Decade Transformation (GE Case)
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Transcript of Decade Transformation (GE Case)
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GE’s Two Decade Transformation
Jack Wel
Presente Two
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C!TE!T
"# GE $ %er%iew
'll '(out Jack Welch
)# *nitiati%e By Jack Welch
+ardware*nitiati%e
," or &Fix,Sell/disengage-Three Circleconcept-De stafngProcess-StrategicPlannng system
-oftware*nitiati%e- Work Ot- -!est Practices- "o "lo#al- De$elop
%eaders- !ondary less
!eha$ior- &otion o'
stretch
- Six Signal
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"# GE. /E0/*EW
1ounded . "232 Thomson +ouston Electric Company 4T+EC
6er7er $ "28&9 Between GE and T+EC formed General Elect
+ead:uaters; 1air "?39)@@ Billion 4&@"&5
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GE $ CE 4-*!CE "83)5
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'LL 'B=T J'CA WELC+
John 1rancis Jack Welch9 Jr# 4Born !o%em(er "89 "8)5
'lma $ 6aters;
-alem +i7h
=ni%ersity of 6assachussets 4Bachelor of -cience in Chemica
En7ineerin79 "835 =ni%ersity of *llinois at =r(ana $ Champai7n 46#- and PhD9 "8
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C+'LLE!GE- 10 WELC+'- CE 6atchin7 and surpassin7 the standards set (y his predecesso Jones# CE of the year 4) times5
CE of the decade 4"8385
6ana7ement Le7end 4W-J."82"5
Economy in recession 4"82"5 -tron7 Dollar
+i7hest =nemployment rates
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(&(T()T(*+S )&D ST)T+"(+S ! .)C W+%C
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C0E-T0'TEGF*!TE!T
-T0'TEGF
0adically restructure the o%er the net
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+'0DW'0E *!*T*'T*/E
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," 0 ,&9 1*H9 -ELL 0 D*-E!G'
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LE'! '!D 'G*LE W0A10C T *6P0/E P0D=CT*/*TF
DestaIn7 process aimed @ sym(olic reduction in &@@.persostrate7ic plannin7 staK
-crapped the la(orious strate7ic plannin7 system and replaced time plannin7 (uilt around pa7e strate7y play(ook
Eliminate sector le%el which was pre%iously the powerful centerstrate7ic control#
We don’t need the questiocheckers, thepeople, nit pickerdown bureaucracy & the proce
each staf has to ask, 10o2 $ale34 0o2 do ( make peo
line more e5ecti$e acompetiti$e364
' decade from now9 i would like
General Electric to (e percei%edas a uni:ue9 hi7hspirited 9
enterpreeurial enterprise## Themost pro
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0E'L T*6E PL'!!*!G
1i%e pa7e strate7y Play (ook
ne pa7e answers to
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BE!E1*T 1 M+'0DW'0E’*!*T*'T*/E- !um(er of Employees 4"82."8285 dropped from 4?@?9@@@ $&8&9@@@5
0e%enue 4"82 ."825 *ncreased from 4>&3#& (illion to >&8#&
peratin7 pro
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-1TW'0E *!*T*'T*/E
So't2are (nitiati$e
. Work Ot
. -!est Practices
. "o "lo#al
. De$elop %eaders
. !ondary less !eha$ior
. &otion o' stretch
. Six Signal
‘’For me, the idea is to shun the
incremental and go or the leap## +owdoes an institution know when the paceis a(out ri7htN * hope you won’t think
i’m (ein7 melodramatic if i say that theinstitution ou7ht to stretch itself9ou7htto reach9 to the point where it almost
comes un7lued#0emem(er the theorythat a mana7er should ha%e no more
than or 3 direct reportsN####i say ri7htnum(er is closer to "@ or "
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W0A=T
To create culture of small company and (uild or7anisational cand mana7ement approach to create more openness9 candoufacin7 reality
!one of these meetin7s were recorded## -o employees donup with more (ureaucracy
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BE-T P0'CT*CE-
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G GLB'L
'ppointin7 Paolo 1resco as +ead9 *nternational peration
0ampart ac:uisitions
Takin7 ad%anta7e of 7lo(al economic slow down European crisis . >"3#Bn
6eican Peso collapse
'sian economy crisis 4"883."8825
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' PL'FE0-
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PE0106'!CE 'PP0'*-'L-F-TE6
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B=!D'0FLE-- BE+'/*=
0emo%in7 the (arriers amon7 en7ineerin79 manufacturin79 sand customer ser%ice
Learnin7 from others
We :uickly (e7an to learn from eaProducti%ity solutions from %("0
Quick response asset mana7emtransaction eKecti%eness from "+ Cost reduction techni:ues from )(
+&"(&+S9 Glo(al account mana
from P%)ST(CS
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!T*! 1 -T0ETC+
To set performance tar7ets# =sin7 dreams to set (usiness tawith no real idea of how to 7et there
Try to 7et people think of fundamentally (etter ways of perfotheir work (Recti%e was to chan7e the way ta
were set and performance was measucreatin7 an atmosphere that asked e%
+ow 7ood can you (eN
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10'F *!T -E0/*CE*!D=-T0F To reduce dependence on traditional industrial products#
Bi77est 7rowth opportunity
*n.site concept We ha%e chan7ed the %ery natwhat we do for a li%in7# Today seaccount for two.thirds of our re%
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-*H -*G6' *!*T*'T*/E
Employees were dissatis
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*6PLE6E!T'T*!
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-=66'0F 1 *!*T*'T*/E-
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T+'!A F=