Logo

    452. Jeff Immelt Knows He Let You Down

    GE was once the world's most valuable company but has since been selling off assets to survive. CEO Geoff Cooper presides over its decline.

    en-usFebruary 18, 2021
    1
    Freakonomics Radio

    794 Episodes

    What does Jeff Immelt identify as crisis leadership?
    How did GE's market value change during Immelt's tenure?
    What challenges did Immelt face after 9/11 and Enron?
    How did Immelt respond to the need for company restructuring?
    What impact did GE's focus on exporting have on the country?

    • Jeff Immelt on Crisis Leadership at General ElectricFormer GE CEO Jeff Immelt provides insight into crisis leadership and addresses the challenges faced during his tenure. Despite successes and failures, GE's drastic market value drop shows the need for ongoing adaptation in industry.

      In his book, former General Electric CEO Jeff Immelt shares his experience with crisis leadership, offering context for the story of his tenure and the truth behind it. Immelt identifies the current state of all leadership as crisis leadership and asserts his ability to offer valuable contributions to this debate. While his time at General Electric was marked by volatility and change, Immelt admits to both successes and failures, highlighted by the company's drastic drop in market value during his tenure. G.E. was once the biggest private employer in the region and a symbol of American industry, but selling off body parts has been necessary for the company to survive in recent years.

    • Jeff Immelt Defends His Leadership in New Book Amidst Financial Fraud Allegations at GEDespite controversy surrounding his tenure at GE, Jeff Immelt's new book, Hot Seat, offers insight into his leadership style and the challenges faced during his time as CEO.

      Jeff Immelt's tenure as CEO of General Electric was marred by allegations of financial fraud and erratic decision-making in the company's portfolio. Immelt was criticized for placing bad bets, including bulking up in the oil-and-gas sector just before oil prices crashed. However, Immelt defends his performance and attributes some of G.E.'s decline to the exposure of the company's standard practice of fudging the numbers, which dates back to the Jack Welch era. Immelt's new book, Hot Seat: What I Learned Leading a Great American Company, is a defense of his leadership. He admits that time away from the intense C.E.O. job has given him more time to think but still has a desire not to trash people. This interview with Immelt is part of an occasional series we call The Secret Life of a C.E.O.

    • Jack Welch's Successor and Jeff Immelt's Leadership at G.E.Jeff Immelt, despite his appealing background and significant contributions to various divisions at G.E., faced setbacks during his tenure as CEO. However, he identified G.E.'s healthcare inventions as some of his proudest achievements.

      Jack Welch's ultimate success at G.E. was determined by how well his successor grew the company, but he refused to comment on Jeff Immelt's leadership after he retired. Immelt's background growing up with a father who worked at G.E. and his education at Dartmouth and Harvard made him an appealing choice for Welch. Immelt's contributions to G.E.'s Plastics, Appliances, and Healthcare divisions were significant, but his tenure as CEO was plagued with challenges and setbacks. Despite this, he identified G.E.'s healthcare inventions, such as the ultrafast C.T. and handheld ultrasound, as some of his proudest achievements.

    • The Importance of a Technical Foundation for Successful ConglomeratesTo succeed in today's business world, conglomerates must have a strong technical foundation. Innovation is largely driven by data and analytics, and companies like Amazon and Alphabet have achieved success by prioritizing technology in their business strategies.

      The intersection of technology and problem-solving has always been great. General Electric was once an industry innovator, with many patents filed and investments in technology. However, the majority of innovation today is driven by information technology, data, and analytics. While GE invested in a software vision to harness customer and machine data, it did not work out as planned. The era of conglomerates that do different things like GE is over. Today, conglomerates must have a technical foundation. Companies like Amazon and Alphabet have scaled to success because of their technical foundation. To be a successful conglomerate today, a technical foundation is a must.

    • Separating Natural Volatility from Business Growth: Lessons from Jeff Immelt's Experience at General ElectricFailure is a crucial part of career growth, and surviving it can lead to success. Companies may experience volatility, but this doesn't necessarily indicate failure within the organization. Learning from mistakes is essential for personal and professional growth.

      Jeff Immelt, the former CEO of General Electric (GE), believes that natural volatility must be separated from a company's core business growth. He admits that industries like aviation can suffer drastically in bad times, but that doesn't necessarily indicate failure within the company. Immelt describes his near-death experience at GE, missing his annual earnings estimate by $50 million and receiving criticism from CEO Jack Welch while at a manager's conference. However, he learned from this experience that surviving one's failure is crucial and part of a career growth. He emerged by becoming famous for hitting company targets. Postmortems reveal that some of GE's earnings were inflated through aggressive accounting, but Immelt says he learned how to operate and invest in growth from GE.

    • Challenges and Lessons of Being a CEO in a Changing WorldBeing a CEO is a tough job. Leaders face constant change and must make difficult decisions with incomplete information. Success requires adapting, taking risks, and learning from mistakes.

      Former G.E. CEO, Jeff Immelt, discusses his tenure and the challenges of being a CEO in an ever-changing world. Despite G.E.'s rigorous accounting practices and regulatory oversight, the pressure to make important decisions with incomplete information can be daunting. As the world faces more tail-risk events like 9/11, Fukushima, the financial crisis, and Covid, leaders are constantly navigating uncharted waters. The primary lesson here is that being a CEO is a difficult job that requires constant adaptation and a willingness to take risks and learn from mistakes. It's not for the faint of heart, but those who are up for the challenge can make a difference.

    • Jeff Immelt's Leadership Challenges at GE: From 9/11 to Covid-19 PreparationAmidst crisis, it's important for leaders to recognize the need to adapt and make tough decisions, but also not to lose sight of the bigger picture and long-term goals. Being prepared for volatility is crucial for success.

      As the CEO of GE during the aftermath of 9/11 and Enron, Jeff Immelt faced immense challenges, from navigating a new world with no trust to making tough decisions regarding lending money to struggling airlines. Despite the initial panic, he recognized the need to retool their industrial businesses and reinvest in technology, while also working towards making GE Capital smaller. However, the pressure to continue growing earnings-per-share and hit dividend numbers led to a missed opportunity to reset the company. And even with preparations for Covid-19, the importance of being good at volatility cannot be understated.

    • Jeff Immelt's Leadership Style and GE's Challenges amidst Financial CrisisImmelt's approach to selling GE story, lack of enthusiasm for financial-services, and reliance on unsecured debt contributed to GE's struggles. New regulations, like Dodd-Frank, further compounded challenges for the company.

      Jeff Immelt's leadership style differed greatly from his predecessor Jack Welch, which became evident during the financial crisis as GE's reliance on GE Capital led to significant challenges. Immelt's quiet approach to selling the GE story and his lack of enthusiasm for the financial-services arm contributed to the company's struggles. Additionally, GE's wholesale-funded finance company model, relying on unsecured debt instead of deposits, made it susceptible to the 2008 financial crisis, resulting in significant disadvantage and permanent challenges. Immelt believed that new regulations, like Dodd-Frank, directly targeted GE due to their combination of a financial institution and industrial arm.

    • Jeff Immelt's Commitment to General Electric Through Trying TimesThrough difficult times, it is important to stay committed to what is working and appreciated by customers, team, and investors rather than playing the victim.

      Jeff Immelt's love for General Electric was so strong that he got the company's famous circular logo, known as the 'meatball', tattooed on his hip along with his wife's and daughter's initials on top and bottom respectively. During the financial crisis of 2008, Tim Geithner suggested splitting off G.E. Capital from G.E., but Immelt believed it was not possible at that time. Geithner may have suggested this to make G.E. a Fed-regulated entity due to the size of G.E. Capital. However, Immelt never played the victim and continued to execute the strategy that was working and appreciated by customers, team, and investors.

    • Jeff Immelt's Leadership at GE: Streamlining and Reshaping with Mixed ResultsThrough his focus on exporting and relationship-building, Jeff Immelt helped create jobs and competitiveness for the country, but faced challenges amidst a changing political climate and distrust of big corporations.

      Jeff Immelt's leadership at GE was characterized by his attempts to streamline and reshape the company's focus, but his investments and divestments were not always successful. Immelt tried to position GE as a good global company that knew how to make money in and for other countries, but his tenure coincided with a changing political climate in America and distrust of big corporations. However, GE's focus on exporting created jobs and competitiveness for the country, and Immelt's approach to diplomacy and relationship-building with heads of state was key to the company's success.

    • The Challenges and Ramifications of Exporting for Businesses and the Country's GrowthPolitical policies that do not address the concerns of small and medium-sized businesses can have significant consequences, such as lower tax revenue and political instability. Effective policies should stem from communication and collaboration with business owners.

      Exporting is essential for the growth of a country, but it is a hard and unsustainable practice. The Obama administration's lack of empathy towards the business community had significant ramifications, including the election of President Trump. G.E. was one of the many big American companies contributing less to tax coffers due to their international operations. Both the Democratic and Republican parties make life difficult for small and medium-sized businesses, with their excessive regulations and volatility. To truly understand the struggles of these businesses, we must talk to them and create policies that address their issues.

    • Jeff Immelt Reflects on GE's Downfall and His Leadership RoleJeff Immelt defends his performance as General Electric CEO but admits to mistakes leading to the company's downfall. He emphasizes the importance of effective leadership and a preference for less regulation to support small- and medium-sized businesses.

      Jeff Immelt, former CEO of General Electric, discusses the downfall of the company and his role in it. He defends his time as CEO, citing the almost $300 billion of earnings and cash generated, along with being number one in their industries and setting up a global foundation. However, he acknowledges that the ending was not what he wanted and admits to making mistakes, such as underestimating the volatility of G.E. Capital and not having strong leadership in place at G.E. Power. Immelt also touches on his political beliefs, stating a preference for less regulation and helping small- and medium-sized businesses. He does not support the events of the last 6 months and did not vote for Donald Trump.

    • Jeff Immelt's Departure from GE and his Reflection on the Company's ChallengesJeff Immelt stepped down from GE voluntarily and stands by the company's efforts to comply with the law. Although there have been hardships, Immelt remains committed to the company and its shareholders.

      Jeff Immelt's stepping down as C.E.O was possibly in the best interest of the company, and is a decision that he himself made. Despite the hardships he faced, his concern for everyone at the company was always evident. With regard to the current state of the company, although things have gotten worse, Immelt stresses that they had tried their best to comply with the law, by ensuring transparency with their board, hiring the best auditors, among others. He acknowledges how former shareholders' disappointment and heartache is understandable, and sympathizes with them. Immelt adds that he had never sold a share of GE stock and still owns a lot of it today.

    • Jeff Immelt's Regrets and AspirationsJeff Immelt, former CEO of GE, shares his regrets and aspirations for future leaders. He hopes his experiences serve as a cautionary tale and teaches leadership at Stanford while working as a partner at a venture-capital firm.

      Despite a successful career in which he was paid very well at GE, Jeff Immelt feels guilt for the company's current state. He teaches a leadership class at Stanford and focuses on technology and healthcare as a partner at venture-capital firm New Enterprise Associates. Despite enjoying his current professional career and family life, Immelt thinks about his mistakes and wishes he had done things differently every day. He admits that every job looks easy until you're the one doing it, but he hopes his own experiences can serve as a cautionary tale for others.

    Was this summary helpful?

    Recent Episodes from Freakonomics Radio

    609. What Does It Take to Run a Cannabis Farm?

    609. What Does It Take to Run a Cannabis Farm?

    Chris Weld worked for years in emergency rooms, then ditched that career and bought an old farm in Massachusetts. He set up a distillery and started making prize-winning spirits. When cannabis was legalized, he jumped into that too — and the first few years were lucrative. But now? It turns out that growing, processing, and selling weed is more complicated than it looks. He gave us the grand tour.  (Part three of a four-part series.)

     

    • SOURCES:
      • Chris Bennett, operations manager at Berkshire Mountain Distillers.
      • Luca Boldrini, head of cultivation at The Pass.
      • Yasmin Hurd, director of the Addiction Institute at Mount Sinai.
      • Chris Weld, founder and owner of Berkshire Mountain Distillers.

     

     

    Freakonomics Radio
    en-usOctober 31, 2024

    Abortion and Crime, Revisited (Update)

    Abortion and Crime, Revisited (Update)

    With abortion on the Nov. 5 ballot, we look back at Steve Levitt’s controversial research about an unintended consequence of Roe v. Wade.

     

    • SOURCES:
      • John Donohue, professor of law at Stanford Law School.
      • Steve Levitt, professor emeritus of economics at the University of Chicago and host of People I (Mostly) Admire.
      • Jessica Wolpaw Reyes, professor of economics at Amherst College.

     

     

    Freakonomics Radio
    en-usOctober 28, 2024

    608. Cannabis Is Booming, So Why Isn’t Anyone Getting Rich?

    608. Cannabis Is Booming, So Why Isn’t Anyone Getting Rich?

    There are a lot of reasons, including heavy regulations, high taxes, and competition from illegal weed shops. Most operators are losing money and waiting for Washington to get out of the way. In the meantime, it’s not that easy being green. (Part two of a four-part series.)

     

    • SOURCES:
      • Jon Caulkins, professor of operations research and public policy at Carnegie Mellon University.
      • Adam Goers, senior vice president of The Cannabist Company and chairperson of the Coalition for Cannabis Scheduling Reform.
      • Precious Osagie-Erese, founder and C.E.O. of Precious Canna Co.
      • Nikesh Patel, C.E.O. of Mammoth Distribution.
      • Nikesh Patel, director of the San Francisco Office of Cannabis.
      • Tom Standage, deputy editor of The Economist.

     

     

    Freakonomics Radio
    en-usOctober 24, 2024

    607. Is America Switching From Booze to Weed?

    607. Is America Switching From Booze to Weed?

    We have always been a nation of drinkers — but now there are more daily users of cannabis than alcohol. Considering alcohol’s harms, maybe that’s a good thing. But some people worry that the legalization of cannabis has outpaced the research. (Part one of a four-part series.)

     

    • SOURCES:
      • Jon Caulkins, professor of operations research and public policy at Carnegie Mellon University.
      • Yasmin Hurd, director of the Addiction Institute at Mount Sinai.
      • Michael Siegel, professor of public health and community medicine at Tufts University.
      • Tom Standage, deputy editor of The Economist.
      • Ryan Stoa, associate professor of law at Louisiana State University.

     

     

    Freakonomics Radio
    en-usOctober 17, 2024

    606. How to Predict the Presidency

    606. How to Predict the Presidency

    Are betting markets more accurate than polls? What kind of chaos would a second Trump term bring? And is U.S. democracy really in danger, or just “sputtering on”? (Part two of a two-part series.)

     

    • SOURCES:
      • Eric Posner, professor of law at the University of Chicago Law School.
      • Koleman Strumpf, professor of economics at Wake Forest University.

     

     

    Freakonomics Radio
    en-usOctober 11, 2024

    605. What Do People Do All Day?

    605. What Do People Do All Day?
    Discussion on the evolution and future of jobs, focusing on increasing technical labor. It references a study by David Autor et al. (The Quarterly Journal of Economics, 2024), 'Lessons from the Long Run' by James Suzman (2020), 'Working' by Studs Terkel (1974), and 'Busy Town' by Richard Scarry (1968). Participants include economists, NYT analysts, artists, authors, anthropologists, and rabbi.
    Freakonomics Radio
    en-usOctober 03, 2024

    Related Episodes

    Not Your Average Garden Hose (Pt. 4)

    Not Your Average Garden Hose (Pt. 4)

    We've toured the Flexibles facilities in Denmark, learning more about subsea flexible pipe, the role of metallurgy in its construction, and several people on the team responsible for making it all happen. On the fourth and final episode of the series, host Michael Gaines reflects on his journey, realizing that what makes NOV unique really is the way we bring together disparate people and cultures to serve a diverse industry. Sitting down with Principle Engineer - Polymers Inger-Margrete Procida and Principle Engineer - Innovation Kristian Glejbøl, Michael learns more about the history of the group, the path that led them to being a market leader in this area over the past half century, and where we're going from here as we continue to develop pipe for higher temperatures, higher pressures, and deeper depths.

    Das Strategiewerkzeug für Teams: Strategy Explorer - Interview mit Dr. Stefan Pastuszka

    Das Strategiewerkzeug für Teams: Strategy Explorer - Interview mit Dr. Stefan Pastuszka
    Wie du passende Strategien für deine Kanzlei und deine Mandanten entwickeln kannst. Dr. Stefan Pastuszka hat dazu den Strategy Explorer entwickelt, ein Canvas mit klarem Prozess zur Erstellung von Strategien. Weitere Infos findest du auf Stefans Webseite: https://strategy-explorer.xyz Wenn Du am Bootcamp mit Stefan im April 2023 teilnehmen möchtest, kannst Du dich gerne bis 10.03.23 bei uns per Email unter **sterzinger@meisterkanzlei.de** oder auf unseren Social-Media Kanälen melden. Wir wünschen viel Spaß beim Anhören und würden uns über eine positive Rezension sowie 5 Sterne sehr freuen. Vielen Dank. Wir wünschen Dir eine tolle und effektive Zeit. Dein Meisterkanzlei-Team

    CL206: From Poverty To Podium - Interview with Kendal Netmaker

    CL206: From Poverty To Podium - Interview with Kendal Netmaker

    Kendal Netmaker is an entrepreneur, author and speaker who has founded 5 businesses, winning over 25 business awards in the process. Kendal speaks to thousands of people every year about motivation, leadership and the power of telling your story. He is the author of “Driven to Succeed: From Poverty to Podium – A First-Nation Success Story”.

    In this episode, we cover:

    7:12 – Building your confidence through sports and speaking
    11:16 – Speaking in schools
    13:59 – Launch an apparel brand
    16:16 – First nation storytelling
    18:18 – Discovering your unique story

    Resources mentioned in this episode:

    Tools: Fiverr.com, Upwork.com
    Books: The Alchemist by Paulo Coelho
    Album: Till I Collapse by Eminem

    If you enjoyed the show, please rate it on YouTube, iTunes or Stitcher and write a brief review. That would really help get the word out and raise the visibility of the Creative Life show.

    The post CL206: From Poverty To Podium - Interview with Kendal Netmaker appeared first on James Taylor .

    Agile Infrastructure: Is it an Oxymoron?

    Agile Infrastructure: Is it an Oxymoron?

    We demand agility from our IT environments and offering software solutions to address the issue. How about infrastructure? Understaffed and bogged down by daily fire-fighting, can we truly expect the infrastructure team to complete a project without an effect on other groups and at the speed expected?

    Guest 1: Wallace Dalrymple, Chief Network & Telecom Architect, Global Technology Management, General Motors

    Guest Bio: https://www.ciotalknetwork.com/contributor/wallace-dalrymple/

    Guest 2: Johna Johnson, President, Nemertes Research

    Guest Bio: https://www.ciotalknetwork.com/contributor/johna-johnson/

    More on this Episode: https://www.ciotalknetwork.com/agile-infrastructure-is-it-an-oxymoron/

    More on Innovation: https://www.ciotalknetwork.com/topics/innovation/

    Visit CIO Talk Network Website: https://www.ciotalknetwork.com/

    Subscribe to our Newsletter: https://www.ciotalknetwork.com/subscribe/

    Nominate Guests or Sponsor: https://www.ciotalknetwork.com/contact/

    Scalable Carbon Capture Technology - Putting a Price on Carbon

    Scalable Carbon Capture Technology - Putting a Price on Carbon

    The energy transition is an ‘all-hands-on-deck’ journey. As we know, there is no silver bullet or golden ticket that will get us to where we need to be. Just like our economy, it is compiled of complex systems, smaller markets, and key stakeholders. Another thing about our economy? It is always in a state of motion. Moving from one system to the next - carbon is an invisible stakeholder that is singlehandedly the backbone of modern society. In the past two decades, we have begun to rapidly recognize that the management of carbon is more essential, visible, and crucial than we previously thought. 

    In today's episode of the Interchange Recharged our host David Banmiller has an eye-opening conversation with Claude Letourneau the CEO of trailblazing carbon capture company, Svante. Claude shares with us his plans and goals for building a carbon capture and sequestration infrastructure that is comparable to what the tech industry looks like today. Claude believes that carbon capture and management will play a large part in moving the energy transition forward and tells us why Svante’s technology has the possibility of creating real tangible results. 

    Throughout this episode, David and Claude cover the key topics regarding the scalability of carbon capture technology and what the future for Svante looks like. Claude helps describe to our listeners the process of putting a price on carbon, creating a carbon marketplace, and some of the biggest barriers facing carbon capture technology today. Listeners should expect some of the following questions. How much does carbon capture cost? What do the tech industry and carbon management have in common? How does Hydrogen play a role in carbon capture, and what makes this technology different than competitors' from previous years?

    The Interchange is brought to you by the Yale Program in Financing and Deploying Clean Energy, training working professionals to accelerate the deployment of clean energy worldwide. To connect with Yale expertise right from your laptop, grow your professional network, and deepen your impact, visit yalecleanenergy.info/Interchange and apply before March 13, 2022.

    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

    Logo

    © 2024 Podcastworld. All rights reserved

    Company

    Pricing

    Stay up to date

    For any inquiries, please email us at hello@podcastworld.io