general electric:the ge culture

Group 4

Bijoyini Ganguly [B13143]

Roopan Roy [B13168]

Saiyam Sanghvi [B13169]

Santanu Mallick [B13170]

Suhas Kini [B13175]

GENERAL ELECTRIC

GE Timeline

GE: MultiDivisional Structure

3

Advantages

Increased control

Profitable growth

Internal labor market

GE: MultiDivisional Structure

Disadvantages

Managing corporate-

divisional relationship

Coordination Problems

between Divisions

Transfer Pricing

Bureaucratic Costs

Communication

Problems

GE: Tall or Flat ?

GE Values

• Six Sigma

• Design for Six Sigma (DFSS)

• Lean manufacturing

• Work-Out (WO)

• Change Acceleration Process (CAP)

• Quality Management System (QMS)

The GE Advantage

Creating Value

GE

Customers Distributors

Unions Government

Suppliers Competitors

Demographic and Cultural Forces

International Forces Political Forces

Environmental Forces Economic Forces Technological Forces

GE: Interactions with Environment

GE: Workout

GE: Strategy for Growth

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.

GE: ECOMAGINATION

GE: Beyond Welch

GE Culture

GE's culture is very, very American. GE is more American than most US-based

companies.

Some key aspects of this are:

individual effort is much more important than group or collective efforts

rebels are heroes (Jack Welch was an effective rebel against most of GE's

official management practices throughout his career before he became CEO)

going around the hierarchy is encouraged (this is the hidden purpose of work-

out, not team-based participation and improvement)

competition is king, internally and externally

loyalty is determined by performance

poor performers loose face publicly

communications are direct and confrontational

leadership comes from individuals, not groups or teams

GE is highly admired and features in all lists of the world's most admired

corporations.

There’s a subtle difference in the way Immelt is steering GE’s culture

from the way Welch did. While they are both passionate about

“spreading ideas quickly,” Immelt is pushing decisions without

second thought about expansion.

When Immelt took over, two thirds of GE’s revenue was in the U.S.

Now, the majority of it is outside the U.S. He’s moving his senior

leaders out into the field, like Vice Chairman John Rice in Hong

Kong.

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

GE: Shift in Culture

GE: Shift in values

• Number one, number

two.

• Correct, close down or

sell out.

• Speed, simplicity and

self-confidence.

• Being unlimited

• Finding solutions

• Exaggerating

• Quality

• Service

With Welch Post Welch

GE:Growth

Fast paced innovation

and patent protection

Controlled Explosive

growth: Welch

Decentalized to 12

divisions

Business Integration

The GE way

Public Hangings at GE- The GE way?

“Public 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. It’s just cultural. People just don’t

want to do it.”- Jack Welch

GE: Managing Conflict