Summary
- Larry Culp, GE CEO, has moved to change the company's board of directors.
- The board of directors was too ingrained, had been around too long, and tended to want things to emulate the vision of an earlier CEO.
- Mr. Culp has not yet presented a comprehensive vision of what he believes GE might be, but maybe the "old" board culture had to change before the "new" could arise.
General Electric Co. (NYSE:GE) just held its first annual meeting under the leadership of Larry Culp, its new leader.
Results were mixed and, in my mind, the company is still lacking a coherent, viable vision that investors could buy into.
I continue to pull for Mr. Culp’s success and hope that he can turn the “fabled” institution around. It is a complex and challenging task Mr. Culp has.
But, so much rests on the CEO. It is the CEO who should set the vision for the firm and also define what the culture of the institution is.
I feel very strongly about this because I have not only studied corporate turnarounds, I have headed up three successful corporate turnarounds myself.
Leadership is especially looked for in one person, whether this is right or wrong, and over the longer run, it is this leadership that is going to carry the organization.
