Culture Paper; Ge

Culture Paper; General Electric

According to General Electric (2005), "A project consists of a group of work orders that are executed as a coherent whole with specific resource, cost, and time objectives" (www.ge.com). General Electric or GE, is a diversified technology, media and financial services company dedicated to creating products that make life better. General Electric Company engages in the development, manufacture, and marketing of various products for the generation, transmission, distribution, control, and utilization of electricity. The company operates through eleven segments: Advanced Materials, Commercial Finance, Consumer Finance, Consumer and Industrial, Energy, Equipment and Other Services, Healthcare, Infrastructure, Insurance, NBC Universal, and Transportation. Through these segments, it delivers network television services; operates television stations; and provides cable, Internet, and multimedia programming services. In addition, the company offers various financial and other services, including consumer financing, commercial and industrial financing, real estate financing, asset management and leasing, mortgage services, consumer savings and insurance services, and specialty insurance and reinsurance. GE's products include major appliances; lighting products; industrial automation products; medical diagnostic imaging equipment; motors; electrical distribution and control equipment; locomotives; power generation and delivery products; nuclear power support services and fuel assemblies; commercial and military aircraft jet engines; chemicals for treatment of water and process systems; and engineered materials, such as plastics, silicones, and superabrasive industrial diamonds. The company provides various services, such as product services; electrical product supply houses; electrical apparatus installation, engineering, repair, and rebuilding services; and computer-related information services. GE operates in more than 100 countries and employs more than 300,000 people worldwide. A company as large as this needs an organized and detailed methodology to project management. GE uses a module to plan, schedule, monitor, and control the execution of project work to maximize maintenance efficiency and minimize costs.

Organizational Culture

Organizational culture refers to an organization's values, beliefs, and behaviors. Gray and Larson (2002) define it as, "...a system of shared norms, beliefs, values, and assumptions, which bind people together thereby creating shared meanings" (p. 97).

Firms with strong cultures achieve higher results because employees sustain focus both on what to do and how to do it. At General Electric (GE), corporate values are so important to the company, that Jack Welch, the former legendary CEO of the company, had them inscribed and distributed to all GE employees, at every level of the company.

The sum is greater than its parts at GE as both business and people diversity is utilized in a most effective way. A major American enterprise with a diverse group of huge businesses, GE is steeped in a learning culture and it is this fact that makes GE a unique company.

As Jack Welch puts it: "What sets GE apart is a culture that uses diversity as a limitless source of learning opportunities, a storehouse of ideas whose breadth and richness is unmatched in world business. At the heart of this culture is an understanding that an organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive business advantage" (Kotelnikov, 2005). GE even consults their project management services to other organizations. At GE Fanuc, they work with you to determine the best solution for your application or your challenge.

Six Sigma is popular tool used at GE. Six Sigma is a powerful breakthrough improvement business strategy that enables companies to use simple and powerful statistical methods to define, measure, analyze, improve, and control processes for achieving and sustaining operational excellence. Employees at GE are motivated towards the Six Sigma program through various reward and recognition schemes.

After working at GE for two years I would describe the culture there to be one that encourages open door communication and gives lots of recognition. Senior level managers are always interested in what the entry level associates have to say. They often hold round table discussions and luncheons with upper management. In the business I worked for, GE Capital Card Services, Six Sigma was used to measure collector's defects on calls. When an associate had Six Sigma for the month it meant that no defects were found when call quality listened to their calls. Associates with perfect Six Sigma were recognized in front of their peers every month. For departments and teams that had perfect Six Sigma consecutively they might have a pizza party. They have another great program there which encourages employees to implement their ideas. This is a great program because it gives employees a way to make improvements instead of complaining to upper management. Rewards for implementation of ideas include vacations, perq points, and money.

Project Structure

How projects are selected and structured within the current organizational culture

Using proven methodologies based on Project Management Institute and Six Sigma Quality standards, GE uses a flexible approach to project management. Poorly selected and defined projects lead to delayed results and also a great deal of

frustration. The following three generic criteria may be used for the selection of

projects at GE. Business benefits criteria; impact on meeting external customer requirement, and impact on core competencies. Financial impact; urgency, feasibility criteria, resources required, complexity issues, expertise available and required, and likelihood of success within a reasonable timeframe. Organizational impact criteria; learning benefits - new knowledge gained about the business, customers, processes, etc., and cross-functional benefits. Projects