Stories
Stories
GE's Jeff Immelt
Immelt Photo courtesy General Electric |
Just a year after taking the helm of General Electric, Chairman and CEO Jeffrey R. Immelt (MBA '82) addressed a capacity crowd in Burden Auditorium on topics that ranged from the state of the economy, to GE's future, to advice on achieving career goals. The September 25 event used a town hall format to give the audience ample opportunity to question the leader of a company that employs more than 300,000 people in over one hundred countries.
You're going to school at a tough time, Immelt said with a brisk frankness that characterized much of the discussion. Even so, he continued, it's good to keep the situation in perspective. When he graduated in the early 1980s, unemployment was around 12 percent, inflation was close to 15 percent, and interest rates were in double digits. I think at times like these it's nice to remember there are always times like these, he quipped. Don't even try to look for clues. For the next two or three years, what you're going to see is more of the same — dramatically slow economic growth. Health care is one bright spot on the horizon, Immelt noted, as are the industries of global infrastructure, security, and alternative energy development. China is capable of steady growth over the coming years and will continue to be a key component of GE's global strategy, he added, provoking a question from one audience member regarding the propriety of doing business in a country known for its human rights violations.
Are we better off having China be part of the world or isolating them? Immelt responded. In order to drive change, you have to be inside, not outside, the house. You have to become part of the culture and demonstrate through corporate example what responsible companies can do. Inevitably, several audience members wanted to know what it's like to succeed a man Fortune magazine named the top CEO of the last century. I never viewed my job as replacing Jack Welch, he replied. The fact is, his leadership style wouldn't work today. It's a different time. Immelt was quick to add that he's been influenced by Welch's ability to soak up new ideas, to transform himself, and to create change within the company. The two continue to enjoy a good relationship, Immelt said.
A company's success is built on four components, Immelt observed: a solid business model, its capacity for performance, the ability to focus on the future, and a commitment to its people, culture, and values. We need companies that perform with integrity, he said. Performance is the only thing that will turn the stock market around; it's the only thing that will make people believe again.
In a postEnron world, he said, Stars aren't going to be tolerated anymore — the focus is on a solid system, teamwork, and values. Immelt went on to describe GE as a meritocracy, noting, You have to link pay with performance to attract the best people. I believe in stock options, which we expense — they align employees with investors.
For students planning early career strategies, Immelt had these words of advice: When you join a company, find somebody you trust. I had mentors early in my career who helped me out a lot. Always be dedicated to doing a good job. And trust yourself — be your worst critic or best judge. When asked about the sacrifices he's made to rise through the ranks at GE, Immelt admitted that he hasn't been able to maintain as many close friendships as he'd like. All of his free time is spent with his wife and daughter, he said, adding that they've moved with him nine times in the past 21 years. The benefits far outweigh the negative aspects, but you have to really think about the level of commitment that is involved.
Conceptualize your aspirations, Immelt concluded. You have the capability, the background, and the desire. Think about where you want to go and how you want to give back, then hit the ground running.