中期報告會會議內(nèi)容綜述福田戰(zhàn)略發(fā)展的要求福田運營模式的評估福田核心競爭力的討論總結(jié)國際先進運營模式的借鑒通用電氣公司簡介通用電氣的財務(wù)業(yè)績通用電氣的運營管理通用電氣最佳實踐通用汽車的運營模式福田的總部定位福田運營模式的演變方向下一步TheBig3andVWhaveinvestedheavilyinIT,theJapanesehavespentlessITSpendPerVehicleTotalITSpend

($million)ITStaff2,360

8,5001,600

5,000809

2,000260

950630

1,827886

4,440Source:secondarydataHowever,ToyotahasjustbeguntoinvestSource:secondarydataToyotaisthebenchmarkincriticalprocessesProcessStrengthScorecardSummaryRankCustomerExperienceSupplyChainProductionProductDevelopmentBusinessServicingITInfrastructure123456GMFordVWChryslerHondaToyotaToyotaHondaChryslerGMVWFordToyotaHondaFordVWChryslerGMToyotaChryslerHondaFordGMVWFordChryslerVWGMToyotaHondaFordGMChryslerVWToyotaHondaTheJapanesehaveconcentratedtheirinvestmentinproductdevelopmentandsupplychainprocessesCEPDBSSCPGMhasmadeasubstantialITinvestmentandispoisedtoachieveITinfrastructureexcellenceProcessStrengthImportanceOfProcessInITBudgetLowLowHighHighUseOfITWithinKeyProcessesAllocationofbudget70%legacy30%newinitiativesStrategic

AdvantageWorld

Class/

Inner

CircleInternalNewCIOstaffandcouncilBPMoperatingmodeltosupportcommonprocessandcommonsystemsExternal(EDS)AccountdrivenAlignedwithBPMsIntheprocessofreorganizingKeyInitiativesNAOCompanyWAccessGlobalizationOrdermanagement(PXD)LeanmanufacturingSynchronousmath-basedprocessHeadcountTotal 8,500Spend$2.3Btotal*1.8%ofautomotiverevenues$276pervehicle*CompanyWIOandNAOonlyCompanyWIOCompanyWPDSMaterialglobaloptimizationEmergingmarketdevelopmentSAPapplicationGlobalinfrastructuredevelopmentITInvestmentLeadershipModelTactical

SupportEmbedded

In

FinanceFree

StandingHowever,ithasbeenconstrainedbyitslackofcommon

processesanditsITorganizationalleadershipITCustomerexperienceITBestPractices(1)ObservationsLexus/SaturnestablishworldclassperformancebenchmarksFordandVWaregood,butnotworldclassChryslerusesinnovativemarketing,howeverlacksintegrationwithbusinesssystemsJapanesecompetitorslagduetolackofinvestmentandleaveresponsibilitytothedealers(exceptLexusandInfiniti)VWisestablishingwidedealerinformationnetworkswhilemaintaininganemphasisonhumaninteractionCustomerExperienceProcessStrengthImportanceOfProcessInITBudgetLowLowHighHighCustomercommunicationssupportTollfreecustomerhot-linesTelephonemanagementsystemsOn-linedatabasesupportInternetwebsiteProductserviceOn-lineeducationServicebaydiagnosticsystemsEmbeddedproducttechnologyAImonitoringofproductoperationDealersystemsthattrackvehiclepurchaseandrepairhistoryGlobaltroubleshootingdatabaseCustomerservicemonitoringCustomerplaintresolutiontrackingdatabaseDealer“customerdegreeofcontentment”databaseITdriventelemarketingandcustomersatisfactionsurveydatabaseProductsalessupportKioskproductdata/productconfiguratorAccesstoproductreliabilityandlifeexpectancydata(1)CIOMagazine,1993-1996KeyChryslerFordHondaToyotaVolkswagenGMSupplyChainSupplychainITBestPractices(1)ObservationsToyotabenefitsfromstrongKieritsuglobally.Managesacomplicatedlogisticssystemveryefficiently.WithincountryoperationsneedimprovementHondahasalsobuiltasuccessfulsupplybaseandeffectivelymanagesaglobalsystemChryslerdependsonastrongsupplybaseFordbeginningtoaggressivelymanagesuppliersVWalsobuiltstrongsupportingsupplybaseProcessStrengthImportanceOfProcessInITBudgetLowLowHighHighProcurementGlobalmaterialprocurementForecastingSharingofdatabetweensuppliersandmanufacturersVirtualinventoryDatabasecapableoftreatingmaterialaspartofvirtualinventoryRoutingandtrackingProductmovementplanningCourierrouteplanningGlobaltrackingsystemActivitybasedcostingsystemsReplenishmentAutomatedreplenishmentbasedonPOSorPOULinkedtransactionandorderprocessingsystemsSatellitelinkagebetweendealersandheadquartersTechnologiesBarcodescanners,EDI,imaging,opticalcharacterrecognition,wirelesstechnology,distributedcomputing,expertsystems,simulationsservices,ASN,electronicorderentryandinvoicing,globalcommunicationsnetworks(1)CIOMagazine,1993-1996KeyChryslerFordHondaToyotaVolkswagenGMProductionProductionITBestPractices(1)ObservationsToyotainventedthebenchmarkproductionsystemandusestechnologyonlywhereithasvalueHondahasgoodprocesseswithappropriatetechnologyVolkswageninvestsheavilyandhasstartedtoseeresultsFordcontinuestoapplytechnologywithgoodresultsChryslerpositioningitselfforbetterperformanceinthefutureProcessStrengthImportanceOfProcessInITBudgetLowLowHighHighPlanningandschedulingProductionsimulations,MRPforecasting,plantfloorschedulingandbroadcastdatabasesandapplicationTrackingPerformancemonitoringusingautomateddatacollectionMaintenanceComputerizedmaintenancemanagementsystemsQualityAutomatedcollectionandreportingofproducteddataIntegrationERPsystemsRealtimemanufacturingexecutionsystem

(1)CIOMagazine,1993-1996KeyChryslerFordHondaToyotaVolkswagenGMProductDevelopmentProductdevelopmentITBestPractices(1)ObservationsToyotainventedthesystemandisperfectingit.PerformancedemonstrateseffectiveuseoftechnologyChryslerhasmadethemostprogresshere.SurvivalcausedtheimpetusforchangeandtosuccessfullyusetechnologyFord’smarketperformancecontinuestocloudthereturnfrominvestmentsinuseofprocessredesignandtechnologyVW’sfocusisonplatformandpartsdeproliferationtoreduceburdenonproductdevelopmentandthenintroducetechnologyProcessStrengthImportanceOfProcessInITBudgetLowLowHighHighCollaborationandlearningCollocatedteamssupportedbycommontechnologyAutomatedcustomerfeedbacktoproductengineersDatabaseofglobalproductR&DworkCAD,valueanalysisandcommunicationviaenterprisewideglobalnetworkConcurrentdesignreviewandengineeringteamsusingcomputeraideddesigntoolsWWWinterfaceandknowledgerepositoryMathdataStandardCAD,CAM,CAEsystemDigitizedproductdesignanddescriptioninformationHeavyuseofsimulationanddigitalmock-upforproductvalidationFullyintegratedengineeringandproductiondatabasesavailabletosuppliers(1)CIOMagazine,1993-1996KeyChryslerFordHondaToyotaVolkswagenGMBusinessServicingBusinessservicingITBestPractices(1)ObservationsFordleadsinuseofIT,hasinvestedheavilyalthoughsomeworkremains(i.e.,capacityplanning)JapanesecompanieshavenotspentmuchhereandmanyprocessesremainmanualChrysler’smovetoplatformteamsandstrengthenedsystemshasstreamlinedbusinessservicesVW’semphasishasbeenonestablishingcommonsystemsandplatformsProcessStrengthImportanceOfProcessInITBudgetLowLowHighHighGeneralOutsourcingofnon-coreprocessesCentralizedsharedserviceunitFinanceActivitybasedcostingsystemsOpticalimagingbillingsupportGlobalintegratedcashmanagementsystemHumanresourcesGlobalon-linehumanresourcesystemCDROM,multimedia,CBT,simulationtoolsfortrainingandskillstestingVoicenetwork,voicemail,videocapability,e-mail,groupware,personalcomputersLeadershipdatabaseandtrainingviasatelliteTVbroadcastEmployee“idea”databasesPCbasedmappingofskillstoavailablepositionsEmployeeskilltocareeranddevelopmentpathmodelingtools(1)CIOMagazine,1993-1996KeyChryslerFordHondaToyotaVolkswagenGMITInfrastructure

ITinfrastructureITBestPractices(1)ObservationsFordhastakentheleadinestablishingITinfrastructure,furtherenhancedthroughFord2000Chrysler’sITinvestmentsinthepasthavebeenpiecemeal,butarenowcentrallyfundedVWisfocusingincommonsystemswherepossibleToyota’sincreasedemphasisonITinfrastructurereflectsgoaltobegloballeaderintechnologyHonda’sinfrastructureinvestmentshavebeenminimal,buteffectivefortheirneedsProcessStrengthImportanceOfProcessInITBudgetLowLowHighHighManagementGlobalInformationOfficer(GIO)CommonglobalsystemsBenchmarkingagainstthebestCommontoolsCommonapplications,collaborativetools,PCbasede-mail,singleCADsystem,singleorderprocessingsystemappliedgloballyGlobalERPsystemCommontrainingmodulesComputingandmunicationsinfrastructureISclustersHighvolumeglobalcommunicationscapabilityVideoconferencingIntranetandLANlinkingPCsonaglobalbasisLeavingresultsinadatabaseforfutureglobalreferenceQuickinstallationmunicationpackagesAutomatedphonesystem(1)CIOMagazine,1993-1996KeyChryslerFordHondaToyotaVolkswagenGMCustomerstandardsandexpectationsinAftersalesandServiceareanequallyimportantpriorityasvehiclesalesServicePartsOEMAvailabilityRate(%)AverageInventoryOn-handToyotaHondaGMEuropeSaturnJapan95.0+% withinsameday98.0% within2-3days95.0% within48hours96.4% within48hours92.0% withinsameday99.0% within1-3days2-3months4-5months6months3-4monthsSource:A.T.KearneyresearchandestimatesExampleThecorporateplanningfunctionisgenerallydirectlylinkedtotheCEOofanOEMandreceivesalotofexternalandinternalinformation.ExamplesExternalinformation(Literature,conferences,motorshows,…)Internalinformation(Engineering,Marketing/

Sales,Manufacturing,Purchasing)CEOCorporate

planningFinanceEngineering

and

ProductionBoardofManagement………CEOR&DCorporate

planningFinance,

ControllingAudiSEATVW

CarsSkodaVW

Trucks……CorporateplanningBoardofManagementTheproductplanningfunctiongenerallyisembeddedinthecentralmarketingareaofanOEM.ExampleGMOpelAGExampleBMWAGCEOOpelAGCEOBMWAGExecutiveDirectorSales&MarketingDirectormarketingDecisionSupport&BrandManagementBrandManagerCorsa/TigraBrandManagerAstraBrandManagerVectra/CalibraBrandManagerOmegaBrandManagerOffroadBoardMarket

andProductDirectorcentralmarketingMarketresearchProductstrategyVolume&pricingstrategyDistributionnetworkstrategyAdvertising&communicationMarketingtransferAst.BMProductstrategyCorsa/TigraAst.BMProductstrategyAstraAst.BMProductstrategyVectra/CalibraAst.BMProductstrategyOmegaAst.BMProductstrategyOffroad……………………ProductplanningMarketingplaysandimportantroleintheorganizationofanOEM.MarketingoverviewDecisionSupport&BrandManagementMarketingCommunication&DealerMarketingMarketingOperationsMarketResearch&MarketingStrategiesMarketingServicesBrandManagerCorsa/MigraAdvertising&CataloguesConventionsMarketResearchForecastingBrandManagerAstraDealerCommunication&AdvertisingExhibitsDisplayMarketingStrategiesSalesProgramsBrandManagerVectraPromotion&DirectMarketingSportsPromotionSponsoringSalesAnalysisBrandManagerOmegaMediaStrategiesIncentivesBrandManagerOffroad/LCVSalesTrainingExecutiveDirectorSales&MarketingDirectorMarketingClientExampleThemaintasksofdistributionnetworkmanagementaretomanagepresentandfuturechallengesofthesaleschannels.IndirectchannelsOEMownedTraditionaldealersMultipledealersMallsDirectchannelsEmployeesalesFleetsalesInternetsalesCriteriatobeevaluatedCriteriatobeevaluatedNumberofoutletsDistributionofoutletsacrossregionsaccordingtomarketpotentialPerformanceofoutletsVolumeProfitCustomersatisfactionStrategicfitwiththebrandandtheproductsCustomerpreferencesCost-profitrelationshipCurrentandfutureinvestmentsversusnumberofsalesandcontributionfigureStrategicfitwiththebrandandtheproductsCustomerbehaviorandacceptanceDistributionNetworkManagementThegoalsofpurchasingorganizationsaredocumentedinmissionstatements.TimeCostQualityGMRenaultMBMercedes-Benz: “Tandem”focusesonpartnershipwithallsuppliersGM: “WWP”stressesglobalcompetitionamongsuppliersRenault: “QDM”putsqualityinthefirstplace...Onaglobalbasis,purchasinghastofulfillfourmainfunctions.SupportconceptstageSupportdevelopmentprojectsManageproductionsuppliersManageaftermarketsuppliersAdvancedpurchasing1Vehiclelinepurchasing2Productionpurchasing3Supplierdevelopment4Localpurchasingorganizationsarebuyingpartscomingfromlocalsuppliers(notfortheplants);e.g.AntwerpplantbuysBenelux/France/Italy,SpainbuysSpain/Portugal/Greece/Turkey,...Whenengineersdevelopsanewpart,hegivesthedrawingstoadvancedpurchasingwhogivesthedrawingstothebuyersineachofthe5plants;eachbuyerislookingforthebestpriceinhisregion;aconferencecallbetweenthe5buyersdetermineswhichofferisthebestOnnewproductdevelopment,purchasingselectsthesupplierwithpureunitpricefocuswithnoinputonspecificationandverylittleleadershiponstandardization180creativityteamswithcrossfunctionnalexpertiseaimatreducingcostsonnewandexistingpartsGMEPurchasingAdvanced

PurchasingChemicalElectricalMetallicChemicalGermany/

AustriaModules/SystemsComponentsPartsModules/SystemsComponentsPartsElectricalModules/SystemsComponentsMetallicPartsChemicalModules/SystemsComponentsPartsModules/SystemsComponentsPartsElectricalModules/SystemsComponentsMetallicPartsChemicalModules/SystemsComponentsPartsModules/SystemsComponentsPartsElectricalModules/SystemsComponentsMetallicPartsChemicalModules/SystemsComponentsPartsModules/SystemsComponentsPartsElectricalModules/SystemsComponentsMetallicPartsChemicalModules/SystemsComponentsPartsModules/SystemsComponentsPartsElectricalModules/SystemsComponentsMetallicPartsSpain/

PortugalBelgium/

France/ItalyUK/IrelandScandinavia/

JapanHomeplantswithpurchasingorganizationsThepurchasingorganizationofGeneralMotorsEurope.USAAustraliaBrusselsUKThepurchasingorganizationofVW.VicePresidentProductionandPurchasing6DivisionPurchasingDirectorsMetalChemicalsElectricControllingQualityGlobalandFor-wardSourcing4NationalPurchasingOffices4BrandPurchasingDirectorsVWAudiSeatSkodaThepurchasingorganizationofFordworldwide...OperativerEinkaufPurchasing

CoreChasis

CoreInterior

CoreElectrical

CoreBody

CoreRawMaterial

CorePowertrain

CoreEuropeNorth

AmericaLarge

FWDRWD

CarLight

TruckCommercial

TruckPower-

trainACDSupplier

Technical

AssistanceProcurement

OperationsSupplier

Development

CentralEuropeControllerSmall/

Medium

VCSupplier

Development

NorthAmericaControllerPower-

trainACDSupplier

Technical

AssistanceProcurement

OperationsCoreResourcesPurchasingVPVCVCVCVCPCPCPCPCVCKEYVC=Vehicle

Center

PC=Product

CenterTotalCostManagementTotalCostManagementStrategicplanningStrategicplanningNon-productionmaterialNon-productionmaterialEmergingMarketsThepurchasingorganizationofMercedes-Benz(passengercars).Purchasingdirector Tandem12PlatformManagersControlling/InformationGlobalizationSupplierDevelopmentAfterMarketCommodities/DriveTrainCommoditiesEngineMechanics/DriveTrainEngineManagementExterior/

Electronics/ChassisExteriorElectric/ElectronicsChassisPlastics,StampingsInteriorStampings,Rubber,PlasticsInteriorEntireVehiclesChryslerPurchasingorganizationsoftruckmakersarefacingadditionalchallenges.Whatmakesitharder:LowvolumesMonopolisticsuppliersLargeparts-expensivelogisticsHighdegreeofcustomerspecificationContinuousfaceliftingCyclicmarketWhatmakesiteasier:LonglifecyclesOftensofterspecsProductcreationPlanningMarketingDesignandEngineering

ManufacturingSalesandorderfulfillment

Understandcustomerpreferencesandensurethattheyarereflectedinproduct

Finance

CorefinancialprocessesHR

SkillneedtosatisfiedskillrequirementsPurchasing

ServicesandproductsfromsuppliersInformationInformationneededtoinformationprovidedProcurement,internalpartsproductionandassemblyCorporate,portfolioandmanufacturingplanningBringproducttocustomersInfrastructureTheprocessmodelforanautomotiveenterpriseincludesvariedsupportfunctions.TheFinancefunctionisoneofthekeysupportprocesses.IntroductionAsthisroleevolves,Financeshouldmoveawayfrommerelyprocessingtransactionstowardprovidingvalue-creatingdecisionsupport.DifferentfocusanddeliverymechanismsDifferentuseofresourcesBusinessFocusCustomer-orientedValuecatalystStrategy-enablingBusinesspartnerDeliveryMechanismsSeamlessflowofwork/transactionsEliminationofnonvalue-addedtasksDonerightthefirsttimeDrasticallyimprovedcycletimesIntegratefinancialprocesseswithenterpriseprocessesTransactionBusinessDecisionSupportTraditional

FinanceFutureFinanceTransactionBusinessDecisionSupportVisionfortheFinanceorganizationSuccessstories:Chrysler’sSCOREandDaimler-Benz’sTandemprogramSCORE(SupplierCostReductionEffort)hassavedChrysler(1)anditssuppliersbillionsofdollarssinceits1989inceptionRivalGMintroducedsuppliergainsharingprogramin1997(1)DaimlerChryslerNote: (1)GMestablisheda“risk/awardwarrantyprogram”foritssuppliersthatdefinesspecificstandardstobemet.Suppliersare giventheopportunitytoearnashareofthe$70billionGMspendsannuallyonparts“bydevelopingnewparts”andmorequicklyadoptingnewtechnologiesSource: PressGainSharingProgramsSetStandardsWhile“Incenting”SuppliersSCORESupplierschallenged“tocontinuouslyseekoutandidentifyopportunitiestoeliminatewasteinthevehiclemanufacturingprocess”Supplierscansubmitproposalsdesignedtoreducecostsinareasincludingdesign,manufacturing,logistics,sourcingandadministrativetransactionsChryslercontinuouslymonitorsthe100+proposalssubmittedbysupplierseveryweekChryslerreduceditsannualprocurementbudgetby$2.1Bin1998UnderSCORE,suppliersareexpectedtocutcostsby5%ayearVoluntarysharingofsavingsestablishedbetweenChryslerandsuppliersMandatedresultsfromsuppliersmaypreventSCOREprogrambeingseenas“true”partnershipDaimler’sdeepintegrationwithitssuppliersspeedstechnologicaladvancesandproductimprovementanddevelopment,translatinginfastergo-tomarketandall-aroundrevenuewins

SCORE’scentralized,strictrecord-keepingDaimler’s“Tandem”program:supplierssharetechnologyinnovationswitheachotherandwithDaimler-BenzRecentlymergedDaimlerChrysleriscombiningcost-cuttinginitiativesunderits“ExtendedEnterprise”programInitiativeDetailsSupplierIncentivesandAdvantages每個平臺的總監(jiān)同時兼管一個主要的功能平臺管理團隊負(fù)責(zé)整個產(chǎn)品（類群)的管理所有的職能部門為平臺產(chǎn)品管理團隊提供一流的資源產(chǎn)品開發(fā)著重于平臺的開發(fā)為保證資源的有效利用，部分開發(fā)功能由比平臺管理團隊高一級的集中管理平臺管理團隊?wèi)?zhàn)略設(shè)計采購和物流生產(chǎn)分銷開發(fā)小型車大車小型貨車吉普平臺的開發(fā)平臺的開發(fā)平臺的開發(fā)平臺的開發(fā)平臺的開發(fā)卡車主要功能總圖備注克萊斯勒汽車采用矩陣式的操作模式EjesyCardanesisexperiencinghighdemandvariationfromOEMforecastsVariationbetweenforcastandactualdemand(percent)GeneralMotorsFordOct.97Nov.Dec.Jan.98Feb.Mar.Apr.May.Jun.Jul.Aug.Sep.+10%0-10%+10%0-10%+10%0-10%ToyotaOct.97Nov.Dec.Jan.98Feb.Mar.Apr.May.Jun.Jul.Aug.Chrysler+10%0-10%DemandVariations(October1997toSeptember1998)Source: EjesyCardanesdocumentsThesevariationshavedrivenmissedorders,premiumcosts,andinflatedinventorylevelsOurunderstandingofDanaven,theEjesyCardanesDivision,anditsgoalsLegendAxlesCardanJointSep.Ford’srecentorganisationrestructuringsupportsthecompany’sglobalsourcingeffortsAppendix:CasestudiesinmodularsourcingQualityProcessEmployeerelationsSmallFWDLargeFWDRWDSmallTrucksCommercialTrucksProductDevelopmentAutomotiveStrategyManufacturingMarketingandSalesProcurementMovefromregionalrelationshipsReductionoffirst-tiersupplierbasefromover800inU.S.for“Tempo”to480inU.S.andEuropefor“Contour.Mystique”Component/systemssourcingmovestosystems/modulesourcingJointVM/supplierprograms—jointvaluemanagement,“SPECS”,KaizenWarrantysharingCreationofglobalalliancesonsuppliersideDesignin-houseLocation—Dearborn,Cologne,Wasley—PurchasingOfficesCoreActivesupplierroleindesignanddevelopmentPurchasingdept.foreachvehiclecentre(5)CoreCommoditystrategyAdvancedtechnologySupplierdatabaseSupplierevaluationinproductionSupplierselection(local)Withinanindustry,companiesplacinggreateremphasisonbreakthrough-typeinnovationtypicallyachievehighergrowthInnovationStrategiesandRealAnnualOrganicRevenueGrowth

(1992-1996)1Notes1Constant1996dollars

Sources:CompuStat;company10Ks;A.T.KearneyanalysisFutureCurrentValuePropositionCurrentFutureCustomersGeneralMotors3.9%GeneralMotorsMatureproductlineMostlylineextensionsExtendedtime-to-marketChryslerNewvehicleconceptsMinivanSportutilityvehiclesAdvancedsportscarsNewvehiclearchitecturesFreshstylingChrysler12.9%FordGoodfollowerofChrysler’sleadSportutilityvehiclesMinivansRelativelyfreshproductlineFewernewplatformsthanChryslerFord9.1%EXAMPLE

AutomotiveOEMJackWelch,ChairmanandCEO,GeneralElectric

(1981–2000)CompanySituationIn1981,GEwasalarge,slow-movingandslow-growingcompany,consistingofmultiplebusinessunits.Despitehaving420,000employees,revenuein1981wasonly$25billion,withasmallmarketvalueGEwasconsideredthe“bluestofthebluechips”

FromWelch’sperspective,thehighlyorganizedbureaucracythreatenedrevenuegrowth,disciplinewasstranglingthebusinessanda“nit-picking”systemofformalreviewsandapprovalsweredelayingdecisions,thusmakingGEalaggardatbringingnewproductstomarketJackWelch’sBackgroundBecameCEOin1981atage38.SelectedbecauseofhisdemonstratedabilitytoadapttoalteredcircumstancesandhisabilityforchangeAmaverickbyGEstandards.Somecolleaguescalledhima“wildman”NamedCEOoftheYear1993byCEOMagazineMS,UniversityofMassachusettsPhD,UniversityofIllinoisCompanyScopeLargeanddiverseworldwideindustrialcorporationProductsincludeaircraftengines,appliances,industrialproductsandservices,plastics,powersystemsandtechnicalproductsandsystemsServicesincludefinancialservices,productservices,electricalproductsupplyhouses,electricalapparatusinstallation,engineering,repairandrebuildingservicesandcomputer-relatedinformationservicesDeliversfinancialservicesthroughGeneralElectricCapitalServices,Inc.NationalBroadcastingCvidesnetworktelevisionservices,operatestelevisionstations,andprovidescable,InternetandmultimediaprogramminganddistributionservicesGEemploys276,000peopleworldwideKeyManagementApproaches,Activities,Behaviors,PhilosophiesRepositiontheCompanyDemandedthatGEachievenumberoneortwopositioninallbusinessesorriskdivestitureBelievedtheremustbeasynergybetweentheseparatepartsofthecompanyinordertoachievesuccessSources: (1)Tichy,N.andSherman,S.“ControlYourDestinyorSomeoneElseWill.”(1994) (2)“TeachinganElephantHowtoDance.”Availableat (3)Tichy,N.andCharan,R.“Speed,Simplicity,Self-Confidence.”HBRLeadershipandChange,#49541(1989) (4)YahooMarketguideJackWelch,ChairmanandCEO,GeneralElectric(cont’d)KeyManagementApproaches,Activities,Behaviors,PhilosophiesRestructureManagementMandated10–15directreportspermanagertoforcemanagerstofocusonlarger,moreimportantissuesandtoletsubordinatesgrowandmatureCreatedCorporateExecutiveCouncilthatmetfortwodayseveryquarter.Thisexecutivecouncilreplacedformal,“stuffy”reviewsandwasaforumtoshareideasandinformationcandidlyandopenly,includingfailuresSeniorexecutiveswererequiredtofollowcommontemplateforreportingonbusinessdynamicsundertheircontrolandanswerfivequestionsinchartform.Thisenabledacommon“playbook”acrossallareasofbusinesstoenhanceunderstandingandinstillacommonlanguageReducedcorporatestaff,changingtherolefrom“challengingandapproving”thefieldstafftoassistingthefieldstaffEliminatedstafffunctionsthathadacontrolfocusratherthanvalue-addfocusRedefinedtheroles/expectationsofmiddlemanagerstotherolesofteacher,cheerleaderandliberator,notcontrollerInitiatednewstrictanduniformrequirementsforapprovalofplans,budgetsandcapitalrequestsLeadChangeBoardgavehimanexplicitmandateforchangewiththeirfullsupportArticulatedbusinessvisionimmediatelyCommissionedsurveyoftopmanagersin1985abouttheirviewsofthecompanyOncestrategicredirectiontookshape(1986),focusedontwoobjectives:IdentifyandeliminateunproductiveworkinordertoreenergizeemployeesLeadatransformationofattitudesto“releaseemotionalenergy”andencouragecreativityandfeelingofownershipatalllevelsSources: (1)Tichy,N.andSherman,S.“ControlYourDestinyorSomeoneElseWill.”(1994) (2)“TeachinganElephantHowtoDance.”Availableat (3)Tichy,N.andCharan,R.“Speed,Simplicity,Self-Confidence.”HBRLeadershipandChange,#49541(1989) (4)YahooMarketguideJackWelch,ChairmanandCEO,GeneralElectric(cont’d)KeyManagementApproaches,Activities,Behaviors,PhilosophiesLeadChange(cont’d)LeveragedbestpracticesofothercompaniesYokogawa,amedicalsystemscompany,used“BulletTrainThinking”totake30%to50%outofproductcostsoveratwo-yearperiod.Thistechniqueemploys“out-of-the-box”thinkingandcross-functionalteamsdedicatedtoremovingobstaclestocostreduction.GEadoptedthismethodologyanduseditintheirAircraftEnginesbusinessCaterpillardramaticallyreduceditsservicecoststructureandnewproductintroductiontimethroughpartsstandardizationdisciplines.ThesedisciplineswereusedintherapidnewproductintroductionsuccessintheAppli