GE Transformation PPT

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GE’S TRANSFORMATION

JACK WELCH’S

LEADERSHIP

Subm

Sume

Asisst

SGGS

Chand



CONTEN

TALL

ABOUT

JACK

WELCH

SWO

T

ANALY

SIS

GE’S VIS

20

&

BEYO

GE

OVER

VIEW

INITIATIVES

TAKEN BY

JACK

WELCH



OVERVIE

W

FOUNDED

1878, Thomson Houston Electric Company

(THEC)

1

MERGER

1892, Between GE an THEC !orme General

Electric

2

HEADUARTE

RS

"air#el, Connecticut,

$%&

!

ima'ination REVENUE

18*%8++ Billion (as o!

2+1*)

"



OVERVIE

W

ACHIEVEMENTS

#201"$1%

19th ost -nno.ati.e company ("ast

Company)

1*th ost amire company

("ortune)

1/th ost pro#ta0le company in the worl("ortune)

7th Best company !or eaers

("ortune)

th ar'est in $&3 (Gross

4e.enue)

*th Best Glo0al Bran

(-nter0ran)

5r ar'est Company in the worl

("or0es)



GE '

CEO(

SINCE 1)*!



PREDECESS

OR

REG JONES #1)*! $

1)+0U,-./

345

-,7

-8834

9-((54

4/9( ;

I,;39-5

,

<,3-7 .=

"!

SBU’(

>

"!

(3-<5?

,5(:

T

(883

(3-<

5?

8/-,,5,

<>

GE

-(

.,?@9-3

;3

@3(

?98-,5(

#I95-7 5(

SBU

.-(7

(3?3 &

F397 -

?435,<

,

GE’(

78-39,

(

7545(5,(

<38(

-,7 SBU’(

5@

YEAR

ACHIEVEMENT

1)*0

6CE o! the ear 5 timpeers%1)*

)

6CE o! the :eca

1)+ 6ana'ement e'en



JAC

K

WELC

H

BRIEF

INTRODUCTION

J@, F3-,?5( = J-? =

W/?@ J3>

(0orn >o.em0er 19,

195*),

?ea0oy,

3

ALMA$ MATER

@ &alem Hi'h school

@ $ni.ersity o! assach(Bachelor o!

&cience in Chemical En'i

19*7)@ $ni.ersity o! -llinois a

Champai'n (%& an ?h:

YEAR

ACHIEVEMENT

1))*

>ational 0usiness ha

1))

)

ana'er o! the 2+th

2001$200" "or0es /++ richest 3



JAC

K

WELC

H

CHALLENGES AS A

CEO

IECONOMY

IN

RECESSIO

N

!

1

2

HIGHEST

UNEMPLOYMENT



INITIATIV

ES

WELCH’S EARLY

PRIORITIESHARDWARE

INITIATIVE

1 3 2 $ F5 S// 3C/(

o T@3 C53?/C,?8

o D$S-,< & R-/

T59

P/-,,5,<

SOFTWARE

INITIATIVE

o W3 O

o

B( P3-?5?(



INITIATIV

ES

THREE CIRCLE

CONCEPT

SERVICE

S

GECC

-n!ormation

Construction

En'ineerin'

>uclear

&er.ices

COR

E

i'htin'aor

3pplianc

e otor

Transportation

Tur0ineConstruc

SUPPOR

T

OUTS

TECHNOLO

GY

-nustrial

Electronics

eical

&ystems

aterials

3erospace3ircra!t

Housewa

?etroleum Central 3

Conitio

&emiconucto

r T

3uio GE Train' Co%

Ca0le

$tah inin'o0ile

VENTURE

S

?ower

:eli.eryCalm

a

4aio

&tations



INITIATIV

ES

DISCIPLINED

DESTAFFING

LEAN & AGILE:

M-5,< 88/ 837?54 -,7

?98554

6;e onFt nee the Duestioners checers, thenitApicers who 0o' own the

process%% Toay each sta!! has to as, H7 I -774-/ H 7 I 9-88/ , @/5, 93 ;;?54 -,7?98554>



INITIATIV

ES

REAL TIME

PLANNING

ONE PAGE ANSWERS TO %

UESTIONS:1% Current aret

:ynamics2% CompetitorsF ey 4ecent

3cti.ities5% The GE Business

4esponse/% Greatest competiti.e threat o.er

neIt

5

years*% GEFs BusinessFs ?lanne

FIVE P AGE STRATEGY

PLAY BOOK



INITIATIV

ES

BENEFITS OF HARDWARE

INITIATIVE

>um0er

o!

Employee

s

(1981A

89)

4e.enue

(1981A8*)

peratin'

?ro#ts

(1981A

@ 1% Billion to 2%/Billion

@ 27%2 Billion to 29

Billion

@ /+/,+++ to 292,+++



WORKOU

T

THE FIRST SOFTWARE

INITIATIVE

employee

s

ecision on

8+J

IMPLEMENTA

TION

OBJECTIVEOVERVIEW

-mplementati

on

Team (2/

consultants)

Group o! /+A

1++

5 ay sessions

n the

spot

To esi'n aprocess to 'etunnecessary0ureaucraticwor out o! thesystem%

To create theculture o! asmall company,where all !elten'a'e ane.eryone ha.oice%

3n openiscussion!orum%

Employee coul

'i.e ieas ansu''estions on0usiness an'et immeiateresponses to it%



BESTPRACTIC

ES

THE SECOND SOFTWARE

INITIATIVE

LEARNIN

G

FROM

OTHER

INDUSTRI

ES

FOCUS

MORE

ONHOW

THINGS

GET

DON

IMPLEMEN

T

ATIO

N

R E S U L

M

-



GOGLOBA

L Tain' a.anta'e o

'lo0al

economic slow

own

@ European CrisisA

17%*Bn@ eIican ?eso

collapse

@ 3sian Economy Crisis

(1997A98)

3ppointin'

?aolo

"resco as

Hea,

-nternationa

l

peration

s

4ampan

t

3cDuisitions



EMPLOYE

ES

DEVELOPING LEADERS FOR

TOMORROW

63 ?layers (CharacteriKe 0y /Es L Ener'y, Ene

E'e, EIecution)

5+ :e'ree"ee0ac

Trainin' institute atCroton ille

-mpro.e ?aca'esM&tocptions

&uccession?lannin'

eepin' close ta0s on top 5+++

EIecuti.es



EMPLOYE

ES

PERFORMANCE APPRAISAL

SYSTEMRAN

K

RATIN

G

REWAR

D

2 1*J &T4>

G

S?

O85,(

/ 1*J B4:E4->

E

I9834 3

M4* Bottom 1+J E3&T E""ECT-E

W7 O

5 *+J H-GH 3$E:T3-5,5,<

1 Top 1+J T?

S? O85,(



-3= /((

-453

INTOTH

E

1))0

(

THE THIRD

WAVE

S345?

B(5,(

((N5,

;

S3?@

BounaryessBeha.iour



SI

SIGM

A

UALITY

INITIATIVEEmployees were issatis#e with the Dua

o! its

prouct%

GE was operatin' at error rates 1+,+++ ti

the siI

si'ma Duality le.el o! 5%/ e!ectsMmillion

8A

12 0illionMyear%

&eries o! plannin', resource allocation, re

an

communication meetin's were one%

?articipation in initiati.e was compulsory

Bonus

was tie with it%



SI

SIGM

A

IMPLEMENTATI

ON

MASTE

R

BLAC

K

BEL

T

GREE

N

BEL

T

BLAC

K

BEL

T

T3-5,5,< L /

wees

I98/9,-5,

A *

onths proect

aime at

impro.in'

ualit

T3-5,5,<A wees

in

statistics,

ata

analysis an

other siI

si'ma

"ull time &iI

&i'ma

instructors

%10 F/7 5,?3-( 5, /5; ; CT (?-, $

3-= .(>RESUL 62 37?5, 5, 59 - (345?

(-5,(>!0000 S5 S5<9- 83?( 3



SUMMAR

Y CULTURAL

CHANGE6'oin' !or the

leap

D,(55

,<

R(3?35

,<

R945,<

B3-?3-?=

C@-,<5,<

A57 P R O D U C T I V I

T Y





SWO

T

ANALYS

ISer'ers

an

acDuisitions

Competitio

n-n!ormation

security 4esearch

an

e.elopmen

t

"inancial

crisiseia

epictions

OTE.aluation an

3nalysisGlo0al

reco'nitionSWO

T

ANALY

SIS

Glo0al stren'th

an

competiti.eness

$nerAper!ormin'

ener'y

sector

W SEIcellent

ana'ement:i.ersi#e lines

o!

operation

Threat to

OeIi0ilityEn.ironmental

initiati.es



200+$

2012

16>

1

1">

)

• Total -nustry &e'ment4e.enue P GE Capital4e.enue (/*J)

• Chan'e in port!olio

• &ale o! /9J stae o! >BC$

• 4isin' pro#t !rom sellin'3ir cra!t en'ines antransportation eDuipments

• 3cDuisition o! u!in

-nustries

• 4ise in orers !rom a.iation an

oil

CONSOLIDATEDREVENUES #I,

B5//5,(1+0

1%" 1%0 1"*

1"*

200+ 200) 20102011 2012

OPERATINGEARNINGS #I,

B5//5,(

16>)

12>"

)>)

200+ 200) 20102011 2012

PERFORMANCE





STRATEGI

ES

GE’S VISION FOR 2016 &

BEYOND

0

10

20

!0

"

E,3<= H-/@?-3 -,7 A45-5, 7354 <3@

P37? -,7 S345? /-,?@(

G3@ ;39 E93<5,< E?,95(

M-3<5, E8-,(5,

DIFFERENCE BETWEEN GROWTH AND



BASIS GROWTH TRANFORMAT

1 F?( T@ ;?( 5@5, @

3<-,5(-5, 5( ;-3 93 , @(57 5>> , 9-3(?(93( (<9,( -,7 ( ,>A <3- 8-3 ; 75(?((5, 5@5,@ 3<-,5(-5, 5( , @ 5 ?-,-773(( @ 5(5,< 393<5,< ,7($ ><> , @-837?9-3 ;-?5/55( (

8 5, 4,3( ?35?-5,-8834-/( -,7 ( , ;3 9-5,<@ 837??98-,=-??8-./ -,7 ?375./>

T@ ;?( -88-3( . 9

5,(57> T@ Q,/-3,5,<.5< , ' @3 5( - <3-?,?3, 5@ @- /75(5,< 3/-5,(@58( 878-39,-/ 8(55,( 8(3?3( 5,;39-5, (,> T@ ?/3-/ 5((( -393 (3,</= 5, @ ?-(

3-,(;39-5,>

2A< ;@O3<-,5(-

5,

G35,< 3<-,5(-5,( -3=85?-//= =,<3> T@ -43-<-< ; @ 99.3( 9-= ./3 4, @, @ 98/=

9-= . /73 @ 83(, 9-= .

T@3 -3 93 /5/= 3/-5,(@58 8-3,( -,5,75457-/( 5( 93 /5/= 8/-? @5?@ 9-( 5 (

75?/ 5,55- , 8-

DIFFERENCE BETWEEN GROWTH ANDTRANSFORMATIONA, ,<5,< (7= - @ I,75-, I,(5 ; M-,-<9, [email protected] (<@3 -3 ?3?5-/ 753,?( ., @( ?@-,< 83?(((%



B-(5( G3@ T3-,(;39-5,

!> S-( P8/ ( @9(/4( -( .5,<Q, @ 94’ @53 -3,- ;-?5, 5( 93 Q(57’

T@3 (9( -883@,(5, ; /((?-( ; 3-,(;39<3-3 ;/5,< @-

(=(9( ,7 ?99,(3- 5@ -883835-/= 7(5<,

">A?,/7<9,

F3 9-,-<3( 5, - <3@(5-5, @3 5( -, 598/5?5-?,/7<9, ; @53Q835(’$ @5?@ 5( @= @=

@-4 ., @537 3 8397>T@= -3 93 /5/= ;/,5?7 -,7 -?,/7<7>

I, ?-( ; 3-,(;39-,, @-4 ?3-59-7 ?375,-3(7?5(5, 9-5,< 5( 9

T@- 5( 83.-./= @= (<<( @- 9-3( ;-3 3-,(;39-5, ?-((?,4=5,< 8?-5,( 3-5,5,< -,7 ( ,>

%> A,9= P8/ ,7 ( -,9= -(

.5,< 93 5983-,> T@3

T@ ;/5,< ; @ 5

93 -(5/= (-./5(@



THAN

K

GE Transformation PPT

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