| |
|
Built to Last Analysis of GE's Unique History May 14, 2007
I first thought about GE and its management practices in 1973 when a prospective client asked me for help in implementing a detailed strategic planning process and handed me a one-page version of the process (you can see a disguised version of that process on page 161 of this book). The initials in the corner were W. E. Rothschild, author of The Secret to GE's Success. Naturally, when I saw this book, I couldn't wait to see what this strategic planner extraordinaire had to say.
Most people see GE in terms of the Welch era. Why? Because that's when GE got the most press coverage. Also, the Immelt era's heritage isn't clear yet. It hasn't been long enough. Prior to that, few remember that Reg Jones was once considered a legendary CEO. Further back, only GE alumni can mention many names after Thomas Edison.
I found this book to be a helpful history of GE's continuing success, tying together many themes that I had missed. In addition, it was interesting to see how many GE "innovations" were really simplifications of earlier work . . . or continuations of long-held concentrations of focus.
Unlike many books that seek to pursue too many themes, Mr. Rothschild conveniently selected only five to illuminate and explore:
1. Choosing leaders well and pursuing an inclusive leadership style.
2. Finding effective ways to adapt to new conditions, success, and setbacks.
3. Identifying, nurturing, and encouraging excellent people.
4. Being prudently proactive in engaging stakeholders.
5. Creating connections to others that allow everyone to accomplish more.
Although Mr. Rothschild is appropriately proud of the company's success, he doesn't shrink from pointing out missteps, areas where processes need to be adjusted, and unnecessary delays in taking needed actions. He also wisely suggests that other companies not copy these practices, but rather adapt the practices to their own circumstances. In some conceptual exhibits, he provides helpful clues for how such adaptation might be done (see especially pages 59, 181, 208, 209, and 255).
Ultimately, of course, the limitation of a management book based on one company is that you don't see the lessons as clearly as you would if you had more comparisons. That's the strength of Built to Last, for example. As a result, I think most people will get more out of this book if they read Built to Last first.
The only point that I hear many management observers make about GE that Mr. Rothschild doesn't make is how slow GE usually is to adopt helpful, new practices that originated in other companies. You only see hints of that problem in the long delays involved in correcting some of the missteps. The press coverage of the company stresses the opposite point: Everything was invented by GE. But that's not really the case.
Good work, Mr. Rothschild.
|
|
