388 MRS BULLETIN/MAY 2003
LIBRARY
Jack: Straight from the Gut
Jack Welch with John A. Byrne
(Warner Books, New York, 2001)
xvi + 479 pages, $29.95
ISBN 0-446-52838-2
Jack Welch, then a newly minted PhD
graduate in chemical engineering from
the University of Illinois, joined General
Electric Co. in October of 1960. Twenty
years later, he was named CEO, and in
the ensuing 20 years he built the compa-
ny from a $25 billion per year business
with $1.5 billion in annual earnings to a
$130 billion business with $12.7 billion in
annual earnings in 2000. The book, co-
written with John A. Byrne of Business
Week magazine, is part autobiographical,
part an exposition of Welch’s views on
management, and part a history of the
successes and failures during his tenure.
The book encompasses 26 chapters
arranged in five sections; a brief epilogue;
four appendices; 16 pages of candid pho-
tographs of Welch, his family, business
associates, and notable personages he
encountered during his career; and a
detailed index to people and events.
Only 88 pages of a total of 463 pages
deal with Welch’s life and activities before
becoming CEO. Welch entered GE as a
development engineer at its Pittsfield,
Mass., plant, engaged in bringing a new
plastic, polypropylene oxide (PPO, later
named Noryl), from a laboratory curiosity
to a commercial product. Despite an
explosion of his equipment that blew off
the roof of part of the Pittsfield plant, and
the discovery of a serious flaw in PPO that
although ultimately solved might have
prevented its success in its largest intend-
ed market, Welch persevered and was
soon named general manager of GE’s $26
million plastics business—at age 32, the
youngest GM in the company. Three years
later, he was named vice president and
GM of the Chemical and Metallurgical
Division, a $400 million component
involved in such diverse products as car-
bides, industrial diamonds, insulating
materials, and electromaterials, as well as
plastics. In later years, his responsibilities
broadened still further as group executive
to include medical systems, appliance
components, and electronic components
(e.g., semiconductors, TV tubes, and
capacitors). Curiously, Welch was never
enthusiastic about the semiconductor
business, believing that despite high
growth, it was too cyclical and capital-
intensive to be a rewarding, steady earner.
As CEO, Welch introduced some new
concepts in management to GE. He insist-
ed that every component be No. 1 or 2 in
its market; otherwise the component
should be fixed, sold, or eliminated.
Money realized from the sale of a business
should not go to the bottom line but
should be used to improve competitive-
ness elsewhere in the company. Just
because a business had been a traditional
one for GE and was profitable were not
sufficient reasons to retain it. It must fall
within the scope of three main areas: ser-
vices (financial, information, nuclear, and
construction engineering), high technology
(medical, materials, industrial electronics,
aerospace, and aircraft engines), and core
(major appliances, lighting, turbines, trans-
portation, motors, and contractor equip-
ment); show strong growth potential; and
not be threatened by low-cost non-U.S.
competition. Another principle Welch
strongly endorsed was that of differen-
tiation, applicable to both people and busi-
nesses: reward the best and cut the worst.
He also favored minimizing GE’s bureau-
cracy, in particular, reducing the number
of managerial layers in the organization.
Implementation of these ideas brought
about a series of multi-billion-dollar
divestitures and acquisitions. Some, like
the sale of Utah International and the
acquisition of RCA, were great successes.
Others, such as the acquisition of Kidder-
Peabody, an investment banking firm,
were notable failures, as was Welch’s last
action before retirement, an attempt to get
a proposed merger with Honeywell past
the European Commission. Taken togeth-
er, however, these actions both strength-
ened and grew the company enormously.
Keywords that characterize Welch’s man-
agerial philosophy are “boundary-less,”
passion, and people. In his last 10 years as
CEO, Welch introduced in the 1990s four
major initiatives, to be implemented
across the company, that he called “game
changers.” These were globalization, ser-
vices, 6 Sigma (a statistical approach to
quality control of both products and func-
tions), and e-business (use of the Internet
to interact with both customers and sup-
pliers). Their substantial impact has emi-
nently validated his vision. A final section
of the book of particular interest is
Welch’s account of his process for the
selection of his successor.
Overall, the book is a fascinating read
and difficult to put down. The text is a
seamless collaboration by Welch and
Byrne. It is not so much a biography of
Welch, or a history of GE, or a description
of the many cutting-edge technologies that
GE pioneered, but rather an extended
essay on Welch’s management philosophy,
one that by any measure achieved enor-
mous success for GE employees, investors,
customers, and the world at large.
Reviewer: Jack H. Westbrook is currently
president and principal consultant for
Brookline Technologies in Ballston Spa, N.Y.,
providing consulting services in the areas of
materials and information systems. He was
employed by General Electric from 1949 to
1985, first as a metallurgist in the R&D
Center, then as manager of Materials lnforma-
tion Services, and finally as a consultant for
Corporate Engineering and Manufacturing.
In materials, he is particularly active in high-
temperature materials, especially intermetallic
compounds; he also has strong interests in the
history of science and technology.
Damage Tolerance and Durability
of Material Systems
Kenneth L. Reifsnider and Scott W. Case
(John Wiley & Sons, New York, 2002)
435 pages, $99.95
ISBN 0-471-15299-4
The title of this volume curiously omits
the word “composite.” In fact, the content
is exclusively devoted to the behavior of
fiber composite materials, mainly contin-
uous fiber polymer-matrix systems, with
some discussion directed toward ceramic-
matrix materials. The basic thesis, stated
in the introduction, is that mechanistic
models of damage tolerance and durabili-
ty may be developed to predict the resid-
ual strength and service life of composite
materials under a wide variety of loading
and environmental conditions. The meth-
odology, outlined in the introduction, is
based on data gathered from the experi-
mental determination of failure modes.
Critical structural elements are identified,
and the rates of all relevant degradation
processes determined, so that a failure
function may be defined and used to cal-
culate remaining strength or life. The
chapters follow a logical sequence, from
“Physical Behavior” to “Engineering Con-
cepts of Strength” and “Strength Evo-
lution,” followed by a discussion of
micromechanics, stiffness and strength
evolution, and the effects of damage accu-
mulation. Then follows a chapter on
“Nonuniform Stress States,” which deals
with edge stresses, notches, local effects of
damage, and fracture mechanics. The
final chapter consists of five case studies
in which the methodology is demonstrat-
ed and predictions are compared with
experimental data.
The authors have taken on the task of
attempting to describe all of the observed
failure processes, including fiber fracture,
matrix cracking, delamination, and kink-
band formation under compression, and
the associated growth processes under
quasi-static, fatigue, creep, and thermal
loading, in quantitative mathematical
terms so that a failure function may be
defined. This is a mammoth undertaking,
as many of the fundamental parameters,
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