College of Surgeons

In my book: "Risktaker, Caretaker, Surgeon, Undertaker- the four faces of strategic leadership" I point out that GE develops excellent "surgeon leaders". Bob Nardelli's first move at Chrysler clearly illustrates that one of the first actions GE alumni take is to "prune the line". Yesterday's WSJ article described that Bob will cut out models and reduce the number of dealers. This clearly makes sense since it reduces costs, but the company must simultaneously be able to fill the line and be sure it keeps the best dealers. This is not as easy especially when these actions must be done at the same time. Let's see if he can pull it off.

By the way, the sale of GE's Plastic business, clearly shows that GE is still ready, willing and able to do selective surgery when it makes sense. I think this move is the right move, but I still think that the company's portfolio is too complex and its goal of 8% compounded organic growth is a major challenge. If you a complete view of the GE successes and failures, read my latest book: "The Secret to GE's Success".