Growth as a process (interview with GE’s Jeffrey Immelt)

Growth as a process (interview with GE’s Jeffrey Immelt)

Harvard Business Review, June 2006, Vol. 84 No. 6, Start Page: 60, No. of pages: 10

Purpose – To present an interview with Jeffrey Immelt, chief executive of General Electric. Design/methodology/approach – Explains how Immelt’s approach differs from that of his predecessor, Jack Welch, who combined bottom-line discipline with growth through geographical expansion and acquisition. Notes that GE’s stated aim is now to grow organically at two to three times the rate of world GDP. Explains why Immelt is seeking to move GE from a culture of productivity to a culture of organic growth and what effect such a move can be expected to have on the company’s income statement and balance sheet. Reproduces a diagram used by GE’s leaders to explain how specific initiatives fit into a larger organic growth process, linking “great technology”; innovation; customers; growth leaders (people who know how to help customers and GE grow); globalization; and commercial excellence. Considers the reasons why organic growth has been cast as a process challenge at GE and why one of Immelt’s first actions as CEO was to invest a billion dollars in R&D. Provides summaries of the key initiatives used at General Electric to generate productivity and the additional tools that have been added to help the company achieve its organic growth objectives. Comments on the growth traits that have been identified for all of GE’s leaders, the ways in which the company measures its success and the CEO’s perspective on the development of the business. Originality/value – An insight into the workings of a widely admired company.ISSN: 0017-8012Reference: 35AP223

Keywords: Corporate strategy, Management techniques, Organizational performance