GE 2014 Annual Report Download - page 16

Again, it is important that you see 2014–16 as
a pivot. We expect to grow EPS each year.
Industrial earnings should expand by more
than 10% while Capital shrinks dramatically.
We expect industrial earnings to be 75% of
the total by 2016 and to return $50 billion
to you in dividends and buyback. We will
achieve higher margins and returns over this
period. We are making GE a better com-
pany and are confi dent this will be refl ected
in the share price.
Leading with Focus and Simplicity
Improving and sustaining execution requires
running the Company differently. We are
in the midst of a culture change that is
redefi ning the way we make decisions, work
together, align with customers and hold
ourselves accountable. We’re focusing on
effi ciency, speed and market impact—and
calling this the “Culture of Simplifi cation.”
We already see that simplifi cation is the
catalyst for improvement in GE’s operating
performance.
Simplifi cation has achieved a leaner
management structure. GE now has a slim
structure that can leverage our scale. We
run the Company with smaller headquarters,
fewer processes and shared services.
We have put everything on the clock,
launching a process called “FastWorks,”
based on the entrepreneurial spirit of
Silicon Valley. We are already seeing shorter
product cycles, quicker IT implementation,
and faster customer response than any
of our competitors. There are hundreds of
FastWorks projects underway. For example,
FastWorks is accelerating GE’s development
of solid oxide fuel cells, cutting our launch
cycle by years.
We have made every employee’s purpose to
win in the market. In Commercial Operations,
where we turn projects into orders, our
cycles have moved from months to weeks,
or even days.
We have changed the incentive compen-
sation plan for our senior leaders. The
old plan was tied to results, but it wasn’t
aligned tightly enough with shareholder
value. Our new plan keeps everyone
focused on the Company’s achievement
of investor commitments, targeting the
key fi nancial and strategic metrics in their
businesses that drive company success.
Everyone in the Company is now aligned to
win together and deliver for you.
As we continue to build the world’s premier
infrastructure business, we will not lose
touch with the values that brought us here.
I have worked for GE for 32 years, and over
that time, we have had a handful of import-
ant statements that defi ne our behavior.
There are fi ve GE Beliefs. These are the prin-
ciples we aspire to:
1. Customers determine our success.
This is a statement of fact. Great teams win
in the market.
2. Stay lean to go fast.
Scarcity drives teamwork, will and
accountability.
3. Learn and adapt to win.
Good companies make mistakes quickly,
ALSTOM INTEGRATION
PLANNING TEAM
The Alstom integration team is focused
on preparing to bring together two
world-class organizations. The acqui-
sition of Alstom’s power and grid
businesses, subject to regulatory
approval, will bring 65,000 employees in
more than 100 countries to GE, along
with $20 billion in revenue.
Back row (left to right): Jeff Eglash, Lisa Price,
Fernando Bertoni, Markus Becker, Kurt
Kemmerer, Jose Garcia, Sharon Daley.
Front row (left to right): Alyson Clark, Mark
Hutchinson, Jim Healy and Rick Stanley.
LETTER TO SHAREOWNERS
WE WILL
RETURN
$50B TO
INVESTORS
IN 2014–16 THROUGH
DIVIDENDS AND SHARE
REPURCHASES.
14 GE 2014 ANNUAL REPORT