GE Presentation Final

GE

Akshita Prashanthini

Nandakumar

Harini Rahul S

GE Overview

GE Jack

Welch GE Change

Management

AGENDA:

Greiner’s Growth

model

GE Jeff Immelt

GE Action Plans

•One of world’s most successful companies

•GE - Fortune 500 list from the date of the original index in 1896 to date.

•GE’s Talent Machine

•Key factor to long term success

•Energy•Oil & Gas•Water & Process

Technologies

•Aviation•Enterprise Solutions•Healthcare•Transportation

•Aviation Financial Services

•Commercial Finance•Energy Financial

Services•GE Money•Treasury

•Cable •Film•International•Network•Sports &

Olympics

• 4 businesses operating in more than 100 countries … 130+ years

• Over 300,000 employees worldwide • 2008 revenue $182.5 B

• 4 businesses operating in more than 100 countries … 130+ years

• Over 300,000 employees worldwide • 2008 revenue $182.5 B

GE’s Business Portfolio

EnergyInfrastructure

Technology Infrastructu

re

GECapital

NBCUnivers

al

LEADERSHIP STYLE- WELCH

WORKING STYLE

• Dismantled layers of hierarchy

• Massive job cuts

• Selling unprofitable business

• Positioning the business

• Informal company

• Six sigma

• Globalization

7S – JACK WELCH

STRATEGY

• Implemented No.1 Or No.2, “Fix, Sell, Close”

• Low cost, producing quality goods and services

• Categorized business into 3 areas

• Strategy for employees

• Lead by example- titles

• Work out strategy

• Managers and employee meeting

• Recreate GE

STRUCTURE

• Eliminated several layers of management

• Disbanded GE’s sectors

• CEO office expansion & CEC creation

• Eliminated organizational layers at HQ & Bus’s

• Decision making pushed down to oper. units

• Empowering line managers- reducing power- number of staff

SYSTEM• Speed, Simplicity, Self - confidence

• Personal accountability and high levels of performance expectations

• ‘Small-company environment' with 'big-company resources’

• Informality lead to liberation

• Session C meetings

• Reward system

• Six Sigma

STYLE

Two formative influences:

•His mother

•Ice hockey

STAFF

• Wiped out 35% - others overachievers

• Challenge managers for improved operational & financial performance

• Encourage employees – at all levels – to embrace ambitious targets

• Performance compared to the outside world

• Pebbles in the ocean

SKILLS• The actual skills and competencies of the employees working for the company.

• Skills that were implemented in GE

• Six sigma

•Training

•Mentoring

•Leadership

•Focused implementation

• Conclusion

SHARED VALUE

•Boundary less organization

•Eliminate• Vertical & Horizontal• Chain of command

• Breakdown External barrier

• Replace Department –empowered Team

DRIVING FACTORS FOR CHANGE

• Goal of growing organically – 2 to 3 times

• Transformation – creativity

• Slower-growing domestic economy

• Less tolerance among investors

• Shifting the emphasis

WHO INITIATED THE CHANGE?

• Started in GE as an internal marketing consultant.

• 1989 - vice president of GE Appliances

• Performance rose to 60%

• Sales – increase 75 percent.

• Motivator

WHAT WAS DONE?

• Focus Changed – Customer - Innovation

• Experiences - Technology &Globalization

• Closer customer Relation

• Diversify the business mix

• Increase diversity - Top Mgmt

• Initiated series acquisitions(60)

•Skilled People Acquisition

•Long term focus

•Rotation Mangers ( Study the content )

•Six Sigma- Airline

•More relaxed

•Less confrontational

•Digital operations

•Invests or restructures parts of GE’s

businesses during a successful quarter

IMMELT AS A LEADER

7S – JEFF IMMELT

STRATEGY

• Relaxed style of leadership

• GE to grow globally

• Ways to improve research activities

• GE’s focus on group sales force.

• Increased the net earnings

• Followed one of Welch’s strategy

• Make operation become digital

•Goal- to turn their role by 180 degrees

•Between 1980-’90: GE’s headcount-

402,000 to 298,000

•Cuts at upper level of organization

•Sold off businesses GE could not dominate

•Acquired an average of 100 businesses

every year

STRUCTURE

• Immelt was more friendlier

• Prefers to tease where Welch would taunt

• Cheer people than to chew them out

• Man of the people

• Draws praise from top ranks to factory floor

SYSTEM

• Innovation and growth

• New ideas through phone meetings

• Risking failure is a badge of honor at GE these days

• Three "Imagination Breakthrough" proposals

• Developing deeper knowledge

STYLE

• Firing in a subtle manner

• Informal communication

• Take personal responsibility

• Simplify constantly

• Understand depth

SKILLS - UGLP

• Diversifying the top ranks

• Make a difference where they are

• Pushing for a global workforce that reflects the communities in which GE operates.

• Homegrown managers - experts

• Different interesting assignments

• Pay and medical are better

• Employee morale was improved

STAFF

SHARED VALUES

• Creative

• Innovation

• Encouraged hard & soft barriers

• New Concept –”Imagination Breakthroughs”

• Ecoimagination

• To embed growth-DNA Employee

GREINER’S MODEL- DELEGATION• Less complex organizations

• Pebbles in the ocean – Empowerment

(taking care of the crisis control)

• Best business leaders – Rewarded well

GREINER’S MODELCO-ORDINATION

• Supervised performance of business units

• Senior management – Six sigma

• Frequent reviews

• Powerful in-house communications

• Cost effectiveness – capital allocation

decisions

GREINER’S MODEL- COLLABORATION

• Matrix structure – Homegrown managers

• Simplified controls

• Conferences held monthly

• Rewards are geared for team

performance

PROBLEMS FACED• Lack of Group Effort

• Resistance for wholesome Training

• Lack of internal coordination

• Resistance to high Risk taking , complex

marketing

• Lack of innovation, creativity

• Resistance of outside Employee’s

• Change in attitude

• Think out of the box pressure

• New techniques- Salesmen

• People involved deep in Six sigma - difficult to

change

• Force on risky ventures

• Lesser concentration on bottom line targets

• Diversify business Venture

• Reconceptualize –Employee’s

ACTION PLANS

• Committed towards strengthening the core

• Capabilities they needed to build.

• Leadership team in the core thermal business

• Expansion of regulatory staff- developing C’s

• Product development processes overhauled

• Investments in developing renewable energy

• Website for employees to submit growth idea

•

A sustainable business strategy

INVEST$2.5B in R&D

GROWRevenue to $25B

REDUCEGHG/H2O Impact

TechnologyProfit

Save

UseGEnx jet engine

PV solar panels

20% more fuel efficient

Iberinco – 10MW

carbon-free electricityCaceres,

Spain

lower emissions from jet test rig

solar at GE HQ

Revenues ($B)

Innovative technologies…now

'05 '06 '07 '08

1012

1417

…’10goal

25

80 certified products

company-wide solutions

20% CAGR

Carbon

Water

Energy Efficiency

Innovative technologies…tomorrow

$2.5B by 2010doubling our

2009 investment

Wind

Solar

Carbon Capture

Energy Storage

Hybrid evo

OLEDs

GEnx

Advanced Desalinatio

n

Turbine Efficiency

Zero Liquid

Discharge

ecoMAGINATION SUMMARY

• Solving our Generation’s Toughest

Challenge

• Driving Innovation and

• Customer and Shareholder Value

• Challenge calls for Multiple Technologies

• Organic and Inorganic Innovation

• Engaging Broad Constituencies

BIBLIOGRAPHY

Steven Prokesch; How GE Teaches Teams to Lead Change;

Evolutions and Revolutions as Organizations Grow; Mainiero, L. and Tromley, C. Developing ManagerialSkills in Organizational Behavior: Exercises, Cases,and Readings (Englewood Cliffs, NJ: Prentice Hall) (2ded. 1994)

Thank You ?