It was the leadership sun around which the other planets pivoted. It was the crown jewel of centers of leadership learning. And it was the crown on the head of the king of America’s corporate leaders, Jack Welch. Welch, who in his time was the iconic chief executive of what in its time was arguably America’s most iconic company, General Electric.
The “it” to which I refer was Crotonville, a campus consisting of approximately 60 leafy acres not far from New York City, where for generations GE trained its managers or, if you prefer, developed its leaders. Both the up and coming, and the already arrived and anointed were rewarded for their promise and performance by being among the chosen few. The few who were chosen to spend time at Crotonville where they would be given the keys to the kingdom. The keys were tools for learning how to lead such as new-manager starter kits, training and problem-solving sessions, trouble-shooting guides, and lectures by among others the king himself, Welch, who was proud of nothing so much as his presumed prowess at growing leaders.
Now though Crotonville is no longer. More precisely it is no longer a leadership learning center. This week General Electric finally sold the site, tacitly if not explicitly acknowledging it had long since outlived its purpose.
Why did GE wait so long to dispose of a property that was under used, outdated, and a bit of an embarrassment? I have no idea. As I wrote in 2019, in a piece titled “Learning to Lead – Fiasco at General Electric,” years ago Crotonville was exposed as a learning center not good at teaching even the basics.*
Jack Welch’s handpicked successor, Jeff Immelt, failed every which way effectively to run the company. During Immelt’s long tenure at the top, GE’s trajectory was straight down. The value of its stock price and assets plummeted, and the company was humiliated by, among its embarrassments, being booted from the Dow. Moreover, in embarrassingly short order the board dumped the man, John Flannery, it had chosen to take over from Immelt, replacing him, finally, with Larry Culp. Given Culp was the first outsider to lead GE in its 126-year history, his selection was itself an unarticulated rebuke to its center of leadership learning – Crotonville.
In the five years since, it’s become clear that Culp was able to accomplish what the Crotonville crowd was not. He saved General Electric from its hidebound self, most importantly by splitting what had become a disastrously unwieldy, ultimately tottering corporate behemoth into three independent parts. Just this month, each of the three officially became separately traded companies: one in aerospace, one in healthcare, and one in energy.
None of this is to say that the experience of being at Crotonville was a total waste. It was not. But it was never what it was cracked up to be – a place where people learned to lead wisely and well. Instead Crotonville was a temple to a charismatic leader – Jack Welch. The fact that he could not teach how to lead even to his hand-picked successor is, though, less of a reflection on him than it is on the fantasy that leaders will grow smart and strong if put on a five-day diet of a secret sauce.
…. and also