GE’s talent machine: the making of a CEO written byCHRISTOPHER A.BARTLETT ANDREW N.McLEAN forthe HARVARD BUSINESS SCHOOL.GE-world leading diversified business founded in 1878by THOMAS EDISONIt uses a modern management policiesTIME SPAN1930-Centralise corporate control1950-decentralised multidivisonal organisation1970-leader in strategic planning1990-Agile global competitor
GE promotes top leaders from its own. Executive development practices made by CHARLES COFFIN, the CEO Coffins commitment towards measuring a performance. Observer called it GE “a CEO factory” In 2003 fortune magazine article named him (coffin) “the greatest CEO of all time”
CEO’S OF GE RALPH CORDINER was president of GE from 1950-1958 & CEO from 1958-1963 BORCH in 1972 JACK WELCH in 1981 JEFF IMMELT
CAREER TIMELINE FOR JEFF IMMELT ATGENERAL ELECTRIC COMPANY 1982-enters GE on commercial leadership program 1983-manager-business development/GTX product management, GE plastics 1984-manager-dallas district sales,GE plastics. 1986-general manager-western region sales,GE plastics 1987-general manager-new business development & marketing development,GE plastics 1989-vice prisident of consumer service,GE appliances
1991-vice prisident of worldwide marketing and product management,GE appliances 1992-vice prisident commercial division,GE plastics Americas 1993-vice prisident and general manager, GE plastics americas 1997-president and CEO, GE medical systems November 2000-president and chairman-elect,GE elected to board of directors September 2001-chairman and CEO, general electric company
GE’S JOURNEY TO SUCCESS Analysis of the case how much does the company want to change policy over the time and where does the company want to be in future. JACK WELCH was CEO for the last 20 years this leadership was driving force behind the most successful corporate model that was dynamic flexible and many times more profitable than the old high centralised and bureacratic system .
I-PROBLEM –will GE be able to sustain the success (after welsch) II-PROBLEM– shareholder want to realise the same returns that they have been receiving under welsch regime. III-PROBLEM-GE has to be very careful to manage transition from welsch to the CEO in order to maintain a balance or he has to minimize the disturbance during the transition. IV-PROBLEM-will the GE strategy continue? will it change and reflect the leadership trait of the new CEO and if so, to what degree will the new strategy diverge from the old strategy.