Ge Transformation Case Study Jack Welch Notes

GE Transformation notes Founded in 1878 Focus on Communication Used initiatives such(prenominal) as training programs to increase parley Organizational Culture Welchs Core Idea the only way to shift a keep companys culture is to change the habitual thinking and behavior of its fast-track executives. initiatorys * progress to Out * Began 1988 * Groups of 40-100 employees involved * Removing unnecessary bureaucratic work out of the organization * By 1992 200,000 GE employees participated in Work-out Began as a driving fierceness for improving productivity and became a tool for cultural change. Best Practices * plan to Increase Productivity * Focus more on how things got done sooner than what got done * Focused on customer satisfaction *These two initiatives helped expound GEs organizational culture, characterized by speed, simplicity and self-confidence. * Globalization * 1986- incorporate executive council meeting during * 1987- GE agreed to exchange consumer electronics busin ess for the french medical imaging business. 1989- Welch appointed Paolo Fresco as head of multinational operations in 1992. * 1998- International revenues at $42. 8 billion. Company evaluate to do almost half its business outside the USA by year 2000. Global Best Practices Program opened communicating bank line for GE with outside companies * Session C HR planning * alter HR system to his goals, and began keeping tabs on upper heed. GE management expected feedback, which they used as the basis for coaching and developing their staff. change magnitude communicating between CEO, and top managers, increase communication between top managers and glare employees, became means for training of new employees * Crotonville Management Development Facility * Managers fill about GE, and experience debating and problem solving Used as a hub for communications * 360 Feedback process * Became means for training needs, coaching opportunities, and career planning. * A Players Managers with vision, leadership, energy, and courage * Performance Appraisal System Managers rated employees on a surpass of 1-5, 5 being the lowest on effectiveness * All 5s were to be let go, and all 1s were to be rewarded with stock options, and higher promotional probability * In the new culture, graphic symbol of the leader is to express a vision, get a buy-in and implement it. Increased feedback communication and expectations in the organization * Boundaryless Behavior * Purpose was to strengthen GE s individual Business. There would be no distinction between domestic and foreign operation. Remove labels which get in the way of work together. Eliminated unnecessary communication filters, encouraged input from every employee, open communication channels gave employees the ability to speak about their concerns. Eliminated middle management that stood in the way of direct communication * Stretch * Created an atmosphere that asked everyone How good stinker you be? * Managers not held acco untable for these goals, but were reward for achieving them. Mid 1990s established as part of GEs culture, stretch targets increased employee values, attitudes and confidence. Service Businesses * Reduce dependence on traditional industrial products Changed interior mindsets from selling products to helping our customer win * Six Sigma Quality Initiative * Learned the program from Lawrence Bossidy (left GE in 1991) who borrowed it from Motorola, which improved quality for AlliedSignal Inc. * destination was to increase quality * 30,000 Six Sigma projects were initiated in 1998 Required change in culture of the organization employees would need technical training, and there was need of communication of the importance to the companys strategic objectives.