Ge Title Case Study
-------------------------------------------------
Top of Form
Bottom of Form
Browse
11
GE’s Two Decade Transformation domestic markets, created a service industry and an E-business; thus increasing it revenue andincreasing its value by 60%, and most importantly surviving the recession and creating a largecomplex diversified conglomerate that continues to defy the critics and grow in performance andprofitability. Values added include but not limited to the reduction of bureaucracy which resultedto more expedient processes, and effective operation. Welch extended his Fix, sell or close fromthe national level to the international level. He also saw the challenges in other countries andeconomic difficulties as opportunities for new investments and expansions. Values added alsoincluded the transforming of GE culture to a more learning, knowledge sharing and demandingof excellence, commitment and service to the goal of the organization. Welch introduction of business service contributed to two- third of the company’s value. Last but no t the least, hisintroduction of the Six Sigma quality initiatives led to 62% in turnaround time, return of $750million over the investment exceeding expectations along with a forecast of additional returns of $1.5 billion in 1999. In addition to this the program also contributed 300 million pounds of newcapacity.
What is your evaluation of Welch 's approach to leading change? How important was he toGE 's success? What are the implications for his replacement?
Jack Welch’s mission was to restructure t he company in order to become the number oneor number 2 competitor in the industry. He embraced change, expected his team to do the same, and challenged his team be “better than the best” (HBS, p.2). He employed different management reporting structures at different points of the transformation. For example, he felt asthough there were too many layers at all large headquarters groups, as a result he spearheaded
Top of Form
Bottom of Form
Browse
11
GE’s Two Decade Transformation domestic markets, created a service industry and an E-business; thus increasing it revenue andincreasing its value by 60%, and most importantly surviving the recession and creating a largecomplex diversified conglomerate that continues to defy the critics and grow in performance andprofitability. Values added include but not limited to the reduction of bureaucracy which resultedto more expedient processes, and effective operation. Welch extended his Fix, sell or close fromthe national level to the international level. He also saw the challenges in other countries andeconomic difficulties as opportunities for new investments and expansions. Values added alsoincluded the transforming of GE culture to a more learning, knowledge sharing and demandingof excellence, commitment and service to the goal of the organization. Welch introduction of business service contributed to two- third of the company’s value. Last but no t the least, hisintroduction of the Six Sigma quality initiatives led to 62% in turnaround time, return of $750million over the investment exceeding expectations along with a forecast of additional returns of $1.5 billion in 1999. In addition to this the program also contributed 300 million pounds of newcapacity.
What is your evaluation of Welch 's approach to leading change? How important was he toGE 's success? What are the implications for his replacement?
Jack Welch’s mission was to restructure t he company in order to become the number oneor number 2 competitor in the industry. He embraced change, expected his team to do the same, and challenged his team be “better than the best” (HBS, p.2). He employed different management reporting structures at different points of the transformation. For example, he felt asthough there were too many layers at all large headquarters groups, as a result he spearheaded
References: nonymous. (2009, p. 9). Beware: Cost cutting can be deadly. Harvard Business School .GE, 2012