300000 employees in 175 most popular countries see

2022-08-16
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There are 300000 employees in 175 countries. See how Ge carries out this great change

300000 employees are distributed in 175 countries around the world, belonging to nine business groups. Just ask, when there is a minor trend in the market, how can the senior management in the command center understand it? From insight, decision-making to action, what kind of response mechanism is needed to keep the whole organization fast and sensitive

a lean transformation was born under this background. With this transformation, GE's business returned to industrial manufacturing. In 2005, finance accounted for 28% of the company's revenue, but in recent years, GE has continuously cut down these businesses that once benefited a lot, and laid a strategic foundation for the development of the digital field. In 2014, in response to this digital transformation, Ge also launched a new value, Ge beliefs (GE beliefs), which emphasizes customer orientation, speed, lean and learning, and embodies the rapid work method in the management and operation of the whole organization

ge's current organizational structure profoundly reflects the customer-centric feature

ge store is the core of the whole architecture. Ge digital group, global operation center, R & D and global growth organization are the four pillars around Ge store. This is a concept of virtual store, which aims to make the group a whole, exchange knowledge, technology and tools around the world, and realize R & D sharing and service sharing. It gives customers the feeling of shopping, telling them what technologies they have and what problems they can solve. Customers only need to face one entrance, behind which are 300000 employees and the products of various business groups, forming a complete and systematic solution

from the perspective of front-end sales, this move will streamline the process of serving customers, improve response speed, and provide customers with more extensive and high-value services and solutions in a large-scale collaborative manner. Internally, the establishment of Ge stores is actually based on the same Ge perspective. Advanced technology, products, software and analysis can be shared among various business groups, service modes can be shared among different business groups, and even the capabilities of one country and region can help Ge win orders in other countries and other business units. This move revitalized the technology and talents deposited by GE, no longer serving only one unit and region, so as to achieve faster business growth and higher revenue. The final result is that Ge as a whole is more competitive than business units

the sharing of services provided by global operations for the group's business units is a direct product of this change. The five major operation centers in the world centralize the backstage support departments under the original companies or business groups to provide shared services in many professional fields, such as financial operations (including tax and fixed assets), supply chain management, human resources operations, business operations, environmental health and safety, among which the GE Global operation Asia Pacific Center is located in Shanghai, including Japan, South Korea, Australia, Singapore India and other 17 Asia Pacific countries and regions provide shared services. Shane Fitzsimons, senior vice president and President of global operations of Ge, said that the service sharing model will greatly simplify and accelerate the internal processes and inter business collaboration of Ge business

the practice of Ge operation center

integration is to create value. The idea of establishing Ge global operation center is to divest the background support department of the original group, improve service efficiency, reduce costs through sharing, and let each group focus more on its core business. However, integration is not easy, which means that it is necessary to identify which work needs to be left in the original business group for rapid response, and which routine work can be shared by the group to reduce unnecessary personnel and expenses. The basic points of separation and combination are efficiency, quality and cost

before the integration, there were more than 500 ERP systems scattered in Ge business groups alone, with different data types and data interfaces, which caused great difficulties in data collection, analysis and statistics. There are financial risks. Suppliers send invoices to different companies of Ge, one is wrong, the other is missing, and the third is the invoice filing. If it is not found, it is a loss. In China, if these financial processes are concentrated in one place, it will bring great convenience in terms of cost and compliance. In the past, each business group had its own process

but the degree of opening and closing also needs to be grasped. About 65% of the background service functions are transferred to the shared service mode, and 35% remain in the business group to help them respond quickly. For example, the airline group contract requires very deep professional support, so the backstage support of the commercial sales team is done by itself

in 2012, when the global operation center was just established, there were 12 service items, covering multi-functional operation processes including finance, procurement, customs, facility management, compensation, human resource operation, etc. since then, the service items have been expanded to 25 kinds at present, and the number of people has also increased from 2000 to 8000

as a product of rapid working method, the global operation center must also reflect the characteristics of agility in its own management

the first is the change of evaluation methods. While improving personal performance and growth, it emphasizes the overall performance of the team, and closely combines this with executive incentives. Take King Lee, President of Asia Pacific operations, as an example. He not only needs to achieve the goal of Asia Pacific operations center, but also takes into account the other four operations centers

in terms of personal evaluation, Ge also changed the evaluation method of Jiugongge (i.e. performance and values), and adopted PD (performance development) to focus more on real-time feedback and suggestions to people. This method emphasizes the integrity of evaluation more than just performance. Said fishmon. At the beginning of the year, employees upload their annual plans in the evaluation system. During work, the manager will communicate with employees irregularly, and the conversation records of these communications will also be uploaded. An important module in the evaluation system is insight. For example, colleagues will make suggestions on how to improve employees' knowledge sharing in meetings or their performance in project cooperation. This is a very equal communication, knowing your strengths and weaknesses. By the end of the year, the company will not only evaluate the performance indicators, but also combine the evaluation of others and their contributions to the company, from performance to conduct and teamwork ability, so as to fully display the characteristics of a complete person and hear multi-dimensional evaluation

the second is tissue flattening. There are only five levels between junior employees and global operating presidents. In order to reflect the flattening and efficiency, even the president does not have his own office and works in an open office space like employees. In addition, each manager can lead only 8 employees at most. These 6 and 1 machines are multi-purpose: equipped with different sensors, these measures are to facilitate the rapid and full communication between employees and managers, and avoid missing market opportunities in the reporting process of more than a dozen layers

I have tried many projects, most of which come from ordinary employees. After obtaining resources, they quickly put their ideas into practice and make them come true, which is very helpful for motivating employees. Said fishmon. On the one hand, the changed organization makes it easier for employees to obtain resources. On the other hand, employees are also practicing the rapid work method of rapid failure and rapid success. After failure, we need to think about whether to continue to improve or give up, which requires rapid decision-making. Leaders do not pre judge whether it is a crazy idea or a good idea in the process of employee innovation and creation. Everything is in rapid action, with small financial support, which will be implemented on a larger scale after successful verification

in fact, at the early stage of the establishment of the operation center, if business groups seek outsourcing, the unit price may be lower. The reason why Ge firmly implements this change is that it foresees that once the logistics process is scaled up, it can create more opportunities than business outsourcing. In the process of service, the operation center is also constantly proposing creative solutions

for example, in order to reform the financial process, the concept of financial supply chain was innovatively put forward, and GE's rich experience in factory operation and material management was implanted into the financial operation process. Six Sigma, lean management and fastworks (fast work method) tools are applied to daily work to help improve service quality. In the process from procurement to payment, the processing cycle of each order was shortened by 30% in 2015, and the operating cost of invoice payment has been reduced by more than 20% for two years

a more critical indicator is that before the formal operation of the global operation center, GE's sales and management expenses accounted for 18% of the company's annual sales, while in 2015, this figure fell to 13.9%. The savings are partly due to the operation center and partly due to the efforts of business groups. Said fishmon

experience and lessons

when the hydraulic 4-ball experimental machine first appeared, Ge also paid attention to many experiences and lessons in the process of practice

one is the coordination problem caused by multiple resources and high complexity. How to coordinate the business allocation between the operation center and each point. Which should be completed by the operation center and which should be completed by the local location. In fact, people at every point want to be controlled by themselves. This is the resource balance and relationship coordination that global leaders need to do well

second, we should learn dynamic management. The structure of GE's global operations center has been changing, and new operations functions have been added. If the upper level enforces it, it will be hindered by many parties from the team and partners. Fishmon said: what the company advocates is cooperation and hopes to embrace change with a more open attitude rather than coercion. Therefore, cultural change is very important for the development of the operation center to comprehensively improve total factor productivity

third, we should have a big vision. The operation center has a big vision at the beginning of its establishment, which also encourages employees to achieve this goal and play the role of the operation center

fourth, the management gives full play to the potential of subordinate teams. What we advocate to stabilize market expectations is that managers set goals for the team, and then rest assured that letting them do it will stifle the creativity of the team. Fishmon said that the purpose of reducing levels is to reduce the number of people who give orders, but the people who give orders should learn to delegate

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