Comparing Elon Musk and Jack Welch
The New York Times’ DealBook team compared Elon Musk and Jack Welch in a recent newsletter titled “A Tale of Two Cost-Cutters.” In December 2022, I covered the same topic in my newsletter titled “The Role of the Modern CEO.” Links to this article on various platforms are in the list below.
I wrote the article after finishing The Man Who Broke Capitalism by David Gelles. I finished the book shortly after Musk purchased Twitter when it was in freefall, and I saw what I thought were obvious parallels. Gelles’ book is a harsh rebuke of Jack Welch. Perhaps too harsh. For the first 15 years of his tenure at GE, Welch steadily grew the company's value; GE’s share price rose from $8 to $70. Over the next four years, the stock price jumped to $477 through aggressive acquisitions and financial restructuring. The company that remained was built on a house of cards GE, as we knew it, no longer exists.
Both men were/are highly successful. Mush is a brilliant and innovative engineer. I believe Twitter/X has struggled because there are no scientific guardrails (physics, chemistry, engineering, etc.), and anything Musk wants to do can be done. The result has been a loss of corporate value and profitability. I am reminded of a scene from Citizen Kane.
"You're right, Mr. Thatcher; I did lose a million dollars last year. I expect to lose a million dollars this year. I expect to lose a million dollars next year. You know, Mr. Thatcher, at the rate of a million dollars a year, I'll have to close this place in... 60 years." Citizen Kane - How to Run a Newspaper - YouTube
Musk is probably the most globally influential business mogul since J.P. Morgan.
Elon Musk’s legacy is yet to be written.
Related Articles
My Newsletters
The Role of the Modern CEO - LinkedIn
The Role of the Modern CEO - Medium
The Role of the Modern CEO - Substack
There Are Many Different Leadership Styles – Chaos Is Not One of Them - LinkedIn
There Are Many Different Leadership Styles — Chaos Is Not One of Them - Medium
There Are Many Different Leadership Styles – Chaos Is Not One of Them - Substack
Other Articles
DOGE Is Putting Major Government Efficiency Projects at Risk | Wired
A report card for Elon: how management experts grade the first six weeks of DOGE | Business Insider
How DOGE’s Cuts to the IRS Threaten to Cost More Than DOGE Will Ever Save | ProPublica
We Mapped Elon Musk's Entire Empire | Wired
Chips and Salsa: Snack-sized news and posts
When trying to understand the future of work, it is important to remember that the workplace is always evolving. While some changes, like generative AI, seem monumental, they are merely larger waves in a never-ending surf.
Is this the end of work as we know it? | Medium
A golfer’s argument for permanent daylight savings time. It’s the fourth section of the newsletter.
One sports thing: Daylight saving | Axios
Some interesting charts from Bruce Mehlman.
Six-Chart Sunday (#58) – It’s Probably Nothing | Bruce Mehlman's Age of Disruption
Humans are self-interested collaborators. It is an interesting paradox.
The commitment to collaborate | Aeon
Admitting mistakes is not a weakness; it is a display of self-confidence.
Being Wrong Isn’t the Problem—Refusing to Acknowledge It Is | Laura Huang
Some timeless humor from The Far Side.
Quotes
"Never cut what you can untie."
- Joseph Joubert
“Bad information is worse than no information at all.”
- Nassim Taleb
“Be quick but don’t hurry.”
- John Wooden
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