1. 1 /
GE Nordic region /
18 March 2022
1
We are a high-tech infrastructure and services
company with the benefit of a financial services
engine.
We are GE
1
We Are GE
Feb 2011
By- AkashTyagi| Akshay Kalley

2. 2 /
GE Nordic region /
18 March 2022
GE – a global innovator since 1878
• The history of GE begins in 1878 with founder Thomas Alva Edison.
• The General Electric Company was founded in 1892.
• The first carbon filament light bulb was invented 1879.
• Focus on Generation , Distribution, and use of electric power to become.
• Diversification – Power Generation , household appliances, lighting and
aircraft engines, medical systems and diesel locomotives

3. 3 /
GE Nordic region /
18 March 2022
Value of the GE Brand!!!
4th most
valued
brand

4. 4 /
GE Nordic region /
18 March 2022
Should GE preserve the CHANGE behavior in future?

5. 5 /
GE Nordic region /
18 March 2022
GE’s Values and Vision
Values - Imagine, solve, build and lead - four bold verbs that express what it is to be part
of GE. Their action-oriented nature says something about who we are - and should serve
to energize ourselves and our teams around leading change and driving performance.
Vision Statement: ‘To become the most competitive enterprise in the world by being
number one or number two in every business in which we compete.’
IMAGINE SOLVE
BUILD LEAD
• Values
• Beliefs
• Integrity
• Right Steps.
Ethics
• What to Do?
• What to watch
out for?
• How to
comply?
What to
know
• Everyone
• Everywhere
• Everyday
Responsi
bility

6. 6 /
GE Nordic region /
18 March 2022
GE’s Timeline : Continuous Change
1930’s
•Highly Centralized
•Tightly Controlled
1950’s
•Decentralization trend setters
•Delegating to layers
1960’s
•Profitless growth
•Corporate strengthening
•Strategic planning systems
1970’s
•Major reorganization
•43 SBUs- 10 groups, 46 divisions and 190 depts.
•Strategic planning induced high centralization.
1980’s
•Ready for Change again?

7. 7 /
GE Nordic region /
18 March 2022
GE’s Leadership Gurus

8. 8 /
GE Nordic region /
18 March 2022
Reg Jones “The Management Legend”: 1970’s
• 43 SBUs
supporting
Strategic planning.
• 10 groups, 46
divisions and 190
departments.
Centralized
Structure
• Benchmarking
Strategic planning
systems.
• Unable to manage 43
strategic plans due to
high level
centralization.
Strategic
Planning • SBU’s to Macro
business
agglomeration
sectors.
• Improved govt.
relations.
Delegation
• Sales doubled
from $10 bn to
$22 bn.
• Earnings: $ 572
mil to $ 1.4 bn.
Results

9. 9 /
GE Nordic region /
18 March 2022
“Replacing a Legend with a Live Wire”

10. 10 /
GE Nordic region /
18 March 2022
Jack Welch “The Livewire”: 1981 - Present
• 1935: born in Salem, Massachusetts
• 1957: BS in Chemical Engineering
• 1960: MS and PhD in Chemical Engineering
• 1960: Joined GE as a chemical engineer
• 1972: Elected GE’s youngest VP
• 1979: Vice Chairman of GE
• 1981: 8th Chairman and CEO of GE

11. 11 /
GE Nordic region /
18 March 2022
Challenges in 1981…
US RECESSION
HIGH INTEREST
RATES/ STRONG
DOLLAR
MASSIVE SIZE &
INEFFICIENCIES
BUREACRACY AND
SLOW DECISION
PROCESS
SLOWING
GROWTH
External Factors Internal Factors Results

12. 12 /
GE Nordic region /
18 March 2022
Launching the Rocket: “Better than the Best”

13. 13 /
GE Nordic region /
18 March 2022
Stage 1: Fix, Sell or Close
SERVICES
GECC Information
Construction & Engineering
Nuclear Services
CORE
Lighting
Major Appliance
Motor
Transportation
Turbine
Construction
Equipment
TECHNOLOGY
Industrial electronics
Medical Systems
Materials
Aerospace
Aircraft Engines
SUPPORT
Ladd Petroleum
Semiconductor
GE Trading Co.
Utah Mining
VENTURES
Calma
OUTSIDE
House wares
Central Air Conditioning
TV & Audio
Cable
Mobile
Power delivery
Radio Stations
Invest in R&D to
stay on the
leading edge.
Add outstanding
people ->
contiguous
acquisitions.
Reinvest in
productivity and
quality.

14. 14 /
GE Nordic region /
18 March 2022
“Neutron Jack’s Policy’s”
Vision: Become
no. 1 or No. 2
competitor in
its industry.
Fix, Sell or
Close (Sold
200
businesses
and acquired
370.)
“Real time
planning”
(answer 5
simple
questions)
Remove
Bureaucracy
“Varsity
team”
“Lean and agile”.
De-staffing (50%
reduction in
Strategic
planning staff)
Lean and
Agile
Fast
decision
making
Operating Profits
rose from $ 1.6
bn to $ 2.4 bn.

15. 15 /
GE Nordic region /
18 March 2022
Second Stage: Rebuilding solid foundations
Best practices
• Speed, simplicity and self-
confidence.
• Work Out- Openness,
cultivating ideas,
Innovation.
• Get everyone involved.
• Focus shift- From “What to
How”.
• Developing effective
processes.
Going global
• Flexible planning for each
BU.
• Businesses are global not
companies.
• Promoting joint ventures
and capturing acquisition
opportunities.
• Int’l revenues at $ 42.8 bn
(doubled in 5 yrs). 50% of
business outside US by
2000.
Developing Leaders
• Realigning the skill set and
mindsets. Training leaders.
• Good people are GE’s key
assets. “I own them, you
just rent them”.
• Developing KRAs, goals and
honest feedback 360
degrees.
• Overhauling salaries, stock
options and bonus.
• Best place to work.
• Trainings, Measuring
leaders based on “living GE
values”.

16. 16 /
GE Nordic region /
18 March 2022
The Third Wave: “The People’s Manager”
Boundary less
behavior
• Focus on Integration the
diverse GE portfolios.
• Openness and sharing of
ideas and resources.
• Removing barriers.
• Equal opportunity – no
group labels.
• Removing blockers and
rewarding Idea Sharing not
just Idea creation.
Stretch
• Setting BHAGs (big hairy
audacious goals).
• Keeping forecasts intact but
focus on stretch targets.
• No accountability for
BHAGs but rewards for
achieving them.
• Bigger than WORK OUT:
problem solving and
achieving next level.
• Don’t punish failure
concept. Improving
thought process.
Service orientation
• Helping the Customers win.
• 60 % profits comes from
services.
• Push for Product services.
• Participate in more of food
chain.
• Supplement slow growth
products with added-value
services.
• e.g. “In Site” for medical
devices.
• Services council to
exchange ideas.

17. 17 /
GE Nordic region /
18 March 2022
End of an Era: Do not miss the point “Do It”
Keep up the Spirit: Do It
• Internal dissatisfaction- highly involved
employees.
• Changing the DNA of the company with Quality at
centre (30000 six sigma projects).
• Biggest initiative in GE’s history.
• Improve growth, productivity and employee
satisfaction.
SIX SIGMA
• Continue upgrading quality in organization.
• A plus company: A players- individuals with
vision, leadership, courage and energy.
• Respect and reward the best.
• Performance based appraisal- 1s, strong, highly
valued, borderline and least effective.
• No place for Least effective. Corporate council-
All A’s
VITALITY CURVE

18. 18 /
GE Nordic region /
18 March 2022
EFQM model- European Foundation for Quality
Management
Results
Leadership Processes
Key
Performance
results
Innovation and Learning
Enablers
Society
results
Customer
results
People
results
Partner
ships
Policy
and
Strategy
People

19. 19 /
GE Nordic region /
18 March 2022
EFQM-Leadership enabling excellence
Leadership requires managers:
• to develop mission, vision and values;
• to be role models of a culture of excellence;
• to be personally involved in developing, implementing and
improving the organization’s management system;
• to be involved with customers, partners and representatives of society;
• to motivate, support and recognize people in the organization.
Policy and Strategy People Partnerships and
Resources
Processes
Revenues & market
share
Employee stock
options
Globalization Best Practices
(360° Feedback)
Portfolio management Work Out Training and
development
Stretch
Delayering Session C Boundary less
Organization
Six Sigma

20. 20 /
GE Nordic region /
18 March 2022
Jack’s “Total Quality Management”
Lead and manage
less, live speed.
Articulate your
vision, Simplify and
get less formal.
Follow up and get
rid of bureaucracy.
Eliminate
boundaries, put
values first and
cultivate leaders.
Energize others and
face realities.
Behave like a small
company.
See changes as
opportunities and
get ideas from
everywhere.
Create a learning
culture and involve
everyone.
Cultivate team play,
Stretch and instill
confidence.
Have fun, live
quality and
Innovate.
Small is Big. Be
grounded and
think big.
Respect people
to develop
ownership.
Satisfied
Customer leads
to long term
success.

21. 21 /
GE Nordic region /
18 March 2022
BCG- Diverse Portfolio Matrix
Star
Question
Marks
Cows Dogs
Relative Market Share
Market
Growth
Rate
Low
High
High Low
GE Financial
Services
TV’s
Central Air
Conditioning
NBC Radio
Networks
GE Medical
Systems
Lighting
GE Appliances
Aerospace
GE Plastics

22. 22 /
GE Nordic region /
18 March 2022
GE/ McKinsey Matrix
Determinants
• Size
• Market Growth,
Pricing
• Market Diversity
• Competitive
Structure
• Industry Profitability
• Technical Role
• Social
• Environment
• Legal
• Human
Determinants
•Size
•Growth
•Share
•Position
•Profitability
•Margins
•Technology
position
•Strengths/
Weaknesses
•Image
•Pollution
•People
Industry Attractiveness
Grow
Penetrate
Invest for
growth
Selective
Investment/
Divestment
Controlled
Exit or Dis-
Investment
Rapid Exit
Segment &
selective
Investment
Controlled
Harvest
Harvest for
cash
generation
Selective
Harvest or
Investment
Low
Medium
High
High Medium Low
NBC
Radio
Network
Air
Conditio
ning
GE
Consum
er
Electroni
cs
GE
Lighting
Aero
space
GE
Plastics
GE
Medical
Systems
GE
Construc
tion
GE
Financial
Services
Business
Strength

23. 23 /
GE Nordic region /
18 March 2022
Growth in GE’s Service Business
Product
85%
Services
15%
1980
Product
55%
Services
45%
1990
Product
45%
Services
55%
1995
Product
33%
Services
67%
1998
Product
25%
Services
75%
2000

24. 24 /
GE Nordic region /
18 March 2022
Walk The Talk-Jack Welch
Work Out
Travelled
bimonthly to
Crotonville Training
center to impart
lectures and
interact with team.
Nearing Retirement
Jack was the first
one to speed up
and keeping up
the spirit even in
his post operation
years. He kept the
enthusiasm and
raised the bar for
others.
Hiring Stars
Welch’s stress
towards hiring A
stars was his
answer to
dumbness. He
believed “If I am
the smartest
person in the
room, I wont listen
to others at all. ”
Session C
Personally
reviewed the
progress of
company’s top
executives to
nurture and
develop future
leaders.
•Welch never pretended that all his ideas were original but he
was very adept in fine-tuning the ideas of others and then
conveying a very simple message.
• Welch was not afraid to dispense with people, plants or
entire businesses – especially in his earlier years at GE.
• He took a successful company and transformed it into one of
the world’s most admired organizations.
• Famous quote: “I wasn't smarter that anyone else, but I
helped 270,000 people make me look smarter than most.”

25. 25 /
GE Nordic region /
18 March 2022
Mental Maps
Functions,
Central Services
and resources
Decentralization
Contracts
People and
Skills
Parenting
structures and
processes
We recommend- A2A ”Access to all” Leadership
Direction
Consistency
Feedback
Coherence
Issues:
•How do people see the parent
company?
•How does parent interact with its
businesses?
•What is the cost to the parent
company?
Opportunities:
•Do the parent and business see
the same opportunity?
•Does the parent have the
characteristics to create value?
•Are there issues with key
success factors?
Coherence
Horizontal coordination between
the Parent and SBUs.
Feedback
Arrangement where learning takes
place all the time at all levels
Direction
Organizations' common aims,
including Vision and
Mission.
Consistency
Vertical translation of common
aim between Parent and
SBUs

26. 26 /
GE Nordic region /
18 March 2022
Every 2 seconds, a GE-powered aircraft takes off.

27. 27 /
GE Nordic region /
18 March 2022
Each day, GE entertains and informs more than a
hundred million people.

28. 28 /
GE Nordic region /
18 March 2022
GE Healthcare technology helps
doctors save nearly 3,000 lives
each day.

29. 29 /
GE Nordic region /
18 March 2022
GE power generation equipment creates a
quarter of the world’s electricity every day.

30. 30 /
GE Nordic region /
18 March 2022
GE Capital provide credit to help
companies grow and people reach their
dreams.

31. 31 /
GE Nordic region /
18 March 2022
References:
We used the Power point template from one of the available GE presentation on Nordic
region.
For videos:
http://www.youtube.com/user/ge?feature=results_main
For research:
en.wikipedia.org/wiki/Vitality_curve
http://en.wikipedia.org/wiki/Jack_Welch
http://www.cbsnews.com/stories/2005/03/24/60ii/main682830.shtml
http://www.businessweek.com/1996/44/b34991.htm
http://money.cnn.com/2006/07/10/magazines/fortune/rules.fortune/index.htm
http://www.ge.com/company/governance/index.html
http://www.ge.com/company/history/bios/john_welch.html
http://www.ge.com/innovation/timeline/index.html