Organizational Change Management Analysis: GE's Leadership Strategies

This report analyzes GE's organizational change management, focusing on the leadership of Jeff Immelt and Pierre Comte during a period of significant challenges. It examines the central issues, including the 'Imagination Breakthroughs' initiative and the development of hybrid locomotives, and the proposed solutions. The report provides a detailed situation analysis, covering historical events, the current scenario, and financial aspects. It evaluates the leadership characteristics of Comte and Immelt, the follower characteristics of key personnel, and the organizational context. The report also explores alternative decisions and offers recommendations with justifications, highlighting the strategic choices made by GE in response to economic pressures, technological advancements, and market demands. The analysis includes the impact of key decisions on the company's financial performance and strategic direction, providing insights into leadership, decision-making, and organizational change within a major corporation.

Running head: MANAGEMENT
Organizational change management
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Table of contents
1. Central issues and their solutions...........................................................................................2
2. Situation analysis...................................................................................................................3
Historical................................................................................................................................3
Current scenario.....................................................................................................................5
Financial analysis...................................................................................................................6
Comte and Immelt as a leader................................................................................................7
Follower.................................................................................................................................7
3. Alternatives to the main decisions.........................................................................................7
4. Recommendations and their justifications.............................................................................8
Reference..................................................................................................................................12

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1. Central issues and their solutions
In the meeting of 2006, GE’s CEO Jeff Immelt, Pierre Comte encountered a difficult
phase in the process of the decision-making. One of these aspects covered the sustainability
of GE Transport through ‘Imagination Breakthroughs’. The new projects were estimated to
generate $100 million and the estimated time was 2 to 3 years. The critics has mixed opinions
regarding sustenance of the concept of Imagination Breakthrough (Bartlett, Hall & Bennett,
2008). All of the personnel inclined towards Hybrid Locomotive, which was thought of as a
disruptive technology for enhancing the effectiveness of the industry. Within this, one of an
important challenges was the development of cost effective designs for the automobiles. The
sponsors were concerned about the commitment of the resources in terms of completing the
production process according to the needs, demands and requirements of the clients and the
customers.
A meeting was held for gaining awareness about the plans for updating the CEO on
the Hybrid imagination breakthroughs. In this meeting, the highlighted issues were the issues
with cost and poor performance of the batteries, producing negative response from the
customers. According to Hughes, Ginnett and Curphy, (1993), these meetings acts as a
strategic action and planned behaviour in terms of controlling the stressful situations like
that of the risks regarding poor performance of the batteries in the automobiles. According to
the estimation of BeGole, sidelining of the imagination breakthroughs proved to be effective
for averting excessive exploitation of the resources and conservation of the technologies to be
used in the right amount (Bartlett, Hall & Bennett, 2008).

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2. Situation analysis
Leadership characteristics
Comte and Immelt as a leader
As a leader, Comte seemed effective. This was in terms of the fact that he could sense
the challenge, which GE might face through costs and performance of the batteries.
Sidelining of the business with technologies was proposed. This approach aligns with the
arguments of a leader regarding using creativity and imagination for maintaining the balance
in the operations. In the same line, Immelt can be placed, as he exposes diligence in
executing the assigned duties and responsibilities Hughes, Ginnett and Curphy, 1993, p.119).
In this, strategic planning can be mentioned, as it is accounted as one of the essential
elements for unleashing the leadership skills, abilities and competencies. Seeking the means
of building new capabilities also aligns with the traits, enhancing the personality of a leader.
In case of Immelt, plan to invest in technology and marketing proved beneficial for reaching
to a large number of clients and the customers at the same time. This aligns with the concept
of ‘imagination breakthrough’, enhancing decision-making skills and judgmental capabilities
(Bartlett, Hall & Bennett, 2008, 149).
Comte seemed to be insecure with the proposition of BeGole. According to him,
Hybrid could act as an agent for GE to alter the market scenario. In such a context, sidelining
the project can lead to inadequacies in the resources and planning, which is needed at the
crucial stage of development. beGole was also concerned about the reaction of Immelt, as he
favoured the concept of hybrid in terms of adding innovation into the design of the
automobiles. Concerns towards the reactions of others can be considered to be an initiative
towards preserving the stability in the professional relationships. This approach contradicts
the aspect of conflicts in the workplace. In this, Hughes, Ginnett and Curphy, (1993, p.152)
apply the transformational leadership, which is essential in terms of altering the workplace
conditions by causing the advent of innovation in the operations.

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Follower characteristics
Mention can be made of Dineen, who is inquisitive towards the plans being made by
the CEO’s. This inquisitiveness is an initiative towards upgrading the standards and quality of
the preconceived skills, expertise and knowledge. According to Hughes, Ginnett and Curphy,
(1993), Active listening was effective in his case, which helped him to make constructive
decisions regarding assisting the leaders. He confesses that he would be accountable for the
arrears within the decisions regarding the bottom line production. He urges the CEO to assist
them in exploring the unexplored realms of marketing, so that they can enhance and upgrade
their preconceived skills and knowledge (Bartlett, Hall & Bennett, 2008). These aspects
relate to Trait Theory in terms of upgrading the leadership skills, competencies and abilities
of the servants (Hughes, Ginnett and Curphy, 1993, p.333). Low profitability would accuse
BeGole of careless approach towards the assigned duties and responsibilities. In this case, his
conversation with Dineen seemed to be an effective evidence for understanding the sources,
which acted as an agent for the growth and development of Locomotive P&L unit (Bartlett,
Hall & Bennett, 2008).
Organizational situation characteristics
Historical
September 7, 2001 was the era when Jeff Immelt took charge as the ninth CEO of GE.
Within four days, the horrific incident of twin plane crash in the World Trade Centre took
place. The immediate result of this was drastic reduction in the stock market prices, resulting
in a collapse in the economy. This, further, led to a decline in the confidence in the marketers
towards globalizing their business. The efforts of CEO went in vain, as he tried to cope up
with the economic collapse. The large corporations were engulfed in political instabilities,
acting as an obstacle in the import and export activities (Bartlett, Hall & Bennett, 2008). The
following year of 2002, Immelt reported a 7% increase in the revenue profits, which was 5%
more than the sales of 2001. This 5% increase witnessed a 3% decline in the period of 2000.

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By the end of 2002, the total amount generated from the sales revenue was $24. This value
created a down market scenario by 39% as compared to the previous year. In view of all these
achievements, Immelt confessed that it is not the time to showcase the skills, abilities and
competencies of a CEO. This approach can be considered to be appropriate in terms of
exposing rational attitude, which enhances the skills, expertise and knowledge to the extent of
a leader.
For coping up with the market pressure, Immelt realized that leadership of Jack Welch
initiated an investment return of 23% on the shareholders per year for a consecutive 20 years.
This reflected $830 billion growth in the shareholder wealth. The major drive behind this was
the strategic and systematic thinking of the Welch towards maintaining the machines, so that
they deliver consistency in the production of effective results (Bartlett, Hall & Bennett,
2008). According to the results, 4% per annum organic growth was achieved in the field of
operations management. Acquisitions and deals expanded the scope, arena and supply chain
of GE. This enabled GE to witness an unprecedented growth in the sales revenue and profit
margin in 1990.
Therefore, based on the identified issues, the decision statement stands like: To adopt
decision making matrix for assessing the effectiveness of the decision to invest in the
construction project of Global Research Centre.
Current scenario
Realignment has been adopted by the leaders in terms of assessing whether GE has
been able to develop corporate leaders. This included the strategic approach towards
enhancing the stability between professional relationships, team building and others (Hughes,
Ginnett, & Curphy, 1993). This is through the means of forging a partnership, which helps in
completing the tasks within the stipulated time. In this, the consideration revolved around
five leadership traits: external focus, clarity in the thought process, imagination and courage,

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engagement with the people and in-depth research towards upgrading the skills and expertise.
For measuring the effectiveness of the performance, metrics was used. In this case, objectives
were prepared for adding focus into the marketing. Bifurcation in the operation system has
been beneficial in terms of generating productive growth (Bartlett, Hall & Bennett, 2008).
Mention can be made of the agenda, which has helped in systematizing the business activities
according to the needs, demands and requirements of the clients and the customers.
Imagination breakthroughs is one such concept, which has lured large number of
clients and the customers. By the end of 2003, the investors realized that big investments are
needed for re-positioning the reputation of GE. The results proved that revenue merely
increased as that of the financial year of 2000. According to some observers, questions were
posed regarding the growth of GE. Emphasis on organic growth and sticking to the decision
enhanced Immelt’s confidence towards achieving new heights. Investments in the capabilities
of the employees enabled the managers to lay the foundation for corporate leadership
(Bartlett, Hall & Bennett, 2008). Five proposals were proposed in the meetings, which
resulted in Imagination Breakthroughs. The following two months compelled the managers to
remain busy in conglomerating the businesses for producing proper respond to Immelt’s
challenge.
Financial analysis
Investment in the latest technologies added value to the marketing of GE. Failures in
the form of customer turnovers to Telemundo contradicted the investments in Interlogix
security systems, BetzDearborn water processing services. These investments mounted the
sales revenue to $35 billion in the phase between 2001 and 2002. This was one of the biggest
acquisition of 2003. The major drive behind this the deals with Vivendi Universal
Entertainment (VUE) and Amersham, which generated $14 billion and $10 billion revenue
respectively. Internal investments were an agent for commercialization of the production on

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the new growth platforms. Immelt, within the tenure of first 6 months as CEO, committed to
spend $100 million for upgrading the research and development faculty in the Niskayana
state of New York (Bartlett, Hall & Bennett, 2008). This was in a sequence with the
investment in the construction project of Global Research Center in Shanghai. In addition to
this, in 2003, Munich government authorized the construction of another Global Research
Center. For this, the estimated budget was $100 million.
According to the budgets of November, worst case scenarios were reflected as out of
600 Evos only 30 to 50 locomotives were sold. All these Evos had the capacity of 2005. The
critiques were of the view that this performance is bound to incur significant losses for the
company. Therefore, decisions were made for introducing attractive prices for attracting the
clients and the customers towards the sales. Immelt exposed his disagreement to this
decision. He instructed the team members towards opposite direction, where the focus was on
making the most of the utility value of the automobiles in terms of the price.
3. Alternatives to the main decisions
In order to cope up with the external challenges, GE planned to consider alternative
energy for the development of hybrid locomotives. Along with this, alternatives were also
applied towards the consideration of the technological solutions. These alternatives helped in
analysing the processes through which the costs can be reduced (Bartlett, Hall & Bennett,
2008). Mention can be made of the summarization for the discussions presented in the review
of Imagination Breakthroughs. The first option catered to the explanation for exploring the
alternatives in order to cope up with the limitations in the short and long term commercial
viability. The second alternative was to appraise the hybrid long term potential. Here, the
consideration was that it needs to be placed as an element of Imagination Breakthrough.
The third alternative was the recommendation regarding acknowledging that after
working for three years on the project, neither the technology nor the market acceptance

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indicated commercial viability for the sustenance of the hybrid locomotives. The grounds for
this alternatives was the dilemmas regarding the hybrid engine. Consistency was maintained
in the process of seeking alternatives towards morphing the regional strategies. Typical
evidence of this lies in contract negotiations, which was finalized for gaining convenience for
expanding the scope and arena of the supply chain network (Bartlett, Hall & Bennett, 2008).
Sales and marketing people from the Services and Signalling took the assistance of contracts
for placing their products and services.
Consideration of the bottom line production was a part of the operations in GE.
Encouragement towards adopting risk taking is a means for averting the issues of customer
turnover, which makes the market position vulnerable (Bartlett, Hall & Bennett, 2008). As a
matter of specification, Imagination Breakthroughs is an effective means for reducing the
intensity of the risks, which the company can encounter in the process of making the
transactions. Commercial viability is an important consideration of GE in the process of risk
management. Indulging in meeting enabled the managers in preparing the annual reports. In
this, gaining an insight into the different sources was crucial for enhancing awareness about
the issues, which the staffs encountered in the process of making practical application of the
imaginative skills towards producing the automobiles.
4. Recommendations and their justifications
One of the main recommendations for GE was Imagination Breakthrough. Here, the
concept of innovation can be related, which requires the skills towards enhancing the
creativity and imagination of the staffs. For this, they need to be involved in the wide ranging
activities and experimentation, which is beneficial for diversifying the thought process and
judgemental capabilities of the engineers and designers. Indulging in meeting with the
members of research and development would be a planned action in terms of producing
innovative quality designs in the automobiles. Chalking out plans and sending it to the

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managers would be effective for ensuring whether the plans are in alignment with the
identified and specified requirements of the clients and the customers. Hughes, Ginnett and
Curphy, (1993) opines that strategic approach towards formulation of strategies would be
effective for aligning the behaviour of the staffs with that of the core values of GE. In this,
setting goals would add direction to the process of preparing corporate leaders from the
workplace of GE.
Investments in the processors and systems can be beneficial for upgrading the
standards and quality of the machines. Taking prior approval from the IT support can be
productive for radicalizing the operations. Strategic planning in this direction could be
assistance in terms of achieving positive outcomes. Mention can be made of Data Protection
Act (1998), which would be act as a wise step for averting the cybercrimes and instances like
virus attacks, malfunctions and hacker interventions.
Propositions can also be forwarded in favour of adopting decision matrix. In this,
checklists and templates would be an effective step for gaining an insight into the extent to
which the targets have been fulfilled. Providing training to the staffs regarding Microsoft
Excel functions would act assistance in rating the performance of the sets of values and
information. The following can act as an effective example of the decision matrix for the Evo
Project in GE:
Options
Criteria Weighting Option 1 Option 2 Option 3
Score Total Score Total Score Total
Criteria
1
1 2 4 5 5 4 4
Criteria 2 3 9 4 8 4 9

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2
Criteria
3
3 4 16 3 9 4 14
Criteria
4
4 5 25 2 4 4 19
Table: Proposed decision matrix for Evo project in GE
(Source: Created by the author)
This matrix would be crucial for gaining an insight into the decisions, which needs to
be undertaken on a priority basis for implementing the concept of imagination breakthrough.
Reference
Bartlett, C. A., Hall, B. J., & Bennett, N. S. (2008). GE's Imagination Breakthroughs: The
Evo Project. Harvard University School Pub..
Hughes, R. L., Ginnett, R. C., & Curphy, G. J. (1993). Leadership: Enhancing the lessons of
experience. Richard D. Irwin. Inc., Boston.