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.
Friday, February 12, 2010
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.
Lessons for the past...we are a REPUBLIC and not a DEMOCRACY.
Moving ahead...
Over the past few days we have witnessed a major, but quiet, revolution and a reaffirmation of the strong foundation of our US Republic. The Obama administration learned that the US was not a nation of "serfs" and peasants who would follow the whims of a pretend leader... it showed that would speak out against any attempts to move the country into a "redistribution of wealth"/ socialistic and communistic state.
Scott Brown has become a celebrity because he said that "my constituents don't want SOCIALIZED medicine, because we already have a similiar system and I will fight to prevent it" This demonstrated that we are not a DEMOCRACY, but a REPUBLIC and each state has power.
The major impact was not stopping the SOCIALIST movement but just a reminder that it is not easy to REVOLUTIONIZE our country but it will take EVOLUTIONARY change.
Another major result is real, good and predictable jobs.
The U.S. MUST RECLAIM ITS MANUFACTURING leadership and provide manufacturing jobs.. I liked OBAMA idea he expressed in his campaign... TAX those who export jobs and give the FUNDS to those who create GOOD US JOBS.
I want to congratulate JEFF IMMELT for taking the leadership role in creating new manufacturing and R&D jobs in the United States...now we need to get the rest of the Fortune 500 to do the same. This combined with investing in new venture businesses will help restore the American Dream and provide the security we have enjoyed since WWII.
Keep tuned for new insights in strategic thinking that matters and restores management to THINKING IN THE BOX and NOT JUST DREAMING OUT OF THE BOX...
Bill Rothschild, author of THE SECRET TO GE's SUCCESS and RISKTAKER, CARETAKER, SURGEON AND UNDERTAKER..the four faces of Strategic Leadership.
Over the past few days we have witnessed a major, but quiet, revolution and a reaffirmation of the strong foundation of our US Republic. The Obama administration learned that the US was not a nation of "serfs" and peasants who would follow the whims of a pretend leader... it showed that would speak out against any attempts to move the country into a "redistribution of wealth"/ socialistic and communistic state.
Scott Brown has become a celebrity because he said that "my constituents don't want SOCIALIZED medicine, because we already have a similiar system and I will fight to prevent it" This demonstrated that we are not a DEMOCRACY, but a REPUBLIC and each state has power.
The major impact was not stopping the SOCIALIST movement but just a reminder that it is not easy to REVOLUTIONIZE our country but it will take EVOLUTIONARY change.
Another major result is real, good and predictable jobs.
The U.S. MUST RECLAIM ITS MANUFACTURING leadership and provide manufacturing jobs.. I liked OBAMA idea he expressed in his campaign... TAX those who export jobs and give the FUNDS to those who create GOOD US JOBS.
I want to congratulate JEFF IMMELT for taking the leadership role in creating new manufacturing and R&D jobs in the United States...now we need to get the rest of the Fortune 500 to do the same. This combined with investing in new venture businesses will help restore the American Dream and provide the security we have enjoyed since WWII.
Keep tuned for new insights in strategic thinking that matters and restores management to THINKING IN THE BOX and NOT JUST DREAMING OUT OF THE BOX...
Bill Rothschild, author of THE SECRET TO GE's SUCCESS and RISKTAKER, CARETAKER, SURGEON AND UNDERTAKER..the four faces of Strategic Leadership.
Tuesday, January 19, 2010
The NBC/UNIVERSAL ZUCKER FIASCO...is beyond belief
The NBC/UNIVERSAL--ZUCKER FIASCO...is beyond belief
I have spent my last forty years either as a GE Executive or as a proud GE investor and lover...but the current ZUCKER fiasco is well beyond my pride and love for GE...
GE prided itself as a PROFESSIONALLY LED company and was very clear that it expected its leaders to be WINNERS... Jeff Zucker has failed in everything he has done and is still in his job... he permitted the NBC network to become a poor #5, continued to invest in losers and now is a complete embarrassment with the LENO/ OBRIEN open war...
ONLY he and is leader, JEFF IMMELT can claim responsibility for this FAILURE.. in my book THE SECRET TO GE's SUCCESS..I identified that NBC/UNIVERSAL wa being HARVESTED and needed to be changed or exited.
The fiasco started before ZUCKER...BUT like OBAMA, he has only made things worse..
Jeff IMMELT...what are you doing?
Bill Rothschild.. author of the ONLY objective assessment of GE's successes and failures...now in SIX translations
I have spent my last forty years either as a GE Executive or as a proud GE investor and lover...but the current ZUCKER fiasco is well beyond my pride and love for GE...
GE prided itself as a PROFESSIONALLY LED company and was very clear that it expected its leaders to be WINNERS... Jeff Zucker has failed in everything he has done and is still in his job... he permitted the NBC network to become a poor #5, continued to invest in losers and now is a complete embarrassment with the LENO/ OBRIEN open war...
ONLY he and is leader, JEFF IMMELT can claim responsibility for this FAILURE.. in my book THE SECRET TO GE's SUCCESS..I identified that NBC/UNIVERSAL wa being HARVESTED and needed to be changed or exited.
The fiasco started before ZUCKER...BUT like OBAMA, he has only made things worse..
Jeff IMMELT...what are you doing?
Bill Rothschild.. author of the ONLY objective assessment of GE's successes and failures...now in SIX translations
Friday, January 15, 2010
TWO NEW EDITIONS OF THE SECRET TO GE's SUCCESS. McGraw Hill USA will provide an ON-DEMAND, paperback copy of the book. It can be obtained on their site or AMAZON.
TATA- McGraw Hill is publishing an ENGLISH language version of the book for the INDIAN market.
In addition the book is now in SPANISH, JAPANESE, SIMPLIFIED CHINESE, KOREAN and INDONESIAN. A KINDLE edition is also available on the AMAZON site.
Overall, the book has been well received and has had many strong reviews. Bill intends to continually update the book by describing what Immelt and GE has done in the past nine years and how it relates to the company's past successes and failures.
This is the latest review by Robert Morris:
LATIN: The Critically Important Acronym,
No doubt for reasons of convenience, most (if not all) of the most important information about GE is summarized within a series of acronyms. For example, with regard to GE's "4 E's (+P) of Leadership," Jack Welch explained that the four Es represent positive Energy, the ability to Energize others, having an Edge (i.e. the courage to make tough yes-or-no decisions) and Execution (the ability to get the job done). What about P? "Passion!"
The subtitle to William E. Rothschild's brilliant book refers to another acronym, LATIN, that reveals "the secret to GE's success": Leadership as well as Adaptability, Talent, Influence, and Networks.
As Rothschild explains, his material covers GE's successes and failures since 1892 when it was established in New York, the result of a merger of of the Thomson-Houston Company and the Edison General Electric Company. Charles Coffin was GE's first president and Edison, who left the company two years later, initially served as a director. Rothschild describes the five success factors in each stage and provides "an objective assessment of what was done in each realm - both positive and negative."
The material is carefully organized within four sections, each of which covers a specific period throughout GE's history: Part I "Living Better Electrically": 1879-1939 (Chapters 1-4) Part II "Diversification and Decentralization": 1940-1970 (Chapters 5-9) Part III "Portfolio Leadership": 1971-2001 (Chapters 10-13) Part IV: "Back to the Future": 2001-Present (Chapters 14-16) When reading Rothschild's book, it soon becomes obvious that those who led GE determined its priorities and objectives in each of the stages of its development.
For example, Edison's focus was on identifying real problems, finding solutions and commercial applications for them, insisting that everything be patented and copyrighted;
Coffin and Edwin Rice (1892-1921) ensured the success of the merger with a commitment to participative and consultative leadership, and willingly shared authority with associates;
Gerard Swope and then Owen Young (1922-1939) took that commitment "to a higher level by creating ways for managers and employees to contribute to the company's strategies and policies;
Charles Wilson and Philip Reed (1940-1950) were transitional leaders and Wilson "understood the old GE perfectly" but lacked the experience and the temperament to lead "the significantly charged company" after World War Two and voluntarily stepped won;
Ralph Cordiner and Reed (1950-1963) spearheaded GE's decentralized growth with "a new and relatively unproven way," management by objectives (MBO); Fred Borch (1963-1972) continued decentralized management and, when realizing that he had attempted to do too much ("GE can do anything it wants to."), "instituted a radical change in GE, enabling it for the first time to exit or prune products or even entire businesses"; lacking a co-leader following the premature death of his mentor,
"Flip" Philippe, Reginald Jones(1972-1981) created a new "chairman's office," assumed the titles of chairman and CEO, and surrounded himself with those who had diverse personalities and leadership styles;
Jack Welch (1981-2001) accepted Jones's suggestion that he "blow up GE" (i.e. eliminate everyone and everything that did not add substantial value to the company) and did so - in Rothschild's words -- as a "contentious, demanding, celebrity CEO, a surgeon leader," [who was his]own intelligence network"; and finally,
Jeff Immelt (2001-Present) who is more diplomatic "but still tough" and considers people selection and their development especially high priorities as he leads GE through what continues to be a troubled global economy.
By the way, those who have a special interest in GE's current CEO are urged to check out David Magee's recently published book, Jeff Immelt the New GE Way.
Rothschild devotes equal attention to each of the other four success factors (i.e. Adaptability, Talent, Influence, and Networks) during each of the four eras. Readers will also appreciate his skillful use of various devices that cluster key points.
Briefly annotated checklists, for example, such as these: Common characteristics of all GE training programs (Pages 32 and 112), special benefits offered to electric utilities companies to ensure their growth and profitability (Page 92), GE's four-step process to recognize business opportunities (Pages 176-177), the steps Welch took to implement Six Sigma at GE (Page 214), how various CEOs successfully completed major change initiatives (Page 265), and finally, "some GE surprises and what the company did in response" (Pages 269-270).
Other reader-friendly devices include boxed "Exhibits" that also cluster key points such as those that summarize the five ingredients for success for each of the four eras: "Living Better Electrically" (Edison through Swope and Young), Diversification and Decentralization (Wilson...Borch), Portfolio Leadership (Borch...Welch), and "Back to the Future" Strategy (Immelt). Rothschild also provides a "Highlights" section to introduce each of the four Parts and a "Takeaways" section at the conclusion of most chapters.
When concluding his book, William Rothschild acknowledges, "The GE Way doesn't always work consistently at GE; it can't possibly work for any other co many that attempts to embrace it indiscriminately." Rather, he urges those in other companies to "adapt, rather than adopt, the GE approach" that he so brilliantly examines in this book.
Subscribe to:
Posts (Atom)