GE's Journey and Cultural Transformation

Introduction

• Acknowledgement of speakers and partners.
• Personal anecdote about Ted session in Vancouver.
• Highlight of frequent visits to Malaysia.
• Emphasis on the importance of Malaysia in GE's infrastructure map.
• Assurance to answer audience questions.

GE’s Vision and Strategy

• Strategy: Be the world’s best infrastructure company with a financial services division.
• Key areas: Electricity, oil and gas technology, healthcare, aviation, transportation.
• Post-Austin acquisition: 350,000 employees, 180 countries.

Importance of Innovation and Technology

• Core Values: Technology and innovation with a strong basis in science.
• Transition from US-centric to global revenue:
  • 1982: 80% revenue from the US.
  • 2001: 70% revenue from the US.
  • 2015: 70% revenue from outside the US.
• Focus on analytics, software, and business model innovation.

Cultural Transformation

• Realization of the need for cultural change to meet strategic goals.
• Introduction of the "Culture of Simplification" in 2013.
• Importance of self-blame and leadership accountability.

Lean Management

• Shift from “do more with less” to “do less but do it better”.
• Reduction of organizational structure and mechanisms.
• Emphasis on teamwork driven by scarcity and accountability.
• Focus on doing fewer things better and eliminating non-essential activities.

Speed and Accountability

• Concept of "putting everything back on the clock".
• Emphasis on starting small but starting immediately.
• Fast Works: Learn from failure and pivot quickly.
• Accountability across all functions.

Commercial Intensity

• Importance of markets in determining success.
• Challenges in large companies: Voice of field vs. headquarters.
• Encouragement to focus more on market dynamics.

Digital Entitlement

• Need to enhance digital tools and technology.
• Potential to increase efficiency, lower costs, and become faster.

Operational Changes

• Overhaul of incentive compensation and operating mechanisms.
• Introduction of financial and team metrics.
• Continuous and contemporary operational mechanisms.
• Establishment of clear belief statements:
  • Customers Determine Our Success
  • Stay Lean to Go Fast
  • Learn and Adapt
  • Motivate and Inspire
  • Deliver Results in an Uncertain World

Conclusion

• Reiteration of the need for cultural change to drive strategy.
• Importance of embracing a global perspective.
• Transition from centralized control-based to risk-based, delegated operations.
• Expectation to win globally, adapting to a contemporary market landscape.