It's all about PERCEPTIONS...

In my last blog, I emphasized that "strategy is what you do and not what you say" and raised concerns that GE's actions are not consistent with its words about organic growth and decreasing its dependence on financial services.

Obviously, it is important that successful leaders believe in what they are doing and will often have different perceptions of what is happening.

In his annual outlook presentation to investors and analysts, Jeff Immelt provided his perception of what what happening and the health of the company.

THIS IS JEFF's PERCEPTION...

• "It has been a good year...our portfolio is better... our financial strength and discipline have helped us deliver strong results in a tougher environment"


• "GE will deliver what we said we would...$172 billion in revenue (up 13%) and $22.5 billion in earnings (up 16%)..earnings per share growth of 18%.
  
• "We improved our business mix. We were able to exit slower growth businesses and make new investments in Oil & Gas, Avionics, Healthcare IT, and cable services..."
• "We returned $26 billion to investors through a dividend and buy-back program."


• "In 2008, we will face a more challenging environment that we have seen in several years." BUT, " our strategy and themes for 2008 will not change".... "even in challenging markets, we have set a target to grow earnings by at least 10% in 2008".
• "We expect Infrastructure to sustain its strong global growth"
• "Financial services- both Commercial Finance and Money- will need to closely manage the transition in those markets and may require some portfolio changes.
• "Healthcare needs a turnaround year
• "NBC's turnaround is well underway"
• " Industrial needs to drive growth with innovation and pricing"

It is clear that Immelt continues to be committed to his global "go big" strategy and believes that the major focus must be on managing and executing and not on strategic changes.

As a continuing GE fan, stockholder and alumnus, I hope that Immelt's positive perceptions and forecasts are right and that he is able to continue double digit earnings growth in a very uncertain, even chaotic, environment.

But I have different perceptions about GE's businesses and ability to compete globally in some of the key markets. I am still concerned about their dependence on financial services and highly opportunistic acquisitions.

In short, I will continue to be interested in seeing if the words, actions and results are realistic and hope, that the company will be able to increase Shareholder value in 2008.