Answer:
Jack Welch, CEO of GE, had a strong belief in the concept of public hanging in order to improve the working culture in an organization. In one of the article ” Jack Welch, GE, and corporate culture of public hanging” published in Forbes, Jack Welch said,” Public hangings are teaching moments. Every company has to do it. A teaching moment is worth a thousand CEO speeches. CEOs can talk and blab each day about culture, but the employees all know who the jerks are. They could name the jerks for you. It’s just cultural. Whenever someone goes, there’s got to be a reason why they go. If you want to build a culture, culture really counts. “Culture drives great results. You talk about it all the time. You measure your people and you take action on those that don’t measure up. There are people who did bad things there. So some people got away with doing bad things. So you go in and you hang those people. They have to be hanged publicly. Public hanging is an awful expression, but it is what leadership is all about. It teaches others what you will tolerate and what you won’t tolerate. There’s no other way around that. You have three or four people who are horse’s asses and you get them out of the place and the game changes. I’ll guarantee it”
Concern with Jack Welch’s approach:
What Welch sais is not what GE’s managers heard. For the past many years what has been observed is completely different than what Jack was emphasizing on. At GE the only things that move the culture are the ones that show up in our income statement. In other words, Jack’s belief “Great cultures deliver great number” somehow got lost. The message that got through and that stuck was the overriding focus on “making the numbers.”
The main problem with Jack Welch’s approach of public hangings is not these events occurred, but rather these events occurred very routinely, and so that resulted in creating a culture of competitiveness that undermines the openness needed for innovation. It encouraged a workplace where people are focused on making numbers, cultivating their boss, and staying out of trouble. The practice of routine public hangings sounds tough, but is in fact weak. It celebrates competitiveness over creativity. It instils fear throughout the workplace and eliminates the possibility of culture of continuous improvement.
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