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Case
Case
MAY 2001
www.corporateleadershipcouncil.com
CASE PROFILE
GEs Session C
Leadership Talent Assessment
FEATURED COMPANY
EXECUTIVE SUMMARY
COMPANY:
GENERAL ELECTRIC
HEADQUARTERS:
FAIRFIELD, CONNECTICUT
INDUSTRY:
DIVERSIFIED MANUFACTURING
2000 EMPLOYEES:
313,000
2000 SALES:
$129 BILLION
CHALLENGE AT HAND
HR SOLUTION
Session C is CEO-led
audit of leadership
talent to plan leader
development and
succession
PAGE 1
MAY 2001
GEs Session C Leadership Talent Assessment
HR SOLUTION (CONTNUED)
The Session C Talent Audit Process
During April and May each year, GEs CEO and SVP of Corporate
HR travel to each of GEs operating units to lead Session C: a daylong audit of the performance of the management team and the
potential of rising talent.7 This session has several objectives:
!
!
!
!
!
1. ORGANIZATION CHANGES
" Strategic changes
" Employee movement
2. REVIEW OF DIRECT REPORTS
" Performance/promotability/development
" Question/answer
3. BACKUPS
4. TALENT REVIEW
" New hires/transfers
" Women/minorities
" Key talent retention
" Performance improvement initiatives
Unit CEO
VP, HR
10.30am 4.30pm
" Team Builder/Empowerment
" Diversity
" Knowledge/Expertise/Intellect
" Initiative/Speed
" Global Mindset
Additional Business
Unit Participants:
VP, Business
Development
VP, Power Generation
VP, Finance
VP, Americas
(other direct reports)
PAGE 2
MAY 2001
GEs Session C Leadership Talent Assessment
Manager
Peer
Staff
GE Service: 20 years
Promotability / Performance
Promotability 1 .
Performance A .
Trend Upward .
Accomplishments
! Delivered $25m cost
Vision
Focus
Customer
Integrity
Accountability
Communication
Diversity
Team-buiding
Gas Turbine
Steam Turbines
Turbine, Tech
Gas Turbine
PG Mktg Prod Mgr
PG Engineering
PG Customer
Knowledge
Design Engineer
Development Engineer
Mgr, Turbine Design Engr
Mgr, Gas Turb Dev Engr
Prog Mgr, Adv Machine
Mgr, Adv Engineering
GM, Engineering Projects
Boundaryless
Key Courses
MDC 92 & BMC 96
Experience
85-88
88-89
89-92
92-94
94-97
97-99
99-
4
3
Initiative
BS Mechanical Engineering,
Clarkson 81
MS Mechanical Engineering
RPI 85
2
1
Background / Experience
Education
360-Degree Data
Global Mindset
Bob Young
VP, Power Generation Engineering
Development / Actions
Strengths
Development Needs
Plans/Actions
! Global BM course
! Meet with reports to
Promotability
1 Highly promotable, significant leadership potential
2 Promotable, significant leadership potential
3 Effective; limited promotability
4 Too soon to call
5 Improvement needed
environment
! Proven success with
customers
! Builds/challenges highperforming teams
Performance
A - Exceeds; B - Fully meets;
C - Partially meets; D - Fails to meet
Career Interests
executive-level
presentation skills
! Involvement in commercial
Future Assignment
! VP, Marketing
HR SOLUTION (CONTNUED)
Dearing, M.
Tell, B.
Otey, P.
Townes, J.
Cain, R.
OBrien, C.
Lamp, D.
Kramer, M.
Hoh, L.
Hudson, P.
Nicol, T.
Famous, E.
Reilly, S.
Snow, D.
Sampson, R.
Rucker, D.
Stich, M.
Raker, L.
Mendez, C.
Low
Performance
Low
al-Hassan, A.
Jones, K.
Gonzales, B.
PAGE 3
MAY 2001
GEs Session C Leadership Talent Assessment
HR SOLUTION (CONTNUED)
Commercial Success
Over the last ten years, GE has achieved steady positive growth
(see Figure 6), whilst effecting substantial change in terms of its core
activities and operating markets, restructuring, expanding globally
and acquiring ventures at a very high rate (averaging more than 100
acquisitions per year since 1997).34
35
$140
12.0%
$120
10.0%
$100
8.0%
$80
6.0%
$60
4.0%
$40
2.0%
$20
$0
0.0%
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
LESSONS LEARNED
Revenue ($bn)
PAGE 4
MAY 2001
GEs Session C Leadership Talent Assessment
Elizabeth Chambers et al, The War for Talent, The McKinsey Quarterly No. 3 (1998). http://www.mckinseyquarterly.com
John Beeson, Succession Planning, Across the Board (1 February 2000). Obtained through Dow Jones Interactive.
3
Best Practices in Career Path Definition and Succession Planning, Best Practices LLC. http://www.best-in-class.com
4
Edmund Metz, Designing Succession Systems for New Competitive Realities, Human Resource Planning (January 1998). Obtained through Dow Jones Interactive.
5
John Beeson, Succession Planning.
6
Author Unknown, The House That Jack Built, The Economist (18 September 1999). Obtained through Dow Jones Interactive; Ram Charan, GEs Ten Step Talent Plan,
Fortune (17 April 2000). http://www.fortune.com; John Byrne, How Jack Welch Runs GE, Business Week (8 June 1998). http://www.businessweek.com.
7
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8
ibid.
9
ibid.
10
Brad Smart, Extract..Talent Machine, The Economic Times of India (26 September 1999). Obtained through Dow Jones Interactive.
11
Stratford Sherman and Ani Hadjian, How Tomorrows Best Leaders Are Learning Their Stuff, Fortune (27 November 1995). Obtained through Dow Jones Interactive.
12
Nicholas Stein, Winning the War to Keep Top Talent Fortune (29 May 2000). Obtained through Dow Jones Interactive.
13
Brad Smart, Extract..Talent Machine.
14
ibid.
15
ibid.
16
Corporate Leadership Council. CEO-Led Talent Audit.
17
ibid.
18
Geoffrey Colvin, Staying Smart/Managing Companies and Careers in the New Economy, Fortune (2 August 1999).
19
Brad Smart, Extract Talent Machine.
20
Robert Fulmer et al, Developing Leaders: How Winning Companies Keep on Winning, Sloan Management Review (October 2000). Obtained through Dow Jones Interactive.
21
Noel Tichey and Eli Cohen, The Teaching Organization, Training & Development (1 July 1998). Obtained through Dow Jones Interactive.
22
ibid.
23
Ann Monroe, Dennis Dammerman (General Electric CFO), CFO (1 September 1998).
24
John Byrne, How Jack Welch Runs GE.
25
Nicholas Stein, Winning the War to Keep Top Talent...
26
ibid.
27
Ann Monroe, Dennis Dammerman (General Electric CFO).
28
Geoffrey Colvin, Staying Smart/Managing Companies and Careers in the New Economy.
29
Noel Tichey and Eli Cohen, The Teaching Organization.
30
Nanette Byrnes, What Really Happened to the Class of GE, Business Week (13 November 2000). Obtained through Dow Jones Interactive.
31
Michael Arndt, McNerney: A Short Jump from GE to 3M, Business Week (18 December 2000). Obtained through Dow Jones Interactive.
32
Justin Bachman, Former GE Executive Named New Home Depot Chief Executive Associated Press Newswires (5 December 2000). Obtained through Dow Jones Interactive.
33
Author Unknown Former GE Executive Selected as TRW President, Associated Press Newswires (11 November 1999). Obtained through Dow Jones Interactive.
34
http://www.hoovers.com
35
http://www.hoovers.com
36
http://www.fortune.com
2
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