According to Neil C., we're so much better than our competitors. The company is reorganizing to enable better leveraging our our internal capabilities. So why is it that we continue to mismanage the PDS process? Another 8% lost in 2022? Or even more as those in the middle ranks realize the downward pressure in thier ranking? Welcome to the 2022 hunger games!
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Jack "Neutron" Welch was the best. You guys deserve a 12% Pip Rate for slacking and relaxing on the campus lounges.
Obviously you did not pay attention to the earnings call. DW said it, 2 billion savings in operation. Divide by average salary and benefits to see how many people have to go.
Keep in mind that last year XOM told WallSt "we are cutting from 72k to 58k regular employees".
We're not there yet. 8% PIP is a reality for many years to come. XOM keeps hiring in low-cost locations, so for the US and West Europe, it's even more than 8% a year.
So, how will we fare when Chevron buys us? I mean, will they keep the majority of us newer employees and simply cut the high cost older employees?
Not only he has not worked for GE but he cannot also read the graphs.
Welch left a company in overdrive (aka huge trailing revenues, minimized costs, 0 talent left, no valuable investments, huge debt).
After he got his golden parachute of course GE collapsed within 2 years, and now it’s for sale in pieces.
Did he personally succeed? Sure.
Did he ensure that the centuries old company he inherited has a sustainable future? No.
That is not my opinion. This is the market’s opinion.
@1wxb You’ve obviously never worked for GE.
Jack Welch was a very smart CEO with very little empathy for employees. Wall Street and GE's stockholders loved him.
Jack Welch was a “Jack” of all trades. During his 20-year tenure as the CEO of General Electric (NYSE: GE), he grew profits from $1.5 billion to over $15 billion and increased GE’s market valuation by a factor of 30 from around $14 billion to over $400 billion. If you had invested a thousand dollars in GE stock when he took over as CEO in 1981, that money would have grown to $50,000 by the time he stepped down in 2001.
As soon as he took over, Jack insisted that GE had to be number one or number two in every business they were in, or else get out. By number one or number two, he meant GE to be the leanest, lowest cost, worldwide producer of quality goods and services.
https://strategyforexecs.com/jack-welch-GE/
Jack Welch was an id--t.
That GE guidance hasn’t been followed in years- their Oil and Gas business basically ranked ~90% as “meets expectations” with a couple percent raise every year. The very high performers and very low performers were very obvious, and thus limited surprise results in their feedback sessions. Of course they’ve split off that part of the business in the past few years, but they haven’t fired the bottom 10% in ages (because they realized how destructive it was to morale).
8% Needs Significant Improvement (NSI) each year is from Jack Welch's playbook when he was CEO of General Electric.
Excerpts from Jack Welch's Strategy for Execs
https://strategyforexecs.com/jack-welch-GE/
During his period as CEO, Jack Welch managed GE with a firm hand and wasn’t afraid of making unpopular decisions. He implemented the infamous “rank and yank” program through which the company fired the bottom 10 percent performing managers every year, regardless of whether they performed well or not.
He also took GE through a major reorganization that dismantled the reigning corporate bureaucracy and laid off over 120,000 people, earning him the moniker “Neutron Jack” (as in a neutron bo-b that eliminates people and leaves buildings intact).
Although widely criticized, his “yank and rank” program was fundamental in keeping GE’s thriving culture.
In short, the system seeks to sort out the A-, B- and C-players and compensate them in proportion to their contribution to the organization’s success. In the case of GE, A-players embodied what Welch called the “Four Es of GE Leadership”: high Energy levels, ability to Energize others, the Edge to make tough decisions, and the ability to consistently Execute and deliver.
Under this performance-based system, A-players could get up to three times the raises and bonuses that B-players get, while C-players would get nothing.
Even critics admit that Jack Welch was the extraordinary driving force behind GE’s explosive growth during these years. He was, without doubt, the Jeff Bezos of his era.
New motto:
(We Are ExxonMobil)*0.92
Became set DW said so - with complete disregard for performance and no concern for the individuals affected.
We are ExxonMobil,,,oops,,,,,,92% of us are ExxonMobil.
Because it the only play senior management has in their playbook. They don't know how to create value so they cut cost using blunt tools.
To continue to lower costs by moving those jobs to the overseas tech centers
Structural efficiency = layoffs.
Yes, PIP's will continue into 2023.
Darren Wood confirmed in the 4Q2021 conference call this morning that we will exceed our $6 billion commitment to "Structural Efficiencies" by 2023.
Our actions are yielding strong results and, as I said, positioned us to benefit from demand recovery. We grew earnings to $23 billion and drove nearly $2 billion of structural efficiencies in 2021 on top of the $3 billion the year before. This puts us in a good position to significantly exceed our goal of $6 billion of structural cost savings per year by 2023, relative to 2019.
Sure. Good morning Biraj. So we talked some time ago about a $6 billion structural reduction through 2023. As we work through 2021, and drove additional improvements within the business, we’ve extended that restructural cost reduction. We expect, as I said this morning earlier, kind of around $2 billion again in 2022 and another $2 billion in 2023, so more than exceeding the level that we thought about and talked about last year.
Technology and engineering that the new company or the new group that we’re forming is basically, again, doing the same thing, best capabilities from each of our businesses. We have technology functions within each of our companies. We’re bringing those things together, same with engineering. And we, again, expect to end up doing things much more cost efficiently for much more effect. And that – so the savings that we see going forward are really the result of a lot of different things being applied across a huge scale of our operations to significantly reduce cost.
And there are other opportunities in the future. Think about supply chain, think about some of the financial transactions as we’ve, over the course of 2018 and 2019, realigned our businesses and work processes so that now, as you look across our different businesses, we’re conducting businesses in a very similar back office approach, so to speak, that gives us an opportunity to capture the synergies that exist between those.