All Segments
Jeff Immelt of GE: Leaders Must Drive Change
38 segments available
Jeff Immelt, chairman and CEO of GE, gave the first annual Roanak Desai Memorial View From The Top talk at Stanford Graduate School of Business. He discussed how business has changed in his nearly three decades at GE and stressed to the student audience to be prepared for a turbulent business world. Related Story: http://www.gsb.stanford.edu/insights/ges-jeff-immelt-driving-change-can-be-unpopular More about the View From The Top speaker series: http://www.gsb.stanford.edu/vftt All View From The Top videos: http://www.youtube.com/course?list=EC5C14B375A7F2FEA8
Segments Timeline
Remembering a Colleague
Jeff Immelt opens his talk by reflecting on the legacy of a colleague, emphasizing the importance of leadership and the attributes of good leaders in today's business environment. He sets the stage for discussing the evolving landscape of business and leadership.
"you I do remember a little bit he did he worked in corporate when he was at GE and it is really with great sadness that that I'm here today in his memorial and I'm sure he was a great colleague and fr..."
The Reordering of the Global Economy
Immelt discusses the significant shift in the global economy since he joined GE in 1982, highlighting how emerging markets are now driving economic growth. He emphasizes the need for leaders to adapt to this new reality and the implications for business strategy.
"opportunity what I thought I'd do is uh global about the world but talk mainly about leadership what I view is kind of some of the attributes of good leaders of this generation and and and then let yo..."
Productivity and Cost Challenges
In this segment, Immelt addresses the necessity for businesses to focus on productivity and cost management. He illustrates this with examples from GE's healthcare division, stressing the importance of offering lower-cost, high-quality products to meet market demands.
"actually mean and aren't overly you know I'd say we're all concerned but but let's see that so reordering of the global economy number one I'd say the second big thing is just the the notion of produc..."
Resource Scarcity and Conservation
Immelt highlights the challenges of resource scarcity and the importance of conservation technologies. He discusses the potential of resource-rich regions and the need for businesses to innovate in response to environmental challenges.
"resource scarcity in some way shape or form your generation is going to live with with resource scarcity and what that means two things really one is that the resource rich parts of the world are goin..."
The Importance of Networking
This segment focuses on the significance of being part of a networked world. Immelt explains how collaboration and joint ventures are essential for growth in today's business landscape, using GE's partnerships as examples.
"is just the notion of being a networked world you know I don't say that I say that post substantively from a standpoint of what you can do from a from an information technology standpoint but also jus..."
Evolving Leadership Skills
Immelt discusses the evolving nature of leadership and the need for continuous education. He emphasizes the importance of deep expertise and adaptability in leadership roles, contrasting it with the general management approach of the past.
"about as background in terms of how do we plan our strategy and and and what do we do and we take it very seriously from a standpoint of how we view it now the the lectures on leadership so that's why..."
Analytical Listening in Leadership
In this segment, Immelt introduces the concept of analytical listening as a crucial leadership skill. He shares insights from his experiences at GE, emphasizing the need for leaders to listen critically and be open to diverse perspectives.
"then we rotate we've got 50 big pls inside the company and we rotate them in about every 18 months to do team-based training how do you invest for growth how do you make sure you win how you benchmark..."
Adaptability and Perseverance
Immelt stresses the importance of adaptability and perseverance in a volatile business environment. He reflects on the challenges leaders face today and the necessity of managing through uncertainty and change.
"and starting your career and the first one is what I would call analytical listening analytical listening you know why did the financial crisis happen what could we who are running companies what coul..."
Managing Relationships and Connections
This segment focuses on the importance of managing relationships and leveraging connections in business. Immelt discusses how technology can enhance understanding of customer needs and improve partnerships.
"really having Red Team Blue team having the people that are your worst critics letting them inside where you are and that you know that's a way that you have to be break down the barriers of of how yo..."
Navigating Volatility in Business
Jeff Immelt discusses the importance of adapting to volatility in the business world. He emphasizes the need for leaders to buffer their teams from market fluctuations and to manage their careers with flexibility. Immelt reflects on the stable economic conditions of the past and contrasts them with the unpredictable nature of today's business environment.
"to be and and you've got to find a way to buffer your investors or your employees from these wild swings and in volatility and you know that's something that I think you know quite important in the wa..."
The Importance of Relationships
In this segment, Immelt highlights the significance of managing relationships in business. He stresses the need for leaders to understand their partners, including other companies and government entities. Immelt points out that being a good partner and understanding diverse perspectives is crucial for success in a networked society.
"oil was $15 a barrel the US economy really grew for about four and a half percent every year baby boomers from their peak consumption period those were twenty pretty good years I just think we live in..."
Simplicity in Organizational Structure
Jeff Immelt shares insights on the necessity of creating simple organizational structures and clear accountability. He recounts experiences with failed businesses that lacked straightforward metrics and accountability, emphasizing that simplicity is key to effective management and crisis resolution.
"we've got a big installed base of products and with sensing technologies and information technology you know I I basically know what every jet engine is doing in the installed base in the fleet right ..."
Systems Thinking for Problem Solving
Immelt calls for a new generation of systems thinkers who can integrate diverse ideas into cohesive solutions. He discusses GE's initiatives in clean energy and healthcare, illustrating how addressing significant challenges requires innovative thinking and a systems approach.
"important fourth knows how to simplify everything knows how to create simple structures simple metrics and accountability I mean this sounds incredibly basic but when I go in after a business's failed..."
The Need for Patience in Innovation
In this segment, Immelt emphasizes the importance of patience and long-term commitment in driving innovation. He shares examples from GE's investments in healthcare and technology, stressing that significant advancements often take years to materialize and require sustained effort and funding.
"the CEO put the organization's out there unintelligible you know we had taken all of these acquisitions and put them in like a nice neat GE matrix so nobody knew what their measurements were who the w..."
Understanding Failure in Business
Jeff Immelt discusses the critical need for leaders to understand the modes of failure in business. He reflects on the lessons learned from past crises, advocating for a focus on designing reliable systems and processes that can withstand challenges and prevent future failures.
"thoughts into solutions there's two problems that I kind of thought while I was at Co GE that I could have some kind of impact on one is clean energy and the other one's affordable healthcare and in 2..."
Managing Diverse Teams
Immelt addresses the importance of managing diverse teams and understanding different perspectives in the workplace. He encourages future leaders to connect with frontline workers and learn from their experiences, highlighting that empathy and engagement are vital for effective leadership.
"that's high price so if you're passionate I don't know how many people here are going to leave here and go into an energy related field probably a bunch of you and you guys are probably passionate abo..."
Accountability in Leadership
In this segment, Immelt stresses the importance of accountability in leadership. He shares his experiences during financial crises and the need for leaders to stand up for their organizations, maintain their reputations, and be transparent in their actions.
"capital is in you know molecular diagnostics you know we're a big diagnostics company we do diagnostic imaging and life sciences and and information technology and health we've got about a twenty bill..."
Understanding the Disconnect
Jeff Immelt addresses the disconnect between graduates and the workforce, emphasizing the perception that new graduates are affluent and indifferent to job creation. He encourages future leaders to connect with hourly workers and understand their perspectives, highlighting the importance of organizational behavior in leadership.
"you know so that's not really why they're angry they're angry because they got left behind and they got left behind because people that are graduating from this place fundamentally don't care about cr..."
Accountability in Leadership
Immelt discusses the necessity of accountability in leadership, especially during crises like the Lehman Brothers bankruptcy. He shares his experience of fighting for GE's reputation and stresses that leaders must protect their company's integrity while being willing to face challenges head-on.
"from the front you know too few people are accountable and that's something that's really important and people have to you know have to be more well-known for being in front of their companies and pro..."
The Pursuit of Authenticity
In this segment, Immelt emphasizes the importance of authenticity and accountability in leadership. He encourages future leaders to strive for success while also recognizing moments when they should step back and reflect on their actions, reinforcing the idea that true leadership involves self-awareness.
"should you should want to go make a lot of money you absolutely should there is nothing wrong with that nothing at all there's a few points in your career when you shouldn't make a lot of money right ..."
Building Relationships in Leadership
Immelt shares insights on the significance of liking people in leadership roles. He reflects on his experiences with various bosses and underscores the value of treating employees with respect to foster a positive work environment and enhance productivity.
"lastly it always helps to be a leader if you actually like people you know it's a you know it is one of those things that's quite weird I worked for a lot of bosses in my career who didn't just didn't..."
Navigating Early Career Challenges
Immelt recounts his early career at GE, detailing his journey from product manager to a leadership role. He emphasizes the importance of gaining experience, building relationships, and being recognized for one's capabilities as foundational steps in a successful career.
"take on leadership you know good leader in the end what is that what is this CEO do I think you know basically I have two jobs you know I Drive change you know fundamentally the leader of a company li..."
The Role of Risk in Career Advancement
In this segment, Immelt discusses the pivotal moment in his career when he was given a high-risk job by Jack Welch. He reflects on how taking on challenging roles can lead to significant career advancements and the importance of being open to new opportunities.
"looked at it as like a five year so I went to work in 82 and I was trying our plastics business and I basically my first job was to be kind of a product manager to sell plastic into instrument panels ..."
Creating a Foundation for Success
Immelt shares his philosophy on career development, emphasizing the need for a solid foundation of accomplishments and networking. He advises against focusing solely on high-profile positions and encourages building a diverse skill set through various experiences.
"getting good at something and then and then from there becoming deep and then in 1988 or 89 so I've been there maybe 78 years given a presentation to Larry paucity in the plastics business and I was d..."
Embracing Individual Career Paths
In this segment, Immelt discusses the uniqueness of individual career paths, using his friendship with Jamie Dimon as an example. He encourages graduates to focus on their own journeys rather than comparing themselves to peers, highlighting the importance of passion in one's work.
"if you got to have a couple five-year plans and I don't think you can ever dream about being the CEO of G or P&G or something like that it's just too weird you know so much like so much luck involved ..."
Leadership Beyond Legacy
Immelt reflects on the challenges of following a legendary leader like Jack Welch. He emphasizes the importance of driving change while maintaining confidence and authenticity, encouraging future leaders to carve their own paths while respecting the foundations laid by their predecessors.
"hope and and that's that's what happens but fall in love with your job let it let it go don't don't worry about what your classmates are doing fall in love and let it let it happen a lot of questions ..."
Reverse Innovation in Global Markets
Immelt introduces the concept of reverse innovation, explaining how GE leverages its global presence to develop products tailored to local markets. He discusses the significance of understanding diverse business models and how insights from emerging markets can enhance operations in developed countries.
"anything was ever wrong and so it takes self-confidence and it takes it takes time and you don't need to obviously you know draw the differentiation between the two of you you know I learned a lot fro..."
Healthcare Innovations from China
In this segment, Immelt shares examples of healthcare innovations developed in China, such as affordable ultrasound technology. He illustrates how these products can address the needs of underserved markets in the U.S., showcasing the potential of reverse innovation.
"technology or the or the business model and become better let's say in Chicago based on what we learned in China now one of these we've done in China and Health Care's maybe the best example of this o..."
Navigating Global Business Challenges
Immelt reflects on the challenges of operating a multinational company like GE. He discusses the importance of balancing innovation across different regions while maintaining customer trust in the U.S. market, emphasizing the need for a diverse operational strategy.
"as well now you know your world basically guys my age basically could move work anywhere they wanted anytime they wanted with no consequence so in the generation of American business leaders are more ..."
Learning from Big Companies
In response to a question about small companies, Immelt shares insights on what startups can learn from large corporations like GE. He emphasizes the importance of motivation and focus while cautioning against adopting practices that may not suit smaller organizations.
"today you know you add to that you know we've driven lean through the company for almost 20 years now you know kind of lean manufacturing techniques so we can make a refrigerator with an hour and a ha..."
Collaboration with Startups
Immelt discusses GE's approach to collaborating with startups and venture capital firms. He highlights the importance of sharing management practices while allowing startups the freedom to innovate without the constraints of corporate bureaucracy.
"things letting things go other questions yeah right why don't you shout it out and I'll repeat it because they're never going to get a mic to you thank you rightly referenced the fact that many of us ..."
The Future of Energy Policy
Immelt shares his views on the future of energy policy and the importance of establishing a price for carbon. He discusses the challenges of public policy in the energy sector and the need for consistent regulations to drive innovation and investment.
"we've tried to make a company that aspirationally isn't that horribly different than a start-up you know there's differences you know you come to GE you work for me right if you want to boss don't com..."
Navigating Environmental Challenges
In this segment, Immelt reflects on the complexities of environmental issues facing the energy sector. He shares his experiences and insights on how GE has approached sustainability and the challenges of balancing business interests with environmental responsibilities.
"so the trick is knowing what works and what doesn't work and and what things can be helpful to a company that's just starting up but look I have a I have immense respect and a lot of time for the vent..."
The Importance of Global Experience
In this segment, Immelt shares his belief that to lead a global company like GE, one must embrace travel and cultural understanding. He recounts his extensive experiences in China, emphasizing that firsthand knowledge is invaluable compared to theoretical learning. Immelt argues that true leadership requires a global perspective and the ability to connect with diverse people.
"energy and and which is you know we could be critical BP if we want as a country but boy you're not doing anything so you don't impress me you know as a citizen I'm I'm quite I think it's very hard ye..."
Building Relationships in Business
Jeff Immelt discusses the significance of relationships in business, asserting that successful partnerships are built on mutual benefit. He shares insights from his role on President Obama's Advisory Board, highlighting the importance of understanding different perspectives. Immelt emphasizes that effective leadership involves listening and providing context rather than merely lecturing.
"what was the second one so business is really a study of relationships you know I my own view is that people use the word you know in business if you can't make somebody more money you're not a good p..."
Resilience and Optimism in Leadership
Immelt reflects on the challenges leaders face, noting that they will often be disliked more than liked. He stresses the importance of resilience, optimism, and self-awareness in overcoming adversity. Immelt identifies himself as a 'tough-minded optimist,' advocating for a proactive approach to leadership that embraces risks and seeks opportunities.
"your job and you're going to have to have a sense that perseverance and an optimism and you know if you asked me to describe myself I'd say I'm a I'm a tough-minded optimist that's Jeff ml I'm tough m..."
Lessons from the Financial Crisis
In this segment, Immelt shares lessons learned from the recent financial crisis, emphasizing the need for companies to listen more intently to potential risks. He discusses the importance of challenging assumptions and being open to dissenting opinions to navigate complex situations effectively.
"for GE other questions yeah Jeff oh just other question you know some of the lessons learn if you could share with us some of the lessons learned and challenges faced during the recent financial crisi..."
Strategic Business Decisions
Immelt elaborates on the strategic considerations for entering and exiting businesses within GE. He discusses the importance of understanding core competencies and market trends, sharing insights on how GE has adapted its business model over time. Immelt emphasizes the need for a clear strategy in capital allocation and the timing of investments.
"what point and how to exit I don't know if there were some specific processes or ways that you thought about that as a leader within GE and so I think when you run a couple like GE you know a big mult..."