How Jeffrey Immelt’s ‘Success Theater’ Masked the Rot at GE

21. February 2018

Date: 21-02-2018
Source: The Wall Street Journal

A culture that disdained bad news contributed to overoptimistic forecasts and botched strategies

Former GE Chairman and CEO Jeff Immelt

Jeffrey Immelt, the longtime boss at General Electric Co. , was a polished
presenter who held court each year at a waterfront resort off Sarasota, Fla., where industrial executives and Wall Street listened for his outlook on the conglomerate.

“This is a strong, very strong company,” Mr. Immelt said at the event last May.

On that Wednesday morning, though, he looked shaky to some people in attendance, running quickly through highlights of 27 slides in the ballroom of the Resort at Longboat Key Club. He defended his long-held 2018 profit goal, an optimistic benchmark Wall Street had long abandoned.

“It’s not crap. It’s pretty good really,” he told the room, referring to GE’s recent financial performance. “Today, when I think about where the stock is compared to what the company is, it’s a mismatch.”

It was a mismatch. On that day, GE shares were trading near $28. They would go on to collapse over the next six months while the stock market set fresh records. Today, they trade below $15. Read the rest of this entry »

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Paul Laudicina of A.T. Kearney: Rethinking Outsourcing

24. August 2009

aus der aktuellen Business Week über die Zukunft der “Reset Economy”:

Maria Bartiromo talks to the consulting firm chairman about rethinking outsourcing

By Maria Bartiromo

Whether we are truly emerging from recession—as a Wall Street Journal survey of economists and other reports contend—or are setting ourselves up for another reversal, one thing seems clear: When the global economy awakes from its long nightmare, there will be “a new normal.” In short, it won’t be business as usual. To get a sense of the changes afoot, I talked with Paul Laudicina, chairman of the worldwide consulting firm A.T. Kearney and an expert in business strategy.

MARIA BARTIROMO

What kinds of changes—for both countries and companies—do you see coming out of all this turmoil? Read the rest of this entry »


“An emotional, social, economic reset”

24. August 2009

“This economic crisis doesn’t represent a cycle. It represents a reset,” Jeff Immelt, the CEO of General Electric, said today. “It’s an emotional, social, economic reset.”

And the biggest impact of this “reset” will be greater government involvement in the economy, and in the affairs of business, for better or worse.

“People who understand that will prosper,” Immelt said. “Those who don’t will be left behind.” Read the rest of this entry »