thank you again for our speakers and partners it's great having you here and you know I went to the big Ted session than Vancouver this year and one of the speakers froze which is so uncomfortable so I promise not to do that this afternoon and and it's I'm travelling around the region was with us too and you know I've had a chance to come to Malaysia many times so it's great to see the change and I continue to think this country is extremely important in the map of GE and and all the things we do in infrastructure absolutely critical here in the talent and I just see continuous continued investment in the country around our customers and our initiatives so it's great to be with you and I want to share some idea say but I also want to make sure I have time to answer your questions to talk about what's going on you know the strategy the company is to be the world's best infrastructure company with a financial services division and you know the world needs what GE makes so with the awesome acquisition we'll be a hundred and let's say 30 or 40 billion dollar infrastructure company the best in the world at electricity and oil and gas technology healthcare aviation transportation we will have an amazing footprint an amazing presence with the company and this acquisition is going to add another 65,000 employees around the world so at that point the company will have more than 350,000 employees and 180 countries around the world so in an incredible footprint and responsibility and challenge that we have the big things that G stands for really first and foremost technology and innovation where were a company that's based on science it's our heritage and and we have to have great technical solutions for our customers you know we are a fantastic global company and this is where the future really is for GE I'm joined Jean in 1982 and 80 percent of our revenues for inside the United States I became CEO in 2001 and 70% of our we're in the United States and by 2015 with the Austin acquisition more than 70% of our revenues will be outside the United States we'll be the first American company with more than a hundred billion dollars revenue outside the United States so that's changed in one generation that shows how the company can adapt and drive growth and we want to track great customer outcomes so we want to have a focus on our installed base and make that installed base work on behalf of our customers and for most of our history that has meant a focus on physical science but increasingly that means a focus on analytics and software and business model innovation and so I've always believed in markets I've always believed that you take the technology wherever it goes even if a means you have to learn new technology and new science and that's what we're doing inside the company in analytics today and I would say over the last five years you know I don't know however long I became convinced that we couldn't accomplish our strategy unless we changed our culture we couldn't be the company I wanted us to be unless we changed our culture we weren't we weren't purposeful enough we weren't fast enough we were allowing ourselves to become less relevant to complicated and you know I didn't have anybody to blame but myself I wish I could blame somebody else but when you're CEO basically everything in the end is your fault so change has to start with you change has to start at the top and anything you have to change and I I spent time I've always spent a lot of time in the road so I spent a lot of time with you and your colleagues around the world as we were building you know our presence in Silicon Valley and with analytics and and I've always had great relationships with some of the big entrepreneurs Jeff Bezos and people like that and and so I had a sense for different cultures and the way the world was going and I was convinced that the G had to change to stay relevant and so you know we've thought about it internally we talked to people on the outside and you know in the beginning of 2013 we started talking to all of you and listening to you on what we call the culture of simplification and and I believe this is the most important cultural change of your career of my career and in a 140 year old company if you're not willing to blow yourself up about every 10 years or so you're just not going to stay relevant so I think that's always been a real hallmark of GE so what I think about it what do I mean the first part is what I call lean management for more than 30 years in GE I have stood in front of groups like this and said I want you to do more with less I want you to do more with less how many times do you heard that energy career now I want you to do less I want you to do less but I want you to do it better and so one principle of simplification is just less organizational structure fewer piell's fewer operating mechanisms fewer approvals it's it's really getting out of each other's way and making everybody asking everybody insisting that everybody played their own position lean management is really about having better teamwork because scarcity drives accountability scarcity drives teamwork and so at the top it means a leaner organization it means a simpler organization simpler structures doing fewer things and doing them better and I'm convinced that you know that is a way that governments or big companies get in trouble we take on too many non-essential things and when I would sit in business reviews or I would go to Croton ville and talk to classes to many of our beautiful people we're working on things that just weren't important to me we're an important to the company and when you waste people's time you you have the worst sin that any leader can ever have and so I start we start this journey on supplication with this notion of lean management do fewer things do it better do it with more scarcity and more teamwork get out of each other's way let everybody play their position that's what a winning team looks like lead management number two put everything back on the clock put everything back on the clock right I mean it's good to have process discipline it's good to try to be perfect but we're not perfect we don't live in a perfect world we're better off to try things fast start small but start now learn from failure be accountable to each other for speed and make that the way we work and that's what fast works that's all about fast works is about doing things better starting small but start now learn to pivot drive great speed in terms of NPI introduction ERP implementations every part of the company putting it back on the clock and being accountable to each other for speed not allowing one function to say well it's going to take me two weeks to do that when you need it in an hour and so accountability for speed fast works putting everything back on a clock that's a very important pillar point number three commercial intensity markets rule markets determine our success making that the value creation inside the company and I think what happens in big companies is that the voice of the field gets too soft the voice of enabling functions and headquarters gets too strong anytime that happens you get disequilibrium you know a lot of you guys know my history over a long period of time my father worked for G for 40 years he worked in manufacturing operations in the aircraft engines business in Cincinnati right now when my father used to come home from work we would actually drive to Lunken Airport in Cincinnati and watch planes land that's how crazy he was for what he did and he would talk about campaigns that we won or lost as a company so this a manufacturing guy they would say hey we just won the American Airline steel we lost the f-15 deal anywhere in between he didn't come home from work and say hey I just went to the best meeting today it was awesome I saw the best chart I've ever seen right so for 300 you know we have fear of 7,000 employees for for 300 5,000 of our 300 7,000 employees the markets are all that counts to them most the vast majority of people in this room that's all that counts which is complicated when it gets to the top we ask for information we don't need we don't know enough about the market so get commercial intensity into the company make sure that that you know and again we have a great our customers really like this already so if we bring more of that we'll be even better in the future so commercial intensity and then the fourth part is just reaching our digital entitlement which is too antiquated in terms of our digital tools we don't rely enough on them we don't invest enough in them we haven't we haven't fully exploited the speed and technology or that the speed and delegations that technology is going to allow us to achieve and there's a vast for us to become faster leaner and more efficient lower cost by really embracing the kind of digital change when you drive inside the company so when we talk about simplification when we talk about the cultural change we have to drive inside the company speed leave management commercial intensity digital entitlement that's how GE has to change and inside the company basically with the leadership team of the board we've kind of said we're going to leave nothing unchanged in the purpose of driving this cultural change so we have changed the incentive compensation we've changed the way your leaders are going to be paid to drive more financial metrics and more team metrics so we win and lose together as a team those metrics are broadly known by everybody in the business and that's where accountability rests we've changed our operate mechanisms we no longer have anything that's animal everything is continuous and everything's contemporary we've woven most of our operating mechanisms into two or three around the company and so we're much faster and much more accountable using the same data and that's a big change as you guys know inside GE and then the foundation is the beliefs and the beliefs we've done bottoms up and tops down we've had lots of discussion in terms of the G beliefs and we purposefully made them less prescriptive shorter you know I'm again 32 years for GE I'm on my privates is probably the fifth time in 32 years I've seen a set of attributes or a set of values expressed my first values card in the company probably had 12 values in each one was 64 words long right this is five and there's not many words of social customers determine our success that is a statement of fact that if that is a pure statement of fact customers return our success staylene to go fast state of being you know in other words what happens in big companies is structure does stops helping organizational structure stops becoming a facilitator an accelerator and starts becoming an inhibitor you know not the Malaysian government well I'll use the US government as an example governments can afford it right they don't they don't half they can print money if you can't print money every piece of organization has to become precious so stay lean to go fast learn and adapt you know be the learning company we voice been adapt change try things fail you know that has to be a big part of our belief motivate and inspire teams really drive people Curran courage people delegate to people to be successful and then deliver results in an uncertain world we live in an uncertain world but we expect a company to perform and change in that in that context so simple words simple ideas simple constructs and those are the G beliefs so again we have a great strategy as the company you know our customers recognize it the board's endorsed it we know exactly what we want to do but the culture has to change in order for us to be as effective as we want to be as we need to be in terms of driving our strategy and and I'm quite intent on it like I said it's this is a movement that I think will start at both the bottom at the top of the company but we have to put everything on the table and be willing to evolve and change to be successful now I'll just in kind of where I started is a big portion of driving the culture change inside the company is how global we become you know my my company that I grew up in could afford to be a tightly centralized control of GE right it could be it could be a very process driven control based centralized company it was largely an American dominated company those things are over we now have to be in a delegated risk-return world we are risk based company today not a control based company we have to be out in the markets trying new things understanding what the risk reward trade-offs are and we have to have broad delegations in order to make those things happen those changes are you know it's easy to say hard to do and we're on that continuum and have to continue to drive it and and you know winning around the world is a big part of that I became CEO in 2001 we used to segment the world US Europe Japan and rest of world so Malaysia was rest of world and if we ever got an order in Malaysia we would be like so surprised it's a holy cow how did that happen you got you gotta for her inhalation holy what what happened now we expect to win every order here we expect to win every order right we expect it we need it so if that's the way you think about the world you're not going to be able to do that with an old centralized control space rules-based American company you have to be willing to go for it in a few