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Leadership Competencies: A Case of General

Electrics

Group Members:
Ayesha Jamil
Ayesha Rehman
Eraj Khan

Business Dimensions
Business Vision: Ability to recognize threats and exploit opportunities that influence the
businesss competitiveness and effectiveness.
Example 1:
In 1990s GE business vision was defined as Boundary-less Company which encouraged
diversity. This vision asked for sharing ideas, information and for friendly behavior regardless of
origins. This vision was set-up in order to eliminate barriers and parochial environment
domestically as well as internationally.
Example 2:
In 1960s when GE experienced profitless growth, it moved towards reorganizing its corporate
staff and also developed Strategic Planning system a core practice of the business.
Explanation: This falls under the Business Vision because the weakness/threat within the
process of decentralization was analysed which was not yielding enough profits thus corporate
staff needed to be reorganized and there was a need to transform the system into strategic
planning system which is taken as analysing the opportunity to tap in order for the business to be
effective.
Example 3:
Jack Welch initiated the concept of #1 or #2 in the industry for competition which proposed the
business vision of GE.
Explanation: It was business vision of GE to be Number 1 or 2 in competition which was
elaborated by the Three Circle Concept where businesses were categorized into: Core operations,
High-technology and Services under which major acquisitions and divestitures took place
keeping in pace the rule of #1 or #2 in competition otherwise led to the disengagement of that
GEs operational activity. This was the strategy formed keeping in mind the competition so that
GEs competitive position be enhanced.

Organizational Vision: Ability to learn about the company beyond the confines of ones won
function, to understand how the different units are interrelated, and to foster inter-functional
cooperation.
Example 1:
Strategic Planning System was developed in the 1960s when company was decentralized and
special 43 strategic business units were formed to support Strategic Planning. This system was
made core function of the organizational success and required inter-functional cooperation of
management department.
Explanation: This is defined as Organizational Vision because Strategic Planning System held
together different departments and management processes for core function such as planning and
led to their inter-functional cooperation this system defined their inter-relatedness.
Example 2:
Vision for GE in 1990s as Global-Company was not a one-time effort but it was pursued as ongoing effort to mark GE in Global market as top competitor. Europes Economical downturn,
Mexican Peso collapse added power to the concept of going global where GE took advantage
and invested huge sums which resulted in great returns. It was GEs ability to envision future and
take advantage of it.

Resource Management: Ability to use economic and material resources in the most appropriate,
rapid, economical and effective way to obtain the desired results.
Example 1:
GE developed strategy to Fix, Sell or Close the resources of the company. If some
operations/products are not developing profits then it is better to disengage in those.
Explanation: This comes under the Resource Management competency of leadership because
it led to effective management of tangible as well as intangible factors of the organization. If

certain services/products were yielding good response then they were set for fixture otherwise
useless services/products were sold off and uncontinued for future operations.
Example 2:
GE was engaged in Downsizing, Delayering and Destaffing of 59,290 salaried employees and
64, 160 temporary staff between 1981 and 1988. This was taken as management of Human
resources of the company. The downsizing practice along with divestitures resulted in increased
revenues.

Customer Orientation: Ability to satisfy customers needs, delivering a valuable product or


services, looking after all the details of the relationship, and responding to customer requests and
suggestions.
Example 1:
GE focused on knowing how the competing companies were doing better. It was analysed
through the study of best practices of organizations like Ford, HP, Toshiba. There were certain
factors found common in successful companies like Customer Satisfaction, developing effective
processes rather than effective individual, high quality and partnerships.
Explanation: Thus this practice helped in Customer-orientation because the Best practices
helped in delivering best quality, better relationship with suppliers as partners and overall
improved image of GE.
Example 2:
Announcement and implementation of Six Sigma quality levels by Welch was defined as
opportunity for growth, profitability, and internal-customer satisfaction.

Networking: Ability to develop, maintain and use a wide network of relationships with key
people in the company and in the industry.

Example 1:
The 5 page strategic Playbook worked as a networking tool among the 14 key business heads of
GE which explained how the practical planning strategies be applied around 5 concerned areas:
Marketing dynamics, Competitors activities, threats, GE business response and planned
response.
Example 2:
Flatter hierarchy was introduced at GE by eliminating 9 levels to as few as 4 levels. This resulted
in better relationship building with the different levels of people in the organization and
enhanced the networking of employees with the CEO.
Example 3:
Work-out sessions or process was designed to implement the cultural and management change
properly in the organization. This formed the network of mutually agreed solutions of how to
eliminate the factor of bureaucracy from the organization and better ways of dealing with each
other. The leadership competency of Networking explains this practice as a platform where
relationships were enhanced through discussion sessions.
Example 4:
GEs move from #1 or #2 plan to Internationalization marked GE success as achieving world
market position. From the initial plants in Holland, consumer business in France, to joint venture
with German Bosch, it created Network of building strong position in the world and relationships
with key businesses.

Negotiation: Ability to reach agreements that are satisfactory to all the parties involved,
discovering or creating elements that add value to the relationship.
Example 1:
Under the Strategic Planning system when the massive volume of information was generated
from 43 strategic plans, it was unable to review and approve the information papers judiciously,

thus GEs departments, SBUs and divisions were aligned with new organizational layers
sectors such as consumer products, power systems etcetera so that the information flow be
rightly managed.
Explanation: It was negotiated by Jones through: The review burden had to be carried on more
shoulders. The Sectors strategy was formed to benefit the departments as well as the
management for the properly use of the information.
Example 2:
The review report of Frazier about implementing training program for best practices played as a
negotiating element for Jack Welch where implementing the training program meant better
organizational performance as well as better and skilled workforce.
Example 3:
The appointment of Paolo Fresco as head of International Operations led to great negotiations of
acquisitions of numerous international deals, Joint Venture of German Robert Bosch, partnership
with Toshiba, French Sovacs acquisition are all examples of agreements of mutual benefit for
the parties involved.