Defending Jack Welch in 1980 for his SELECTIVITY and Willingness to make tough decisions. (View of a NY TIMES Editorial" )

In the 1980's Jack Welch was being criticized for his exiting and divesting some businesses and focusing on the areas that he believed were the most attractive for GE. He received the nickname: "Neutron Jack" since he kept the buildings but destroyed the people. I defended Jack and this is the NEW YORK TIMES editorial and my response.

ON G.E. AND EATING OUR SEED CORN

An article May 13 (''Are We Eating Our Seed Corn?'') discussed the extent to which many large American corporations, and the General Electric Company in particular, are buying back their stock and thus spending less on research and development and missing opportunities to develop innovative products. Business executives, members of Congress, academics and other experts on American industrial policy said in the article that such financial engineering often reflects short-term thinking and is sapping American competitiveness. G.E. officials defended the plan to buy back $10 billion of its stock over the next five years, pointing out that the company is a world leader in those fields in which it has chosen to compete and that its research and development is adequately funded.

Some of the letters received in response to the article follow.
A Sharp Focus is No Fault
To the Editor:
General Electric's John F. Welch Jr. should be complimented and not criticized. G.E. has learned over the past two decades that it could not be all things to all people. Since the 1970's, G.E. has objectively evaluated its entire business portfolio and determined in which markets it could be the profitable market leader. It has learned to evaluate its global competition and to focus its research, people and funding on those markets. The market and profit results have been very positive. Unfortunately, this means that it has been forced to de-emphasize and even leave businesses and technologies at which it could not be a profitable leader. The company has recognized that its resources are limited and rather than ''sub-optimizing,'' it has focused for maximum yield. In short, G.E. and Jack Welch have applied successfully the principles of ''strategic thinking and management.''

I believe that the Sony Corporation and other globally successful companies have done many of the same things. Sony's president, Akio Morita has a track record of being selective. Sony demonstrated the ability to be the quality and niche leader in consumer electronics, a model that has been duplicated by the Honda Motor Company and other leaders. These companies invest in research and product development in related markets and are not trying to do everything. I would like to see an American equivalent of Morita in consumer electronics, but there is no evidence that this must be at G.E.

I wish that more companies (and the Federal Government) would learn to be strategic leaders, be selective and make the tough decisions. This means putting resources where they will yield the best results, even if some things are not done. If this happened, I am confident that American companies (and the United States in total) will regain their global leadership position.
WILLIAM E. ROTHSCHILD
Norwalk, Conn., May 13
The writer is a management consultant.

PS...I still believe that having a strategic portfolio and focusing on the most attractive pieces is the essence of success and I WISH THAT OBAMA and his team would recognize this reality.