GE’S JEFF IMMELT: THE VOYAGE FROM MBA TO CEO

Syndicate 5 (X-47):1. Meilina M (29112120)2. Reza AP (29112127)3. Sufian (29112017)4. Rohimat Efendi

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Writer’s profile

Professor Christopher A. Bartlett ; andResearch associate: Andrew N. McLean

- The original version: GE’s talent machine: the making of a CEO

General Electric (GE) History Founded: 1878 in Menlo Park, New Jersey Founder: Thomas Alva Edison Slogan: “We bring good things to life” The Company was incorporated in 1892 (merged

EELC with Thomson-Houston Electric company) Established an industrial research laboratory in

1900 1930’s – Highly centralized 1950’s – towards decentralization 1960’s Profitless Growth 1970’s Strategic planning systems

GE’s business structure

Commercial Finance Energy Transportation Health Care Infrastructure

Leaders in GE (Succession) Thomas Alva Edison (1892) Charles Coffin (1894) Gerard Swope (1922) Charles Wilson (1940) Ralph Cordiner (1950) Fred Borch (1964) Reginad Jones (1972) Jack Welch (1981) Jeff R. Immelt (2001)

The Succession Planning Process Building on the foundation laid by

Coffin GE’s HR management practices:

Building the talent machine (leadership development)

Session C (Annual leadership & organizational talent Reviews) – by Cordiner

Type 4 managers – by Welch GE’s businesses performance as

proving ground Grooming and testing the potential

leaders

Jeff Immelt (Profile)

Joined GE Plastic in 1982 Various global leadership positions over year

career in GE Become CEO in September 7, 2001 New slogan: Imagination at work Barron’s wie named Mr. Immelt one of the

“world’s best CEOs” Earned a BA degree in applied mathematics

from Darthmouth College in 1978 and an MBA from Harvard university in 1982

Spends 25 days a year on succession planning and cultivating future GE leaders

Immelt’s achievments

Sept 2003 – asks for 5 IB’s per dept. Nov 2003 – selects 34 IB’s

(Innovation Breakthrough) Feb 2004 – Monthly reviews of each

IB begins Sept 2004 – Ecomagination project

begins Jan 2005 – CECOR framework

initiated

Current Trends

Growth as a process: - Technology - Customers - Globalization - Commercial excellence - Innovation - Growth leaders

GE under Immelt

Release of Annual report in March 2002

Redesigning of CEO compensation package

Acquisition with Vivendi Universal’s American assets value at US $ 14 billion

Invested in various research centers Promoted external communications Cultural shift from performance to

customer satisfaction an value

Continued….

External recruitment for senior position

Diversity in work force “people oriented” approach Establishment of a commercial

council “innovative Break-through” program Launch of projects ranging from

creating microjet engines to desalination

Immelt’s Leadership Style

Customer Centric company Focus on innovation Retain managers to make

them specialist Focus on long term strategies Natural leader

Current Trends (cont’d)

Ranked 9th on Fortune magazine’s “50 most desirable MBA employer” list (April 2004)

In 2005 GE launched its “Ecomagination” initiative in an attempt to position itself as a “green” company

In Fortune Magazine’s 2005 “Global most admired Companies” list, GE ranked firs overall (February 2005)

In Fortune Magazine’s 2006 “America’s most admired Companies” list, GE ranked first overall (March 2006)

Revenue as on 31-3-2006: $163.391 billion Net earnings as on 31-3-2006: $20.829 billion No. of employees (2004) – 315,000

The prevailing culture in GE Innovation: a place for creating and

bringing big ideas to life People attributes: vision, passion an

deep sensitivity to the big issues that challenge the world around them

Work environment: an invigorating place to work

Leadership & learning: developing skills and energizing employees

The Denison model: Organizational Culture & Leadership development

Mission Adaptability Involvement Consistency

Successful organizations have strengths across all four traits of the Denison model:

they know where they are going and how they are going to get there

they continually seek to understand the external environment and meet the needs of their customers

they involve and engage their employees and build a sense of shared ownership and teamwork

they have values, systems and processes in place to promote consistent behavior and to execute against the mission

Mission: Vision –shared common desired

of future state bteween organization and employee

Adaptability: Customer Focus – understand

the need of customers Organizational Learning - create

an environment where people can learning through their workplace

Involvement Capability Development –

organization bench strenght improve

Consistency Core Values – leaders reinforce

the values and systems that are basis of organization

Coordination & Integration – employees share common perspective that allow them work effectively

GE Leadership culture

JEFF Imelt’s Leadership style

New York Times 04 December 2010In the wake of the world's financial crisis, GE CEO Jeff Immelt focuses the company on building from its strengths: innovation and manufacturing.

Jeff Immelt Leadership Understand Breadth, Depth, and

Context Leaders learn constantly and

also have to learn how to teach “Like people” attitude

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