Jeff Immelt ran GE for 16 years. He radically transformed the company from a classic conglomerate that did everything to one that focused on its core industrial businesses. He sold off slower-growth, low-tech, and nonindustrial businesses — financial services, media, entertainment, plastics, and appliances. He doubled GE’s investment in R&D.
Why GE’s Jeff Immelt Lost His Job: Disruption and Activist Investors
Was the company’s focus on lean innovation a failure? Or did investors just get impatient?
October 30, 2017
Summary.
Innovation at GE was on a roll. Then it wasn’t. In June 2017 the board “retired” Jeff Immelt and promoted John Flannery to CEO. Since then Flannery has replaced Immelt’s vice chairs responsible for innovation. Beth Comstock is out. So is John Rice, the head of global operations, along with CFO Jeffrey Bornstein. So what happened? Are lean innovation and the startup way a failure in large companies? In fact, what happened is activist investors.