Organizational Change Management at General Electrics when Six Sigma was implemented. The pre-implementation scenario and the post implementation scenario.

1. ORGANIZATIONAL CHANGE MANAGEMENT
AT GENERAL ELECTRICS
Presented By – Supriyo Das (DM16A55)

2. GENERAL ELECTRICS
Company overview –
 Formed in the year 1892
 Is a multinational American technology and services
conglomerate incorporated in New York
 Founded by Thomas Edison
 Headquarters are in Fairfield, Connecticut
 Chief Executive Officer and Chairman is Jeff Immelt (2001 – till
date)
 Has more than 300,000 employees in more than 140 countries

3. CHANGE MANAGEMENT AT
GENERAL ELECTRICS
• Jack Welch in the year 1981 inherited the top position of a
company that had a worth of mere $12 billion
• By the time he left the company in the year 1998, revenues of
GE were valued at $129 Billion.
What changed ?
Jack Walch

4. IMPLEMENTING SIX SIGMA
APPROACH
• In the year 1995, Implemented lean six sigma methodology for
manufacturing and service processes
• Target was to meet or reach a level of 3.4 defects per million operations
within any process
• Five years after Welch’s decision to implement Six Sigma, GE had saved a
mind-blowing $10 billion.
• By assembling the right team and ingraining them with the right
management philosophies, Welch successfully oversaw the transformation of
GE from a relatively strong company to a true international player

5. BEFORE IMPLEMENTATION
• Before the 6 sigma, operations were carried out between 3-4 sigma
• The company realized that employees were an important source of intellectual power for
new and creative ideas.
• The program has set four major goals –
• Build Trust
• Empower employees
• Eliminate unnecessary work
• Create a new paradigm for GE

6. OUTCOMES OF SIX SIGMA
IMPLEMENTATION
• Implemented six sigma for 200 projects initially
• By 1997, statistical process control was used in
6000 GE projects and training sessions.
• $320 million reported in benefits from six sigma
implementation in 1998
• Revenues rose to $100 Billion, up by 11%
• Earnings per share grew to $2.80, up to 14%
• Operating margin had set a record by showing
an increase of 16.7 %
11%
14%
13%
16.70%
REVENUES EARNINGS PER
SHARE
PROFITS OPERATING
MARGINS
RESULTS ACHIEVED OVER THE FIRST TWO YEARS
(1996-1998)
Source – Six Sigma implementation at General electrics
(Case Study)

7. THANK YOU