Date Submitted:
03/18/2011 05:08 AM
Words/ Pages:
1220/ 5
Popularity Rank



Harrison-Keyes, Inc. Benchmarking
University of Phoenix

Benchmarking Study – Identified issue at General Electric
General Electrics CEO, John F. Welch, has been working since the early nineteen-eighties to break the company’s old genetic code built around a core set of principles. The old ways relied on growth in sales via strategic business units that relied on financial savvy, meticulous staff work, and a domestically focused company. By maintaining the old genetic code General Electric fell to a tenth place ranking in market value in the United States (Tichy, 1989). General Electric had to evaluate their training and development system.
How General Electric responded to the issue
John Welch struggled for five years trying to build shareholder value in a slow-growth environment. He instituted transformational leadership throughout the organization. He was too timid and cautious at the start of the organizational change and realized that the company needed to go from incremental to quantum change by creating a new breed of leader. Critical to this new type of leader is the ability to creatively destroy and remake the organization to a new vision and be a continuous process. One of the first things Welch did was to create a sense of urgency for the transformation and to head off resistance by incorporating Crotonville, the General Electric Management Development Institute, as a means to radically transform the organization’s culture (Tichy, 1989).
Outcome of General Electric’s response
General Electric’s CEO, John F. Welch, has use The GE Management Development Institute as a tool for indoctrinating the hearts and minds of thousands of managers with GE’s new genetic code and values. The new breed of leaders developed through this program for General Electric allows the CEO bypass the chain of command and converse directly with them. This enhanced communication has created more cultural…

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