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    • Tue Nov 18th 16:01 PM
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      Commented on:
      General Electric: Genuine Risk of Collapse?
      This is an interesting analysis and it is clear that GE, like every other company in the world has faults and has been negatively impacted by the current, surprised economic free fall. But it is also important to recognize that GE has many strengths and that over its 127 year history it has been in simular situations. In the 1950's the price scandal caused GE stock to fall and it impacted the CEO succession planning, but it recovered and moved ahead. In the 1960's GE embarked on nine major ventures, five failed, but four prospered and are still major contributors to the company, Again the stock fell, but leadership admitted mistakes and moved ahead. GE stock didn't do well under Jones, even when it was prospering.

      I don't agree with the Immelt GO BIG< GO GLOBAL, Hedgefund approach, but the company is strong is many major sectors, like energy, infrastructure, health care...all of which are going to prosper because of the economic problems and government funding world wide. In addition, Immelt is trying to refocus the Financial service company, but the timing is poor. In short, "all generalizations are wrong...including this generalization" and you must dissect the problem and recognize that there are BOTH good and poor pieces of the portfolio.

      I believe that Immelt is committed and with some luck and refocusing and a willingness to admit mistakes and ADAPT... GE should be able to do what it did over 127 years...selectively grow...remember this it is the only remaining company from the original DOW and it is not a basket case like the other GENERAL...General Motors.

      Bill Rothschild, author of the only objective, comprehensive and insightful assesssment of GE's successes and failures... THE SECRET TO GE's SUCCESS and GEWatcher blog (strategyleader.com)
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    • Tue Oct 14th 17:37 PM
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      Rating: 0 0
      Commented on:
      Is GE Becoming More Conservative?
      GE is a remarkable company that has not only survived, an accomplishment in itself, but PROSPERED... all the current management needs to do is learn from ITS OWN PAST LEADERS and ADAPTATION to major changes and it will continue its heritage.

      However, the company is much more COMPLEX and this is one of the reasons that it is having CREDIBILITY problems... it is very difficult to keep track with the changes it has CREATED ON ITS OWN...and not just the complexity of the world today.

      I hope that the GE Leaders have learned from its own history.

      Bill Rothschild, author of the only comprehensive, objective and insightful GE Strategic HISTORY and INSIGHTS...THE SECRET TO GE's SUCCESS...
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    • Sat Oct 11th 08:18 AM
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      Rating: 0 0
      Commented on:
      GE Earnings Could Be the Last Straw
      Setting and Meeting realistic expectations and adapting to change are two of the reasons that GE has been able to prosper over its 127 years. Unfortunately, Immelt created very unrealistic expectations and couldn't meet them, but the current crisis appears to have changed this. GE's new expectations, though challenging, are more realistic and Immelt and his team are adapting to the new reality. If this continues and the focus is on reducing complexity and not just GOING BIG, GE and its stakeholders will win and the company will again become a "safehaven" and its stock price will grow.

      Bill Rothschild, author of THE SECRET TO GE's SUCCESS, the only comprehensive and objective GE strategic history and now a global best seller.
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    • Tue Jun 10th 12:39 PM
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      Commented on:
      Are High-Profile CEOs Effective?
      Jack Welch was an exception in GE's successful history. His predecessors took stands but didn't make themselves the center of attraction. In addition, one of the rules of past GE CEOs was that when they retired they left the company. They were not invited to be members of th Board or have an office in the Corporate Headquarters. Welch won't go away and even though he is not part of the GE management team he still thinks he is.
      In 2000, before Immelt was appointed a wrote an article for Chief Executive magazine entitled Succeeding a LEGEND, in which I described the problems that Welch's successor would face and how the new CEO could not continue to implement the Welch strategy. Of course this was before September 11th. Immelt has completed changed the GE game plan which was needed. However, I still am concerned about the expectations he has established and is fixation on GOING BIG/ GOING GLOBAL.
      Take a look at my website and blog: strategyleader.com, in which I have a continuing assessment of Immelt and his strategy. It is called GEWatcher.
      Bill Rothschild, author of global bestseller: The Secret to GE's Success.
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    • Sun Apr 20th 11:41 AM
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      Commented on:
      GE: Immelt Gets Welched
      High Expectations and Surprising Yourself
      During my 25 year GE tenure and my subsequent 23 years as a consultant to major corporations, I stressed two leadership tenets:
      1. Set minimum expectations and always meet or even slightly exceed them. This demonstrates that you are credible and can always be counted on.
      2. Never surprise your “key stakeholders”, especially customers and investors and most of all YOURSELF. This shows that you have done your homework and are prepared for uncertainty.
      Last Friday, Jeff Immelt and his GE team violated both of these leaderships tenets.
      In my recent book: The Secret to GE’s Success, I ended my 127 year strategic history of the company with concerns about Immelt’s ability to “meet high expectations and avoid surprises”.
      I cited four concerns:
      • Ability to “Go Big”, which was the theme of the 2005 annual report. In this area, I applauded his “missionary zeal”, but didn’t believe that he could grow organically, at a 8% compounded rate, because of the size and complexity of the company ( adding $14 billion of revenues each year and even a higher rate of earnings can’t be achieved forever… it is simply the “law of BIG numbers”).
      • “Selling Solutions Globally” - highlighted the complexity of selling to developing nations, like China and India, who are not willing to “repatriate earnings and even nationalize companies” if they are too profitable and big.
      • “It Always Takes Longer Than You Think”, focused on how difficult it is to get large, infrastructure orders and maintain strong competitive positions.
      • “Maintaining a Strong and Deep Bench” focused on GE’s willingness to invest in people and even allocate a month of the CEO’s time to evaluating key people. When you have over 300,000 employees with a wide variety of cultures, religions and skills, this is almost impossible. GE has been and continues to be the prime source of executive and professional talent by headhunters and companies who have a “just in time” staffing philosophy.
      Chief Executive Article. In June, 2007, I published an article in Chief Executive magazine, entitled: “Decision Time for Buffett and Immelt”, in which I contrasted the “GO BIG” simple approach of Warren Buffett with the complex approach GE’s Immelt. In this article, I stress three actions for Immelt to consider:
      o Make the company less complex.
      o Continue to Prune the Portfolio.
      o Create “tracking stocks”- that would allow investors to invest in sectors of the company, while allowing GE to remain in control and one company.
      Blogs on Amazon and Google. Since November, 2007, I have been writing a series of blogs, entitled GEWatchers, to keep my readers and clients up to date on what Immelt and his team are doing strategically and how their actions compare to what made GE successful in the past. These can be accessed on my site: strategyleader.com.
      If you want to discuss…visit our blog on: strategyleader.com
      Bill Rothschild
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