GE's post 2k move

Cultivate Big Ideas

Neither respected management skills nor the company’s ability to make acquisitions is enough to lead the gargantuan companies like GE sail throughout its next century of business. One can be Six Sigma. Once can do great delivery. One can be great in China. One can do everything else well, but if one doesn’t have a good product, sale is not going to be much.

So, GE came out with the concept "Fund Product Leadership".

The concept emanates from Immelt’s initiative of organic growth, the concept of business expansion relating to increased output and sales from within without relying upon mergers and acquisitions. GE built an on-site lodge for visitors and expanded conference and research facilities which were dated and unable to serve large company gatherings. He also funded global research expansion, boosting centres around the world in places like Shanghai, Bangalore and Munich. HE put a seasoned business executive in charge who values technology but also understands the intricacies of a balance sheet and profit and loss statement. Then he placed on management a burden equal to the burden inside the company which has long existed on making quarterly and annual profit targets. Ideas are no more a bonus but demand from the management.

Immelt participates in the imagination breakthroughs directly, with half a dozen or more reaching his desk each month since the program began. He asks a few questions with respect to the idea, among which these three typically lead the list:-

·         What is the biggest internal barrier you face?

·         What is the biggest external barrier you face?

·         What is the revenue flow?

Invest in Innovation

New belief - "Cross Cultural Cross Functional Teamwork"

By bringing in leaders from different companies and organizations to see technologies, GE obtains multiple benefits. A finding originally investigated in one area can be parlayed into another. This is done at Session T sessions held at Global Research Centre.

Market Place Need -> Technical Need -> Brainstorm

Keys to fostering innovation:-

·         Prepare the organization to innovate

·         Pick the right places to innovate

·         Make innovation pay for innovation

Ecomagination

GE’s green business plan is a very calculated public relations and profit proposition bundled under the trade name Ecomagination. Five primary commitments in the business initiative are:-

·         Increase revenues through ecomagination products

·         Double investment in research and development for cleaner technologies

·         Reduce greenhouse gas emissions and improve overall company energy efficiency

·         Reduce water use and improve water reuse

·         Keep the public informed

Under GE’s ecomagination operating rhythm, the chairman’s office – Immelt- has direct oversight of the projects running under this umbrella. Some breakthrough products in this are organic light emitting diodes (OLEDs) and the electrical smart grid infrastructure.