General Electrics

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

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

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.

Goals and Objectives

From a decade from now, I would like General Electric to be perceived as unique, high-spirited and entrepreneurial enterprisethe most profitable, highly diversified company on earth, with world quality leadership in every one of its product lines. Jack Welch

Leadership of Welch
Focus:- Fix, sell or close Interaction Tolerate A Players Leap Frog Inclusion Bend Reality

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

Growing and Succession Phase of leadership (Rama Phase)

Authoritative Style:Dubbed Workout Sessions, Best Practices. Democratic Autonomy Accountability of management Benchmarking Expansion ESOPs

Saturation Phase of Leadership (Krishna Phase)

Coaching Style Democratic Style Motivation Clear Goal Aligning and assigning leadership roles in organization

Managing Succession
Crotonville Management Development Facilityto develop a generation of leaders aligned to GE new vision and cultural norms. Evaluation on a 2-way grid Quantifiable targets GE Values

Transformation

First Wave

GEs
Restructuring
1981

Second Wave

Cultural Changes
1990

Third Wave

Boundary less

1988

How does a large, complex diversified conglomerate defy the critics and continue to grow so profitability? How have Jack Welchs 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

What is your evaluation of Welchs approach to leading change? How important has he been to GEs success?
Revenues were increasing Operational profit was increasing Synchronized hierarchal culture of leadership and innovation

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