GE

[eytonxav]

Its mind boggling to me to see GE drop out of the DOW to be replaced by Walgreens:
https://www.wsj.com/articles/walgreens-to-replace-ge-in-dow-industrials-1529443336

 

[Red Badger]

My ol' mega-c*rp recruited GE folks often, because they (GE) were so awesome. Wonder how that's working now....

There was a book several years ago titled "Good to Great (Jim Collins)." They thought they had the secret sauce and listed, in detail, the attributes that made companies perpetually great. It was a hit, and every biz mgr or exec proudly displayed their copy in the office/cube, etc.

Then, the great recession stopped by for a visit. A few years later, many companies in the book were in the dust bin (Circuit City comes to mind).

Many companies are great, until they're not.

 

[Koolau]

I'm sure we could all come up with names of megacorps who were once considered invincible, only to be laid low by some change in technology, bad management or both - or something else. Kod@k comes to mind. YMMV

 

[gauss]

Sold my AT(T) shares during the past year and bought (GE) -- sigh. (I will not chase the dividend yield, I will not chase the dividend yield -- lather rinse repeat)

 

[travelover]

I wonder if Jack Welsh is still using their corporate jet for free.

 

[Shanky]

I wonder if Jack Welsh is still using their corporate jet for free.

Jack was the beginning of this debacle.

 

[meierlde]

Actually a big part of GE's problem is one the whole electric utility industry has, stagnant to declining power demand, and the rise of renewables. I don't think Immelt solar would grow as fast as it did (GE does wind). In the US power demand is down about 1% per year.

 

[audreyh1]

I'm sure we could all come up with names of megacorps who were once considered invincible, only to be laid low by some change in technology, bad management or both - or something else. Kod@k comes to mind. YMMV

I think one difference here, is that GE was a behemoth, a huge American success story with a long celebrated history AND was the business "star" in the 90s - considered the best managed company in the world, and envied and emulated by many corporations. All the rah-rah about exceptional leadership!!!

Jack Welch certainly dined out on the GE reputation and his personal reputation for being top management dog after retiring in 2001. And very smugly too - I remember many interviews on CNBC.

On his linked in page:

In his 21 years as CEO, Jack transformed GE into the world's most admired and successful company with his innovative management techniques

And he is still alive to see it blow up.

[Sorry - it's the hubris thing]

 

[jazz4cash]

Actually a big part of GE's problem is one the whole electric utility industry has, stagnant to declining power demand, and the rise of renewables. I don't think Immelt solar would grow as fast as it did (GE does wind). In the US power demand is down about 1% per year.

Please expand on this. I know GE power is a drag on the business, but 1%/yr decline doesn't seem significant enough to to explain their issues. I didn't think they were a huge player in the energy markets, but I think they bought a redundant turbine business and some oil and gas equipment companies at the peak of the cycle. They mis-managed some businesses that were far out of their area of expertise (NBC, insurance).

 

[Huston55]

I have a good friend (very sharp guy) who works for GE. He used to work for the same MegaCorp that I did, which is known for it’s effective project management. During a recent vacation we took together (a couple months ago) he confided that GE was a tragedy waiting to happen. He works in the power division, which apparently can’t find its management a$$ with two hands. I was very surprised to hear that but, I trust my friend’s judgment completely. I suppose this recent news is evidence that he’s correct.

 

[Independent]

This mentions a product that gets lots of discussion here

In January [of 2017 GE] wrote off $6.2 billion in connection with a long-term-care insurance business in GE Capital and said that business would require another $15 billion of write-offs over the next seven years. The charge was so big and unexpected that the SEC opened an investigation, still unresolved.

GE: What the Hell Happened at General Electric? | Fortune

 

[timo2]

I was more surprised by Walgreen's being the replacement.

 

[googily]

I think GE's fate was sealed when they passed over Jack Donaghy as the new CEO.

(Yes, this is a test of your pop culture knowledge.)

 

[eytonxav]

I remember well when my former mega-corp brought in Thomas Aquinas Vanderslice to be president and coo, coming from GE's Power Systems sector. He was a pompous technocrat who lacked leadership and people skills. He only lasted a few years and then moved to Apollo Computer as I recall. GE was always viewed as a training ground for strong managers and I almost left to join them at their Bridgeport, CT HQ back in the early 80s.

Also, very surprising to me that Walgreens is replacing them.

 

[38Chevy454]

Jack was the beginning of this debacle.

Agree, as former GE (Appliances) employee in early 1990's I have no respect or admiration for Jack Welch. He only seemed to be good because he benefited from all of the built up GE resources and reputation. He started the downfall. Yes stockholders were happy the stock price maintained and the dividend, but it was for some extent by selling off GE resources. You can't be living off yourself for any length of time.

 

[CoolRich59]

My ol' mega-c*rp recruited GE folks often, because they (GE) were so awesome. Wonder how that's working now....

I never w@rked for GE, but had an interesting experience with them that may reflect on how they got to where they are now.

I was looking to leave my megacorp job (coincidentally, it was with the megacorp who is replacing GE on the DJIA) and applied for an opening with GE's Healthcare division.

- Aug 2014: Sent resume
- Aug 2014: Phone screening interview with GE Recruiting
- Aug 2014: Phone interview with hiring manager
- Early Sept 2014: Interviews with hiring manager and three other attys in the group

- Late Sept 2014: Note from hiring manager: "we are continuing our process, but not quite at a fast pace" ... but "still very interested in you".

- Oct 2014: Note from hiring manager: "been a few weeks ... we are moving, albeit slowly"

- Nov 2014: Note from GE Recruiting: "progressing slowly" but I am "top contender"

- Dec 2014: nothing
- Jan 2014: nothing
- Feb 2014: nothing

- March 2015: call from GE Recruiting telling me that they were starting the hiring process over again from the beginning, am I available for an "initial" interview with the hiring manager?

Seriously. They told me that I needed to act as if we had never spoken; that I was to go through the whole screening and interview process as if I had not already had numerous calls and interviews with the hiring manager and her staff.

Um, no thanks. I figured if they were as disorganized and inept in their hiring practices, w@rking for them would probably be a nightmare.

 

[audreyh1]

Agree, as former GE (Appliances) employee in early 1990's I have no respect or admiration for Jack Welch. He only seemed to be good because he benefited from all of the built up GE resources and reputation. He started the downfall. Yes stockholders were happy the stock price maintained and the dividend, but it was for some extent by selling off GE resources. You can't be living off yourself for any length of time.

I thought Jack Welch bought a bunch of companies, creating a huge conglomerate.

 

[JoeWras]

Some of the "innovations" that Jack created in management are filtering through to other Megacorps now. And it isn't fun.

 

[jazz4cash]

I thought Jack Welch bought a bunch of companies, creating a huge conglomerate.

I thought they had a philosophy of selling off any business unless they could be #1 or #2. GM and GE were the only US players in the locomotive business. It was curious to me that GE bought GM's Electromotive Division.

 

[audreyh1]

I thought they had a philosophy of selling off any business unless they could be #1 or #2. GM and GE were the only US players in the locomotive business. It was curious to me that GE bought GM's Electromotive Division.

A lot of selling happened after Jack Welch left.

Jack Welch added the insurance and financial businesses, and RCA/NBC broadcast company - a far cry from their core manufacturing business.

He may have had that stated philosophy, but 600 acquisitions? Seems like a contradiction.

Under Welch's leadership, GE increased market value from $12 billion in 1981 to $280 billion, making 600 acquisitions while shifting into emerging markets.

 

[travelover]

Some of the "innovations" that Jack created in management are filtering through to other Megacorps now. And it isn't fun.

I lived thorough Welch's ABC ranking system at MegaMotors. Absolutely soul draining.

 

[MRG]

A lot of selling happened after Jack Welch left.

Jack Welch added the insurance and financial businesses, and RCA/NBC broadcast company - a far cry from their core manufacturing business.

He may have had that stated philosophy, but 600 acquisitions? Seems like a contradiction.

I was in a couple of those insurance companies after acquisition as a consultant. They were interesting companies who had some very unique free thinking people. [emoji12]

 

[NgineER]

“My success will be determined by how well my successor grows it in the next 20 years” - Jack Welch

 

[ERD50]

“My success will be determined by how well my successor grows it in the next 20 years” - Jack Welch

That's a beautiful thing! Not funny if you are a GE investor or employee though.

Did Jack say anything about adjusting his pension/benefits or exit package 20 years later? I bet we can guess the answer!

-ERD50

 

[REWahoo]

I lived thorough Welch's ABC ranking system at MegaMotors. Absolutely soul draining.

I wonder if Welsh got that from the military? A similar system for USAF officer ratings in the late 70's was one of the reasons I choose to find another career field. A real fustercluck.