Abstract
Dadically altering the genetic code of a large, successful corporation requires revolutionary action. Since 1981 John F. Welch, CEO of General Electric, has been struggling to break the company's old genetic code. This code was built around a core set of principles based on growth in sales greater than GNP, with many SBUs (strategic business units), relying on financial savvy, meticulous staff work, and a domestically focused company. The new genetic code is to build shareholder value in a slow-growth environment through operating competitive advantage with transformational leadership at all levels of the organization. After five years of this effort -which included downsizing GE by over 100,000 employees, divesting $6 billion and acquiring $13 billion in businesses (RCA being the largest), doubling investment in plant equipment and RD that is, creatively destroy and remake an organization around new visions, supported by revamping the social architecture of the organization. This is needed at all levels of GE and is a continuous process.
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