Jack’s successor. Jeff set about to redouble Jack’s worst priorities. The book describes that later in life Jack painfully regretted appointing Jeff Immelt. How much did Jack see himself in all of this ? Nothing. Just deflected the failures on Immelt.

All of us in DuPont witnessed full frontal how Jack Welch’s G.E. infected DuPont. Ellen Kuhlmann came from G.E. and she was a royal bitch. Talk to anyone who had direct contact with her. Vapid and dismissive. The same scenario of sales and marketing took over. Outsourcing and off-shoring. Six Sigma number mania.

When Koch Industries bought DuPont’s Nylon@R business, the first thing they did was to fire all of the Six Sigma "Black Belts”, then cut about 2 or 3 layers of management and flattened the organization to push decision-making to the lowest ranks. The Koch brothers are hard-nosed commodity chemical manufacturers.

Ellen Kuhlman was finally ousted by Nelson Peltz’s Trian Fund Management which set about to carve up DuPont and raffle it off.

G.E. Capital and the Trian Fund. The numbers guys. Vultures. Same as the Rothschilds.

https://­news.yahoo.com/­dupont-chief-kuhlman-­exits-profit-forecas­t-cut-215720012.html

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