Sunday, May 13, 2018

Silicon valley method adopted by GE.

GE (General Electric), which is at an unprecedented level of doubt, a deficit of over 1 trillion yen, a stock market crash, dividend halves. When GE was still in good shape, in Japan, "GE is a model for corporate management" was touted, it was popular.

GE rules the process of determining the next president and strictly stipulates that only those who have survived fierce competition can become the president. And once you take office as the president, you can grab the real power of long-term operation.

For example, in the history of more than 130 years, there are only 9 presidents of succession.

In addition, headhunting is generalized for American companies, but GE will not invite people from outside the company. In the past, only those who contribute to GE and are well acquainted with GE can not be president.

Education methods of employees are well established. We are concentrating on raising the quality of human resources thoroughly by spending as much as $ 1 billion annually in funds to develop leaders.

Even if you become the president, 30% of the total time needs to receive education, and the strength that human resources continues to evolve constantly can be said to be the essence that created the giant GE.

But the times have changed.

It was a difficult era when GE's specialized hardware strategy could not improve profit.

Internet companies that bring huge profits without having assets on the Internet come to rise and enterprises with business like GE that has to own physical assets such as manufacturing industry to be in trouble became.

In the present age when the hardware strategy ceases to pass, GE is about to change from "selling things" to "selling outcomes".

Executives of GE beat down shame and pride and repeatedly talked with young managers around the age of 30 who are active in Silicon Valley and tried to gain learning from them.

As a result, in developing products and services, we made hypotheses in light of customer needs, worked on development, gained feedback from customers in the process, changed to a quick and flexible business style to change direction as needed I am making it.

GE has completely shifted to the way Silicon Valley is practicing and has already started to produce results.

For example, the latest gas turbine development succeeded in shortening the construction period to half of the conventional period. Moreover, its combustion efficiency has high performance enough to receive Guinness certification, and the productivity clearly increased.

Furthermore, we are promoting software business, and now IoT solution is also working on development with Silicon Valley method.

GE is now working on a serious change, trying to reborn again as an American giant.

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