GENERAL ELECTRIC, NEW YORK
Case Study : Succession Planning at GE
M.S.Ramaiah Management Institute, Bangalore | MBA (PRIST-A) | HRM Case Study
Presented By : Team Members
Christ Vishwasi Debarati Sen Gupta Danny Singh Kumar Shubham Krishna Kumar Kartikey Yamdagni
Maneet Kumar Manishankar Sonkushre Man Mohan Anand
Introduction : Succession Planning
Succession Planning is the process of insuring a suitable supply of
successor for current and future senior or key jobs arising from business strategy.
It encourages “Hiring From Within”.
. so that the career of individual can be planned and managed to optimize the organization’s needs and individual aspirations.
The company has 323.Introduction : General Electric Established in 1892. GE ranked first overall.000 employees around the world.
Business Structure of GE at a glance:
Forbes ranked GE as the world's largest company. Thomas Alva Edison merged his EELC with
Thomson-Houston Electric Company to form General Electric.
By June.2010 The Ecomagination Revenue of GE will
reach upto $25 Billion
In Fortune Magazine's 2005 "Global Most Admired
Case Study : Succession Chart at GE
Thomas Alva Edition (1892) Charles Coffin (1894) Gerard Swope (1922) Charles Wilson (1940) Ralph Cordiner (1950) Fred Borch (1964) Reginald Jones (1972) Jack Welch (1981) Jeff R Immelt (2001)
Case Study : Summary
Succession Planning Process at GE – The leading diversified
business in the world
Growth of GE from inception and GE’s commitment to succession
It explains succession planning and leadership development at GE It examine CEO’s succession planning under Jack Welch (GE’s CEO
It shows differences between management style and ideologies
of Immelt and Welch
Finally. the future of GE under the leadership of Immelt
Why do you think that involvement of the top leadership
in the succession planning process is important?
.Case Study : Discussion Session Question:1
Critically examine the importance of leadership
development and succession planning at GE and explain how it is undertaken at the company.
Succession Planning become a
Systematic Process with the help of various analytical tools and involvement of Top Management. GE shifted its key candidate from one business to another to gain experience across all its business
GE consider Succession Planning as important as Financial
Monitoring to differentiate “TALENT”
Major Tools Used at GE for Differentiating Talent
Vitality Curves 9 Blocks Accomplishment Analysis
Under the guidance of Welch.
As a part of Succession Planning.
.Case Study : Discussion Session Answer:1
GE Adopted Succession Planning right from the Mid-1900.
who failed to make it to the job? Justify your answer.Case Study : Discussion Session Question:2
Study and comment on the CEO succession planning process
Do you think Welch was right in deciding against
retaining final CEO candidate.
Case Study : Discussion Session Answer:2
In 1994. skills and characteristics an “Ideal CEO” should posses.
To have a closer look at potential CEO candidates. Nardelli and Immelt. Welch along with Conaty and Okosky created a
list of essential qualities. GE’s
board members had informal interaction with them – played golf and attended Christmas parties with them.
Welch with Conaty and Okosky developed “Eight Basic
Objective for Selecting CEO Successor”. Welch submitted a list of 23 potential CEO candidate to
the board same year. This helped Welch to choose final 3 candidates – McNerney.
He also designed a “Hit-By-a-Truck” Succession Plan. The original list narrowed down to 8 serious
So it would be injustice to try retaining them at GE.Case Study : Discussion Session Answer:2
Yes. Welch was right in deciding against the retaining
the final CEO candidates as they equally capable enough to run GE. when they could easily become the CEO’s of any leading company.
Case Study : Discussion Session Question:3
Comment on the performance of GE under Immelt’s
leadership. rather than on acquisition? Give reason to support your answer.
Do you think Immelt is right in investing more in R&D and
Compare Welch’s and Immelt’s leadership styles and
Case Study : Discussion Session Answer:3
Immelt’s Performance at GE
Due to 9/11. GE failed to report double digit earning growth in
the fiscal 2002
Measures opted by Immelt:
Cut costs through layoffs Restructured GE business into 11 business groups which were
then placed into 2 broader category – Growth Business & Cash Generator Introduced a Customer Service program – ACFC He focused on “Customer Centric” strategy. NBC Vivendi was formed with combined revenue of $13 Billion Invested $100 million in R&D to form “Global Research Center”
. In 2003.
R. Customized Medicine) • Natural Leader
.Case Study : Discussion Session Answer:3
• Good Strategist (Introduced 6-Sigma Management Process) • Focus on : • Acquisition • Focus more on Job Rotation • Short term demand • Autocratic – Make Decision Alone • Charismatic • Democratic .Solicits input from group for decisions • Innovative in R&D • Focus on New Values • Innovation & R&D • Long term strategies • Retain managers to make them specialist • New Business (Energy.
not buy growth through acquisitions and should instead look for growth opportunities through innovations. He was right because in case of economic slowdown the
company need to make their own growth.Case Study : Discussion Session Answer:3
He spent $100M to “revamp house of magic” (Global Research
He believed that with the economy slowdown.
Do you support this practice? Justify your answer. rather than
from within the company.
Many companies appoint CEOs from outside.
. citing reasons.Case Study : Discussion Session Question:4
Examine the need for Succession Planning in Companies and
identify various problems a company might have to face due to lack of succession planning system.
Case Study : Discussion Session Answer:4
Need: to have a ready pool of deserving candidates to
fill the leadership positions when need arises. Because most companies better go for hiring CEO from
Affect business performance and reputation Moral of the company’s staff is affected Severance pay. The reasons are explained below: Well known about the culture Norms and rules of the company Experienced with the company environment and strategic Cost cutting
Case Study : Conclusion
Case Study : Queries?
Case Study : Succession Planning At GE