How GE Teaches Teams to Lead Change

Sahil Khosla Vicky Verma

GE (GENERAL ELECTRC)
• GE, is an American multinational conglomerate corporation. • Headquartered in Fairfield, Connecticut, United States • Founder(s)Charles Coffin, Edwin Houston, Elihu Thomson, Thomas Edison • Founded in 1892 • In 2011, Fortune ranked GE the 6th largest firm in the U.S.as well as the 14th most profitable. Other rankings for 2011 include #7 company for leaders (Fortune), #5 best global brand ( Interbrand ), #82 green company (Newsweek), #13 most admired company (Fortune), and #19 most innovative company (Fast Company)

GE's divisions include • • • • • • GE Capital GE Energy GE Technology Infrastructure GE Home & business Solutions GE Healthcare Co-owns NBC Universal with Comcast .

The Article Talks About • Leadership • Innovation • Growth .

Reason for LIG • • • • • Team Training Encourage Participation Looking differently Managing short and long term challenge Develop action plan for instituting change .

• produces higher yields. reduces waste. total quality management.Leadership in operational efficiency • Six Sigma. improves quality and increases customer satisfaction • senior-level executives have been responsible for successfully leading operational excellence programs . lean manufacturing.

supply chain and lean efforts . product and operations cost.the “opx” edge • Gaining cost efficiency. service and quality advantages through operational excellence are poised to “out-excel” the competition • Example . infrastructure cost. • Focuses on quality.Whirlpool Corporation long recognized for its quality programs. delivery.

Skills required for success • • • • • Technical proficiency & strategic understanding Project planning & execution Change management Communication Teaming & collaboration .

the trends.General Electric's Innovation Strategy Ge has three step process that help company reach annual growth of 8% targets set by CEO Jeffrey Immelt. The three steps are: • Identify the trends shaping the business landscape • Apply business goals that are unachievable if the units stay focused on the current business environment. the targets. and have a discussion with key team members . • Lay out the challenges.

REVERSE INNOVATION • Reverse innovation refers to the process wherby goods are developed as in expensive models to meet the need of developing nation such sa battery operated medical instruments in countries with limited infrastruvture and then repackaged as low-cost innovative goods for Western buyers. The machine was originally built by GE Healthcare for doctors in India and China. • GE is now selling an ultra-portable electrocardiograph machine in the U. . at an 80% markdown for similar products.S.

S.REVERSE INNOVATION • GE’s sales outside the U. last year from $4. rose to $97 billion.8 billion.000 hand-held electrocardiogram device in India and a $15.000 PC-based ultrasound machine in China. • The unit this year announced products including a $1. in 1980. or about 19 percent. . or more than half annual revenue.

Companies dealing in reverse innovations • • • • NESTLE MICROSOFT PROCTOR & GAMBLE NOKIA .

Challenges / success factors • • • • • • Culture Talent Working with the business units directly A common language openness. mutual trust. credibility commercialization plan. business model .

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What ge is doing • Double its investment in clean R&D • Increase revenues from ecomagination product • Reduce its greenhouse gas (GHG) emissions and improve the energy efficiency of its operation .

Cleaner Coal .R&D PIPELINE • RENEWABLE INITIATIVES 1. Geothermal and waste heat 4. HYDROGEN ENERGY 3. WIND ENERGY 2.

• • • • Transportation initiative Water use and purification initiative Energy efficiency initiative Solid oxide fuel cell .

efficiency and water challenges .Increase revenue from ecomagination products • ecomagination commitment is founded on a solid business strategy—to increase revenues for GE by providing solutions for customers that help improve their operating performance and environmental impact • Ecomagination is GE’s business strategy to create new value for customers. investors and society by solving energy.

ACHIEVEMENTS THROUGH ECOMAGINATION • $85 billion in revenue from ecomagination products and solutions • $130 million in energy efficiency savings • 30 percent reduction in water use • 22 percent reduction in greenhouse gas emission .

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