Summary
- GE's CEO, Larry Culp, is giving us a little more insight into how he leads an organization, and the more we see, the more we learn about his approach.
- One of the major revelations of a recent announcement is that he is aiming to change the model of how GE businesses are run.
- The emphases will be on managing GE from the bottom up and not from the top down, a vast change in GE's corporate culture.
Larry Culp, the CEO of General Electric Co. (NYSE:GE) is an interesting study.
As readers of my posts know, I did not jump on the “Culp” bandwagon as he moved into the Number One position at GE, nor have I grown warm to what he has done so far.
My major concern has been Mr. Culp seemed to have no “overall” vision of what he believed GE could be in the future. This, to me, is something that all new CEOs in a turnaround situation should present. But maybe I missed something.
But, I have argued, maybe GE is so large and such a mess that Mr. Culp cannot, in the short-run, create such a vision because the turnaround had to be done more piecemeal.
One can produce the argument that this is just what Mr. Culp is doing.
Mr. Culp spoke at the Electrical Products Group conference last Wednesday and basically stated that his current task was to cut GE’s overall debt level and stabilize the company’s power generation division. After that, he plans to attack the company’s financial services business.
