How GE Teaches Teams to Lead Change

Sahil Khosla Vicky Verma

GE (GENERAL ELECTRC)
GE, is an American multinational conglomerate corporation. Headquartered in Fairfield, Connecticut, United States Founder(s)Charles Coffin, Edwin Houston, Elihu Thomson, Thomas Edison Founded in 1892 In 2011, Fortune ranked GE the 6th largest firm in the U.S.as well as the 14th most profitable. Other rankings for 2011 include #7 company for leaders (Fortune), #5 best global brand ( Interbrand ), #82 green company (Newsweek), #13 most admired company (Fortune), and #19 most innovative company (Fast Company)

GE's divisions include

GE Capital GE Energy GE Technology Infrastructure GE Home & business Solutions GE Healthcare Co-owns NBC Universal with Comcast

The Article Talks About

Leadership Innovation Growth

Reason for LIG

Team Training Encourage Participation Looking differently Managing short and long term challenge Develop action plan for instituting change

Leadership in operational efficiency

Six Sigma, lean manufacturing, total quality management. produces higher yields, reduces waste, improves quality and increases customer satisfaction senior-level executives have been responsible for successfully leading operational excellence programs

the opx edge

Gaining cost efficiency, delivery, service and quality advantages through operational excellence are poised to out-excel the competition Example - Whirlpool Corporation long recognized for its quality programs, Focuses on quality, infrastructure cost, product and operations cost, supply chain and lean efforts

Skills required for success

Technical proficiency & strategic understanding Project planning & execution Change management Communication Teaming & collaboration

General Electric's Innovation Strategy

Ge has three step process that help company reach annual growth of 8% targets set by CEO Jeffrey Immelt. The three steps are: Identify the trends shaping the business landscape Apply business goals that are unachievable if the units stay focused on the current business environment. Lay out the challenges, the trends, the targets, and have a discussion with key team members

REVERSE INNOVATION
Reverse innovation refers to the process wherby goods are developed as in expensive models to meet the need of developing nation such sa battery operated medical instruments in countries with limited infrastruvture and then repackaged as low-cost innovative goods for Western buyers. GE is now selling an ultra-portable electrocardiograph machine in the U.S. at an 80% markdown for similar products. The machine was originally built by GE Healthcare for doctors in India and China.

REVERSE INNOVATION
GEs sales outside the U.S. rose to $97 billion, or more than half annual revenue, last year from $4.8 billion, or about 19 percent, in 1980. The unit this year announced products including a $1,000 hand-held electrocardiogram device in India and a $15,000 PC-based ultrasound machine in China.

Companies dealing in reverse innovations

NESTLE MICROSOFT PROCTOR & GAMBLE NOKIA

Challenges / success factors

Culture Talent Working with the business units directly A common language openness, mutual trust, credibility commercialization plan, business model

What ge is doing
Double its investment in clean R&D Increase revenues from ecomagination product Reduce its greenhouse gas (GHG) emissions and improve the energy efficiency of its operation

R&D PIPELINE
RENEWABLE INITIATIVES 1. WIND ENERGY 2. HYDROGEN ENERGY 3. Geothermal and waste heat 4. Cleaner Coal

Transportation initiative Water use and purification initiative Energy efficiency initiative Solid oxide fuel cell

Increase revenue from ecomagination products

ecomagination commitment is founded on a solid business strategyto increase revenues for GE by providing solutions for customers that help improve their operating performance and environmental impact Ecomagination is GEs business strategy to create new value for customers, investors and society by solving energy, efficiency and water challenges

ACHIEVEMENTS THROUGH ECOMAGINATION

$85 billion in revenue from ecomagination products and solutions $130 million in energy efficiency savings 30 percent reduction in water use 22 percent reduction in greenhouse gas emission