However, in the years that have passed since Immelt gained control, the GE organization has struggled to maintain the same quality of culture that existed under the leadership of Welch. Brady (2004) interviewed Immelt about his position on Six Sigma in the organization. In this interview, Immelt admitted that his push toward innovation had made Six Sigma less of a driving force for quality development in the organization. While Immelt contends that he still utilizes Six Sigma as a foundation for operations in the organization, he also notes that Six Sigma and innovation cannot exist simultaneously.
Despite the challenges facing Immelt in his efforts to develop the organization, research demonstrates that this leader has had notable success in this area. To demonstrate the overall impact that Immelt's methods have had on the organization, Brady (2005) reports that, "He [Immelt] worries that GE's famous obsession with bottom-line results -- and tendency to get rid of those who don't meet them -- will make some execs shy away from taking risks that could revolutionize the company" (p. 64). For this reason, Immelt has focused organizational development on programs that motivate individual employees. Immelt has developed a host of programs that break from the quality standards that are required under the Six Sigma management system. Brady reports that overall the focus of the organization is not quality improvements for managing the bottom-line; rather Immelt has shifted the focus of the organization from deals and cost-cutting to new products, services, and markets" (p. 65).
In the context of this process, it is evident that Immelt has made some effort to improve the negative outcomes that were achieved under Welch. After Jack Welch stepped down as CEO in 2001 and Jeffrey Immelt took over, Immelt was quick to see the problems that had been created as a result of the culture that had been established under Welch. Even though Immelt recognized he importance of establishing strong internal controls for the development of the organization -- such as what is accomplished under Six Sigma -- Immelt also realized that...
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