Ge s Two e28093 Decade Transformation (1)
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Address: General Electric CompanyInternet Registrations3135 Easton TurnpikeFairfield, CT 06828-0001
USA
FT153009 RANJITH RAMAN
FT153020
MINNA MARIA THOMAS
FT153037 NIPUN SAHRAWAT
FT153058 APOORV MOHAN
FT153079 SOUVIK DEY
FT153098 VISHAL GUPTA
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Founded in 1878 by Thomas Edison.
Focus on Generation , Distribution, and use of electricpower to become.
1978 Power Generation , household appliances,lighting + Aircraft engines, medical systems and DieselLocomotives.
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1930
centralized
1950
Decentralization
1960
strengthen itscorporate staffand developsophisticatedplanningsystems
GE a Bellwether of American Management Practices
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Strategy-SBU based structure and planning processes 10 groups, 46 divisions, 190 departments, and 43 strategic business units
Develop a constructive business-government dialogue
Wall Street Journal proclaimed him as a
management legend
Success
Sales more than doubled ($10 billion to $22 billion) and earnings grew evenfaster ($572 million to $1.4 billion)
A major thrust into international markets
Expansion of world trade and restoration of U.S. competitiveness
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1935: born in Salem, Massachusetts
1957: BS in Chemical Engineering
1960: MS and PhD in Chemical Engineering 1960: Joined GE as a chemical engineer1972: Elected GEs youngest VP1979: Vice ChairmanApril 1, 1981: Became the 8thChairman and CEOof General Electric
http://en.wikipedia.org/wiki/Image:Jack-welch.jpg8/11/2019 Ge s Two e28093 Decade Transformation (1)
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Challenge form outside GEEconomic recessionHigh interest ratesHighest unemployment rate since the depression
Challenges from GE Massive information and inefficient macro-business
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A decade from now, I wouldlike General Electric to beperceived as a Unique, high-spirited, Entrepreneurialenterprisethe most profitable,highly diversified company on
the earth, with world qualityleadership in every one of itsproduct lines. -- Jack Welch
Services
GECC InformationConstruction &
Engineering
Nuclear Services
Technology
IndustrialElectronics
Medical SystemsMaterial
AerospaceAircraft Engines
Core
LightingMajor Appliance
MotorTransportation
Turbine
ConstructionEquipment
SupportLadd PetroleumSemi ConductorGE Trading Co.
Utah Mining
VenturesCalma
OutsideHousewaresCentral Air-ConditioningTV&Audio
CableMobilePower DeliveryRadio StationsThree-Circle Vision for GE
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Challenged everyone to be better than the best Sold more than 200 businesses and made over 370
acquisitions
Insisted GE become more lean and agileresulting Delayering: elimination of the sectorlevel Downsizing: elimination of about 123,450 jobs Divestiture: elimination of an additional 122,700 jobs
Replaced 12 of his 14 business heads
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Work OutBest
Practices
GoingGlobal
DevelopingLeaders
Second Wave
SoftwareIniatives
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BoundarylessBehavior
ServiceBusinesses
Six Sigma E-Business
Third Wave
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A process designed to get unnecessary bureaucratic
work out of the system while providing a forum inwhich employees and their bosses could work out newways of dealing with each other.
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How to increase Productivity ?
Michael Fraizer of GEs Business Development
They focused more on developing effective processes than controllingindividual activities.Customer satisfaction was their main gauge of performance.They treated their supplier as partnersThey emphasized the need for a constant stream of high quality new
products designed for efficient manufacturing
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1989 appointed Paulo Fresco as head internationalOperations.
a key negotiator on the thompson swapContinued to broker numerous international dealsa joint venture with German-based Robert Boscha Partnership with ToshibaAcquisition of Sovac , the French Consumer credit Company
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Loyal Creative Strong People
ProfessionalSelf-
ConfidencePassion forExcellent
AggressiveCapacity to
developglobal brain
Change
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To strengthening GEs Individual Businesses
Integrated Diversity
Boundaryless Company
The Boundaryless
company we envisionwill remove the barriers
among engineering,manufacturing,
marketing, sales, andcustomer service; it will
recognize no distinctionsbetween domestic andforeign operation ..
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1990 , Welch Introduced the notion of stretch to setperformance targets and described it as using dreamsto set business targets, with no real idea of how to getthere.
Stretch Targets did not replace traditional forecastingand objectives-setting process.
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Issue When a 1995 Company Survey showed that GE
employees were dissatisfied with the quality of itsproducts and processes.
Six Sigma (Motorola Inc and AlliedSignal) Improve Quality
Lower Cost
Increase Productivity
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1996 Boca Raton- Welch announced a goal ofreaching Six Sigma quality levels company wide bythe year 2000, describing the program as the biggestopportunity for growth, increased profitability , and
individual employee satisfaction in the history of ourcompany.
GreenBelts 4 weeks training
5 Monthsimplementation
BlackBelts 6 weeks of
instruction instatistic , data
analysis andother six sigmatools
MasterBlackBelts Full time six
sigmainstructors
mentored theBlack Beltcandidatesthrough the twoyears process
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destoryyourbusiness.com (www.dyb.com)
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GEsRestructuringFirstWave
CulturalChangesSecondWave
BoundarylessnessThirdWave
Work OutBest Practices
#1 or #2 fix, sell, orclose
1981 1988 1990
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