GE 2006 Annual Report Download - page 11

I may have been the only person who liked our commercial
aviation leasing business for the two years after September 11.
We experienced customer bankruptcies, global slowdowns and
a variety of other challenges. But our team made diffi cult decisions
to keep investing and supporting our customers. Ultimately, this
created abundant returns for our investors and loyalty from our
customers. Henry Hubschman, who runs this business, is the
ultimate “builder.”
Similarly, persistence paid off as we transformed our “old” rail
business into a global “growth engine.” Dave Tucker, Transportation’s
commercial leader, has worked in this business for 30 years.
He has been working feverishly to globalize this North American
business. In 2006, 40% of our orders came from outside the U.S.
New customers in China, Brazil and Kazakhstan are buying our
products. We have another $4 billion of global opportunities.
Technical innovation, matched with Dave’s determination, has
doubled the market for this great business. Dave, too, is a builder.
We have a long-term commitment to training. This is how we
transfer knowledge within GE. For the last two years we have
trained our team on the growth leadership traits so that they
could become high-performance builders. However, we recognized
that building a culture to invest and deliver is a “team sport.”
As a result, we launched a team-based training course called
Leadership Innovation and Growth (LIG).
We will take 50 business teams through LIG by the end of
2007. This is a weeklong process that drives improvement in a
business’ growth culture and capability. In the end, the leader has
a list of “quick hit actions” to achieve the team’s growth vision.
Maryrose Sylvester led her Automation and Embedded Systems
team through LIG. This is a $1 billion business that has the oppor-
tunity for dramatic growth through technology and globalization.
Maryrose used LIG to make resource allocation calls and launch
new growth initiatives. This is a team that can drive explosive
growth over the next few years.
Steve Capus led his NBC News team through LIG. This team
has had an outstanding year, with big wins in “Nightly News,” the
“Today” show and MSNBC. However, they must find new ways to
grow. Steve is using LIG to accelerate new programming ideas
and increase focus on the Internet.
Ultimately, we are trying to match a leader with a team with a
mission. As we do this, we create a high-performance culture that
can invest and deliver. We don’t want thematic leaders who move
from subject to subject. They can’t build. All of our compensation
and succession planning values long-term commitment.
We believe in the impact of LIG and will make one-third of our
executive education “team-based” in the future. We love high-
performance people. But we have learned that building businesses
over the long term takes a team.
It also helps retention. Everyone likes hiring GE people. While
our people are well paid, some private companies can pay them
more. Sure it is tempting, but we rarely lose leaders who have a
passion for building. These talented people recruit loyal teams
and are driven to build dynamic businesses for the future.
  
GE teams get to see how the story comes to life. Can we
effectively treat Alzheimer’s disease? Will nuclear power have a
resurgence in the world? Will India be a leading economy? Will
“The Office” be the next “Seinfeld”? Our teams will see it fi rst.
They are the architects of the future. They sit in the front seat
of history.
Invest and Deliver
GE is a reliable growth company. We have grown earnings
11% annually over the last 25 years. We have increased the
dividend for 31 straight years. We will perform for you in
uneven economic cycles.
We have invested in the future and we will continue to do so.
We have a valuable set of leadership businesses. They are posi-
tioned to capitalize on global infrastructure investments, emerging
market growth, environmental challenges, expanding and aging
demographics, accelerating digitization and substantial liquidity.
We deliver every day. Our organic growth rate has increased,
margin rates are expanding and returns are approaching
Company targets. The Company has high visibility on excellent
fi nancial results.
Your GE team is better than ever. They are more innovative …
more global … more technical … than at any other time in our
history. Most importantly, they are committed to work on your
behalf. It is this desire to win that defines your team, one that
will “Invest and Deliver” for the future.
Just like after September 11, I am still buying GE stock. Our
earnings have almost doubled, our portfolio strategy is complete
and our initiatives are in place. We have worked hard to improve
this Company. We have built a better GE. I know that our best
days are ahead.
Invest and deliver. Courage and discipline. Every quarter and
every decade. This is your GE.
Jeffrey R. Immelt
Chairman of the Board
and Chief Executive Offi cer
February 9, 2007
ge 2006 annual report 9