kaal:claim:3411897-005

General Electric's decentralization under Jack Welch worked because each business unit was made fully accountable through its own profit and loss statement and market price internal transactions, which removed inefficiencies and drove up market value.

Welch's method enabled each business unit to be run efficiently and profitably, while allowing unit heads significant flexibility and independence. GE's market value skyrocketed as a result of its decentralization of business units.

Wulf A. Kaal, Decentralization - Past, Present, and Future (2019), Part I: The Past, Types of Decentralization, p. 8
https://ssrn.com/abstract=3411897 · source PDF

Wulf A. Kaal, Decentralization - Past, Present, and Future (2019). SSRN: https://ssrn.com/abstract=3411897

• pre and post internet era corporate reorganization
• no new technological innovation required

empiricalsupport: asserteddecentralizationinstitutional-designgovernance-designcorporate-governance

• extended_by kaal:claim:3808852-012 Organizational decentralization can raise economic performance without new technology: Jack Welch's separation...

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