About GE:

 General Electric was created with the

merger of Edison General Electric Company and
Thomson-Houston Electric Company in 1892.
 Based in Fairfield, Connecticut, United States.
 GE now has 227,000 employees with $ 260B revenue and
market-cap of $ 390B.
 GE operates through 11 segments: Advanced Materials,
Commercial Finance, Consumer Finance, Consumer and
Industrial, Energy, Equipment and Other Services,
Healthcare, Infrastructure, Insurance, NBC Universal,
and Transportation. 
Jack Welch-1981 to 2001
Welch joined GE in 1960  and became
the youngest CEO in GE’s history.
Always believed in magical and BIG

numbers and great emphasis on performance.

 He had supervised GE’s acquisition of more than

600 companies-significant factor for success.

 Promoted internal communication and made it easy

for employees at every level to communicate with

one another.
Contd…
 Believed in promotions from within the company.
 Transformed GE from a mere manufacturing
conglomerate to services sector.
 Man of commands and very task oriented.
Followed “Fix it, sell it or close it” approach.
 Introduced the Practice of firing the least effective
10 percent of the workforce each year which is
even followed by the successor.
Change Acceleration Process-Jack Welch in
1990.
25 lessons from Jack Welch
Jeffrey Immelt -2001 to……
 Jeffrey Immelt is changing many of
GE's traditions and beliefs.
 Outsiders are being welcomed into the highest ranks

- a break with old promote-from-within policy.

 Focuses more on external communication and makes

a point to communicate with investors and third

parties.
 Believes in innovative ideas and customer

satisfaction rather than just focus on performance

targets as before.
 Contd..

 Immelt shifted the focus from production to

marketing.
 He made GE more environmentally conscious
–Huge investments into technologies that
would lead to cleaner and environmentally
responsible products and processes for GE.
 Focused more on abstract aspects of the
business rather than on performance and
strictly quantifiable results like Welch.
Innovation Break Through Program-Jeffrey
Immelt
 Focus on employees to come up with ideas to improve
GE’s existing products or develop new products .
 The program required all business leaders to submit at
least three innovative product ideas per year.
  This would take GE into a new line of business, new
geographic area or a new customer base and potential
to increase the revenue.
 Base of this program is to allow GE to grow internally
and organically and not just through acquisitions.
LIG Program -2006
 In 2006, General Electric launched its Leadership,
Innovation, and Growth (LIG) program to achieve
corporate growth primarily by expanding businesses
and creating new ones.
 The first effort to train all the senior members of a
GE business's management team as a group.
 Team training accelerated the pace of change
,managers have an opportunity to reach consensus
on the barriers they faced and how to overcome
them. 
Contd..
 The training explicitly addressed how to
balance the short term and the long term goals,
change management.
 Preached the “Five growth values”

External Focus Clear Thinking Inclusiveness

Imagination Expertise
Contd..

 Trained senior management on the attributes of

an Innovative Organization.

Change
Risk Taking Trust
Or Involvement

Openness and Humor and

Idea Support
freedom Debate