...GE’s Work-Out General Electric established its worked process in the early 1990s. it continues to be a mainstay in GE’s efforts to has also been adopted by such divers organizations as General Motors, Home Depot, Frito-Lay, L.L. Bean, Sears, IBM, and the World Bank. The impetus for the Work- Out was the belief by GE’s CEO that the company’s culture was too bureaucratic and slow to respond to change. He wanted to create a vehicle that would effectively engage and empower GE workers. Essentially, Work-Out brings together employees and managers from many different functions and levels within an organization for an informal 3-day meeting to discuss and solve problems that have been identified by employees or senior management. Set into small teams, people are encouraged to challenge prevailing assumptions about “the way we have always done things” and develop recommendations for significant improvements in organizational processes. The Work-Out teams then present their recommendations to a senior manager in a public gathering called a Town Meeting. At the town Meeting, the manager in charge oversees a discussion about the recommendation and then is required to 4 The Institute reserves the right to conduct a separate Viva exam on telephone, as a part of the student's exam in case the Subject Lecturer recommends it in any particular student’s case. make a yes-or-no decision on the spot. Only in unusual circumstances can a recommendation be tabled for further study. Recommendations...
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...9-399-150 REV: MAY 3, 2005 CHRISTOPHER A. BARTLETT MEG WOZNY GE's Two-Decade Transformation: Jack Welch's Leadership On September 7, 2001, Jack Welch stepped down as CEO of General Electric. The sense of pride he felt about the company's performance during the previous two decades seemed justified judging by the many accolades GE was receiving. For the third consecutive year, it had not only been named Fortune's "Most Admired Company in the United States," but also Financial Times' "Most Admired Company in the World." And, on the eve of his retirement, Fortune had named Welch "Manager of the Century" in recognition of his personal contribution to GE's outstanding 20 year record. Yet while the mood at GE's 2001 annual meeting had clearly been upbeat, some shareholders wondered whether anyone could sustain the blistering pace of change and growth characteristic of the Welch era. And specifically, many worried if any successor could generate the 23% per annum total shareholder return Welch had delivered in his two decades leading GE. It would be a tough act to follow. (See Exhibit 1 for financial summary of Welch’s era at GE.) The GE Heritage Founded in 1878 by Thomas Edison, General Electric grew from its early focus on the generation, distribution, and use of electric power to become, a hundred years later, one of the world’s leading diversified industrial companies. A century later, in addition to its core businesses in power generation, household appliances, and lighting...
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...system. One of the best examples of succession management is how GE’s former CEO, Jack Welch, shaped and elevated the company’s philosophy, practice, and reputation for developing leaders. In a 1991 speech, Welch stated, “From now on, choosing my successor is the most important decision I’ll make.” GE’s commitment to developing leaders from within has yielded positive results for both the company’s employees and for GE. In fact, the program has been so successful that it’s been widely emulated by other global organizations. Measuring and developing talent lies at the forefront of GE’s business strategy discussions. GE’s operating system, referred to as its “learning culture in action,” entails year-round learning sessions in which leaders from GE and outside companies share best practices with one another and generate ideas for new practices. Harry Elsinga, manager of executive development at GE, notes, “We really have a tight organization around how we combine our leadership meetings and how we approach our business. We have a constant cycle going on throughout the year where we talk about business and people at the same time. How do we develop talent in those businesses, how do we make sure that we have the right people to open a particular plant or to do an acquisition, etc.? Those discussions always go hand in hand. And it’s not a one-time kind of conversation; this is a constant, ongoing process.”# GE’s succession management system is fairly simple. GE managers and...
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...9-399-150 REV: MAY 3, 2005 CHRISTOPHER A. BARTLETT MEG WOZNY GE's Two-Decade Transformation: Jack Welch's Leadership On September 7, 2001, Jack Welch stepped down as CEO of General Electric. The sense of pride he felt about the company's performance during the previous two decades seemed justified judging by the many accolades GE was receiving. For the third consecutive year, it had not only been named Fortune's "Most Admired Company in the United States," but also Financial Times' "Most Admired Company in the World." And, on the eve of his retirement, Fortune had named Welch "Manager of the Century" in recognition of his personal contribution to GE's outstanding 20 year record. Yet while the mood at GE's 2001 annual meeting had clearly been upbeat, some shareholders wondered whether anyone could sustain the blistering pace of change and growth characteristic of the Welch era. And specifically, many worried if any successor could generate the 23% per annum total shareholder return Welch had delivered in his two decades leading GE. It would be a tough act to follow. (See Exhibit 1 for financial summary of Welch’s era at GE.) The GE Heritage Founded in 1878 by Thomas Edison, General Electric grew from its early focus on the generation, distribution, and use of electric power to become, a hundred years later, one of the world’s leading diversified industrial companies. A century later, in addition to its core businesses in power generation, household appliances...
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...business models no longer work. Today’s competitive environment leaves no room for error. We must delight our customers and relentlessly look for new ways to exceed their expectations. This is why Six Sigma Quality has become a part of our culture. What is Six Sigma? First, what it is not. It is not a secret society, a slogan or a cliché. Six Sigma is a highly disciplined process that helps us focus on developing and delivering near-perfect products and services. Why ”Sigma“? The word is a statistical term that measures how far a given process deviates from perfection. The central idea behind Six Sigma is that if you can measure how many “defects” you have in a process, you can systematically figure out how to eliminate them and get as close to “zero defects” as possible. Six Sigma has changed the DNA of GE — it is now the way we work — in everything we do and in every product we design. GE’s Evolution Towards Quality GE began moving towards a focus on quality in the late ‘80s. Work-Out®, the start of our journey, opened our culture to ideas from everyone, everywhere, decimated the bureaucracy and made boundaryless behavior a reflexive, natural part of our culture, thereby creating the learning environment that led to Six Sigma. Now, Six Sigma, in turn, is embedding quality thinking — process thinking — across every level and in every operation of our Company around the globe. Work-Out® in the 1980s defined how we behave. Today, Six Sigma is defining how we work and has set the stage...
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...century. This paper aims to analyse critically the corporate strategy of GE during the period from 1981 to 2008 under the leadership of two very different but equally influential CEOs—Jack Welch and Jeff Immelt. The paper is organised in four sections. The first section describes GE’s corporate strategy from 1981 to 2001 with Jack Welch as CEO, followed immediately by a critical analysis of Welch’s strategic approach in the second section. The third section then describes GE’s corporate strategy from 2001 to 2008 with Jeff Immelt as CEO, followed again by a critical analysis of Immelt’s strategic approach in section four. Keywords: General Electric, Corporate strategy, Leadership, CEOs. 1. The Jack Welch Period (1981–2001) When Jack Welch took up his post as GE’s CEO in 1981 he embarked on a radical transformation of GE’s strategy, ushering in a new era of performance management and internal efficiency. Welch’s profit guidance aimed for earnings growth of 1.5 times to double of the GDP growth rate and his management philosophy found its articulation in GE’s slogan—Speed, Simplicity, Self-Confidence (GE 1995). These values would reflect not only in the organisation’s systems and processes but also in GE’s products and services through their simple and highly functional designs. Welch’s corporate strategy was all about performance and efficiency. Throughout his 20 years as CEO, he relentlessly drove his subordinates to the limits of their abilities, encouraging employees at all levels...
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...Case Study Analysis: GE’s Talent Machine Brandie Buffins Grand Canyon University HRM – 635 Acquiring, Developing, and Leveraging Human Capital September 19, 2012 Case Study Analysis: GE’s Talent Machine General Electric (GE) has been well known and valued for embracing quantifying talent as well as rising talent when it comes to leadership. This organization makes sure that this is a key factor when it comes to their business planning. GE requires learning sessions all year long, which entails outside organizations along with GE leaders to allocate amongst one another the best ideas out there for staff enhancement opportunities. Staff receives support in attending such training programs, spending at least 1billion dollars a year. Such cost is seen as an investment from GE on their staff as it is seen development of skills and qualities essential to growing into a good successful leader which ultimately benefits GE. GE has been polishing a succession planning processes at a level unmatched by any other organization to keep performance levels far above the ground. We all have known about GE’s infamous yearly, “‘Session C’ leadership and organizational talent reviews, which are designed to identify individuals suited for bigger roles or individuals who can be groomed to take on higher positions. The annual intensive review has enabled GE to announce successors the same day leave notifications are delivered. Constantly reviewing the talent pool on a variety of layers...
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...corporations of the 20th century. This paper aims to critically analyse the corporate strategy of GE during the period from 1981 to present under the leadership of two very different but equally influential CEOs—Jack Welch and Jeff Immelt. The essay is organised in four sections. The first section describes GE’s corporate strategy from 1981 to 2001 with Jack Welch as CEO, followed immediately by a critical analysis of Welch’s strategic approach in the second section. The third section then describes GE’s corporate strategy from 2001 to present with Jeff Immelt as CEO, followed again by a critical analysis of Immelt’s strategic approach in section four. 1. The Jack Welch period (1981–2001) When Jack Welch took up his post as GE’s CEO in 1981 he embarked on a radical transformation of GE’s strategy, ushering in a new era of performance management and internal efficiency. Welch’s profit guidance aimed for earnings growth of 1.5 times to double of the GDP growth rate and his management philosophy found its articulation in GE’s slogan—Speed, Simplicity, Self-Confidence (GE 1995). These values would reflect not only in the organisation’s systems and processes but also in GE’s products and services through their simple and highly functional designs. Welch’s corporate strategy was all about performance and efficiency. Throughout his 20 years as CEO, he relentlessly drove his subordinates to the limits of their abilities, encouraging employees at all levels to embrace ambitious targets...
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...1 GE’s Two Decade Transformation Team Globalization Case Analysis GE’s Two Decade Transformation: Jack Welch’s Leadership Yasmine Abdo Al-Kouraishi Muhammad Howard Steven D. Johns Kenneth V. Oliver Kimberly N. Lomax AMBA 670 Managing Strategy in the Global Workplace July 25, 2012 2 GE’s Two Decade Transformation Executive Summary Team Globalization has conducted an in depth analysis on General Electric's (GE) two decade transformation achieved by the company’s former Chief Executive Officer (CEO) Jack Welch. This report consists of a reflective examination performed by the team, incorporating perspective gained through professional experience and key concepts gleaned from selected course reading selections. As CEO of GE, Jack Welch's management skills became legendary, with little tolerance for bureaucracy and archaic business processes. Acquiring new businesses and ensuring that each business unit under the GE umbrella was one of the best in its field was a primary concern for Mr. Welch. Under his guidance, the company expanded dramatically from 1981 to 2001 (GE, 2012). The culture of innovation and learning, which included incorporation of measures related to new product development, technological leadership, and rates of improvement, aided Welch and the company in defying the critics as the company continued to profit. 3 GE’s Two Decade Transformation Introduction Surviving in today’s challenging business environment necessitates innovative thinking in...
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...“GE’s GLOBAL VIRTUAL TEAM WANTS TO REAP THE WIND” |MODULE M 5 CREATING HIGH PERFORMANCE PROJECT AND PROCESS TEAMS | |OB in Action Case Study 1. Executive Summary OB in Action Case Study GE’s Global Virtual Team Wants to Reap the Wind. PART A 1. Question 1 A definition of groups and teams is contrasted within the views of three current authors in this report to provide a model for understanding the nature of groups and teams in organisations. It begins by defining the various types of groups and teams, reasons for their formation, and characteristics of groups and teams, a summary of objectives is defined. OBJECTIVES : 1. Describe the various groups in organisations 2. Stages of group development 3. Characteristics of effective work groups 4. Describing various teams that exist in organisations 5. Characteristics of effective teams Differences of the above objectives between the three authors will be clarified to determine an understanding of how each author arrives at concluding how groups and teams serve organisations. Authors: Stephen P. Robbins, Timothy A. Judge; Gibson, Ivancevich, Donnely, Konopaske; Andrew J. DuBrin. OB in Action Case Study GE’s Global Virtual Team Wants to Reap the Wind. VARIOUS GROUPS IN ORGANISATIONS P. Robbins, A. Judge define groups as two or more individuals, interacting and interdependent who come together to achieve particular...
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...“GE’s GLOBAL VIRTUAL TEAM WANTS TO REAP THE WIND” |MODULE M 5 CREATING HIGH PERFORMANCE PROJECT AND PROCESS TEAMS | |OB in Action Case Study 1. Executive Summary General Electric Co is setting out to apply considerable financial and technological innovation to the field of wind energy. James Lyons in charge of sourcing talent from around the world has the task of forming a team that is culturally diverse and innovative enough to design and research new techniques for developing alternative methods of harnessing wind energy. In question within this case study is the application of teamwork competencies to maximise efficiency and effectiveness in achieving specific outcomes for developing solutions. Different methods of effective group performance are discussed and elaborated upon as well as the interaction of the leader in establishing guiding principles in getting results. Contrasted within this report are the views and opinions of 3 different authors in defining group and teams within organizational behaviour, describing the various groups found in organizations, stages of group development, characteristics of effective work groups and teams. Factors that may be attributed to possible failure and the various contingency factors that have a direct relationship to a leader’s behaviour in particular to achieving specific outcomes are also discussed. OB in Action Case Study GE’s Global Virtual...
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...Kanwei Pang UG8723 MGMT 4500 Case Report: The Jack Welch Era at General Electric During Jack Welch’s two decade tenure as CEO of General Electric that started in 1981, he had many notable accomplishments in GE's history; he fulfilled the company's primary economic responsibilities to society by serving customers worldwide and stimulating the economy. But as such big company, there were opposing views to his social responsibility tactics, many supported him and many did not agree with him. According to the article, I believe GE’s CSR can be analyzed from following aspects. First of all, GE in the Welch era sustained exceptionally high rate of profitability to its shareholders that boosted economic growth- market actions. “Earnings per share rose from $0.46 in 1981 to $1.07 in 2000, his last full year as CEO, the total return in GE share averaged 21.5 percent”. These high figures turned GE in to a glorious era, and definitely enriched its investors by high rate of dividends. Secondly, GE in the Welch years also fulfilled its economic responsibility to society by paying huge amount of taxes. As a result of GE’s remarkable success and profitability at the time, they paid out a significant sum of money in the form of taxes which contributed to improving the basic needs of society. The company also pressured government to lower taxes and lower budgets for schools. Moreover, GE engaged a lot of social activities – voluntary actions that clearly fulfilled its duty. The GE foundation...
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...1 GE’s Two Decade Transformation Team Globalization Case Analysis GE’s Two Decade Transformation: Jack Welch’s Leadership Yasmine Abdo Al-Kouraishi Muhammad Howard Steven D. Johns Kenneth V. Oliver Kimberly N. Lomax AMBA 670 Managing Strategy in the Global Workplace July 25, 2012 2 GE’s Two Decade Transformation Executive Summary Team Globalization has conducted an in depth analysis on General Electric's (GE) two decade transformation achieved by the company’s former Chief Executive Officer (CEO) Jack Welch. This report consists of a reflective examination performed by the team, incorporating perspective gained through professional experience and key concepts gleaned from selected course reading selections. As CEO of GE, Jack Welch's management skills became legendary, with little tolerance for bureaucracy and archaic business processes. Acquiring new businesses and ensuring that each business unit under the GE umbrella was one of the best in its field was a primary concern for Mr. Welch. Under his guidance, the company expanded dramatically from 1981 to 2001 (GE, 2012). The culture of innovation and learning, which included incorporation of measures related to new product development, technological leadership, and rates of improvement, aided Welch and the company in defying the critics as the company continued to profit. 3 GE’s Two Decade Transformation Introduction Surviving in today’s challenging business environment necessitates...
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...corporations of the 20th century. This paper aims to critically analyse the corporate strategy of GE during the period from 1981 to present under the leadership of two very different but equally influential CEOs—Jack Welch and Jeff Immelt. The essay is organised in four sections. The first section describes GE’s corporate strategy from 1981 to 2001 with Jack Welch as CEO, followed immediately by a critical analysis of Welch’s strategic approach in the second section. The third section then describes GE’s corporate strategy from 2001 to present with Jeff Immelt as CEO, followed again by a critical analysis of Immelt’s strategic approach in section four. 1. The Jack Welch period (1981–2001) When Jack Welch took up his post as GE’s CEO in 1981 he embarked on a radical transformation of GE’s strategy, ushering in a new era of performance management and internal efficiency. Welch’s profit guidance aimed for earnings growth of 1.5 times to double of the GDP growth rate and his management philosophy found its articulation in GE’s slogan—Speed, Simplicity, Self-Confidence (GE 1995). These values would reflect not only in the organisation’s systems and processes but also in GE’s products and services through their simple and highly functional designs. Welch’s corporate strategy was all about performance and efficiency. Throughout his 20 years as CEO, he relentlessly drove his subordinates to the limits of their abilities, encouraging employees at all levels to embrace ambitious...
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...1 How difficult a challenge did Welch face in 1981. How effectively did he take charge? Welch encountered a very difficult situation in 1981; the economy was in a recession, almost one of the worst recessions any organization has witnessed since the Great Depression of 1929. The strong dollar was losing value and the unemployment rate was at an all time high. Interest rates were consistently on the incline during the time Welch took over as CEO of GE. Jack Welch was both a transformational and transactional leader who displayed an aggressive competitive style of leadership. He did not let the recession deter him from maintaining a competitive advantage over the competition. His philosophy was to ensure that GE was either #1 or #2 in their current industry. His strategy was to "fix, sell or close", for example, when Welch took charge of the company his objective was to fix the problems hindering GE from operating to its fullest potential; sell the company if it is more of a liability than an asset; or close the organization altogether and start from scratch. Welch entered the organization with a strategic methodology that consisted of undergoing a comprehensive restructuring process that would eliminate the deadweight or terminate low-performers that are unproductive or unprofitable. Unfortunately, Welch came into the realization that his current management staff was unable to lead the corporation to success, therefore he proceeded with organizational downsizing. In...
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