Tag Archives: transformation

What the Dismissal of Jeffrey Immelt (GE) Tells us About the Limits of a Tactical Approach to Innovation

GE has just dismissed its CEO, Jeffrey Immelt, who has been in office for sixteen years. Despite considerable work in transforming the business, an ambitious innovation drive, and a big push on some hot topics such as the Internet of Things and sustainable “eco” development, which together seemed to represent the ideal transformation strategy, the results have been disappointing, and the company is now in the hands of activist investors who may soon be dismantling it. If GE has done what looks on paper like the ideal transformation program, and yet fails in the end, what lessons can we draw from its story for innovation and management in times of disruption in general?

Continue reading

Advertisements

Transformation: The Challenge of Changing the Business Model

The transformation of a business is a very complex operation, but it is even more difficult when it involves a change of business model. Let’s look at why, with a simple example, that of Microsoft Office for its transition from a model of license sale to a model of selling subscriptions.

Continue reading

Transformation: No, you do not have an execution problem

It is a story repeated many times: “Our transformation strategy is perfectly clear. But we have a big execution problem” as the member of the executive committee of a large multinational was telling me a few weeks ago. He added: “Now, disruptions are coming from everywhere, we spend millions on transformation plans, we put ‘digital’ and ‘startup’ everywhere, and nothing – nothing! – happens.” Implicitly, of course, and soon very explicitly, the explanation fuses: it is down below that people are incapable! Managers ‘down below’ are not ‘aligned’, so goes the explanation. They do not know how to execute. Or worse: they are resisting change. We must identify the culprits, the traitors! The plan must be executed!

Continue reading