ge presentation final
TRANSCRIPT
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 ?