Case Study How GE Develops Its Future Management Needs
General Electric (GE), a highly diversified global corporation, is one of the best managed companies in the world judging by the results it, along with its divisions and subsidiaries, has achieved over time. It has pioneered leadership-development methods that have been widely emulated. The critical first step is to recruit people with high leadership potential. The corporation then goes to great lengths to develop that potential. GE’s leadership development includes cross-training for sustained periods of time, not only to provide managers with broad experience, but also to develop relationships and learn best practices.
When filling key positions, the selection criteria include “the four Es”: enormous personal energy, the ability to motivate and energize others, edge (a GE code meaning the ability to make tough deci- sions quickly—yes or no, not maybe), and execution or carrying things to fruition. One trait executives look for when assessing managers is proficiency at what GE calls “workout” by which is meant an abil- ity to confront issues as they come up, diagnose the root causes, and bring about resolution so that the company can move forward.
Each year roughly 10,000 newly hired and longtime managers are sent to GE’s Leadership Development Center, one of the world’s top corporate training centers, for a three-week course on six-sigma qual- ity. Six-sigma quality training, which focuses on removing the causes of errors and defects, improv- ing cycle times, and decreasing expenditures, is a prerequisite for promotion to any professional and managerial position at GE and any stock-option award.
Associated Press/Paul Sakuma
General Electric develops future manage- ment by cross-training employees—sending new hires and longtime managers to their Leadership Development Center for execu- tive training.