GE 2014 Annual Report Download - page 17

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GE + ALSTOM
ENHANCING THE GE PORTFOLIO WITH COMPLEMENTARY TECHNOLOGY,
GLOBAL CAPABILITY, A LARGE INSTALLED BASE AND TALENT.
2013 2014 2015E 2016F
15.7% 16.2% +~17.0%
2013 2014 2015E 2016F
14.3% 14.0% +~17.0%
but they learn and adjust. And, winning has
to be our goal.
4. Empower and inspire each other.
The days of centralized command are in the
past. Our teams have the expertise to accept
empowerment and drive results.
5. Deliver results in an uncertain world.
This is our commitment to you. GE Beliefs
drive performance and shape careers.
As investors, you can see the big changes
in portfolio or product launches. You can’t
always see how we run the Company.
The fact is, we think very differently about
business leadership today.
It takes courage to lead in an era of volatility
and uncertainty. In a company as broad as
GE, we cannot time cycles or avoid them.
Rather, we capitalize on cycles by investing
when others can’t and persisting through
periods of doubt. Resilience is a trait I
respect; I expect it from GE leaders.
Leadership is about doing fewer things bet-
ter. Great organizations have fewer layers,
organizations, initiatives and processes.
We have greatly reduced “headquarters”
throughout GE. Management is more local
and less central. In a fast-paced global
environment, centralization doesn’t work.
From far away, it is easy to see risks that
don’t exist; and you miss the real dynamics.
We will have more senior leaders in the
markets; headquarters will drive outcomes
and not meetings.
Leadership requires domain understanding.
GE leaders will be deep fi rst and broad sec-
ond, and they will spend more time in a job.
We are more willing today to hire leaders
from outside the Company who bring unique
knowledge. Our leaders must be tech-savvy.
The digital wave is impacting GE, just like
GE gas
turbine
Alstom steam
turbine
Enhanced value
of GE’s investment in
Industrial Internet
Optimized plant
performance
35%
increase in GE’s installed
base of turbines
Brazil
China
India
Middle East
$10B
of additional revenue
in growth regions
ALSTOM
GE
+ +=
INSTALLED
THERMAL BASE
~350 GW
~1000 GW
MARGINS + RETURNS
Industrial Segment
Operating Margin
Industrial Return on
Total Capital (ROTC)
TECHNOLOGY FOR THE FUTURE OF POWER
MORE GLOBAL
CAPABILITY SIGNIFICANT ADDITION TO
OUR INSTALLED BASE
CLEAR SYNERGIES WILL BE REALIZED THROUGH INTEGRATION PROCESS
LETTER TO SHAREOWNERS
GE 2014 ANNUAL REPORT 15