Jeff Immelt, hung up his boots on October 2, 2017 as chairman of the board of the U.S.-based conglomerate General Electric.
The vantage position he occupied in global business gave him a deep understanding on why conglomerates like GE are a disadvantage vis-a-vis Silicon Valley companies.
His cogent perspective is wonderfully captured in an interesting article, titled ‘Did Immelt fumble the GE Handoff?’ by Jeff Cunningham.
“We are in a state like the Revolutionary War era when musket-loading weapons were slower than rifles, and that difference in speed meant powerful weapons were useless in battle although they made great sense in theory.
Strategic planning requiring months of approval fails to stand up to Mark Zuckerberg’s ‘hacker mentality’ in which a team of Stanford dropouts creates a solution in six days, not six months. The Department of Labor isn’t standing over their shoulders asking about equal opportunity or minimum wages. By the time the product is launched, Silicon Valley venture capitalists are ponying up millions to fund them to the next stage. In the glass headquarters of General Electric, teams are still working on their PowerPoints.
The changes put long-term planning itself in jeopardy. If it takes your team a year to develop a global competitive strategy, someone in Silicon Valley has developed an AI or Bitcoin replacement before your first brainstorming session”.
You can read this complete article here.