美国通用电气GE战略管理模式

Founded in 1878 by Thomas Alva EdisonMerger in 1892-The Edison General Electric Company-The Thomson-Houston CompanyOne of the 12 stocks that made up the first DJIA index in 1896.In the list continuously since 1907The Heritage美国通用电气公司的战略管理模式（GE）Todays Basics Revenue:$125.7 BDomestic:Foreign 2:1Net Income$13.7 BMarket Capitalization:$244BEmployees:310,00013 major businessesMore than 100 countriesCompare and Contrast 81TodayRevenue$27.2 B$125.7 BEarnings$1.7 B$13.7 BMarket Value$13 B$244 BBusinesses4313Employees404,000310,000The Three Families Long-Cycle BusinessesGEShort-Cycle BusinessesFinancial ServicesLong-Cycle BusinessesLong-Cycle BusinessesAircraft EnginesPower SystemsMedical SystemsTransportation SystemsShort-Cycle BusinessesShort-Cycle BusinessesConsumer AppliancesIndustrial SystemsSpecialty MaterialsNBCPlasticsFinancial ServicesFinancial ServicesCommercial FinanceConsumer FinanceEquipment ManagementInsurance BusinessA Summary of Business FinancesBusinessesRevenue%of totalGE Capital58.445Power Systems20.216Transportation&Industrial11.69Aircraft Engines 11.49Medical&Technical9.07Plastics and Specialty Materials7.16Consumer Products5.84NBC5.84Adjustments-3.6Total125.7100The Share of the PieThe Share of the PieThe Era:How the Market Valued itCompare&Contrast with Pre-Welch EraFrom Following the EconomyTo Setting the PaceThe TurnaroundHow did they do it?SWOTVisionRestructuringGrowth EngineSustaining Competitive advantageDynamic PerspectiveSWOT:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalization4 blocks Six SigmaInertiaBest practicesLeadershipBoundary lessnessValuesStrategic ModelFront-end FocusDigitizationBPOand changeJack Welchs visionBe number 1 or 2(Fix,sell or close)Welch set the standard for each business to become the#1 or#2 competitor in its industry“A decade from now,I would like General Electricto be perceived as a unique,high-spirited,entrepreneurial enterprise.the most profitable,highly diversified company on earth,with world quality leadership in every one of its product lines”SWOTVisionRestructuringGrowth EngineSustaining Competitive advantageDynamic PerspectiveSWOT:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalization4 blocks Six SigmaInertiaBest practicesLeadershipBoundary lessnessValuesStrategic ModelFront-end FocusDigitizationBPOand changeSWOTVisionRestructuringGrowth EngineSustaining Competitive advantageDynamic PerspectiveSWOT:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalization4 blocks Six SigmaInertiaBest practicesLeadershipBoundary lessnessValuesStrategic ModelFront-end FocusDigitizationBPOand changeStrengths SizeDiversified portfolioRelations with the governmentFinancial strengthWeaknesses Bureaucratic mechanistic organization Many layers from top to bottomDoing it by the book instead of doing it right for the customer,employee or business Businesses as Islands unto themselvesOpportunitiesEmerging marketsChanging business modelsThreats The Japanese challenge Recessionary US economy with high interest rates and a strong dollarSWOT analysis in 1981Jack Welchs visionBe number 1 or 2(Fix,sell or close)Welch set the standard for each business to become the#1 or#2 competitor in its industry“A decade from now,I would like General Electricto be perceived as a unique,high-spirited,entrepreneurial enterprise.the most profitable,highly diversified company on earth,with world quality leadership in every one of its product lines”SWOTVisionRestructuringGrowth EngineSustaining Competitive advantageDynamic PerspectiveSWOT:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalization4 blocks Six SigmaInertiaBest practicesLeadershipBoundary lessnessValuesStrategic ModelFront-end FocusDigitizationBPOand changeBusiness RestructuringGE-McKinsey MatrixQuestion mark Appliances Specialty MaterialsWinner Aircraft Engines Power SystemsWinner Medical SystemsCapital Loser Consumer ElectronicsAverage Business PlasticsIndustrial SystemsWinnerTransportationLoser Central A/CHouse waresCoal miningLoserProfit Producer LightingHighMediumLowLowMediumHighMarket AttractivenessCompetitive PositionReorganization of businessesChanging composition of businesses51%30%19%26%39%35%0%10%20%30%40%50%60%Core businessesTechnology businessesService businesses19811991Business Restructuring.contdToFromFourNineDe-layering of hierarchical levelsEvaluated against external competitionInternal comparisons with past performance Focus of Budgeting processReal time planningStrategic Planning processPlanning processSWOTVisionRestructuringGrowth EngineSustaining Competitive advantageDynamic PerspectiveSWOT:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalization4 blocks Six SigmaInertiaBest practicesLeadershipBoundary lessnessValuesStrategic ModelFront-end FocusDigitizationBPOand change Scientific ManagementVs Transformational leadershipWriting Speaker Cautious Aggressive Harmony Confrontational System oriented Individual orientedIntegration thru committees Thru Processes Relies onReports On employee feedbackAvoided uncertainty Accepted itControlled change Reveled in changeReginald Jones Jack WelchPath-breaking Leadership of GEGrooming a generation of leadersType IIIGot rid off quicklyType IStarType IIGiven another chanceType IVAsked to leaveLowHighHighLowTeam ValuesPerformanceLeaders of the future The 4 EsEnergy-excited by ideas because of the opportunity bringsEnergize-infecting everyone with the same enthusiasm for an idea Edge-the ability to make tough decisionsExecute-the ability to turn vision into results“Work-out”was a process initiated by Jack Welch and James Baughman to address the issue of increasing productivity by changing the in-house culture to reflect that of an small firm,characterized by Speed Simplicity Self Confidence“Work-out”Self-ConfidenceSimplicitySpeedOrganizational Restructuring-“Work-out”Culture in 1980s Fine tuned Financial Analysis Long Strategic Deliberations Centralized Controls Multilevel ApprovalsCulture in late 1980s 1990sSpeed Simplicity Self ConfidenceWork-out ProcessTransformation of culture at GE to sustain growth&productivityOrganizational Restructure “Work-out”Implementation of a typical in-house“workout”Consultant assigned to each GE business to facilitate 3-day off-sites Groups of 40 100 employees invited to share views about their business and how it might be improved.Unit Boss presents challenge/problem and leaves facilitators with employees to list problems,debate solutions,and prepare presentations.Results(analysis and recommendations)were presented to the Unit Boss on the final day.Immediate decisions“yes/no”taken on the proposals by the Unit Boss.Deadlines fixed to review additional information Prompt action and follow-up on proposalsOrganizational Restructure “Work-out”Implementation of a typical in-house“workout”Work-out OrganizationParticipationProblem PresentationEvaluationResult PresentationDecisionAction/Follow upResults of“Work-out”:1981198819922%productivity annually4%productivity annually“Work-out”ProcessSalient Features of“Work-out”Culture characterized by speed,simplicity and self-confidence.Ideas solicited from everyone,everywhere No boundaries created by organizational hierarchy.No documentation Focus on turning talk into action.Focus on addressing real problems and solutions No functional specialization and hierarchical power differences inhibiting flows and implementation of action.Prompt action information regardless of the source.Closing the loop-Following up on decisions and learning by doingOrganizational Restructure “Work-out”Domestic OperationForeign OperationGE:Boundryless OrganizationEngineeringManufacturingMarketingSalesCustomer ServiceTraditional Structure Geographically Segmented Bound by Functional barriers No idea sharing Label dependentBoundryless Structure GE:A Seamless Organization Integrated Approach No Functional Barriers Bonus and options linked to idea generation&sharing No Label dependenceOrganizational Restructure-Boundryless BehaviorWorkoutsBoundryless BehaviorOrganizational Change leading to Superior Customer ResponsivenessDifferentiating FactorValue CreationCompetitive AdvantageOrganizational change competitive advantageOrganizational RestructureSWOTVisionRestructuringGrowth EngineSustaining Competitive advantageDynamic PerspectiveSWOT:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalization4 blocks Six SigmaInertiaBest practicesLeadershipBoundary lessnessValuesStrategic ModelFront-end FocusDigitizationBPOand changeMarketsGrowth EnginePresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalizationMarketsGrowth EnginePresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalizationMarketsGrowth EnginePresentNewPresentNewFour PillarsProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalization Focus on building blocks of competitive advantageQualityInnovationCustomer ResponsivenessEfficiency Market PenetrationMarket PenetrationMarket PenetrationCore BusinessHighTechnologyServicesInvest in improving Quality&Efficiencystay on the leading edge by investing in R&DAchieve superior customer responsivenessThree Circle Concept:three parallel approachesGEs foray into the Services Industry was 2-pronged To offset the dependence of GE on its industrial products within its existing market and help its businesses reach the#1 position.To counter the slump in the demand for existing products by providing value-added servicesBenefits:Huge growth potential for GE and Result in increased revenue through value-added services.e.g.:Service based technologies such as real time monitoring capabilities developed by GEs Medical Systems to be transferred to the real time monitoring of Aircraft Engines and Power Business Units.Product/Service ExtensionsService Extensions in existing markets were realized by acquisitions such as$1.5 billion jet engine service business$600 million purchase of a global power generation equipment service company Service Extensions:Revenue GrowthMarket Expansion(Globalization)Why?-6%Vs 12%-Cost&Quality Advantage-Intellectual CapitalDiversification Creating value by Decreasing overall portfolio risk.long cycle&short cycle businesses Superior Internal Governance via Macro-management Transferring competencies boundaryless behavior Economies of scopeA balancing actBureau-cracyValueDestroying value by bloated bureaucracy Information overload Lack of CoordinationHow?Smart bombing:Think Global Act Local-Developed Global Markets-Emerging Global MarketsFactor EndowmentsIntensity of RivalryLocalDemand ConditionsCompetitivenessNational CompetitiveAdvantageIssues:Porters DiamondMarket Expansion(Globalization)Globalization for Market expansion and diversificationProduct/Service Extension&Diversification:AcquisitionsWhy?-Quicker way to achieve significant growth-Lesser uncertainty-High barriers to entry(mature businesses)50B24B17B21B13B6B13B4.9B0102030405060199419951996199719981999Sep-002001Industrial/NBC Financial Services a)#Deals 34525610110813495TBDa)Financial Services Data includes(cash,debt,stock)Asset Portfolio Dealsb)Total ConsiderationTransaction Value b)ACQUISITIONS CRITICAL TO GES GROWTH.AcquisitionsSWOTVisionRestructuringGrowth EngineSustaining Competitive advantageDynamic PerspectiveSWOT:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalization4 blocks Six SigmaInertiaBest practicesLeadershipBoundary lessnessValuesStrategic ModelFront-end FocusDigitizationBPOand changeQualityFour PillarsContinuous ImprovementBest practicesOvercome InertiaSustaining Competitive AdvantageSix Sigma EvolutionWhat Does Do For GE?Drives Customer Centricity Improves Product/Service Capability Reduces Costs Improves Performance Reliability Foundation for e-Business/Digitization$600$500$450$380$200$2500$1200$700$170Cost Benefit1996Cost Benefit1997Cost Benefit1998Cost Benefit1999Cost Benefit20006 Sigma Cost6 Sigma ProductivityDelighting CustomersResults from 6 Sigma$2500$3.0B$0.5BHEADSPINECHESTABDOMENPELVISLIVER1 minute19 seconds9 million2 minutes 15 seconds1 million3 minutes 17 seconds4 million20 seconds 06 seconds6 millionExam TimeBeforeExam TimeAfterProceduresper YearGEMS LightSpeed CT Scanner Abdomen:liver,spine,kidneyHead:skull,brainImage Speeds Products from 6 Sigma Benchmarking&Best Practice sharingBenchmarkingFirst carried out in 1988,against Ford,Hewlett Packard,Xerox,and Toshiba on only productivity dimensions Currently,used for target-setting for all processes and functions Conducted using PEERnext and eOPTIMIS software toolsBest Practices sharingSix Sigma tracker for each business and Six Sigma cafe across GEAdoption of Best Practices institutionalized via Copy Cat AwardAggressively driven by GE Operating systemOvercoming inertiaTransition StateCurrentStateImprovedStateMonitoring progressMaking change lastMobilizing commitmentShaping a visionCreating a shared needSWOTVisionRestructuringGrowth EngineSustaining Competitive advantageDynamic PerspectiveSWOT:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalization4 blocks Six SigmaInertiaBest practicesLeadershipBoundary lessnessValuesStrategic ModelFront-end FocusDigitizationBPOand changeBusiness Process OutsourcingBenefits of OutsourcingProvide CapacityCreate Strategic AdvantageMove to Variable CostBetter Process DeliveryRemote processing of Back-end operations Leverages the intellectual talent and processing cost differential of developing countriesEg.Underwriting process for GE credit cards,Mortgage,SFG etc.for any customer in USA and Europe take place in Delhi,India.Digitization is transforming everything GE does;Automating work flow and leveraging the internet is crucial to the future success of GE Making GE faster,leaner and smarter even as GE become bigger.Results:$7 billion worth of goods and services were sold over the net in 2000.$6 billion was conducted on online auctions$1.5 billion generated by GE in operating margin improvements in 2001E-business/DigitizationThis is the quote of the day.from Jeffs analyst meeting after Sep 11th 2001 GE is built to outperform,said Immelt,who also predicted double-digit growth in 2002.I was chairman for two days,and then I had jets with my engines hit a building I insured which was covered by a network I owned,and we still grew(2001)earnings by 11 percent.I think were in pretty good shape.GE E-Business Internet StrategiesStrategyDefinitionWhat is it?ExamplesVisualDisintermediationAggregationCommunity PortalPermeate theCustomers SpaceCustomer-SpecifiedProducts and Termseee$Dynamic PricingeeTake over or remember customers data and remember their processes or preferencesGet between the buyer and sellerCreate a community of buyers andsellersTake out the Middle ManLet the customer into design data and processesCreate a MarketGE AppliancesPurchasing appliances online is available for customers along with spares and accessories Direct SellingProvide a broad range of product information GE LightingDetailed and visual product information categorized for home,business or automotive useGE SupplyCreates network for communication between all suppliersProvide products and services to members Remember the customers preferences,payment methods,recent purchases,etc.GE Financial NetworkProvides Online insurance Quotes and payment facility.Also,updates customers of new offersCustomer designs/configures their own productGE LightingThere is software to download that helps decide the perfect lightAuctionsGE XchangeElectronic Exchange that allows customers to name their own pricesCo-Marketing RelationshipsService PartnershipExtend service into the customers organizationShare customers to create a morecompelling productGE Medical SystemsOther consumable Diagnostic products of suppliers can be purchased along with CT scan spares Direct Selling and AdvertisingeeEnsuring that the customer needs are metGE Aircraft Engines would keep an inventory of engines in stock to meet require-ments and needs.Equity/Warrants:GE is trying to secure either equity or warrants from all the vendors that it is working with to develop its e-business strategiesE-business Vendor Goals:Secure valuable revenues(internet companies trade at sales multiples)Get instantaneous credibility with marketplace through GE reference/endorsementGE Businesses Goals:Recover consulting/license costsBroaden partnering relationshipsSecure equity upside opportunity with high growth,emerging e-business companiesGE Equity Goals:Put money to work and maximize ROISupport GE businesses by investing in strategic companies Equity:the direct ownership in a companyMutually beneficial relationship:Warrant:an instrument that gives the holder the right to acquire a certain number of shares of the capital stock of a company on or before a certain date for a certain price GE E-Business Internet StrategiesService Extensions:Revenue GrowthInnovationObjective approach towards the customer Look for technology platformsCreate game changing technologies-remote diagnostics capability Solve GEs crtical technical challenges Low Nox emmissionsShare technologies across businessesSource technology worldwideDevelop technical human resourceFor example,GE researchers developed ductile tungsten,many new types of engineering plastics,man-made diamond,and major improvements in computed tomography and magnetic resonance imaging.GE 90 engine-the worlds most powerful,efficient and quiet engine.One of the major technology advances involved in this program is a composite fan blade made of a polymer-based material that is twice as strong as steel at half the weight.1997Performix X-ray Tube1998LightSpeed CTSmall Motor productsUltem 1285 Spectra Gas Range1999 Spectra Electric RangeAdvantium Speed OvenTriton DishwasherCeramic Metal Halide LampsT5 Fluorescent LampSigna OpenSpeed MROQ 1050C for Compact DiscAC6000 Locomotive2000 or later New Designs5000 Projects focused onNew 6 Sigma Technology&New Processes to the GEBusinesses1995 PRODUCTIVITY1995 PRODUCTIVITY1997 PRODUCT DESIGN1997 PRODUCT DESIGN1998 THE CUSTOMER19