GEWatcher 5- GE's success in dealing with dissent

The Business Week, Interactive Case Study of March 4, 2008 describes the dissent that Immelt faced when he introduced the concept of "ecomagination" in 2004. The article portrays Immelt's surprise when only six of his 35 senior officers approved of the concept and approach. This is not a new situation for GE leaders.

Ralph Cordiner had to move the GE headquarters out of Schenectady in 1953 because there was so much negative reactions to his introduction of decentralization. GE had been a highly centralized organization and dominated by the electric utility businesses in Schenectady. Cordiner's new organization and leadership system was a threat to their power and they resisted. But Cordiner's approach proved to be the right change and GE prospered from it.

Fred Borch and Reg Jones also had a similar near revolution when they introduced Strategy Planning. This new system was not welcomed by the senior management. In fact, Borch insisted, like Cordiner did before him that everyone go to Crotonville to learn about the new system. I led all of these sessions and personally saw the resistance and resentment. Again Borch and Jones was right and the company benefited.

Over the 126 years there were many situations where the CEO and his senior officers had to take stands and introduce changes that were not welcome and resisted. And in each case the company was better because of these changes and, in fact, if they didn't happen, GE may be like its traditional competitor, Westinghouse and just a memory.

I am not sure that "ecomagination" is in the same category of the previous major strategic and organizational changes, but I am happy that Immelt has had the conviction and courage to make it successful. He has displayed the same strategic skills of his highly successful predecessors.

If you want to learn more about the unique GE leadership and how they changed the company at the right time, read my book: "The Secret to GE's Success" and continue to read these blogs.

Bill Rothschild, author of "The Secret to GE's Success"