TALENT DEVELOPMENT at

GENERAL ELECTRIC

Submitted by :

Delphine Allain(20081)Pallavi Bali (71079)Tarika Chopra (71044)

« Great people build great companies. Talent development is not a slogan at

GE, it is a way of life. »

Jack Welch, CEO (1981-2001), General Electric Co., in 2005

OVERVIEW OF THE PRESENTATIONI. Talent Development at GEII. Company OverviewIII. T&D triviaIV. Training and Development at GEV. Major MilestonesVI. « Crotonville »VII. Jack Welch’s InterventionsVIII. MDP courses at CrotonvilleIX. ImpactX. Six-Sigma FocusXI. Major types of Training at GEXII. GE’s Training SuccessXIII. Recognition in T&D

Talent Development at GE

A philosophy, a way of existence: not merely a HR/management function

GE Advantage:1. Leadership commitment2. Disciplined processes3. Commitment to people

Company Overview« Imagination at work  » Global Conglomerate:18961. Across 160 countries2. 11 diversified businesses (Stand alone Fortune 500 businesses)3. Headcount: 3,07,000 (Dec 2007)

Products :

Aircraft Jet Engines, Electricity, Entertainment, Finance, Gas Turbine, Generation, Industrial Automation, Lighting, Medical Imaging, Equipment, Medical Software, Motors, Railway Locomotives, Wind Turbines

(GE Advanced Materials, GE Commercial Finance, GE Consumer Finance, GE Consumer & Industrial, GE Energy, GE Equipment Services, GE Healthcare, GE Infrastructure, GE Insurance Solutions, GE Transportation, NBC Universal)

Rising Shareholder Value; sustained profitability, recognised people focus

Infrastructure•Aviation

•Enterprise Solutions •Healthcare

•Transportation

Energy Infrastructure

GE Capital

NBC Universal

Businesses Across the World

T&D Trivia

Challenge: Multi-national/diverse workforce

Solution: Develop people, go beyond traditional training, nurtured talent

Pioneers/Captain of Industry University/leadership Factory

Management Development centre (1980s)

Emulated by Boeing, Home Depot, Toyota

GE Jargon: ‘The Pit, the Great Room’: Global culture

Training & Development at GE $1 billion spent in training in one year

Combination of formal and informal training

$38 million for reimbursement of tuition fees for employees who enrolled for outside degree programs

« The best company for executive development » (Survey conducted in 2005 by

Executive Development Associates)

Major MilestonesOn-the-job training used since 1920s

Formal corporate training during Ralph Cordiner’s tenure (1950) owing to decentralisation

Establishment of corporate training centre: Crotonville in 1956 (Ossining New York)

Major restructring at GE 1981

Jack Welch takes over and develops a residential facility at Crotonville in 1983. Starts teaching at Crotonville in 1984. Action Learning pedagogy

1988: Strength increases to 5000

1992: 200,000 employees trained

1995: Six-sigma quality management program

2001: Crotonville renamed after Welch: ‘John. F. Welch Leadership Centre’

III. « Crotonville »

World’s first corporate university Divisions to run as profit centres Plan-organise-Integrate-Measure (POIM) Blue-book: 3500 pages of Do’s and

Don’ts Initial goal of developing leaders was

lost to imparting technical training and communication in times of crisis

« Crotonville » contd..

1981 : Jack Welch CEO

Only the best employees can attend the training courses at Crotonville (« A players »), and possessed the 4E’sEnergy, ability to Energize others, Edge and Execution

Concept of « Action Learning »

Concept of « Work-Out »

Crotonville’s mission

Now called the Welch Leadership Centre (WLC)

Crotonville’s mission

«Crotonville’s mission is to develop leaders, introduce cultural change and spread key corporate initiatives throughout GE.

It’s where our people come together to work, learn and share across boundaries – and where customers experience first-hand the culture and the partnership of GE. It’s a place of

vital information exchange where we :- Educate employees, focusing on leadership, change, Six

Sigma, e-business and other key corporate initiatives- Communicate and strengthen our employee’s commitment to

GE and the GE values- Build bridges across boundaries by providing a setting for

people to interact across businesses, functions and hierarchies

- Enhance our customer focus; build relationships with strategic customers and other key constituencies. »

Source : www.ge.com

Jack Welch’s Intervention

Took over as CEO in 1981 Major restructuring;1/4th of workforce laid off Envisioned an open culture, reduced red-tapism Crotonville: Instrumental for culture change Best employees to attend: 4E’s (Energy, ability

to energize others, edge & execution) & Passion Felt that returns on T&D long-lasting Noel Tichy introduced Action Learning (Step

into CEO’s shoes, discuss actual business problems faced)

MDP courses at CrotonvilleCourse Duration Frequency Level/No. of

participants p.a

Executive Development course

3 weeks Once a year Highest potential managers(50)

Business Management Course

3 weeks Thrice a year

Middle level managers (180)

Management Development Course

3 weeks Six-eight months in a year

Junior Level Managers (400-500)

Impact of MDPs & Action Oriented Learning

Participants imbibed qualities of in-house consultants Unhesitant in advising top management: OPEN CULTURE To increase impact of open culture and communication

across businesses and levels: Welch introduced work-outs Work out: take unnecessary work out of system Crotonville: energy centre, powerhouse of ideas, learning

organisation Employees, suppliers, customers discuss issues Courses outside Crotonville in Ohio, New York GE customers, suppliers and partners also included.

Six-sigma focus

To make GE products defect-free, six-sigma has to become a way of life.

In-house training became focus at Crotonville Champions, Master-blackbelts, green belts 1996: US$200 million invested in training 200

MBB, 800 BB. Training linked to employee promotions Annual savings of $ 2.5 billion for GE

through six-sigma implementation in 2000.

Major types of training at GE Entry Level Leadership Programs(Grooming &

Developing future leaders)- Commercial Leadership Program for Sales & Marketing (CLP)- Financial Management Program (FMP) (Highly recognised in the world)- Information Management Leadership Program (IMLP)- Edison Engineering Development Program (EEDP)- Operations Management Leadership Program (OMLP)

Experienced Level Leadership Programs- Experienced Commercial Leadership Program (ECLP)- Human Resources Leadership Program (HRLP)

E-learning implemented in 1998 ; in 2001, 50% of GE’s training was online 2003 : learning website myLearning@ge 2004 : 200,000 employees had on-line courses with about 20,000 courses

on offer

GE’s Training Success

Long-term benefits of employee training : between 1980 and 2000, the net earnings of the company increased more than 8 times

Additional revenues because GE provided professional training to other organizations

Merit-based culture: Linking training to promotions. Cannot move to the next level until assignments are cleared.

As of 2003: 75% of GE business CEO’s were FMP graduates.

GE Gene pool: succession planning/ leadership across influential businesses

GE ALUMNI COMPANY FORTUNE 500 RANK

Bob Nardelli Home Depot 13

Larry Johnston Albertsons 35

David Cote Honeywell 75

Jim McNerney 3M 105

Kevin Sharer Amgen 212

Peter Cartwright

Calpine 242

Christopher Kearney

SPX 345

Matt Espe IKON 415

Mark Frissora Tenneco Automotive

453

Barry Perry Engelhard 456

Recognition in T&D GE recognized for its ability to maximize the value of the

enterprise’s intellectual capital by exceptional leaders. Best succession planning: no dearth of good leaders as need arose Brought global consistency to all its businesses GE used its diversity to transform itself into a learning organization

where employees could develop themselves continuously. Extend professional expertise to other organizations/ additional

revenue. Inculcate skill of coaching in team members Other companies cant afford to spend on training to the tune of $1

billon Spare employees for training

GE IS TRULY PASSIONATE ABOUT DEVELOPING ITS EMPLOYEES

THANK YOU!

QUESTIONS?