Book Review: The Man Who Broke Capitalism

I remember being mesmerized back in 2021 as I read the book Jack, the autobiography of Jack Welch, the then CEO of General Electric, the most valuable company in the world. I thought many of his ideas were cutting edge and revolutionary, and I wasn’t alone. His ideas of leadership and management took off and became the blueprint for CEOs, even still today in many places. Once I was excited about his ideas, now I am embarrassed and ashamed that I subscribed to this philosophy.

What changed? I just finished the 2022 book by David Gelles The Man Who Broke Capitalism, in which Gelles outlines “how Jack Welch gutted the heartland and crushed the soul of corporate America.” This is no understatement – from the opening paragraphs Gelles details the narcissistic personality of Welch and how he exploited every person, opportunity, and business for his own personal gain, irrespective of the consequences. Welch denied the implied social contract that business has an obligation to the greater economy and community, and instead clung mercilessly to the mantra that the sole purpose of business is to create wealth for shareholders.

I admit to being somewhat passionate about this topic, but this book reflects my own journey to understanding that business must consider a multitude of stakeholders rather than just shareholders. Every current or potential business leader should read this book so they can understand the consequences of unrestrained hedonistic autocratic leadership.

What I particularly like about this book is that Gelles doesn’t just present a thoroughly researched evidence-based narrative of one of the most corrosive business leaders of modern time and his ongoing legacy, but also provides a series of actions and suggestions that todays business leaders can take on board. These suggestions provide a blueprint for leaders to once again partner with society to provide a wholistic approach for businesses to create enduing value for all elements within society.

I cannot recommend this book highly enough for every current or aspiring leader to read and wrestle with.