GE has a long history and operates in many industries globally. It uses a multi-divisional structure to manage its diverse businesses.
Over time, GE's culture and values have shifted from an earlier focus on competition and individual performance under Jack Welch, to emphasizing local decision making, global expansion, and spreading ideas quickly under Jeff Immelt's leadership.
GE has implemented various processes like Six Sigma and Work-Out to drive innovation and improvement, and now focuses on initiatives like Ecomagination for sustainable growth through new technologies and effective use of its resources and portfolio.
6. GE Values
âą Six Sigma
âą Design for Six Sigma (DFSS)
âą Lean manufacturing
âą Work-Out (WO)
âą Change Acceleration Process (CAP)
âą Quality Management System (QMS)
The GE Advantage
11. GE: Focus
Pay: By taking the focus off profits,
instead refocusing on new Ideas to drive
innovation, improvement and growth
Risk: investing in the future, by
implanting Ecomagination projects for
sustained growth by innovation
Experts: bring in project specific
knowledge from experts in the domain
Portfolio: effective utilization of
established capacity and mix for gaining
greater leverage and closer fit.
14. GE Culture
GE's culture is very, very American. GE is more American than most US-based
companies.
Some key aspects of this are:
ïź individual effort is much more important than group or collective efforts
ïź rebels are heroes (Jack Welch was an effective rebel against most of GE's
official management practices throughout his career before he became CEO)
ïź going around the hierarchy is encouraged (this is the hidden purpose of work-
out, not team-based participation and improvement)
ïź competition is king, internally and externally
ïź loyalty is determined by performance
ïź poor performers loose face publicly
ïź communications are direct and confrontational
ïź leadership comes from individuals, not groups or teams
GE is highly admired and features in all lists of the world's most admired
corporations.
15. ïź Thereâs a subtle difference in the way Immelt is steering GEâs culture
from the way Welch did. While they are both passionate about
âspreading ideas quickly,â Immelt is pushing decisions without
second thought about expansion.
ïź When Immelt took over, two thirds of GEâs revenue was in the U.S.
Now, the majority of it is outside the U.S. Heâs moving his senior
leaders out into the field, like Vice Chairman John Rice in Hong
Kong.
ïź Immelt wants a culture of local decision making fueled by senior
leaders in place locally with the knowledge and skills to make the
right decisions.
Relevance of Culture in Long Term Strategy
17. GE: Shift in values
âą Number one, number
two.
âą Correct, close down or
sell out.
âą Speed, simplicity and
self-confidence.
âą Being unlimited
âą Finding solutions
âą Exaggerating
âą Quality
âą Service
With Welch Post Welch
20. Public Hangings at GE- The GE way?
âPublic hangings are teaching moments. Every company has to do it. A
teaching moment is worth a thousand CEO speeches. CEOs can talk and
blab each day about culture, but the employees all know who the jerks
are. They could name the jerks for you. Itâs just cultural. People just donât
want to do it.â- Jack Welch