This presentation was prepared as the response for ppt round atTata Administrative Services .

1. GENERAL ELECTRIC:FROM JACK
WELCH TO JEFFREY IMMELT
By:
Ashish Chandra Sinha
Tata Consultancy Services

2. Financial Snap-Shots till 2013
31%
64%
5%
GE Capital
GE Infrastructure
GE Home & business
solutions
2012
46%
36%
14%
5%
GE Capital
Infrastructure
GE Home & business
solutions
NBC
2001
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
0
20
40
60
80
100
120
140
160
180
200
2005 2006 2007 2008 2009 2010 2011 2012
$bn
Revenue Profit Net Margin
 Total revenue of $147.4bn in 2012
Continued reduction in scale of GE Capital to create a more
focused financial service division
2nd phase of divestment of NBCU and its real estate completed
which created additional cash of $18.1bn , which is to be used for
short term value creation
Focus on expansion in growth regions such as China, Saudi
Arabia, Brazil and Kazakhstan through localization and partnerships
Annual Net margin, Revenue & Profit Sector wise Distribution of Revenue

3. Change in approach over time
Pre 2001:
 Demand for uncompromised growth through acquisitions
and divestments.
 Emphasis on efficiency and quality improvement
 Increased commitment to develop GE into a service based
company(since 1995)
 GE Capital Service’s explosive growth and NBC acquisition
transformed GE from purely manufacturing company to one
with an important service component.
 Target market confined greatly to Europe and US.
Post 2001:
 GE relying on growth from within.
 Marketing being used as a vital operating tool to spur
economic growth.
 Product leadership through innovation and focused
acquisitions
 Increased investment on R&D to aid growth in businesses
such as oil and gas, life sciences and Distributed Power.
 Reorganization to project GE as ‘Infrastructure leader’ with
a smaller financial services division.
 Addition of rapidly growing regions such as Pacific region
and Middle East and Africa into target market
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000 2010 2012
Pacific Basin,Middle
East &Africa
US & Europe
Year Expenditure
on R&D as a
% of revenue
Number of
patents
Rank
1998 1.53 729 16
1999 1.67 699 20
2000 1.87 787 19
2010 2.61 1222 14
2011 3.12 1444 10
2012 3.05 1650 8
Area-wise revenue Distribution
Effect of investment in R&D

4. Key takeaways from Jack Welch leadership style
•Get rid of unnecessary bureaucracy
•Ensure smooth flow of ideas to develop solutions across various
functions
Boundary less and
delayered organization
•Organization must be able to learn from within as well from outside
•Implement industry best practices to improve quality and lower
costs
Creating a learning culture
•Important to separate the performers from the bunch and groom
them for larger assignments
Apply vitality curve
•Invest in management training programs
•Develop deep bench of executive talent
Investment on corporate
training

5. Key takeaways from Jeffrey Immelt leadership style
• Invest in R&D , even during slowdown or recessionInvest in R&D
• Profile of the target company must fit with the business portfolio
• Primary product should hold significant potential for long term growthAcquisitions
• Treat marketing as a rigorous function at par with other functions such as
finance and human resources
• Use Marketing as a tool to drive more-direct collaboration with
customers
Sophisticated marketing

6. Difference in leadership style
Jack Welch Jeffrey Immelt
Imposing leadership People Oriented personality
Create leader from within the organization
through management training programs
Also brought a number of outsiders to top positions
in the company to bring fresh ideas and new
perspective
Focused on acquisitions Focused on innovation
Leading market through product quality
improvement
Leading market through product leadership
Strong emphasis on quantification of
performance
Additional abstract parameters such as creativity,
strategy included to evaluate the performance more
subjectively
Believed in setting short term targets and real
time planning
Invested in long term planning and strategy and
encouraged risk taking
Developed generalists by rapidly rotating
managers through different divisions
Developed specialists by keeping managers for a
relatively longer time

7. Application of GE leadership style to organization lifecycle
Birth
Growth
Maturity
Decline/Revival
•Growth through acquisitions
•Strong emphasis on process
improvements to improve
product quality and reduce cost
2002
2012
Challenges:
•Unfavorable macroeconomic
condition caused by slowdown, and
9/11 terrorist attack
•Changing industry dynamics due to
slowing demand and strong regulatory
oversight
1981
Growth through reorganization, marketing
strategy and innovation
Focus on global markets, and stronger
customer ties
2001
Challenges :
•High recession and
unemployment rates
•Strong dollar hitting total
production and manufacturing
Jack Welch Jeffrey Immelt

8. Industry best practice- Six Sigma
Pros Cons
Clear focus on achieving measurable and quantifiable
financial returns .
Improving an already existing process gets more attention while new
product development and disruptive innovation might take a back
seat.
Six Sigma methodology integrates human elements such as
customer focus with process elements of improvement
Cannot be applied with the same effect across every industry and is
more suited for manufacturing industry.
Reduction in process cycle times Certification process is non standardized and level of the skills and
expertise developed by Black Belts/Green Belts are inconsistent
across companies.
Emphasises the importance of data and decision making
based on facts and data rather than assumptions and forces
people to put measurements in place.
Statistical definition of six sigma (3.4 million defects per million
opportunities) does not classify the level of defects.