In my book, THE SECRET TO GE's SUCCESS, I challenged Immelt's assertion that he could grow GE at an 8% compounded growth rate, which translated into added $14 billion plus revenues per year. This challenge was based on my extensive experience, study and evaluations of major companies and especially GE.
This is what I wrote (page 250) : " He (Immelt) is clearly convinced and has the missionary zeal to make it happen. However, based on my experience and study. I am not convinced that he can do it and am concerned that he has created an unrealistic expectation. It is possible that in the long term he will have doubled the revenues every nine years, but it is really impossible to add $14 billion plus revenues year after year?
What happens if he doesn't make it, even for one year? Will this have a negative impact on the stock price and put his reputation in jeopardy?
I think it will!"
Unfortunately, I was right... it is impossible for any organization to growth continually. There are always down cycles and the strong organizations are willing to adapt to these changes, set more realistic expectations and move ahead. I hope that Immelt and his team are re instituting the "strategic thinking and decision making disciplines that enabled Borch and Jones to admit their mistakes and refocus the company's portfolio.
Recent actions and words appear to indicate that this type of strategic thinking and decision making is being used, but only time will tell.
If you want to learn why GE was successful in the past and should be in the future, please read my book THE SECRET TO GE's SUCCESS . It provides an objective, comprehensive and insightful view of the companies successes and failures..and what you can " take away " from this remarkable company. If you have an interest in learning more about strategic thinking and decision making, read Putting It All Together- a guide to Strategic Thinking and decision making...There is a revised and updated edition available on my site: http://www.strategyleader.com/. This book and its companion software StrategyLeader is used in many business and executive programs.
This is what I wrote (page 250) : " He (Immelt) is clearly convinced and has the missionary zeal to make it happen. However, based on my experience and study. I am not convinced that he can do it and am concerned that he has created an unrealistic expectation. It is possible that in the long term he will have doubled the revenues every nine years, but it is really impossible to add $14 billion plus revenues year after year?
What happens if he doesn't make it, even for one year? Will this have a negative impact on the stock price and put his reputation in jeopardy?
I think it will!"
Unfortunately, I was right... it is impossible for any organization to growth continually. There are always down cycles and the strong organizations are willing to adapt to these changes, set more realistic expectations and move ahead. I hope that Immelt and his team are re instituting the "strategic thinking and decision making disciplines that enabled Borch and Jones to admit their mistakes and refocus the company's portfolio.
Recent actions and words appear to indicate that this type of strategic thinking and decision making is being used, but only time will tell.
If you want to learn why GE was successful in the past and should be in the future, please read my book THE SECRET TO GE's SUCCESS . It provides an objective, comprehensive and insightful view of the companies successes and failures..and what you can " take away " from this remarkable company. If you have an interest in learning more about strategic thinking and decision making, read Putting It All Together- a guide to Strategic Thinking and decision making...There is a revised and updated edition available on my site: http://www.strategyleader.com/. This book and its companion software StrategyLeader is used in many business and executive programs.
Bill Rothschild, CEO Rothschild Strategies Unlimited, LLC.. that provides personalized consulting and worksho
ps on the art and science o
f strategic thinking and decision making. 
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