Ge s Two e28093 Decade Transformation (1)

8/11/2019 Ge s Two e28093 Decade Transformation (1)

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Address: General Electric CompanyInternet Registrations3135 Easton TurnpikeFairfield, CT 06828-0001

USA

FT153009 RANJITH RAMAN

FT153020

MINNA MARIA THOMAS

FT153037 NIPUN SAHRAWAT

FT153058 APOORV MOHAN

FT153079 SOUVIK DEY

FT153098 VISHAL GUPTA


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Founded in 1878 by Thomas Edison.

Focus on Generation , Distribution, and use of electricpower to become.

1978 Power Generation , household appliances,lighting + Aircraft engines, medical systems and DieselLocomotives.


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1930

centralized

1950

Decentralization

1960

strengthen itscorporate staffand developsophisticatedplanningsystems

GE a Bellwether of American Management Practices


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Strategy-SBU based structure and planning processes 10 groups, 46 divisions, 190 departments, and 43 strategic business units

Develop a constructive business-government dialogue

Wall Street Journal proclaimed him as a

management legend

Success

Sales more than doubled ($10 billion to $22 billion) and earnings grew evenfaster ($572 million to $1.4 billion)

A major thrust into international markets

Expansion of world trade and restoration of U.S. competitiveness


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1935: born in Salem, Massachusetts

1957: BS in Chemical Engineering

1960: MS and PhD in Chemical Engineering 1960: Joined GE as a chemical engineer1972: Elected GEs youngest VP1979: Vice ChairmanApril 1, 1981: Became the 8thChairman and CEOof General Electric
http://en.wikipedia.org/wiki/Image:Jack-welch.jpg


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Challenge form outside GEEconomic recessionHigh interest ratesHighest unemployment rate since the depression

Challenges from GE Massive information and inefficient macro-business


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A decade from now, I wouldlike General Electric to beperceived as a Unique, high-spirited, Entrepreneurialenterprisethe most profitable,highly diversified company on

the earth, with world qualityleadership in every one of itsproduct lines. -- Jack Welch

Services

GECC InformationConstruction &

Engineering

Nuclear Services

Technology

IndustrialElectronics

Medical SystemsMaterial

AerospaceAircraft Engines

Core

LightingMajor Appliance

MotorTransportation

Turbine

ConstructionEquipment

SupportLadd PetroleumSemi ConductorGE Trading Co.

Utah Mining

VenturesCalma

OutsideHousewaresCentral Air-ConditioningTV&Audio

CableMobilePower DeliveryRadio StationsThree-Circle Vision for GE


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Challenged everyone to be better than the best Sold more than 200 businesses and made over 370

acquisitions

Insisted GE become more lean and agileresulting Delayering: elimination of the sectorlevel Downsizing: elimination of about 123,450 jobs Divestiture: elimination of an additional 122,700 jobs

Replaced 12 of his 14 business heads


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Work OutBest

Practices

GoingGlobal

DevelopingLeaders

Second Wave

SoftwareIniatives


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BoundarylessBehavior

ServiceBusinesses

Six Sigma E-Business

Third Wave


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A process designed to get unnecessary bureaucratic

work out of the system while providing a forum inwhich employees and their bosses could work out newways of dealing with each other.


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How to increase Productivity ?

Michael Fraizer of GEs Business Development

They focused more on developing effective processes than controllingindividual activities.Customer satisfaction was their main gauge of performance.They treated their supplier as partnersThey emphasized the need for a constant stream of high quality new

products designed for efficient manufacturing


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1989 appointed Paulo Fresco as head internationalOperations.

a key negotiator on the thompson swapContinued to broker numerous international dealsa joint venture with German-based Robert Boscha Partnership with ToshibaAcquisition of Sovac , the French Consumer credit Company


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Loyal Creative Strong People

ProfessionalSelf-

ConfidencePassion forExcellent

AggressiveCapacity to

developglobal brain

Change


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To strengthening GEs Individual Businesses

Integrated Diversity

Boundaryless Company

The Boundaryless

company we envisionwill remove the barriers

among engineering,manufacturing,

marketing, sales, andcustomer service; it will

recognize no distinctionsbetween domestic andforeign operation ..


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1990 , Welch Introduced the notion of stretch to setperformance targets and described it as using dreamsto set business targets, with no real idea of how to getthere.

Stretch Targets did not replace traditional forecastingand objectives-setting process.


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Issue When a 1995 Company Survey showed that GE

employees were dissatisfied with the quality of itsproducts and processes.

Six Sigma (Motorola Inc and AlliedSignal) Improve Quality

Lower Cost

Increase Productivity


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1996 Boca Raton- Welch announced a goal ofreaching Six Sigma quality levels company wide bythe year 2000, describing the program as the biggestopportunity for growth, increased profitability , and

individual employee satisfaction in the history of ourcompany.

GreenBelts 4 weeks training

5 Monthsimplementation

BlackBelts 6 weeks of

instruction instatistic , data

analysis andother six sigmatools

MasterBlackBelts Full time six

sigmainstructors

mentored theBlack Beltcandidatesthrough the twoyears process


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destoryyourbusiness.com (www.dyb.com)


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GEsRestructuringFirstWave

CulturalChangesSecondWave

BoundarylessnessThirdWave

Work OutBest Practices

#1 or #2 fix, sell, orclose

1981 1988 1990

Ge s Two e28093 Decade Transformation (1)

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