Scribd
Upload
2K views9 pages

GE Case Analysis

Welch took charge of GE in 1981 and faced the challenge of transforming the large, complex conglomerate. He initiated wide-ranging changes to GE's strategy, structure, and systems. This included streamlining operations, selling or closing unprofitable business units, delayering management, and reducing the workforce by over 100,000 employees. Welch shifted GE's culture to focus on growth, simplicity, and self-confidence. He developed new processes, roles, and relationships to leverage productivity and push growth through globalization. Welch transformed GE's management philosophy beyond just strategy and structure to prioritize purpose, processes, and developing people. He conceptualized the organization not just as an economic entity but also a social institution.

Uploaded by

ram_90000
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
2K views9 pages

GE Case Analysis

Welch took charge of GE in 1981 and faced the challenge of transforming the large, complex conglomerate. He initiated wide-ranging changes to GE's strategy, structure, and systems. This included streamlining operations, selling or closing unprofitable business units, delayering management, and reducing the workforce by over 100,000 employees. Welch shifted GE's culture to focus on growth, simplicity, and self-confidence. He developed new processes, roles, and relationships to leverage productivity and push growth through globalization. Welch transformed GE's management philosophy beyond just strategy and structure to prioritize purpose, processes, and developing people. He conceptualized the organization not just as an economic entity but also a social institution.

Uploaded by

ram_90000
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 9

GE Transformation Case

Key Questions for Case Analysis


What was Welch’s challenge in
1981? How effectively did he take
charge?
How does such a large, complex
conglomerate defy critics and
continue to grow so profitably?
How have Welch’s initiatives
helped?
How do you rate Welch’s change
management initiatives? What are
Layoff Impacts
112,000 x $ 35,000 = $ 3.9
billion per annum
GE’s net profit in 1986 - $ 2.5
billion
Stages of change – Initial years
Strategy Structure Systems
# 1 or # 2: Fix, sell or Delayering Strategic
close Corporate planning:
staff detailed
Organizationa documents
l layers from to 5 page
playbooks
9-4
3 circles: Downsizing Operating
Services: Invest in Eliminate budgets:
people & acquisitions 123,450 Past
Technology: Invest in people @ comparisons
R&D $50,000 to external
standards
Core: Reinvest in Impact $ 6
productivity and billion on
Stages of change – Initial years
Workout People/ Value Added
Leadership
Developing new Changing Adding value at
processes, roles & mindsets & multiple levels
relationships management
style
-leverage productivity Commitment to -leveraging
Crotonville productivity
-model new roles-
frontline initiative, Co-opt “Session -pushing
C” HR Process
management coaching growth
CEO’s personal through
-operationalise culture role model –
- speed, simplicity, self globalisation
50% on people
confidence issues -building long-
Weed out “Type term capability
4”
Doctrine to philosophy
Strategy-the Purpose-the
company as an company also as a
economic entity social institution
Structure-the Process-the
organisation also as
organisation as a set of roles and
aggregation of tasks relationships
and responsibilities People-recognizing
Systems-managing people as
personnel as organisational assets
controllable costs and embodiers of
and replaceable knowledge
parts
Corporate Transformation
Restructuring tools change the
organizational anatomy : defining the
allocation of assets and distribution of
responsibilities
Reengineering exercises alter the
organizational physiology: developing
the organizational flows and
interpersonal relationships
But the key task is to transform the
organisational psychology: influencing
the behavioural context that frames
individual thought and action
Managing the transformation
process
Rationalization
Discipline
Support

Revitalization
Stretch
Trust

Renewal
The endless circle
Some Key Conclusions
A new management philosophy: beyond
strategy, structure and systems to
purpose, process, and people
A different concept of organisation:
from ‘organisation man’ to
‘individualized corporation’
A changing role for managers: beyond
allocators, controllers, and
implementers to leaders, developers,
and entrepreneurs

You might also like