General Electrics

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General Electrics Presentation By:- Somia Sharma Sidhanshu Gupta Tanya Khurana Srijani Chatterjee Archit Jain

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development and change

Transcript of General Electrics

Page 1: General Electrics

General Electrics

Presentation By:-Somia Sharma

Sidhanshu GuptaTanya Khurana

Srijani ChatterjeeArchit Jain

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

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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.

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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

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Leadership of Welch

• Focus:- Fix, sell or close

• Interaction

• Tolerate “A” Players

• Leap Frog

• Inclusion

• Bend Reality

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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

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Growing and Succession Phase of leadership(Rama Phase)

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

• Democratic• Autonomy• Accountability of

management• Benchmarking• Expansion• ESOP’s

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Saturation Phase of Leadership(Krishna Phase)

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

leadership roles in organization

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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

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GE’s Restructuring

First Wave Cultural ChangesSecond Wave Boundary lessThird


1981 1988 1990

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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

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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

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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

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