GE Part I

It’s easy to think about GE as a company in decline–after all, it’s about to be broken up officially into tiny pieces. But there are two big themes that make the story of GE relevant for today’s companies–and what got us excited to dig in. First, GE is a company founded on invention. GE is a research lab plus company that managed to commercialize its research. We have so many AI research lab style companies today, but it’s worth remembering that GE was the most successful in this model. It was Apple, Google, MSFT, and Lockheed rolled into one. In its heyday, it helped win WW2, it owned everything from NBC to being America’s 4th largest lender, and of course, electrified America. Your electricity, Neil Armstrong’s boots, home appliances, your TV shows, the planes in the sky above you—all GE. Second, GE believes in people and process, not just invention. They think that management is a practice that can be taught, that is distinct from the domain of the business. They prioritized generalists, and pioneered most management practices. We were blown away by how many management practices we still use today were started at GE. Does this philosophy work?  In this first of two episodes, we’ll cover GE’s founding era as a successful research lab (and lessons learned about running one), the conditions that set the stage for GE’s focus on management practices, and an intro to one of the the most iconic CEOs of all time–Jack Welch.  (1:00) A quick note from your hosts (thanks for your feedback!) (3:90) The Myth of Thomas Edison and Managers vs Inventors (12:30) Research and Invention (26:43) Corporation as Civilization’s Infrastructure  (33:24) GE Management as a Practice (1:01:24) Meet Jack Welch (1:14:24) Operator Playbook: what tactics will we borrow from GE?