全球最知名公司成功之道解读之二GE通用电气管理模式

Foundedin1878byThomasAlvaEdisonMergerin1892TheEdisonGeneralElectricCompanyTheThomson-HoustonCompanyOneofthe12stocksthatmadeupthefirstDJIAindexin1896.Inthelistcontinuouslysince1907TheHeritage美国通用电气公司的战略管理模式（GE）Today’sBasics…Revenue:$125.7BDomestic:Foreign~2:1NetIncome$13.7BMarketCapitalization:~$244BEmployees:~310,00013majorbusinessesMorethan100countries…CompareandContrast’81TodayRevenue$27.2B$125.7BEarnings$1.7B$13.7BMarketValue$13B$244BBusinesses4313Employees404,000310,000TheThreeFamiliesLong-CycleBusinessesGEShort-CycleBusinessesFinancialServicesLong-CycleBusinessesLong-CycleBusinessesAircraftEnginesPowerSystemsMedicalSystemsTransportationSystemsShort-CycleBusinessesShort-CycleBusinessesConsumerAppliancesIndustrialSystemsSpecialtyMaterialsNBCPlasticsFinancialServicesFinancialServicesCommercialFinanceConsumerFinanceEquipmentManagementInsuranceBusinessASummaryofBusinessFinancesTheShareofthePie…TheShareofthePie……TheEra:HowtheMarketValueditCompare&ContrastwithPre-WelchEraFromFollowingtheEconomy………ToSettingthePaceTheTurnaroundHowdidtheydoit?SWOTVisionRestructuringGrowthEngineSustainingCompetitiveadvantageDynamicPerspectiveSWOT:1981StrengthsWeakness4blocksSixSigmaInertiaBestpracticesLeadershipBoundarylessnessValuesStrategicModelFront-endFocusDigitizationBPOandchangeJackWelch’’svisionBenumber1or2(Fix,sellorclose)Welchsetthestandardforeachbusinesstobecomethe#1or#2competitorinitsindustry“Adecadefromnow,IwouldlikeGeneralElectrictobeperceivedasaunique,high-spirited,entrepreneurialenterprise...themostprofitable,highlydiversifiedcompanyonearth,withworldqualityleadershipineveryoneofitsproductlines”SWOTVisionRestructuringGrowthEngineSustainingCompetitiveadvantageDynamicPerspectiveSWOT:1981StrengthsWeakness4blocksSixSigmaInertiaBestpracticesLeadershipBoundarylessnessValuesStrategicModelFront-endFocusDigitizationBPOandchangeSWOTVisionRestructuringGrowthEngineSustainingCompetitiveadvantageDynamicPerspectiveSWOT:1981StrengthsWeakness4blocksSixSigmaInertiaBestpracticesLeadershipBoundarylessnessValuesStrategicModelFront-endFocusDigitizationBPOandchangeStrengths

SizeDiversifiedportfolioRelationswiththegovernmentFinancialstrengthWeaknesses

BureaucraticmechanisticorganizationManylayersfromtoptobottomDoingitbythebookinsteadofdoingitrightforthecustomer,employeeorbusinessBusinessesasIslandsuntothemselvesOpportunitiesEmergingmarketsChangingbusinessmodelsThreats

TheJapanesechallengeRecessionaryUSeconomywithhighinterestratesandastrongdollarSWOTanalysisin1981JackWelch’’svisionBenumber1or2(Fix,sellorclose)Welchsetthestandardforeachbusinesstobecomethe#1or#2competitorinitsindustry“Adecadefromnow,IwouldlikeGeneralElectrictobeperceivedasaunique,high-spirited,entrepreneurialenterprise...themostprofitable,highlydiversifiedcompanyonearth,withworldqualityleadershipineveryoneofitsproductlines”SWOTVisionRestructuringGrowthEngineSustainingCompetitiveadvantageDynamicPerspectiveSWOT:1981StrengthsWeakness4blocksSixSigmaInertiaBestpracticesLeadershipBoundarylessnessValuesStrategicModelFront-endFocusDigitizationBPOandchangeBusinessRestructuring……GE-McKinseyMatrixQuestionmarkAppliancesSpecialtyMaterialsWinnerAircraftEnginesPowerSystemsWinnerMedicalSystemsCapitalLoserConsumerElectronicsAverageBusinessPlasticsIndustrialSystemsWinnerTransportationLoserCentralA/CHousewaresCoalminingLoserProfitProducerLightingHighMediumLowLowMediumHighMarketAttractivenessCompetitivePositionReorganizationofbusinessesChangingcompositionofbusinessesBusinessRestructuring…….cont’dToFromFourNineDe-layeringofhierarchicallevelsEvaluatedagainstexternalcompetitionInternalcomparisonswithpastperformanceFocusofBudgetingprocessRealtimeplanningStrategicPlanningprocessPlanningprocessSWOTVisionRestructuringGrowthEngineSustainingCompetitiveadvantageDynamicPerspectiveSWOT:1981StrengthsWeakness4blocksSixSigmaInertiaBestpracticesLeadershipBoundarylessnessValuesStrategicModelFront-endFocusDigitizationBPOandchange

ScientificManagementVsTransformationalleadershipWritingSpeakerCautiousAggressiveHarmonyConfrontationalSystemorientedIndividualorientedIntegrationthrucommitteesThruProcessesReliesonReportsOnemployeefeedbackAvoideduncertaintyAccepteditControlledchangeReveledinchangeReginaldJonesJackWelchPath-breakingLeadershipofGEGroomingagenerationofleadersTypeIIIGotridoffquicklyTypeIStarTypeIIGivenanotherchanceTypeIVAskedtoleaveLowHighHighLowTeamValuesPerformanceLeadersofthefutureThe4EsEnergy-excitedbyideasbecauseoftheopportunitybringsEnergize-infectingeveryonewiththesameenthusiasmforanideaEdge-theabilitytomaketoughdecisionsExecute-theabilitytoturnvisionintoresults“Work-out”wasaprocessinitiatedbyJackWelchandJamesBaughmantoaddresstheissueofincreasingproductivitybychangingthein-houseculturetoreflectthatofansmallfirm,characterizedbySpeedSimplicitySelfConfidence“Work-out”Self-ConfidenceSimplicitySpeedOrganizationalRestructuring-““Work-out”Culturein1980’’sFinetunedFinancialAnalysisLongStrategicDeliberationsCentralizedControlsMultilevelApprovalsCultureinlate1980’’s––1990’sSpeedSimplicitySelfConfidenceWork-outProcessTransformationofcultureatGEtosustaingrowth&productivityOrganizationalRestructure––““Work-out””Implementationofatypicalin-house““workout”·ConsultantassignedtoeachGEbusinesstofacilitate3-dayoff-sites·Groupsof40––100employeesinvitedtoshareviewsabouttheirbusinessandhowitmightbeimproved.·UnitBosspresentschallenge/problemandleavesfacilitatorswithemployeestolistproblems,debatesolutions,andpreparepresentations.·Results(analysisandrecommendations)werepresentedtotheUnitBossonthefinalday.·Immediatedecisions““yes/no””takenontheproposalsbytheUnitBoss.·Deadlinesfixedtoreviewadditionalinformation·Promptactionandfollow-uponproposalsOrganizationalRestructure––“Work-out”Implementationofatypicalin-house““workout””Work-outOrganizationParticipationProblemPresentationEvaluationResultPresentationDecisionAction/FollowupResultsof“Work-out”:1981198819922%productivityannually4%productivityannually“Work-out”ProcessSalientFeaturesof“Work-out”·Culturecharacterizedbyspeed,simplicityandself-confidence.·Ideassolicitedfromeveryone,everywhere·Noboundariescreatedbyorganizationalhierarchy.·Nodocumentation·Focusonturningtalkintoaction.·Focusonaddressingrealproblemsandsolutions·Nofunctionalspecializationandhierarchicalpowerdifferencesinhibitingflowsandimplementationofaction.·Promptactioninformationregardlessofthesource.·Closingtheloop-FollowingupondecisionsandlearningbydoingOrganizationalRestructure––“Work-out”DomesticOperationForeignOperationGE:BoundrylessOrganizationEngineeringManufacturingMarketingSalesCustomerServiceTraditionalStructureGeographicallySegmentedBoundbyFunctionalbarriersNoideasharingLabeldependentBoundrylessStructureGE:ASeamlessOrganizationIntegratedApproach–NoFunctionalBarriersBonusandoptionslinkedtoideageneration&sharingNoLabeldependenceOrganizationalRestructure-BoundrylessBehaviorWorkoutsBoundrylessBehaviorOrganizationalChangeleadingtoSuperiorCustomerResponsivenessDifferentiatingFactorValueCreationCompetitiveAdvantageOrganizationalchangecompetitiveadvantageOrganizationalRestructureSWOTVisionRestructuringGrowthEngineSustainingCompetitiveadvantageDynamicPerspectiveSWOT:1981StrengthsWeakness4blocksSixSigmaInertiaBestpracticesLeadershipBoundarylessnessValuesStrategicModelFront-endFocusDigitizationBPOandchangeMarketsGrowthEnginePresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarketExpansionPresentNewProductsAcquisitionGlobalizationMarketsGrowthEnginePresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarketExpansionPresentNewProductsAcquisitionGlobalizationMarketsGrowthEnginePresentNewPresentNewFourPillarsProduct/serviceExtensionDiversificationMarketExpansionPresentNewProductsAcquisitionGlobalizationFocusonbuildingblocksofcompetitiveadvantageQualityInnovationCustomerResponsivenessEfficiencyMarketPenetrationMarketPenetrationMarketPenetrationCoreBusinessHighTechnologyServicesInvestinimprovingQuality&EfficiencystayontheleadingedgebyinvestinginR&DAchievesuperiorcustomerresponsivenessThreeCircleConcept:threeparallelapproachesGE’sforayintotheServicesIndustrywas2-prongedTooffsetthedependenceofGEonitsindustrialproductswithinitsexistingmarketandhelpitsbusinessesreachthe#1position.Tocountertheslumpinthedemandforexistingproductsbyprovidingvalue-addedservicesBenefits:HugegrowthpotentialforGEandResultinincreasedrevenuethroughvalue-addedservices.e.g.:ServicebasedtechnologiessuchasrealtimemonitoringcapabilitiesdevelopedbyGE’’sMedicalSystemstobetransferredtotherealtimemonitoringofAircraftEnginesandPowerBusinessUnits.Product/ServiceExtensionsServiceExtensionsinexistingmarketswererealizedbyacquisitionssuchas$1.5billionjetengineservicebusiness$600millionpurchaseofaglobalpowergenerationequipmentservicecompanyServiceExtensions:RevenueGrowthMarketExpansion(Globalization)Why?-6%Vs12%-Cost&QualityAdvantage-IntellectualCapitalDiversificationCreatingvaluebyDecreasingoverallportfoliorisk.–longcycle&shortcyclebusinessesSuperiorInternalGovernanceviaMacro-managementTransferringcompetencies–boundarylessbehaviorEconomiesofscopeAbalancingactBureau-cracyValueDestroyingvaluebybloatedbureaucracyInformationoverloadLackofCoordinationHow?Smartbombing:ThinkGlobalActLocal-DevelopedGlobalMarkets-EmergingGlobalMarketsFactorEndowmentsIntensityofRivalryLocalDemandConditionsCompetitivenessNationalCompetitiveAdvantageIssues:Porter’sDiamondMarketExpansion(Globalization)GlobalizationforMarketexpansionanddiversificationProduct/ServiceExtension&Diversification:AcquisitionsWhy?-Quickerwaytoachievesignificantgrowth-Lesseruncertainty-Highbarrierstoentry(maturebusinesses)Industrial/NBCFinancialServicesa)#Deals 345256 101 108 134 95 TBDa)FinancialServicesDataincludes(cash,debt,stock)AssetPortfolioDealsb)TotalConsiderationTransactionValueb)ACQUISITIONSCRITICALTOGE’SGROWTH...AcquisitionsSWOTVisionRestructuringGrowthEngineSustainingCompetitiveadvantageDynamicPerspectiveSWOT:1981StrengthsWeakness4blocksSixSigmaInertiaBestpracticesLeadershipBoundarylessnessValuesStrategicModelFront-endFocusDigitizationBPOandchangeQualityFourPillarsContinuousImprovementBestpracticesOvercomeInertiaSustainingCompetitiveAdvantageSixSigmaEvolutionWhatDoesSixSigmaDoForGE?1995PRODUCTIVITY1997PRODUCTDESIGN1998@THECUSTOMER1999FULFILLMENT2000DIGITIZATIONEvolutioninGEDrivesCustomerCentricityImprovesProduct/ServiceCapabilityReducesCostsImprovesPerformanceReliabilityFoundationfore-Business/Digitization$600$500$450$380$200$2500$1200$700$170CostBenefit1996CostBenefit1997CostBenefit1998CostBenefit1999CostBenefit20006SigmaCost6SigmaProductivityDelightingCustomersResultsfrom6Sigma$2500$3.0B$0.5B$2.5BHEADSPINECHESTABDOMENPELVISLIVER1minute19seconds9million2minutes15seconds1million3minutes17seconds4million20seconds06seconds6millionExamTimeBeforeExamTimeAfterProceduresperYearGEMSLightSpeedCTScannerAbdomen:liver,spine,kidneyHead:skull,brainImageSpeedsBeforeAfterProductsfrom6SigmaBenchmarking&BestPracticesharingBenchmarkingFirstcarriedoutin1988,againstFord,HewlettPackard,Xerox,andToshibaononlyproductivitydimensionsCurrently,usedfortarget-settingforallprocessesandfunctionsConductedusing‘PEERnext’andeOPTIMISsoftwaretoolsBestPracticessharingSixSigmatrackerforeachbusinessandSixSigmacafe’’acrossGEAdoptionofBestPracticesinstitutionalizedvia‘CopyCat’AwardAggressivelydrivenbyGEOperatingsystemOvercominginertiaTransitionStateCurrentStateImprovedStateMonitoringprogressMakingchangelastMobilizingcommitmentShapingavisionCreatingasharedneedSWOTVisionRestructuringGrowthEngineSustainingCompetitiveadvantageDynamicPerspectiveSWOT:1981StrengthsWeakness4blocksSixSigmaInertiaBestpracticesLeadershipBoundarylessnessValuesStrategicModelFront-endFocusDigitizationBPOandchangeBusinessProcessOutsourcingBenefitsofOutsourcingProvideCapacityCreateStrategicAdvantageMovetoVariableCostBetterProcessDeliveryRemoteprocessingofBack-endoperationsLeveragestheintellectualtalentandprocessingcostdifferentialofdevelopingcountriesEg.UnderwritingprocessforGEcreditcards,Mortgage,SFGetc.foranycustomerinUSAandEuropetakeplaceinDelhi,India.DigitizationistransformingeverythingGEdoes;AutomatingworkflowandleveragingtheinternetiscrucialtothefuturesuccessofGEMakingGEfaster,leanerandsmarterevenasGEbecomebigger.Results:$7billionworthofgoodsandservicesweresoldoverthenetin2000.$6billionwas

conductedononlineauctions~$1.5billiongeneratedbyGEinoperatingmarginimprovementsin2001E-business/DigitizationThisisthequoteoftheday...fromJeff'sanalystmeetingafterSep11th2001``GEisbuilttooutperform,''saidImmelt,whoalsopredicteddouble-digitgrowthin2002.``Iwaschairmanfortwodays,andthenIhadjetswithmyengineshitabuildingIinsuredwhichwascoveredbyanetworkIowned,andwestillgrew(2001)earningsby11percent.Ithinkwe'reinprettygoodshape.''AppendixGEE-BusinessInternetStrategiesStrategyDefinitionWhatisit?ExamplesVisualDisintermediationAggregationCommunityPortalPermeatetheCustomer’sSpaceCustomer-SpecifiedProductsandTermseee$$DynamicPricingeeTakeoverorremembercustomer’’sdataandremembertheirprocessesorpreferencesGetbetweenthebuyerandsellerCreateacommunityofbuyersandsellersTakeouttheMiddleManLetthecustomerintodesigndataandprocessesCreateaMarketGEAppliancesPurchasingappliancesonlineisavailableforcustomersalongwithsparesandaccessoriesDirectSellingProvideabroadrangeofproductinformationGELightingDetailedandvisualproductinformationcategorizedforhome,businessorautomotiveuseGESupplyCreatesnetworkforcommunicationbetweenallsuppliersProvideproductsandservicestomembersRememberthecustomerspreferences,paymentmethods,recentpurchases,etc.GEFinancialNetworkProvidesOnlineinsuranceQuotesandpaymentfacility.Also,updatescustomersofnewoffersCustomerdesigns/configurestheirownproductGELightingThereissoftwaretodownloadthathelpsdecidetheperfectlightAuctionsGEXchangeElectronicExchangethatallowscustomerstonametheirownpricesCo-MarketingRelationshipsServicePartnershipExtendserviceintothecustomer’’sorganizationSharecustomerstocreateamorecompellingproductGEMedicalSystemsOtherconsumableDiagnosticproductsofsupplierscanbepurchasedalongwithCTscansparesDirectSellingandAdvertisingeeEnsuringthatthecustomerneedsaremetGEAircraftEngineswouldkeepaninventoryofengine’sinstocktomeetrequire-mentsandneeds.Equity/Warrants:GEistryingtosecureeitherequityorwarrantsfromallthevendorsthatitisworkingwithtodevelopit’’se-businessstrategiesE-businessVendorGoals:Securevaluablerevenues(internetcompaniestradeatsalesmultiples)GetinstantaneouscredibilitywithmarketplacethroughGEreference/endorsementGEBusinessesGoals:Recoverconsulting/licensecostsBroadenpartneringrelationshipsSecureequityupsideopportunitywithhighgrowth,emerginge-businesscompaniesGEEquityGoals:PutmoneytoworkandmaximizeROISupportGEbusinessesbyinvestinginstrategiccompaniesEquity:thedirectownershipinacompanyMutuallybeneficialrelationship:Warrant:aninstrumentthatgivestheholdertherighttoacquireacertainnumberofsharesofthecapitalstockofacompanyonorbeforeacertaindateforacertainpriceGEE-BusinessInternetStrategiesServiceExtensions:RevenueGrowthInnovationObjectiveapproachtowardsthecustomerLookfortechnologyplatformsCreategamechangingtechnologies-remotediagnosticscapabilitySolveGE’scrticaltechnicalchallenges––LowNoxemmissionsSharetechnologiesacrossbusinessesSourcetechnologyworldwideDeveloptechnicalhumanresourceForexample,GEresearchersdevelopedductiletungsten,manynewtypesofengineeringplastics,man-madediamond,andmajorimprovementsincomputedtomographyandmagneticresonanceimaging.GE90engine-theworld'smostpowerful,efficientandquietengine.Oneofthemajortechnologyadvancesinvolvedinthisprogramisacompositefanblademadeofapolymer-basedmaterialthatistwiceasstrongassteelathalftheweight.1997Performix™X-rayTube1998LightSpeed™CTSmallMotorproductsUltem1285Spectra™GasRange1999Spectra™ElectricRangeAdvantium™SpeedOven

TritonDishwasher

CeramicMetalHalideLamps

T5FluorescentLampSignaOpenSpeed™MROQ1050CforCompactDisc

AC6000Locomotive2000orlaterNewDesigns5000ProjectsfocusedonNew6SigmaTechnology&NewProcessestotheGEBusinessesAllofGEProductsDesignedforSixSigmaProductsfrom6SigmaCustomerIssueAssemblyLineEfficiencyCustomerResultsOutputfrom450è800Units/DayWIPê85%$1MMCostOutFloorCareManufacturer– PlasticsAirlines

– EnginesBuilders

– AppliancesHospitals

– MedicalRetailers– Lighting– AppliancesOEMs– Vendor– CEFUtilities– PowerSys.– IndustrialSys.SixSigma@theCustomerSixSigmaApproachidentifiesFactorsimpactingWorkFlowGEResults2MMlb.ShareShift$1.5MMGrowthProgramEfficiencyVariationfromRequest2/99 10/99 Today 17Days4Days2DaysGESilicones-DeliverytoRequestCustomerResponsivenessSalesDoubleDigitVolumeGrowthInternetWebSalesBoomingSalesForceMoreTimetoSellvs.ChasingOrderStatusOpMarginUp20+%CustomerPowerPlantEquipmentavailability'98Baseline2Q'993Q'994Q'992000On-timeReliabilitygivesCustomer45daysmoreElectricitySalesGEPowerSystems-OEECustomers’RevenueImpactedByVariation30231450Days5DaysQuality45DayVariationReductionSizeofcirclecorrespondstonumberofqualifiedworkersavailableCapabilitiesofworkersForeignlanguages(PrimarilyEnglish)Qualityofwork&workethicCostdifferentialLocationAttractivenessInfrastructureCommunicationBasicInfrastructureCountryrisks&FDIIncentivesAttractiveIncentivesPoliticalenvironmentTimeZoneattractivenessSingaporeHongkongChinaHollandIrelandAustraliaUKIndiaPhilippinesMexicoHighHighLowLowMigrationStrategySelectOrganizationToBenchmarkPrepareForTheVisit