The Secret to GE's Success

by William E. Rothschild

GE was named the Most Admired Company in the World by Fortune Magazine. The concepts apply to all companies across the globe. Rothschild was a 30-year GE insider who reported directly to Welch for 3... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0071475931
• ISBN13: 9780071475938
• Release Date: January 2007
• Publisher: McGraw-Hill Companies
• Length: 293 Pages
• Weight: 1.40 lbs.
• Dimensions: 1.1" x 6.4" x 9.3"

Customer Reviews

LATIN: The Critically Important Acronym

No doubt for reasons of convenience, most (if not all) of the most important information about GE is summarized within a series of acronyms. For example, with regard to GE's "4 E's (+P) of Leadership," Jack Welch explained that the four Es represent positive Energy, the ability to Energize others, having an Edge (i.e. the courage to make tough yes-or-no decisions) and Execution (the ability to get the job done). What about P? "Passion!"The subtitle to William E. Rothschild'sbrilliant book refers to another acronym, LATIN, that reveals "the secret to GE's success": Leadership as well as Adaptability, Talent, Influence, and Networks. As Rothschild explains, his material covers GE's successes and failures since 1892 when it was established in New York, the result of a merger of of the Thomson-Houston Company and the Edison General Electric Comany. Charkes Coffin was GE's first president and Edison, who left the company two years later, initially served as a director. Rothschild describes the five success factors in each stage and provides "an objective assessment of what was done in each realm - both positive and negative." The material is carefully organized within four sections, each of which covers a specific period throughout GE's history: Part I "Living Better Electrically": 1879-1939 (Chapters 1-4) Part II "Diversification and Decentralization": 1940-1970 (Chapters 5-9) Part III "Portfolio Leadership": 1971-2001 (Chapters 10-13) Part IV: "Back to the Future": 2001-Present (Chapters 14-16) When reading Rothschild's book, it soon becomes obvious that those who led GE determined its priorities and objectives in each of the stages of its development. For example, Edison's focus was on identifying real problems, finding solutions and commercial applications for them, insisting that everything be patented and copyrighted; Coffin and Edwin Rice (1892-1921) ensured the success of the merger with a commitment to participative and consultative leadership, and willingly shared authority with associates; Gerard Swope and then Owen Young (1922-1939) took that commitment "to a higher level by creating ways for managers and employees to contribute to the company's strategies and policies; Charles Wilson and Philip Reed (1940-1950) were transitional leaders and Wilson "understood the old GE perfectly" but lacked the experience and the temperament to lead "the significantly charged company" after World War Two and voluntarily stepped won; Ralph Cordiner and Reed (1950-1963) spearheaded GE's decentralized growth with "a new and relatively unproven way," management by objectives (MBO); Fred Borch (1963-1972) continued decentralized management and, when realizing that he hadattempted to do too much ("GE can do anything it wants to."), "instituted a radical change in GE, enabling it for the first time to exit or prune products or even entire businesses"; lacking a co-leader following the premature death of his mentor, "Flip" Philippe, Reginald Jones(1972-1

Built to Last Analysis of GE's Unique History

I first thought about GE and its management practices in 1973 when a prospective client asked me for help in implementing a detailed strategic planning process and handed me a one-page version of the process (you can see a disguised version of that process on page 161 of this book). The initials in the corner were W. E. Rothschild, author of The Secret to GE's Success. Naturally, when I saw this book, I couldn't wait to see what this strategic planner extraordinaire had to say. Most people see GE in terms of the Welch era. Why? Because that's when GE got the most press coverage. Also, the Immelt era's heritage isn't clear yet. It hasn't been long enough. Prior to that, few remember that Reg Jones was once considered a legendary CEO. Further back, only GE alumni can mention many names after Thomas Edison. I found this book to be a helpful history of GE's continuing success, tying together many themes that I had missed. In addition, it was interesting to see how many GE "innovations" were really simplifications of earlier work . . . or continuations of long-held concentrations of focus. Unlike many books that seek to pursue too many themes, Mr. Rothschild conveniently selected only five to illuminate and explore: 1. Choosing leaders well and pursuing an inclusive leadership style. 2. Finding effective ways to adapt to new conditions, success, and setbacks. 3. Identifying, nurturing, and encouraging excellent people. 4. Being prudently proactive in engaging stakeholders. 5. Creating connections to others that allow everyone to accomplish more. Although Mr. Rothschild is appropriately proud of the company's success, he doesn't shrink from pointing out missteps, areas where processes need to be adjusted, and unnecessary delays in taking needed actions. He also wisely suggests that other companies not copy these practices, but rather adapt the practices to their own circumstances. In some conceptual exhibits, he provides helpful clues for how such adaptation might be done (see especially pages 59, 181, 208, 209, and 255). Ultimately, of course, the limitation of a management book based on one company is that you don't see the lessons as clearly as you would if you had more comparisons. That's the strength of Built to Last, for example. As a result, I think most people will get more out of this book if they read Built to Last first. The only point that I hear many management observers make about GE that Mr. Rothschild doesn't make is how slow GE usually is to adopt helpful, new practices that originated in other companies. You only see hints of that problem in the long delays involved in correcting some of the missteps. The press coverage of the company stresses the opposite point: Everything was invented by GE. But that's not really the case. Good work, Mr. Rothschild.

A Layman's View

William E. Rothschild's book The Secret to GE's Success is a very good read.... even for laypeople like myself who are not versed in management strategies. It captures your interest and holds it from beginning to end. The book gives an illuminating history of the company from its inception 126 years ago and its' emphasis on leadership and strategic planning for the future, as well as how each CEO paved the way for his successor. Little did Thomas Edison realize what he started in the late 1870's. General Electric has always had a vested interest in its employees .... a rarity in the current big business climate. Rothschild notes that GE's motto: "Do right voluntarily" extends to its employees and business practices today.

Five Stars for The Secret to GE's Success

I thoroughly enjoyed reading Bill Rothschild's latest book The secret of GE's Success. I only wish I was young enough to apply some of his insights into my own endeavors. Although Bill addresses his TAKEAWAYS to CEO's and upper management, this book is a "must read" for up-and-coming junior executives so they have a basis for comparison to their own organizations. I suspect that most organizations do little in the way of Succession Planning. Usually the CEO is secretly planning his own exit to his next opportunity while the Board is secretly searching for his replacement.

Best insight on what makes GE great.

The best, latest and most interesting insider revue of what has made General Electric the great enterprise it still is and why in these times of international growth and competition. Lessons for all companies.