Ge's Two-Decade Transformation Case Analysis

Analyzing GE’s corporate-level strategy from 2001 – present with Jeff Immelt as CEO, GE focuses on the growth and development platforms. Technology is the key driving force for GE’s future and growth. Advancements in industries such as energy, health and aviation fueled demand for cleaner and more efficient energy production. GE identified new markets with potential high-growth that offered attractive returns through strategic mergers and acquisitions. As CEO, Jeff Immelt established a process for identifying projects that offered attractive growth potential which were then nurtured and treated as special projects or initiatives that were not subject to strict budget constraints. Immelt introduced GE’s three strategic imperatives as: (1) sustaining its strong business model, (2) strengthening the business portfolio, and (3) driving its growth initiatives. www.ge.com

1.What philosophy, policies, and practices have made GE a “CEO factory” as Fortune called it? General Electric (GE) has traditionally had a hands-on approach to talent management. There is a high degree of involvement of the top management in its people policies. There is a top-down approach to human resource policy. Also, GE recognized the need to be a strategy focused organization early on. The people policy of GE and its HR systems show a high degree of alignment to its strategy implementation. The emphasis on management talent development by four successive

When Jack Welch assumed as CEO of GE in April 1981, he had the challenge of revitalizing the competitiveness and productive competency of the company. In 1981 the economy was in a recession and high unemployment combined with high interest rates exacerbated GE’s problems. GE needed to be restructured and this entailed the modernization and streamlining of operations, downsizing the organization, reduction of payrolls and stringent efficiency measures.

General Electric (GE) is among the most profitable companies and, according to Fortune magazine, the most admired. It stock is the most highly valued in the world. Some critics would argue, if it's not broke, why fix it? Jack Welch, CEO of GE, believes in the "infinite capacity to improve everything." Why does a company that has experienced so much success recently invests over a billion dollars in a quality initiative? Increased competition has GE adopting the attitude that businesses that stand still become obsolete as businesses that continue to grow pass them by. Also by implementing Six Sigma, GE is preparing itself for future profitability

They can well support GE’s development at every specific period. After Welch took the lead, his mission priority was to restructure GE, and he needed to push many radical ideas through the whole company. If the whole structure was still as bureaucratic as before, he cannot move one step. So Welch began to slim the whole organization and finally eliminated sector level. With the new structure, the whole company can move lightly and easily.

Evaluating his approach to bringing about change in his organization. Comparing his approach with that of Jack Welch.

Jack Welch, former CEO of General Electric, was one of the first CEOs to change a company so drastically and destroy policies that had been for years. When Jack Welch first entered General Electric, he was given a PPO project on plastic. Jack Welch contributed greatly. Yet, he was only given

Management guru Jack Welch, former CEO of General Electric, has been instrumental in forming today’s top business management leaders by imparting effective knowledge in leadership management; he is widely credited with transforming GE into a multibillion-dollar conglomerate.

* GE wanted to build new businesses platforms based on technological leadership, commercial excellence and global expansion to gain market leadership.

Jack Welch’s vision of what GE was possible of gave the company a vision for twenty years while he was the CEO and chairman. He states, “leaders make sure people not only see the vision, they live and breathe it.” (Winning, pg 67) He not only allowed for employees to stretch, but demanded it. In teaching workers to stretch Welch knew that workers “may fail. In fact, they probably will fail. But stretching, and stretching the business, is going to improve performance results.” (Jack Welch on Leadership, pg 105) He also states that “only by setting the performance bar high did it become possible to discover people’s capabilities.” Jack Welch’s emphasis on candor and breaking the bureaucracy of modern business separated him from his contemporaries. He excited others of the possibility of being the biggest and best company in the world and rewarding his best employees that shared the values of GE. According to FORTUNE Editorial Director Geoffrey Colvin In "The Ultimate Manager, Welch leads the annals of management history not for anticipating the new world's changes ahead, but for acting on them: "His great achievement is that having seen it, he faced up to the huge, painful changes it demanded, and made them faster and more emphatically than anyone else in business. He led managers into this new world, which we still inhabit, and just as important, he showed business

Mr. Jack Welch former chairman and CEO of General Electric (GE) is amongst the renowned personalities in the field of business. His tenure as a CEO of GE lasted for two decades, which is celebrated for the excellent leadership skills that resulted in the 4000% growth of the company. He bought the change which was necessary for the companies earning at the time i.e. eliminating the communication barrier amongst the employees of the company, right sizing, introduction of succession planning and making tough decisions for letting go some of the profitable departments of the company. As a leader he had a clear vision; he knew what had to be done, which resources were needed and how much time it would take to bring the company

GE’s CEO believes that it is beneficial for the company to not be run like a big company but rather ran like a big partnership. GE has one leadership development foundation as well as one global research infrastructure. In order to share ideas with the least bureaucracy, GE has a few Company-wide councils such as services. This is believed to benefit the company overall because everyone will be allowed to contribute to all segments of the company and not just their individual jobs. This produces connectivity between everyone’s daily needs. In order to keep up with today’s growth in global business, GE has to find ways to further develop its leadership. GE has an approach on developing its leadership known as “GE Global Learning.” The company

What are your impressions of the General Electric brand and how the company’s products differ from those offered by competitors?

GE was a very successful organization under the immensely charismatic and influential Jack Welch. The period of 1981 to 2001 when he was the CEO saw the company increasing market share rapidly and grew exponentially. This period was a period of increasing environment changes and GE saw Jack Welch as the new CEO. He made a famous speech that the company is a fast growing company is a slow growing economy. We can judge from this that the economy of those days was a very stable one with not many changes in the task environment. There would then be reduced competition and reduced pressure due to changing environments.

In 1981 with the arrival of the new CEO, Jack Welsh, the new corporate strategy was implemented with emphasis on performance and efficiency. This move toward efficiency reduced innovation in the company, moving it away from its differentiation strategies. General Electric diversified itself by investing and acquiring a slew of companies that it recognized to be profitable. GE operated in more than eight different industries. The management sough to maintain a limited number of sectors that had great growth potential and performance. GE 's portfolio of business divisions involved Power & Water, Aviation, Healthcare, Oil & Gas, Energy Management, Appliances & Lighting, Transportation, GE Capital, and others. The company wide policy was to implement six sigma quality control, digitization, and globalization. Jack Welsh also aimed to create and nurture the development of talent and leadership in the company.