CEO Transition: How Jeff Immelt Reinvented GE
By Dorothy Pomerantz & Matthew Van Dusen – It started with a simple conversation in 2009. GE Chairman and CEO Jeff Immelt was at the company’s Global Research headquarters in Niskayuna, New York, chatting with scientists about embedding sensors in jet engines. When jet engines run, they don’t only power planes — they generate trillions of bytes of data that can provide an enormously valuable window into their inner workings. The insights could allow GE to optimize the machines’ operations and even lead to better engines in the future. But what was the company doing with that data?
Soon after that fateful conversation, Immelt set GE on a path to becoming a new kind of enterprise: a digital industrial company that could unlock productivity from connected machines.
The company Immelt is handing over to his successor, John Flannery, is greatly changed from the one he inherited. Immelt transformed the company by spinning off its real estate, financial services and media divisions, including its stake in NBCUniversal, for tens of billions of dollars.
The moves stabilized GE after the 2008 financial crisis. Immelt then strengthened the core of GE by focusing on power infrastructure, buying the energy assets of the leading power company Alstom in 2015 and merging GE Oil & Gas with Baker Hughes in 2016 to create the world’s largest energy services business. “His enduring legacy is the portfolio transformation,” John Rice says.
Under Immelt, GE also took stands on issues that were important to customers. The company’s Ecomagination initiative helped moved the environment to the top of the corporate agenda. more> https://goo.gl/kdzfHM