Guys... any idea on what is to become of the blue eyed boys and girls of GE, that is the fmps, cas etc? What will those people in healthcare and BHGE do?
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I have worked with a number of CAS people, the overwhelming majority are morons. A couple of them have been great, but I dont understand how some of these people are employed, let alone on the fast track.
@2yxk I think you are right...for RemainCo, the sooner the spinoff the better. Getting rid of $18bn debt and monetize the 20% must be the objective #1, and maybe the only one. They will probably put on a show for the first months, with transition leaders, work streams, milestones, maybe some employees consultations. Then, as soon as the legal entity is set up, they will turn off the light, and leave to HC folks to clean the mess. In fact, RemainCo will try to push as much as possible into the HC company. I also expect HC will have to pay to continue using some horizontal services that will stay in RemainCo (IT systems for example). The narrative now in HC is that we will have more "freedom" to determine our future. I have the impression this is one of the shortest living narrative...in the first calls after the announcements, employees have already picked up the $18bn burden. Soon they will realise all the rest. Interestingly, senior leadership are not reiterating the "freedom" story that much. They just mentioned it, as if they had to.
@2cko those steps assume the intent is to do the spinoff properly. In reality they will probably just cut off the business, terminate the Enovia instance (MyWorkshop), and leave an organization that can fend for itself about as well as a newborn in the NICU. Past spinoffs are no indication of performance on these, as they had more resources to execute on those.
they have brought in a CAS chap to lead the transition/spin off of HC...there is enough to be worried then.
The things to untangle in the HC spin-off are beyond the toughest definition of complexity. People yet have to realize it: IT systems, set up new legal entities, patents...to name a few. Basically 54,000 employment contracts to be re-written. Countries with strong unions (France, Germany) will go through extenuating negotiations on everything. Unions will challenge everything from salary to training to health care protection. I expect more than 18 months to get the spin-off completed. HR will be working only on this. Forget any talent management. I cannot even imagine what they will do with the IT systems: myGE, Oracle for HR, box, support central...all of this needs to be separated. The spin-off requires a great deal of micro-understanding to be done properly. There is an ocean between the intent to spin-off and actually do the work.
Efff the cas and the fmps! They ran the company into the ground. Hope corporate seizes to exist!!
On the CFO call, Miller and other sub CFOs praised CAS. Please get me some of what they are smoking. CAS must have done hundreds of "audits" in the last years and never detected, and if they did never highlighted, any of issues. Real value there. Not
The only thing I care about is how much I can s--- out of this mess before it goes under.
What else? They will s--- more money off the dimishing coffers and “lead” the company to more crises
Rescued by Corporate, for sure. Corporate will endure until they have roasted the final golden goose (which will likely be Aviation at this point). They still have two more businesses to ruin before that, though (Power and Renewables).