Ge Transformation Case Study Jack Welch Notes
GE Transformation notes:
Founded in 1878
Focus on
Communication: Used initiatives such as training programs to increase communication
Organizational Culture: Welch’s Core Idea: the only way to shift a company’s culture is to change the habitual thinking and behavior of its fast-track executives.
Initiatives
* Work Out * Began 1988 * Groups of 40-100 employees involved * Removing unnecessary bureaucratic work out of the system * By 1992 200,000 GE employees participated in Work-out
Began as a driving force for improving productivity and became a tool for cultural change. * Best Practices * Program to Increase Productivity * Focus more on how things got done rather than what got done * Focused on customer satisfaction
*These two initiatives helped refine GE’s organizational culture, characterized by speed, simplicity and self-confidence. * Globalization * 1986- corporate executive council meeting during * 1987- GE agreed to exchange consumer electronics business for the French medical imaging business. * 1989- Welch appointed Paolo Fresco as head of international operations in 1992. * 1998- International revenues at $42.8 billion. Company expected to do almost half its business outside the USA by year 2000.
Global Best Practices Program opened communication channel for GE with outside companies
* Session C HR planning * Adapted HR system to his goals, and began keeping tabs on upper management. GE management expected feedback, which they used as the basis for coaching and developing their staff.
Increased communication between CEO, and top managers, increased communication between top managers and lower employees, became means for training of new employees * Crotonville Management Development Facility * Managers learn about GE, and experience debating and problem solving
Used as a hub for communications * 360° Feedback
Founded in 1878
Focus on
Communication: Used initiatives such as training programs to increase communication
Organizational Culture: Welch’s Core Idea: the only way to shift a company’s culture is to change the habitual thinking and behavior of its fast-track executives.
Initiatives
* Work Out * Began 1988 * Groups of 40-100 employees involved * Removing unnecessary bureaucratic work out of the system * By 1992 200,000 GE employees participated in Work-out
Began as a driving force for improving productivity and became a tool for cultural change. * Best Practices * Program to Increase Productivity * Focus more on how things got done rather than what got done * Focused on customer satisfaction
*These two initiatives helped refine GE’s organizational culture, characterized by speed, simplicity and self-confidence. * Globalization * 1986- corporate executive council meeting during * 1987- GE agreed to exchange consumer electronics business for the French medical imaging business. * 1989- Welch appointed Paolo Fresco as head of international operations in 1992. * 1998- International revenues at $42.8 billion. Company expected to do almost half its business outside the USA by year 2000.
Global Best Practices Program opened communication channel for GE with outside companies
* Session C HR planning * Adapted HR system to his goals, and began keeping tabs on upper management. GE management expected feedback, which they used as the basis for coaching and developing their staff.
Increased communication between CEO, and top managers, increased communication between top managers and lower employees, became means for training of new employees * Crotonville Management Development Facility * Managers learn about GE, and experience debating and problem solving
Used as a hub for communications * 360° Feedback