Saluda Broad received this letter from reader Preston Hardy about the Chronicle Business Blog on Jack Welch from the March 12, 2020 edition.

“Jack Welch enjoyed a great reputation, but it was largely based on his ability to manufacture paper “profits” and significant investor dividends. He moved almost all GE production (except defense industries) overseas and abandoned the American workers who had made GE great.

“The tremendously profitable GE credit arm was “spun off and became Synchrony Bank. It still exists, it is still profitable but no longer supports GE activities and no longer contributes to GE profits.

“This helped drive GE to the brink of bankruptcy. Much the same happened to iconic retailer Sears when it “spun off” the Sears Revolving Charge Program (which became Discover), Allstate Insurance, Coldwell Banker and other profitable divisions and began solution selling Kenmore, Craftsman, and other products through Lowe’s, Ace Hardware, and other retailers.

“Now Eddie Lampert is liquidating Sears vast real estate holdings in a salvage operation, squeezing every penny he can.

“The most successful businessmen including Frank Rooney and Kemmons Wilson succeeded by training under-performers.

“Sometimes our heroes look great only on the surface. People have value and perform well when they understand that their worth is recognized and appreciated.”

Saluda Broad agrees with Mr. Hardy.

The point is to look hard at what poorly performing products and employees are doing to see if they can be improved or drag too much on a company’s bottom line.

If you disagree with Saluda Broad but will do it agreeably, she invites you to write her via email to chronicleletter@gmail.com . Too-da-loo!