Decade Transformation (GE Case)

8/15/2019 Decade Transformation (GE Case)

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GE’s Two Decade Transformation

Jack Wel

Presente Two


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C!TE!T

"# GE $ %er%iew

'll '(out Jack Welch

)# *nitiati%e By Jack Welch

+ardware*nitiati%e

," or &Fix,Sell/disengage-Three Circleconcept-De stafngProcess-StrategicPlannng system

-oftware*nitiati%e- Work Ot- -!est Practices- "o "lo#al- De$elop

%eaders- !ondary less

!eha$ior- &otion o'

stretch

- Six Signal


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"# GE. /E0/*EW

1ounded . "232 Thomson +ouston Electric Company 4T+EC

6er7er $ "28&9 Between GE and T+EC formed General Elect

+ead:uaters; 1air "?39)@@ Billion 4&@"&5


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GE $ CE 4-*!CE "83)5


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'LL 'B=T J'CA WELC+

John 1rancis Jack Welch9 Jr# 4Born !o%em(er "89 "8)5

'lma $ 6aters;

-alem +i7h

=ni%ersity of 6assachussets 4Bachelor of -cience in Chemica

En7ineerin79 "835 =ni%ersity of *llinois at =r(ana $ Champai7n 46#- and PhD9 "8


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C+'LLE!GE- 10 WELC+'- CE 6atchin7 and surpassin7 the standards set (y his predecesso Jones# CE of the year 4) times5

CE of the decade 4"8385

6ana7ement Le7end 4W-J."82"5

Economy in recession 4"82"5 -tron7 Dollar

+i7hest =nemployment rates


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(&(T()T(*+S )&D ST)T+"(+S ! .)C W+%C


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C0E-T0'TEGF*!TE!T

-T0'TEGF

0adically restructure the o%er the net


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+'0DW'0E *!*T*'T*/E


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," 0 ,&9 1*H9 -ELL 0 D*-E!G'


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LE'! '!D 'G*LE W0A10C T *6P0/E P0D=CT*/*TF

DestaIn7 process aimed @ sym(olic reduction in &@@.persostrate7ic plannin7 staK

-crapped the la(orious strate7ic plannin7 system and replaced time plannin7 (uilt around pa7e strate7y play(ook

Eliminate sector le%el which was pre%iously the powerful centerstrate7ic control#

We don’t need the questiocheckers, thepeople, nit pickerdown bureaucracy & the proce

each staf has to ask, 10o2 $ale34 0o2 do ( make peo

line more e5ecti$e acompetiti$e364

' decade from now9 i would like

General Electric to (e percei%edas a uni:ue9 hi7hspirited 9

enterpreeurial enterprise## Themost pro


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0E'L T*6E PL'!!*!G

1i%e pa7e strate7y Play (ook

ne pa7e answers to


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BE!E1*T 1 M+'0DW'0E’*!*T*'T*/E- !um(er of Employees 4"82."8285 dropped from 4?@?9@@@ $&8&9@@@5

0e%enue 4"82 ."825 *ncreased from 4>&3#& (illion to >&8#&

peratin7 pro


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-1TW'0E *!*T*'T*/E

So't2are (nitiati$e

. Work Ot

. -!est Practices

. "o "lo#al

. De$elop %eaders

. !ondary less !eha$ior

. &otion o' stretch

. Six Signal

‘’For me, the idea is to shun the

incremental and go or the leap## +owdoes an institution know when the paceis a(out ri7htN * hope you won’t think

i’m (ein7 melodramatic if i say that theinstitution ou7ht to stretch itself9ou7htto reach9 to the point where it almost

comes un7lued#0emem(er the theorythat a mana7er should ha%e no more

than or 3 direct reportsN####i say ri7htnum(er is closer to "@ or "


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W0A=T

To create culture of small company and (uild or7anisational cand mana7ement approach to create more openness9 candoufacin7 reality

!one of these meetin7s were recorded## -o employees donup with more (ureaucracy


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BE-T P0'CT*CE-


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G GLB'L

'ppointin7 Paolo 1resco as +ead9 *nternational peration

0ampart ac:uisitions

Takin7 ad%anta7e of 7lo(al economic slow down European crisis . >"3#Bn

6eican Peso collapse

'sian economy crisis 4"883."8825


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' PL'FE0-


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PE0106'!CE 'PP0'*-'L-F-TE6


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B=!D'0FLE-- BE+'/*=

0emo%in7 the (arriers amon7 en7ineerin79 manufacturin79 sand customer ser%ice

Learnin7 from others

We :uickly (e7an to learn from eaProducti%ity solutions from %("0

Quick response asset mana7emtransaction eKecti%eness from "+ Cost reduction techni:ues from )(

+&"(&+S9 Glo(al account mana

from P%)ST(CS


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!T*! 1 -T0ETC+

To set performance tar7ets# =sin7 dreams to set (usiness tawith no real idea of how to 7et there

Try to 7et people think of fundamentally (etter ways of perfotheir work (Recti%e was to chan7e the way ta

were set and performance was measucreatin7 an atmosphere that asked e%

+ow 7ood can you (eN


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10'F *!T -E0/*CE*!D=-T0F To reduce dependence on traditional industrial products#

Bi77est 7rowth opportunity

*n.site concept We ha%e chan7ed the %ery natwhat we do for a li%in7# Today seaccount for two.thirds of our re%


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-*H -*G6' *!*T*'T*/E

Employees were dissatis


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*6PLE6E!T'T*!


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-=66'0F 1 *!*T*'T*/E-


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T+'!A F=

Decade Transformation (GE Case)

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