THE WELCH'S OPTION FOR THE BOSTON GLOBE

The Financial Times reports today:

Jack Welch became one of corporate America’s most celebrated leaders for transforming General Electric from a solid, if bureaucratic, company to an entrepreneurial giant during his long tenure as chief executive.

Now, Mr Welch, known as “neutron Jack” for the widespread job cuts at GE, may be poised to attempt an even greater management feat: publishing a newspaper.

The prospect of Mr Welch’s managerial prowess being applied to a newspaper that is bleeding readers and advertisers may be tantalising to some. But the question many are asking in Boston is whether Mr Welch’s skills would be suited for the newsroom of one of the US’s most prestigious papers – where results are not measured purely in profits.

Would he and his partners be running the paper to maximise their return on investment, for example, or more as a matter of civic duty?

Mr Welch is no stranger to the media business. During his tenure at GE, it acquired NBC, one of the largest US broadcast networks. Mr Welch made deep cuts to the news division, and some former executives say he meddled with their coverage. Lawrence Grossman, former president of NBC News, claimed Mr Welch ordered him to tone down reporting on the Black Monday stock market crash in 1987.

In retirement, Mr Welch has crossed the editorial divide. Along with his wife, Suzy Welch, a former editor of Harvard Business Review, he now pens a regular column for Business Week magazine.

My comments:

1. Let´s not be too arrogant. Newspaper business is complex but not a rocket science.

2. Jack Welch has a good record as a successful executive and I don´t see why he is has to fail in the media business.

3. I read the Welch couple's column in BusinessWeek and it is really good indeed.

4. The newspaper industry has become an isolate business and perhaps one way to solve our problems is to bring in new management blood.

5. Yes, I know, you will tell me about what a disaster was when Los Angeles Times hired Mark Willes, "the cereal killer."

6. But his was hired by the Chandler family, the same one that sold the company to the Tribune Group, and the only responsible of the current mess at the Los Angeles Times.

7. In summary: if The New York Times does not know how to make the Boston Globe a successful business, its shareholders have the right to ask for better management, new ideas and new ownership.

8. At the end of the day, Jack Welch in his partners are risking their own money and reputation.

9. I will be more than happy to see what they can do.

10. The New York Times Company had more than 10 years to change the paper, failed, and now it´s time to change the horses.

Illustration, Manuel Morgado