general electrics

General Electrics

Presentation By:-Somia Sharma

Sidhanshu GuptaTanya Khurana

Srijani ChatterjeeArchit Jain

Who is a better Leader, Krishna or Rama???

Principles

RulesLOW

LOW

HIGH

HIGH

About GE

• It was founded by Thomas Edison in 1887 for power generation.

• Decentralized in 1950 and profitless growth till 1960.

• In 1973 Reg Jones became CEO of the Company.• In 1981 Welch became CEO of the company.• “ Most admired company in U.S” by Fortune for

3 consecutive years.

Goals and Objectives

“From a decade from now, I would like General Electric to be perceived as unique, high-spirited

and entrepreneurial enterprise…the most profitable, highly diversified company on earth, with world quality leadership in every one of its

product lines.”

Jack Welch

Leadership of Welch

• Focus:- Fix, sell or close

• Interaction

• Tolerate “A” Players

• Leap Frog

• Inclusion

• Bend Reality

Initial Phase of Leadership (Parashuram Phase)

• Coercive Style:- Reducing hierarchical levels, downsizing and destaffing.

• Pacesetting:- Performances compared with competitors and target are set accordingly.

• Restructuring:- Strategic Planning System, five questions strategy.

• Boot Strapping

Growing and Succession Phase of leadership(Rama Phase)

• Authoritative Style:- Dubbed Workout Sessions, Best Practices.

• Democratic• Autonomy• Accountability of

management• Benchmarking• Expansion• ESOP’s

Saturation Phase of Leadership(Krishna Phase)

• Coaching Style• Democratic Style• Motivation• Clear Goal• Aligning and assigning

leadership roles in organization

Managing Succession

Crotonville Management Development Facility- to develop a generation of leaders aligned to GE’ new vision and cultural norms. Evaluation on a 2-way grid-• Quantifiable targets• GE Values

Transformation

GE’s Restructuring

First Wave Cultural ChangesSecond Wave Boundary lessThird

Wave

1981 1988 1990

How does a large, complex diversified conglomerate defy the critics and continue to grow so profitability? How have Jack Welch’s various initiatives added value?

• Deep expertise in areas of functioning• Globalized businesses• Employees as assets• Focus on performance• Leadership values• Do it attitude• Direct communication• Best practices• Change management• Six Sigma

What is your evaluation of Welch’s approach to leading change? How important has he been to GE’s success?

•Revenues were increasing•Operational profit was increasing•Synchronized hierarchal culture of leadership and innovation

How difficult a challenge did Welch face in 1981 ? How effectively did he take change ?

• Challenges faced : Recession Traditional method Japanese Competitors• Changes : Fix , sell or Close Three Circle concept (business Categorization) Restructure the company Increase services in real time basis