Wednesday, November 10, 2021
How The Mighty Fell
Larry Culp, CEO of General Electric, is breaking the conglomerate into three parts and sending them on their way. The stock market approves. In my day, GE was the envy of corporations around the globe. CEO, Jack Welch, had a golden reputation. He could do no wrong. His management training group was the envy of CEOs everywhere. GE's PR was the best. Then came Jeff Immelt as the new CEO, and it all fell apart. Immelt had to guide the company through the 2008 financial meltdown and its key money-making division, GE Capital, was in \distress. Suddenly, GE was the ne'er-do-well of corporate America. It bumped along the bottom for years with a huge debt load. An outsider, Larry Culp, was brought into turn it around. GE's fabled managers were not good enough. The company is a brutal reminder that nothing lasts forever, and communicators and marketers should approach their jobs with a measure of humility. Avoid chest-beating pronouncements. Maintain a healthy respect for time to come. Let the organization's actions speak but not boastfully. Understand that it can all go away in an instant. Remember GE.
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