GE`s Jeff Immelt: The Voyage from MBA to CEO

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MM6015  Business Leadership 

GE`s Jeff Immelt: The Voyage from MBA to CEO Leadership Lessons GROUP 1 Executive 46 Haidir Afesina Ace Johara Yudho Jatmiko Meilina

Profile

+ GE`s CEO in 2001

MBA in 1982

“world’s best CEOs”

the brightest during initial traineeship period

GE as a $165 billion growth company under his leadership 25 days a year on succession planning and cultivating future GE leaders

a customer oriented Listen to his customer regularly (at least five days a month)

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Company

GE`s Growth process

Five Necessary leadership trait:   Create an external focus that defined success in market terms   Be clear thinkers who can simplify strategy into specific action, make decision, communicate priority   Have imaginations and encourage to take risks on people and idea   Energize team through inclusiveness and connection with people, building both loyalty and commitment   Develop expertise in a function or domain, using depth as a source of confident to drive change

Greatest Challenge

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Promoted as a CEO 4 days after terrorist attack (WTC, New York)

Continue Jack Welch legacy

impacted immediately to the GE`s Business (decrease financial report)

Decreasing Company Stock Price in around $30 in 2001 and still continue decreasing reach $28.78 a year after 9/11/2001(Exhibit 3)

Grow the organization while retaining high standards through leader development and building a strong organizational culture

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Why GE could sustain till now?   Excellence Talent   Heavily    

Management

invest in management Development

Stimulate innovation Broad diversification into new business such as nuclear power, computer, and plastic

  GE

: Develop people, evaluate them, and Act on the result

+ Why Coffin & Welch Become Legend?   Welch    

Leadership style

Act like a leader, not a manager Building the market – leading company  

Driving business no 1 or 2 in their industires or face being sold or closed

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Radical restructuring

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Forging the boundaryless organization Harnessing your people for competing advantage

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Drive quality throughout the organization

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+ Why Coffin & Welch Become Legend?   Coffin        

Leadership Style

Build a foundation of GE Culture “ CEO Factory” Executive development policies and practice Build principle organization design for large company Create organization based on function

Lesson Learn “ Immelt”

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Remake GE business, process, and leadership

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Leveraging human capital growth

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Investment on new business, focused R&D

People oriented

 Managing diversity  Managing the energy and life of the people to drives the growth  Putting the right people on the right position  Good listener

Action oriented

 In GE he strongly wanted to get results  Going extra mile in order to meet budget objectives

Pillar jobs, coaching, developing and supporting younger leaders

Leadership culture

 Competitive strategy (visionary)  Idea is power (encouraging other people)  Business acumen (know what business will be in future, forecast)