Ge Two Decade Transformation

1002 Words May 17th, 2010 5 Pages
GE’s Two-decade Transformation Jack Welch’s Leadership Managing Konwledge and Learning (#9-399-150) ANALYSIS of GE Advantage, Problems and risks including my suggestion/ * (1) GE *Key factors*: Hardware restructure*: When Reg Jones, Welch’ Predecessor, became CEO in 1973, the company organization was just completed to be centralized, but Jones could not able to keep up with reviewing massive volume of information generated by 43 strategic plans. Finally in 1977, he capped GE’s departments, divisions, groups, and SBUs with a new organizational layer called “sectors”, which represented macrobusiness agglomerations. Under a economic recession, high interest and highest unemployment, Welch as new CEO targeted “better than the …show more content…
(5) Boundaryless* organization*: Welch also pursued integrated diversity not only in vertical point of views, but also horizontal point of views. Overall organization and beyond sectional positions, employees communicate and support each other. His great jobs was to create such a cooperative atmosphere overall the company. It was not easy to replace the culture in international large company beyond traditional culture, individualism and countries own cultures. The other points is that horizontal cooperation might be ideal to create business opportunities, but easy to keep in the large company which had hierarchical levels. His smaller attempts were effective. Moreover, his leadership changed overall employees mindsets. *(6) GE’ S*ystem lock-in: Confident quick decision and long-term strategy also shifted profit composition from traditional industries (hard) to services (soft) additional to improvement of the productivity. That mean beyond a manufacturer and a simple sales promoter, the company combined the good and the service to obtain more customers satisfaction as solution provider. This solution providing was so competitiveness that no body could not catch up GE. This enabled GE to reach the position in the System lock-in of the delta model. (7) QAC (Quality control = the firmer customer’s satisfaction (Strengthen at Customer’ bonding)): Quality control for products and services under six sigma required huge investment ($500
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