During my 40 years of strategic leadership, leading my own successful consulting firm and dealing with companies of a wide variety of sizes, position on the life cycle, and industries, I learned that WINNERS are practical and realistic and limited IMAGINATION.
Unfortunately my Alma-mater, GE, appears to be so enamored with imaging that they may have lost sight of the reality that winners must DO WHAT THEY SAY AND NOT JUST DREAM ABOUT IT.
The current GE management team imagined that CHINA was winner and now find it is not as easy to deliver results and NEVER will be.
They thought that the OBAMA HOPE was consistent with their IMAGINATION and it is not.
They IMAGINED THAT THEY COULD GROW REVENUES at a consistent rate of 8% and have now realized it is not that easy.
IHOPE AS A STOCKHOLDER, ALUMNI and FAN OF GE's ability to succeed, THAT THEY FACE REALITY AND RETURN TO REAL STRATEGISTS and SUCCESSFUL LEADERS AND NOT JUST DREAMERS.
BILL ROTHSCHILD
Sunday, July 18, 2010
Sunday, March 28, 2010
RONALD REAGAN's CONVERSION
It is interesting that GE is celebrating the 100th birthday of Ronald Reagan, since its current political policies are very different than those of the Cordiner/ Boulware era, in which Ronnie led GE theater. In addition, GE's ads assert that the company learned from Reagan's political and economic wisdom.
The reality is that it was GE that converted Reagan and not what is being promoted.
When Reagan joined the GE Theater he was a LIBERAL DEMOCRAT, similar to the current Obama administration's socialistic policies, in which Jeff Immelt plays a role in the economic policy.
In my book THE SECRET TO GE's SUCCESS, now a best seller in six countries, I quote Reagan's own words about is socio/ political/ economic conversion:
"I began to talk more and more of how government had expanded and was infringing on liberties and interfering with private enterprise..(can you imagine what Ronnie would say about today's complete take over of all our enterprises!!!)
"It finally grew to the point that one day I came home from a speaking tour and said to Nancy 'I got out there and make these speeches which I believe---they are my own speeches-- and then every four years I find myself campaigning for the people who are doing the things that I am speaking against.' And I said "I am on the wrong side".
GE has been on several sides of the socio/ political and economic side. Swope and Young were socialists and liberal Democrats and were architects of SOCIAL SECURITY and THE NATIONAL RECOVERY ACT. Under Cordiner, the company were highly conservative Republicans and were very involved in fighting BIG GOVERNMENT and BIG UNIONS.
It is very confusing what side the company is on today. Immelt says he is vowed Republican, but yet supports many of the socialistic and big government policies of the OBAMA administration and as we said is part of the OBAMA economic team.
Reagan would not agree and if GE really believes that he contributed to the company's policies it should demonstrate how and why.
Visit http://www.strategyleader.com/ and read THE SECRET TO GE's SUCCESS to learn more about GE unique history.
Bill Rothschild
The reality is that it was GE that converted Reagan and not what is being promoted.
When Reagan joined the GE Theater he was a LIBERAL DEMOCRAT, similar to the current Obama administration's socialistic policies, in which Jeff Immelt plays a role in the economic policy.
In my book THE SECRET TO GE's SUCCESS, now a best seller in six countries, I quote Reagan's own words about is socio/ political/ economic conversion:
"I began to talk more and more of how government had expanded and was infringing on liberties and interfering with private enterprise..(can you imagine what Ronnie would say about today's complete take over of all our enterprises!!!)
"It finally grew to the point that one day I came home from a speaking tour and said to Nancy 'I got out there and make these speeches which I believe---they are my own speeches-- and then every four years I find myself campaigning for the people who are doing the things that I am speaking against.' And I said "I am on the wrong side".
GE has been on several sides of the socio/ political and economic side. Swope and Young were socialists and liberal Democrats and were architects of SOCIAL SECURITY and THE NATIONAL RECOVERY ACT. Under Cordiner, the company were highly conservative Republicans and were very involved in fighting BIG GOVERNMENT and BIG UNIONS.
It is very confusing what side the company is on today. Immelt says he is vowed Republican, but yet supports many of the socialistic and big government policies of the OBAMA administration and as we said is part of the OBAMA economic team.
Reagan would not agree and if GE really believes that he contributed to the company's policies it should demonstrate how and why.
Visit http://www.strategyleader.com/ and read THE SECRET TO GE's SUCCESS to learn more about GE unique history.
Bill Rothschild
Sunday, March 7, 2010
AMAZING AND DISTURBING
The GOOD NEWS is that Jeff Immelt was concerned about the stockholders and image of taking a bonus when GE was not during well and its stockholders had taken a hit on both stock value and the destruction of the dividends.
The BAD NEWS and VERY DISTURBING NEWS is that his MANAGEMENT TEAM including his CFO and Vice CHAIRMEN didn't have good sense to do the same. The CFO who is responsible for missing all the signs of collapse and bad management decisions received over $13 million and the other management team members received over $16 million each.
This is amazing to me for several reasons.
First of all how do the subordinates who were personally responsible for the POOR performance deserve and get a 30 to 60 percent bonus over the leader who admitted he made mistakes and didn't deserve his bonus.
Second, where is the BOARD OF DIRECTORS who authorize these unbelievable, unjustified salaries and bonuses.
GE IS OBVIOUSLY OUT OF SYNC WITH REALITY and they OWN THEIR OTHER STAKEHOLDERS A MAJOR APOLOGY and a REEXAMINATION POOR STRATEGIC LEADERSHIP.
Bill Rothschild, GE ALUMNUS, STOCKHOLDER AND SUPPORTER..AND AUTHOR of the ONLY COMPLETE AND OBJECTIVE ASSESSMENT OF GE SUCCESSES AND FAILURES..THE SECRET TO GE's SUCCESS..
PS This poor management practices are completely INCONSISTENT WITH THE REASONS THAT GE HAS BEEN SUCCESSFUL..and needs to be changed.
The BAD NEWS and VERY DISTURBING NEWS is that his MANAGEMENT TEAM including his CFO and Vice CHAIRMEN didn't have good sense to do the same. The CFO who is responsible for missing all the signs of collapse and bad management decisions received over $13 million and the other management team members received over $16 million each.
This is amazing to me for several reasons.
First of all how do the subordinates who were personally responsible for the POOR performance deserve and get a 30 to 60 percent bonus over the leader who admitted he made mistakes and didn't deserve his bonus.
Second, where is the BOARD OF DIRECTORS who authorize these unbelievable, unjustified salaries and bonuses.
GE IS OBVIOUSLY OUT OF SYNC WITH REALITY and they OWN THEIR OTHER STAKEHOLDERS A MAJOR APOLOGY and a REEXAMINATION POOR STRATEGIC LEADERSHIP.
Bill Rothschild, GE ALUMNUS, STOCKHOLDER AND SUPPORTER..AND AUTHOR of the ONLY COMPLETE AND OBJECTIVE ASSESSMENT OF GE SUCCESSES AND FAILURES..THE SECRET TO GE's SUCCESS..
PS This poor management practices are completely INCONSISTENT WITH THE REASONS THAT GE HAS BEEN SUCCESSFUL..and needs to be changed.
Friday, February 12, 2010
Immelt and Paulson
Jeff Immelt decided to play a major role in helping the United States cope with its economic issues and problems. First he joined the New York Federal Reserve and now participates in the OBAMA economic counsel. He is a friend of Paulson and obviously had conversations with Paulson before the "economic crisis".
Unfortunately, when you play a role in public arenas you are subject to being criticized and even challenged. This is happening with Paulson's assertion that Immelt called him before the crisis and told him that GE was having trouble selling its commercial paper. Paulson asserts that this added to his panic since he believed that if GE was having problems others may also be having similar problems.
Immelt disclaims this conversation and said he didn't talk about commercial paper problems.
Immelt's participation is government affairs is consistent with GE's history. Gerard Swope the President from 1922-33 was very involved with both Hoover and Roosevelt and the architect of National Recovery Act and Social Security, his co-leader Owen Young headed up the plan to help Germany recover from its war debts and a candidate for the Democratic Presidential nomination.
Cordiner and his team were involved in fighting the increasing power of BIG GOVERNMENT and BIG LABOR. GE taught Ronald Reagan many of the principles of being a conservative, which he used in his presidential tenure.
These leaders also had to take the heat of the controversies they took part in. As Harry Truman said "if you can't stand the heat, get out of the kitchen" and "the buck stops here".
To learn more about GE's willingness to be "Politically Incorrect" read the entire strategic history in my book: THE SECRET TO GE's SUCCESS- available in paper back on Amazon and in six languages, as well as KINDLE and on audio.
Unfortunately, when you play a role in public arenas you are subject to being criticized and even challenged. This is happening with Paulson's assertion that Immelt called him before the crisis and told him that GE was having trouble selling its commercial paper. Paulson asserts that this added to his panic since he believed that if GE was having problems others may also be having similar problems.
Immelt disclaims this conversation and said he didn't talk about commercial paper problems.
Immelt's participation is government affairs is consistent with GE's history. Gerard Swope the President from 1922-33 was very involved with both Hoover and Roosevelt and the architect of National Recovery Act and Social Security, his co-leader Owen Young headed up the plan to help Germany recover from its war debts and a candidate for the Democratic Presidential nomination.
Cordiner and his team were involved in fighting the increasing power of BIG GOVERNMENT and BIG LABOR. GE taught Ronald Reagan many of the principles of being a conservative, which he used in his presidential tenure.
These leaders also had to take the heat of the controversies they took part in. As Harry Truman said "if you can't stand the heat, get out of the kitchen" and "the buck stops here".
To learn more about GE's willingness to be "Politically Incorrect" read the entire strategic history in my book: THE SECRET TO GE's SUCCESS- available in paper back on Amazon and in six languages, as well as KINDLE and on audio.
Saturday, January 30, 2010
CONGRATULATIONS JEFF IMMELT- CREATING REAL JOBS
Jeff Immelt is one of the few, if only U.S. CEO, that is creating REAL, long term professional jobs. He has invested in two facilities in the Schenectady, NY, the original home and headquarters of GE, which has declined dramatically over the past three decades. Jeff recognizes that this area is a good place to live, has excellent Universities, (RPI, Union, SUNY to name a few) and that you can hire loyal quality professionals and workers at a reasonable, competitive salary.
Jeff recognizes that investing in the United States makes great business, economic and political sense.
THANKS JEFF!!!
Bill Rothschild, author of the only comprehensive, objective assessment of GE's 127 year history, THE SECRET TO GE's SUCCESS, now in seven countries and on KINDLE.
Jeff recognizes that investing in the United States makes great business, economic and political sense.
THANKS JEFF!!!
Bill Rothschild, author of the only comprehensive, objective assessment of GE's 127 year history, THE SECRET TO GE's SUCCESS, now in seven countries and on KINDLE.
Saturday, January 23, 2010
Creating and Meeting Expectations
During my entire career I have stressed the need to create realistic expectations and then meet them consistently. In fact, I have counselled my clients to create "low expectations and exceed them, rather than high expectations and fail.
This has been proven with the GE results and the market response. Immelt and his team was able to "beat expectations" and GE stock did much better than the market.
In my book THE SECRET TO GE's SUCCESS, I expressed concern about what Immelt was promising, namely to grow 8% per year organically. I said it was not likely to happen.
This is what I wrote:
" Creating and Meeting High Expectations!
Welch created very high levels of expectations and Immelt, as we just said, has achieved excellent results. The issue is whether Immelt has created such high expectations and many don’t believe they are realistic and can be achieved.
Of course, I’d like to be able to stop here, and predict that Immelt will reign successfully for another 15 years, and that when he retires, he will be lauded to the same degree as his predecessor.
But my professional training and experience inclines me to try and sniff out the kinds of potential problems that might get in the way of that kind of success. What follows, therefore, are some of my four major long-term strategic concerns.
Ability to “Go BIG”
It is clear that Immelt continues to assert that GE can grow at an 8% compounded organic growth. He has even created a new process that he believes will enable the company to achieve these unprecedented results.
In the Harvard Business Review interview Immelt says that he recognizes the challenge and points out that the company achieved this growth in 2005 and will do so again in 2006.
He 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.
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! "
This has been proven with the GE results and the market response. Immelt and his team was able to "beat expectations" and GE stock did much better than the market.
In my book THE SECRET TO GE's SUCCESS, I expressed concern about what Immelt was promising, namely to grow 8% per year organically. I said it was not likely to happen.
This is what I wrote:
" Creating and Meeting High Expectations!
Welch created very high levels of expectations and Immelt, as we just said, has achieved excellent results. The issue is whether Immelt has created such high expectations and many don’t believe they are realistic and can be achieved.
Of course, I’d like to be able to stop here, and predict that Immelt will reign successfully for another 15 years, and that when he retires, he will be lauded to the same degree as his predecessor.
But my professional training and experience inclines me to try and sniff out the kinds of potential problems that might get in the way of that kind of success. What follows, therefore, are some of my four major long-term strategic concerns.
Ability to “Go BIG”
It is clear that Immelt continues to assert that GE can grow at an 8% compounded organic growth. He has even created a new process that he believes will enable the company to achieve these unprecedented results.
In the Harvard Business Review interview Immelt says that he recognizes the challenge and points out that the company achieved this growth in 2005 and will do so again in 2006.
He 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.
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! "
Bill Rothschild, author of RISKTAKER, CARETAKER, SURGEON, UNDERTAKER- the four faces of strategic leadership.
Friday, January 22, 2010
Marty HOLLERAN..a remarkable story about a GE alumni
Extraordinary Measures is inspired by the true story of John Crowley, a man who defied conventional wisdom and risked his family’s future to pursue a cure for his children’s life-threatening disease. Supported by his beautiful wife Aileen (Keri Russell) and their three children, John Crowley (Brendan Fraser) was on the fast track. But just as his career was taking off, Crowley walked away from it all when his two youngest children, Megan and Patrick, were diagnosed with a fatal disease. With Aileen by his side, harnessing all of his skill and determination, Crowley teamed up with a brilliant but unappreciated scientist, Dr. Robert Stonehill (Harrison Ford) to save the children.
The part of the story you might not know is that Aileen Crowley is the daughter of Martin Holleran, a former GE officer. Martin Holleran’s career began with General Electric in 1966, and led to numerous executive positions which culminated, in 1986, in his election to Vice President – Sales and Distribution for the GE/RCA Consumer Electronics Business which was ultimately sold to Thomson in 1988. Martin’s son, Marty J. Holleran III, was an Area Sales Manager for GE Appliances for two years, a GE Repairman for three years, and interned at GE for two years. He is currently President and CEO of GFR Consulting.
“We’re a second generation GE Family,” said Marty on the LinkedIn GE Alumni group, “and thought our Alumni friends would like to check out this powerful story!”
I remember Marty when he was part of the Corporate Consulting family. He is a graduate of University of Scranton, a Jesuit college.
The part of the story you might not know is that Aileen Crowley is the daughter of Martin Holleran, a former GE officer. Martin Holleran’s career began with General Electric in 1966, and led to numerous executive positions which culminated, in 1986, in his election to Vice President – Sales and Distribution for the GE/RCA Consumer Electronics Business which was ultimately sold to Thomson in 1988. Martin’s son, Marty J. Holleran III, was an Area Sales Manager for GE Appliances for two years, a GE Repairman for three years, and interned at GE for two years. He is currently President and CEO of GFR Consulting.
“We’re a second generation GE Family,” said Marty on the LinkedIn GE Alumni group, “and thought our Alumni friends would like to check out this powerful story!”
I remember Marty when he was part of the Corporate Consulting family. He is a graduate of University of Scranton, a Jesuit college.
Subscribe to:
Posts (Atom)