HR Inspired - The Only Constant At GE Is Change

1 GE Confidential – Proprietary Information

© General Electric 2015

“The only constant at GE is change”

Tone at the top

A world that’s constantly reinventing itself is a world

where GE thrives.



Evolution

1990s 2000s 2010s

Operations excellence Growth Simplification

Individual Systemic

‒ Work-Out ‒ Six Sigma

‒ Six Sigma ‒ Productivity ‒ CAP

‒ Leadership Development

‒ Crotonville

‒ Learning org

‒ 4Es ‒ A/B/C ‒ GE values

‒ Forced ranking

Effect • Control

• Process

• Execution

• Discipline

Effect • Emerging markets

• R&D investment

• Ecomagination

• Commercial

Scope

Co

mp

on

en

ts

Oper

ation

al

Cultura

l

Individual Systemic

‒ ACFC ‒ CECOR ‒ NPS

‒ Technology ‒ IBs ‒ Marketing

‒ LIG ‒ Commercial Courses ‒ HOG

‒ Growth values

‒ Growth traits

Effect • Speed/ Velocity

• Customer intensity

• Global footprint

• Digital intensity

Individual Systemic

‒ Fastworks ‒ GGO ‒ Ind. internet ‒ Global Ops ‒ BP reviews ‒ Spans/ layers

‒ People reviews ‒ LIR/LIRR ‒ JRI dinners ‒ Crotonville ‒ HOS

‒ GE Beliefs ‒ Perf. Dev. ‒ AEIP

Scope

Oper

ation

al

Cultura

l

Co

mp

on

en

ts

Scope

Oper

ation

al

Cultura

l

Co

mp

on

en

ts



Parameters

Org. structured for Mode Behavior demanded Focus means

Risk means Global

Control Vertical Conformance Process

Risk – prevention Global product &

Resources

1990s 2000s

Growth Matrix Alignment Innovation

Risk – management Customer &

Research

2010s

Speed Horizontal Intensity Outcome

Risk – taking Networks &

alliances

Different dynamics



1990s 2010s 2000s

• Vertical

• Command & control

• Decisions where the HQ is

• Matrix

• Multiple alignments

• Decisions where the power is

• Horizontal

• Outcome focused teams … • Responsive

• Adaptive

• Shape shifting

• Decisions where the action is

Shifting the way we work



Volatility Demographics

• Competition

• Command

• Seniority

• Fit in

• Loyalty

• Govern

• Success - position

• Collaboration

• Connect

• Innovation

• Be unique

• Inspiration

• Empower

• Success – meaning

Boomer Millennial

• Different in magnitude

• Different in change

• Different in predictability

The current shift … why now?

GE

• Industrial vs. Capital

54% :46%

• <100

countries • Markets –

China, India

• 60% employees in US

2000 2015

• Industrial vs. Capital

75% : 25% • <170

countries • Markets –

Angola, Myanmar

• 60% employees <> the US



Exp

eri

en

ced

by

th

e L

ea

de

r

Differences in the Predictability

of Change

Continuous discontinuity

Differences in the Magnitude of

Change

Differences in the Nature of

Change

The Environment: Ever-Changing

How do you stay relevant?



Manage the solution AND lead the people

Effective Leadership

Q x A = E

Effective Change

that lasts

Key components required for any effective change



GE’s change culture: processes

Pro

ce

ss /

Iss

ue

Organizational

/ Cultural

Small Large Scope

WO Work-Out TM

CAP Change Acceleration Process

LSS Lean Six Sigma

Technical



“We are announcing an organisational change…”



Change Acceleration (CAP) Model

Dream big.

Play to win.

Make bets other won’t.

Act now.

And always with integrity.

The need to re-set to deliver results in an uncertain world….GE’s change transformation story of the past 3 years…



Driving a culture of simplification

14

Cu

lture

Realign

• GE Beliefs

Re-tool

• FastWorks

Re-think

• Performance

Development

P&L

+ Product expansion

+ Acquisitions & JVs

+ Geographic

expansion

Shared

Services/COEs

SG&A

Challenge

ERP/IT

Systems

Spans/Layers

Complex

matrix

World

Class

Co

mp

lex

ity

le

ve

l

The Lifecycle

Requires shifting the software Shifting the hardware….

Change yes… BUT sustainable



WHAT IT TAKES TO SCALE … Enabling the way we work for +350k employees

GE Beliefs Setting the expectations

Defining the behaviors

FastWorks Providing tools for Growth

Applying the mindset Everyday

Performance Development Supporting new behaviors & approach

Driving accountability

Rewarding for outcomes with impact

BETTER

CUSTOMER

OUTCOMES,

FASTER

Change Management inside-Out…



Bringing the GE Beliefs to life

Peer-to-peer recognition

Manager & employee-led discussions

Targeted roadshows

Culture training sessions

Leaders linking culture change & business strategy

Reinforcing with blogs, videos & webcasts

Making it personal/tangible with team discussions

GE Beliefs storytelling on Colab & MyGE

GE Beliefs website as one-stop shop

Top-down Middle GE-wide



A distinct repositioning of how we work together

1. Customer/user driven

vs.

make the sale

2. Lean with speed and urgency

vs. controlled

3. Adapting, learning & iteration

vs.

perfection

4. Talent & empowerment

vs.

hierarchical

5. Changing the game

vs.

changing the world

GE Beliefs…the “how” of performance with a forward outlook

Customers determine our success

Stay lean to go fast

Learn and adapt to win

Empower & inspire each other

Deliver results in an uncertain world



We never stop evolving...Fastworks Everyday



FastWorks An entrepreneurial framework to accelerate the way we work

“The company founded by Thomas Edison in the late 1800s is taking a cue from Silicon Valley....”

EMBEDDING & SCALING FASTWORKS

• Consistent, simplified approach

• Changing mindset, holding people

accountable

• Competency of experimentation

• Focus on what matters to the customer

(external / internal)

FastWorks Everyday FastWorks Growth

20 FastWorks Everyday


Customer Need

Potential Solution

Pivot or Persevere

Learning Metrics

Leap of Faith Assumptions

MVPs

Discover and frame the challenge/

opportunity

Identify assumptions, including

commercial & technical

Measure & explore customer actions

& behaviors

Based on customer validation: Persevere,

Pivot or Stop

Design & execute a series of tests to prove

or disprove critical assumptions

Propose a solution to solve the

customer need

• 3000 leaders asking smarter questions

• Growth Boards for funding optimization

• Speed to learning & stopping

• Accelerating customer validated outcomes

• NPI & process focus … 400+ projects

21 FastWorks Everyday


FastWorks.ge.com

http://fastworks.ge.com/homepage



“Our best leaders are our best learners.” – John Rice, Vice Chairman

Performance Development… …Shifting Accountability



Impact Outcomes that

our customers value

A personal, dynamic approach to enhance the way we work and grow, drive competitive advantage, and maximize customer outcomes

What Contributions to Priorities

(No Goals)

How GE Beliefs

Empower

and inspire

employees

Hold employees

accountable for

driving customer

impact

Leader as

coach

Ongoing

personal and

professional

growth

Focus on

WHAT we do

and HOW

we lead

Performance Development

Supported by ongoing dialogues and insights from colleagues

Culture of

transparency

and trust



Performance Development leading to outcomes A real-time, integrated approach focused on performance, learning and development to support a fast, simple, customer-focused company

Technology supports

Ongoing

Touchpoints

JANUARY DECEMBER

Priorities

Touchpoint Summary Touchpoint

Measure Impact ,

Integrate with HR Processes

Manager & employee together:

• Set priorities aligned with

customer outcomes … fewer

things better

• Discuss connection with

organization goals

• Identify behaviors for

effectiveness, impact

Manager & employee together:

• Discuss contributions to

priorities

• Set new/adjust priorities

• Incorporate career dialogue at

the right time

• Share insights, provide

coaching

Colleague Insights

360

Summary

Touchpoint

Manager & employee

together: • Review summary of year ...

contributions, insights

• Discuss learnings for coming

year

• Create simple summary

• Move forward

• View organization Priorities

• Capture Touchpoint notes

• Request and give colleague insight

• Draft summary based on inputs



CONSIDER CONTINUE

Giving insights…versus giving Feedback

Continue a specific behavior because it makes you impactful and effective

Consider doing a specific behavior differently to make you more

impactful and effective



Experience it yourself

2014 2015/26

Practice, practice, practice Diving deep from the start creates more impact New language creates a new mindset More insights, more awareness, more growth Build ability to share “consider” insights Less “ritual” = more meaningful conversations Tool is simple and supports the new way of

working

It s

tart

s w

ith

b

ein

g A

LL

IN

Get comfortable with being uncomfortable

“My manager

allowed me to tell him what I wanted

to get out of the

discussion and geared it towards that. It was best

review I have had - very thoughtful in

the approach. I truly felt for the first time in my

career that everything

discussed was for my benefit, to

make me better in my career.” - 2014 MVP

Participant



Getting better.

Being better.

Doing better.

“ A new Olympic Games ”

HR Inspired - The Only Constant At GE Is Change

Leadership & Management