GE Strategy Implementation Consultation - Essay Example

GE Strategy Implementation Consultation Student Name Institutional Affiliation GE Strategy Implementation Consultation Introduction As an external consultant to the GE Company, I highly commend the business strategy used by the organization owing to the fact that it can potentially facilitate the well being and market performance sustainability in the company. However, with the increased competition and intensifying market dynamics such as the ever changing consumer tastes, preferences, and demand, the company has got to implement an effectively designed business strategy so as to enhance its competitive advantage in the long run. Worth noting, there are seemingly indications that GE has been able to formulate and implement it strategies effectively, owing to the verity that the GE is both profitable and dynamic. Remarkably, this has allowed them to overcome their closest competitors and become a truly global enterprise. Therefore, it would be worth for the company to maintain these strategies, while at the same time finding ways of consistently improving and modifying them so as to align them with the dynamic needs and demands in the market place. The Strategies that the GE require to Maintain The company requires, not only to sustain or maintain the two strategy steering councils, but also to significantly strengthen them. Notably, these councils include commercial council and operating council. In addition, the company need to its two established principal factors or processes that are tied to its strategies, which include the growth as a process, as well as the operational excellence. Notably, the growth as process initiative/ strategy which is used to execute growth of GE adopts the growth wheel concept that has six facets that aims at attaining consistent execution. Such include technology, commercial excellence, customer focus, globalization, innovation and developing growth leaders. Furthermore, the operational excellence significantly aims at addressing product management and the lean production concept. Essentially, this is a remarkable strategy for the company as it enhances the GE Company to identify value gap then analyze material cost out so as to simplify it, whereby it consequently establishes global best cost and thus build a quality product. The other competitive strategies that the GE has got to continue sustaining is that of concentrating and developing technology and innovation. Indeed, the company has been relying on technology and innovation so as to build speed and responsiveness, a notion that is highly substantial. For instance, the company has been able to apply lean production concepts like sigma six in their production process. Moreover, it has been ardent at measuring their progress with customers by having strong engineering and commercial teams that allows it to tap into new growth markets. Owing to the verity that the key focus of this process is to enhance the company’s brand value, this has subsequently made the company to be ranked fourth globally. Notably, such focus has been driven by the company’s motto ‘imagination at work’, and has as well seen the company develop masterpiece solutions like Non-Destructive Testing for testing structural integrity of infrastructure parts. In this regard, I would advice that the company to continue executing this strategy, while at the same time modifying it to enhance it meet the changing market demands. The other strategy that the GE has successfully formulated and implemented and which it also requires to continue executing entails the ‘acquisition with a difference’. Notably, over the years, the company has entered and moved out of various businesses. Currently, the company has expanded into new ventures like media, financial service and information sector. Apart from this, GE builds strategic alliances so that they can tap and access to technology, products and markets. Ultimately, this has resulted into speed, simplicity and confidence among employees which in return drives growth (GE, 2008). Owing to this fact, the company require to significantly continue embracing the strategic acquisitions, mergers, as well as strategic alliances so as to effectively cater for its growth and expansion in the long run. In addition, the GE Company has got various internal strategies that need to be sustainably maintained. These include diversified conglomerates that allow it to operate in unrelated market, and the other one is the active strategic planning that involves all employees. Apart from these, there has been the creation of unique organizational culture that is adapted to existing environmental changes and trends within the company. Significantly, such strategies are very essential for the long lasting sustainability of the company’s competitiveness. Lastly, the strategy of learning organization has been deeply embraced within the GE organization, which is also crucial as part of competitive edge of the company (Lee, 2004). Implementation of New Business Strategies Human Resource Function The company have got to significantly integrate its HR functions with its business strategy as it is pivotal to the attainment of the company’s competitive advantage. This integration should move the HR function from being reactive, prescriptive and administrative to being proactive, descriptive and executive. In fact, there would be nexus between HR and GE’s strategy, which should be better explained by participative strategic planning, which seeks to create change. Upon implementation, the key role of employees should be to transcend beyond call of duty so as to build strategic partnership that is customer-centric for sustaining growth instead of raising prices to boost the bottom line. In this regard GE should share its best people, skills, resources and concepts with its customers so as to build strategic partnership. The key to this approach of seeing employees as the epicentre for growth is research and development, which can also allow the company to nip any problem at the early stage before it causes major disruption. Human Resource Training Upon implementation, the GE should have an organization training structure with its respective heads and personnel to plan and implement the manner of training. Generally, training must involve GE seniors, managers, subordinates, as well as other staff. Essentially, training has got to be initiated after the scope of business performance is identified (Leon-Soriano, Munoz-Torres & Chalmeta-Rosalen, 2010). In this regard, various departments need to identify and address their needs which then incorporate into the overall objective of organization. The program should then be communicated, timeline designed and a structure mandated to ascertain that the training plan is in line with GE objectives. Significantly, this should be conducted on weekly, fortnightly or monthly basis depending on the needs of various departments. In a nut shell, the GE training plan will involve identification of training needs, obtaining and providing training so as to address the needs, establishing and maintaining of training capabilities, establishing and maintaining of training record, as well as assessing the training effectiveness. In addition, so as to make it more effective, the needs will be assessed to promote a plan, instructional design, appropriate training media such as workbooks and technological resources. Most importantly, various departments like the finance, human resource, sales personnel, technicians and operators training should be guided by GE operations, customers’ needs and foreseen market opportunities. The purpose for such training is that it will fulfil needs in stages and enhance the stability and expertise for efficient operations as GE performances grows. In order to make sure that various department training is relevant and in line to overarching GE objectives, there should be general exchange program where all the departments come together to assess the way their skills and knowledge will promote to desired performance. More specifically, the internal training that makes use of the experienced staffs in a particular area to mentor others in practical functioning of departmental operations should be significantly embraced. Essentially, this employee training should be guided by support materials like previous outcome such as sales, profits, customer satisfaction or problem solving scenario, which can be applied as a case study in training. This is very helpful as it relates directly to the needs and desired improvements. In addition, such training will deepen interactions across the organization by promoting openness of what one department wants from the other. In addition, the purpose of a leader will be to motivate and direct staff. Apart from such internal consultancy across managers and staffs, external consultancy may be approached where GE will involve professional consultants in a specific or general niche of organizational performance. Involving an outside agent promote openness and addressing of critical problems which GE encounters. The neutrality of external consultant helps to bring objective ideas which are usually taken without any bias (Kohtamaki, Kraus, Makela & Ronkko, 2012). Remarkably, the GE will promote online training where different managers and staffs will significantly learn through video conferencing, exchange website programs and sharing of electronically transmitted documents. Notably, the key purpose for this is to reduce time wastage, cost and align training with current technology. In order to sufficiently function globally, GE personnel should undergo proactive training which is responsive to global operations. Some of the aspects that the training should incorporate include; learning through multinational corporations functions or promote support for further learning of specific members of the organization to promote more expertise. Significantly, this will prepare a workforce which can work in various cultural, social and economic regions and promote success. Strategic Recruitment The recruitment process should consistently respond to organizational need for workforce. The GE should always employ a recruitment strategy that entail preparation and training of existing staff for some desired roles, as well as recruiting experienced staff who will not need any further training. In most cases, when there are massive retirement, transfer and expansion activities, the company should make use of the outgoing staff to promote succession programs where such staff can equip the incoming ones with various operation skills and specific departmental needs. This is very important as the operation will not experience delay or any stoppage. In addition, when instant recruitment is required, the company will use a definite job description, which would be the core of accessing the desired qualification (Compton, Nankervis & Morrissey, 2009). In this regard, the skills and expertise of the recruited staff should match GE needs and respond effectively. Leadership Program HR leadership development is critical for core competencies, business insights and global skills. This will be promoted through a comprehensive training through the efforts of expert instructors. Such instructors efforts are crucial more so when the HR are within tight schedule in the organization and can only afford limited time for career development. The GE HR leaders will work alongside the employees so as to gain exposure from the senior HR leaders and executives. From this exposure, the HR staffs are expected to develop strong professional networks where such relationships are critical for HR career development. Essentially, is very strategic for GE which will invigorate HR working with people and organizational issues that are very critical in the complex coordination of personnel. This program mode is more effective as it provide real-time experiences that are related and identifiable with day to day organizational operations. Noteworthy, when the HR peers will be discussing the issues they face and how they approach them, peculiar skills would be transferred and adopted, which would create a balance and most effective HR operational skills. The strategic program for HR leadership will incorporate three main areas that are critical components for GE. The first one is the development of core HR skills through coaching, skills assessment, conduct investigations and promote compensation. The second one entails the development of critical skills for facilitation, presentation and change management. Thirdly, there should be a frequent training throughout the program which promotes experiences through seminars. This will work out through working closely with global HR leadership program peers. Such partnership with the senior business leaders, HR leaders, and participation in formal learning, community services activities and business simulations are deemed important for HR leadership program. Besides the formal training, the HR leaders should also participate in cross-business projects and critical business activities with global teams. This would then enhance them to participate as mentors to other future leaders through initiatives. HR shall further undergo international rotations to prepare promote their experiences in working with multi-cultural communities and different environmental challenges (Stanford, 2004). This broadens the viewpoint and also promotes networking with diverse skilled and knowledgeable teams. This is perhaps the most effective of all the others as it promote learning and instant self and peer evaluation. HRs will then identify the gaps and definite areas of improvements in the face of other HR. Such participatory activities promote a HR to grow more empathetically and thus able to work in their field. The Key Issues That Can Hinder Successful Implementation There are various issues that can hinder the effective implementation of the strategic plan. They include resource limitation, high cost of training, training inefficiencies, and also poor management or leadership. However, the GE will be very vigilant in mitigating the risks and possible hindrances, including the sourcing and provision of sufficient resources. Moreover, it should be noted that over-emphasis on cost may potentially hinder progressive training whose relevance are not project-related, but can still be used substantially in other day-to-day GE operations. GE would forego the development of skills, continuous creation of networks and promotion of morale. This will require a balance between training costs and organizational needs without affecting any by over-emphasis on the other (Lehner, 2004). In specifics, the company would significantly ensure that every training effort is strategically geared to a particular activity of the organization. In addition, there would be no need of training staffs and HR on issues that are irrelevant or readily in use by the organization. This will help in reducing wastage of money on timely training that might be required in future (Lehner, 2004). Essentially, when training is given on time, it means that key personnel will be included, and that there will be a focus on a certain activity which is very relevant for the GE. This will reduce redundancy training and subsequent costs of training. It will also ensure that there are no organizational members who are lagging behind for some skills due to the fact that they are new comers in GE and were not there when training was being offered. Fundamentally, every training effort within GE should be guided by cost-benefit analysis. The Training should be cost effective and its benefits will include helping the human resources maintain their morale of staff, productivity, as well as protect the organization from further expenses. In addition, owing to the fact that there are varying needs of human resource training, such needs must be directly related to the cost prior to the training program. Some of the training program will be required for short-time activities, for instance, a project being accomplished within or less than a year. Furthermore, the training cost should not be taken for long with many resources as its use will be irrelevant when the project is accomplished (Lehner, 2004). Nevertheless, long-term oriented training will also be conducted, which would involve those skills and experiences deemed profitable in the long run of GE operations. Conclusion This implementation report has significantly outlined the key strategies that the GE requires to execute effectively, which include sustaining the suitable ones it has been using, as well as the newly designed ones. It is worth noting that the industry on which the company operates has increasingly become highly competitive and dynamic, a situation that requires the company to shift from doing things the same way. The strategies that the company will significantly continue to sustain and execute include research and development based on technology and innovation, cultural change, strategic partnership and acquisition, as well as agile organization and a learning organization business strategies. Of high significance, although the company is seemingly on right track, it should continue consistently to strengthen its existing strategies. Essentially, the GE should sustain, as well as improve on them because they have greatly contributed to the company’s success, through enabling the company to create market power, including strong positions with consumers and bargaining power over suppliers. On top of that, the company would have to constantly review its external and internal environment so as to effectively retrieve real time information that can assist in strategy formulation. Secondly, the GE should strategically formulate smart vision and mission, which are meant to guide the strategy formed. Thirdly, the company should significantly integrate its HR functions with its business strategy as it is highly pivotal to the attainment of the company’s competitive advantage. In addition, the GE should have an organization training structure with its respective heads and personnel to plan and implement the manner of training. Generally, training must involve GE seniors, managers, subordinates, as well as other staff. Also, the company should have a very effective recruitment process, which should consistently respond to organizational need for workforce. Lastly, it would be highly essential for the company to embrace HR leadership development as it is highly critical for core competencies, business insights and global skills. Conclusively, am very convinced as a consultant that this implementation of the strategic plan would ultimately strengthen the company’s competitive advantage in the long run. References Compton, R., Nankervis, A. & Morrissey, B. (2009). ‘Effective recruitment and selection practices.’ CCH Australia Limited. GE. (2008). We are a high-performance company. Retrieved from http://www.ge.com/ar2007/ltr_highperf.jsp Kohtamaki, M., Kraus, S., Makela, M. & Ronkko, M. (2012). The role of personnel commitment to strategy implementation and organizational learning within the relationship between strategic planning and company performance. International Journal of Enterpreneural Behavior & Research, 18(2), 159-178. Lee , S . (2004). Embracing Learning at GE: Lessons from the World’s Most Successful Conglomerate. Development and Learning in Organizations, 18(2), 22-24. Lehner, J. (2004). Strategy Implementation Tactics as Response to Organizational, Strategic, and Environmental Imperatives. Strategy, 15(4), 460-481. Leon-Soriano, R., Munoz-Torres, M. & Chalmeta-Rosalen, R. (2010). Methodology for sustainability strategic planning and management. Industrial Management & Data. 110(2), 249-268. Stanford, J. (2004). Cultural Shift at GE: Putting the Customer First. Strategic Direction, 20(8), 10-13. Thang, N. N., Buyens, D. & Leuven, V. (2008). Training, organizational strategy and firm performance. The Business Review, Cambridge. 11(2), 176-183. Read More