Tuesday, March 22, 2011

Following Big Footsteps with GE's Jeff Immelt

In my next series of post’s I will be concentrating on GE’s current CEO Jeff Immelt. Jeff had an incredible task of taking over the very successful General Electric Co. after one of the most successful CEO’s of General Electric’s history decided to call it quits. While some thought that Jeff would buckle under the pressure and not be able to perform at the same standards as the previous CEO, John F. Welch, Jeff proved all the skeptics wrong. In contrast to the previous CEO’s style of leading, Jeff is a much nicer, easy going guy that leads in a completely different style then Welch. According to a business week article by Diane Brady, Jeff’s communication style is described as, “Where Welch poked, prodded, and deployed his troops as if they were heading off to war, Immelt cheers them on as if they’re the home team before a big game.” Jeff really runs the entire GE corporation as more of a team, rather than acting as a dictator. The article explains that Jeff will never use the I-word, but rather always uses words such as “we,” or “the team.” As we discussed in MQM 221 class the other day, a team is considered more of a group people with complementary skills, who are committed to a mission, performance goals, and approach for which they hold themselves mutually accountable. This is exactly how Jeff Immelt has decided to run the company as he stresses a coordinated interdependence of all individuals from different departments lowest to highest. Jeff stresses this interdependence of departments by making people his priority, especially concentrating on the ones that aren’t currently getting enough attention.

Since Jeff Immelt refers to the GE Corporation as one large team it is important to understand what type of team role Jeff has decided to take. According to our textbooks description of the different team roles Jeff Immelt is emulating almost to a tee, the role of the cooperator. In numerous articles of Jeff it refers to his leadership style as more of a cheerleader. Unlike many current power hungry CEO’s, Jeff has decided to help support his employees in accomplishing the team goals. In that article published by Business Week it describes Jeff’s communication style as simply showing interest in others. Jeff doesn’t even disregard the units that are currently struggling, but rather tries to support them to help accomplish their goals.

While Jeff is such a nice caring guy, he also knows the importance of productivity and discipline. If employees just can’t get things done he is not afraid to let them go and replace them. He has made sure to broadcast his message that effort is encouraged, but results are what count. Similar to the previous CEO Welch, Jeff knows the importance of delivering superb products and service. Although Jeff uses a completely different communication style then the previous successful CEO Welch, he still has been able to produce similar results. As I continue on with my posts I will discuss Immelt’s unique style of leading GE, as well as his drive for more company diversity. It will be interesting to see how Jeff’s unique style works in complete contrast to the previous CEO’s of GE. As I continue on with my post's I will progress to the present time and show what type of results Jeff has actually helped generate today for GE.

Do you think his style of coaching his employees and viewing the Corporation as one large team will continue to work? If not, what types of changes do you feel Jeff should make to his communication style?

By Jason Dangles

http://www.businessweek.com/magazine/content/01_38/b3749088.htm

2 comments:

  1. Following in someone else’s footsteps is never a fun thing to do. This is doubly true when you are walking in the wake of an extremely successful leader. Many people in today’s society have developed ways to handle this situation. Sadly, ethics are sometimes tossed to the side of the road in favor of performance. People cheat the system, cut corners, and even fake numbers to achieve performance measures comparable to the awe-inspiring successor. Other “leaders” simply try to emulate what they have seen in other people’s management styles in an attempt to emulate their successes. It was refreshing to see that in this situation, Jeff has taken a new approach. Rather than being John F. Welch II, he decided to be Jeff Immelt the first. By using his own style and his own tools to the table, he has shown the world that it is ok to be yourself. Once we establish this principle, we can than start to notice Jeff for all the things that he does well and the different perspectives he brings to the table. Great remarks and insights.

    Regards,
    Jarek Palmer

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  2. Some people are reluctant to change a company’s strategy especially if they are very successful. General Motors Electric was led by a very successful CEO and once he retired the new CEO Jeff Immelt had to fill some big shoes. Jeff Immelt did this with great success. He put in place a team strategy technique. This approach brings a since of unity to the organization.

    The only major problem a see possibly happening is the employees might take advantage of the CEO’s approach. I say this because Immelt is very easy going and this might allow employees to get away with some mistakes they make. Immelt might tend to be a little more relaxed then he should during some serious problems or conflicts that might arise. I don’t know him so he might be very good in handling such situations. Immelt might be a little stricter when it comes to these issues. I also believe it is necessary somewhat to know your individual employees personally and know their different styles and techniques. What are they strengths and weaknesses? Does this employee fit with the leadership style that I use in this company? Those are some of the questions Immelt might want to ask himself when hiring an employee to work for him. If Jeff Immelt keeps these questions in mind, Immelt will continue to be a success as CEO of General Motors Electric.

    By: Mitchell Terry

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