I understand that GE laid off 12,000 employees in an attempt to "right-size." My understanding is that right-sizing means building an organization with the right number of the right kind of employees in order to successfully fulfill the business mission. Therefore, by definition, management would first determine the business mission then organize in the most efficient manner to fulfill that mission. Only then could you intelligently determine the number and expertise of employees required in the new organization in order to fulfill the mission. If the mission is merely to cut costs as quickly as possible, then mission accomplished. However, this is not a sustainable strategy because it only looks at the short-term. There is no evidence of a long-term strategy. This is merely life-support. And once the 4th quarter results are in there will likely be another blood-letting. And then another when 1st quarter 2018 results are in. Where does it end?
The truth: Majority shareholders run GE. Employees and customers are just an inconvenient (but necessary) nuisance.
Shareholders did not build GE. CEOs did not build GE. Managers did not build GE. Salespeople did not build GE. Technically skilled employees who have developed innovative products that satisfy the needs of customers built GE.
It is those who DO that are critically important to any business enterprise. Those who DON'T or those who WON'T should be shown the door. And those who call themselves leaders need to FACILITATE the work of those who DO!
What's wrong with this GE cult of individuals who call themselves leaders?
GE leaders manage upward and refuse to listen to employees.
GE leaders consider Crotonville as hallowed ground because it trains GE leaders.
GE leaders are somehow imbued with special powers the rest of us could not possibly understand.
GE leaders assume they are always the smartest in the room.
GE leaders value salespeople over engineers.
GE leaders refuse to listen to bad news.
GE leaders always have a hidden political agenda.
GE leaders are only interested in moving up.
GE leaders are only interested in metrics that help them.
GE leaders feel their decisions should never be questioned.
GE leaders value smooth talk over solid results.
GE leaders lie!
It is this arrogance that brings us to the current state of the company.
How could GE have possibly missed these serious economic conditions in the power industry? With the massive number of executive-level managers within GE worldwide, it's hard to believe we didn't see this coming!
So how is it possible that the most senior managers in GE completely missed the mark? Maybe the answer is buried somewhere in the group of 12,000 employees that were let go.
FUN FACT: The population of Steamboat Springs, Colorado is roughly 12,000.