GE 2002 Annual Report Download - page 10
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Please find page 10 of the 2002 GE annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.We strive to make GE a meritocracy, where the best-
performing people get the best rewards. But everyone
must operate in a system where the company comes
first. We all serve under the same integrity policy
and compliance program, our compensation plans are
broad-based, our businesses work together, and we
have one human resources system. When the company
wins, we all win.
OUR STRATEGY FOR GROWTH
The best strategies create value for customers and
investors. For customers, we can improve their prof-
itability in tough environments. For investors, we can
create sustainable and valuable growth through the
cycles. We believe that GE can do both. We are taking
the company to a place where few can follow…big,
fundamental, high-technology infrastructure industries
in which GE can have enormous competitive advantage.
We are creating a better company — a global
Technology, Services and Financial enterprise capable
of expanding growth, cash, and returns on capital
through the cycles. Our strategy for growth is based
on five key elements:
•Technical leadership that expands margins and
grows the installed base
•Services acceleration that improves returns,
competitiveness and customer satisfaction
•Enduring customer relationships that are unbreakable
because we win together over the long term
•Globalization as a way to grow faster
and be more competitive
•Resource reallocation to build positions in new markets
where we can achieve superior growth and returns
TECHNICAL LEADERSHIP
Technology is the heart of the strategy, because it
drives valuable growth. Great products are the antidote
to deflation — customers will pay a premium to GE for
them because they make customers more profitable.
The GE Evolution™Series locomotive we announced in
December offers customers 40% lower emissions and
improved fuel efficiency and reliability — all of which
lowers the cost of ownership.
Technology is a total company capability. New
product introductions grew by 25% in 2002 and came
from all 13 businesses. Some create demand in high-
tech markets, like Medical’s Innova®4100. This is the
GE 2002 ANNUAL REPORT 9
TECHNICAL LEADERSHIP
that expands margins and
grows the installed base
SERVICES ACCELERATION
that improves returns,
competitiveness and
customer satisfaction
ENDURING CUSTOMER
RELATIONSHIPS
that are unbreakable
because we win together
over the long term
GLOBALIZATION
as a way to grow faster and
be more competitive
RESOURCE REALLOCATION
to build positions in new
markets where we can
achieve superior growth
and returns
In 2002, we saw just how this strategy can work.
We acquired Betz Dearborn, an industry leader in
water services. This business has a powerful asset:
2,000 sales engineers who are so committed to their
customers that they practically live on site, creating
powerful relationships and new cross-selling opportu-
nities. Another acquisition, Interlogix, is a medium-
sized player in security systems. It has excellent tech-
nology that, when combined with our services capa-
bility, will create new opportunities. At year-end, we
announced the acquisition of Instrumentarium, a lead-
ing provider of medical equipment and services for
the operating room. We view this as a new platform in
the operating room, where GE can add services and
integrate technology.
Throughout our history, making smart bets at
the right point in the cycle has improved share owner
returns. This is an excellent time to invest for long-term
growth. Assets are fairly priced, and with our financial
strength we can move ahead of the competition.
PEOPLE AND CULTURE
My job is to attract and keep talented and loyal people
who work together as a team. During a volatile year,
our voluntary attrition among the top 600 leaders was
less than 3%. We named 22 new officers, 41% of
whom are global and diverse. We continued our
$1 billion investment in training, and our Welch
Learning Center at Crotonville remains a vital part of
the GE culture. As some companies stopped hiring,
we increased on-campus recruiting and launched a
Commercial Leadership Program aimed at growing a
new generation of customer-focused leaders.
At the same time, we continue to build a culture
based on performance, compliance and teamwork.
The GE people appearing throughout this report repre-
sent the best of this culture. They imagine, they lead
and they perform.
They exemplify our new slogan, Imagination at
Work.GE has a rich century-old tradition of great brand
campaigns, and Imagination at Work upholds the stan-
dard. But the best thing about it is that it tells the world
about the spirit and passion of GE employees — their
curiosity, drive, hard work, warmth and humor. For GE
employees, Imagination at Work is a daily rallying cry
to say: “what we imagine, we can make happen.”