Jeff Immelt is truly in the GE Leadership tradition. He has been willing to adapt to reality, rethink his game plan and most of all today...admitted he was responsible for the company's tarnished image. This is in the GE tradition.
In my book, THE SECRET TO GE's SUCCESS, I enumerate a number of situations where the GE leaders were wrong, recognized their mistake and moved on. In fact, the first GE CEO to do this was Edison, who picked the wrong technology, but was willing to admit it and move the company into the winning technology.
I still believe that one of the reasons that GE is in the current situation is that it's GO BIG/ GO GLOBAL strategies were wrong. I strongly believe that GE's strengths have been and will be being selective and focused on markets that they can lead. Unfortunately, this is not possible when you just want to get bigger.
However, the good news is that this may change and the company will again target and win.
I admire Immelt's leadership, dedication and even willingness to invest his own money in GE stock, when others are not and giving up his incentive bonuses ($12 million) when others have not been willing to do so. He is clearly dedicated to GE and hopefully the current crisis will be a positive and not a negative. He believes that the crisis provides opportunities and I agree, but it will require both taking risks and doing the required surgery.
I believe that the GE stock has been unfairly hammered because the company has been equated with many mismanaged banks and financial services company. GE is well managed and still has over 55% of its revenues and even more of its profits in businesses that will benefit from the current "stimulus plans" and the desire to invest in infrastructure, electrical generation, healthcare and many other key industries.
Investors and analysts should look at the total picture and give GE its just stock value. It should be trading at 15 times earnings and not 5. It credit rating should be retained since it is still profitable and doing what is necessary to assure it is liquid. Overall, GE should be viewed objectively and not emotionally.
Bill Rothschild, author of five strategic leadership books, many articles and blogs...visit http://www.strategyleader.com/
In my book, THE SECRET TO GE's SUCCESS, I enumerate a number of situations where the GE leaders were wrong, recognized their mistake and moved on. In fact, the first GE CEO to do this was Edison, who picked the wrong technology, but was willing to admit it and move the company into the winning technology.
I still believe that one of the reasons that GE is in the current situation is that it's GO BIG/ GO GLOBAL strategies were wrong. I strongly believe that GE's strengths have been and will be being selective and focused on markets that they can lead. Unfortunately, this is not possible when you just want to get bigger.
However, the good news is that this may change and the company will again target and win.
I admire Immelt's leadership, dedication and even willingness to invest his own money in GE stock, when others are not and giving up his incentive bonuses ($12 million) when others have not been willing to do so. He is clearly dedicated to GE and hopefully the current crisis will be a positive and not a negative. He believes that the crisis provides opportunities and I agree, but it will require both taking risks and doing the required surgery.
I believe that the GE stock has been unfairly hammered because the company has been equated with many mismanaged banks and financial services company. GE is well managed and still has over 55% of its revenues and even more of its profits in businesses that will benefit from the current "stimulus plans" and the desire to invest in infrastructure, electrical generation, healthcare and many other key industries.
Investors and analysts should look at the total picture and give GE its just stock value. It should be trading at 15 times earnings and not 5. It credit rating should be retained since it is still profitable and doing what is necessary to assure it is liquid. Overall, GE should be viewed objectively and not emotionally.
Bill Rothschild, author of five strategic leadership books, many articles and blogs...visit http://www.strategyleader.com/
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