IIPM

Que: You are determined to move GE from a culture of productivity to a culture of growth – organic growth that is – and not growth by acquisition. Why?

Ans: We’re now in a slow-growth world. Things were different 25 years ago. Oil was under $30 a barrel; most growth came from the developed world; we were a country at peace. After I came in as CEO, I looked at the world post-9/11 and realized that over the next 10 or 20 years, there just was not going to be much tail wind. It would be a more global market, it would be more driven by innovation, and a premium would be placed on companies that could generate their own growth. We have to change the company – to become more innovation driven – in order to deal with this new environment. It’s the right thing for investors. Productivity is still very important, but if you look back at GE’s businesses over the past decade or so, those that have been managed for both productivity and growth have done the best.

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Source: Business& Economy, IIPM , Editor: Arindam Chaudhuri