In conversation: Jeff Immelt and Richard Goyder
Immelt confessed he has been “obsessed” with transforming GE into a more truly global company in recent years, driving growth and building operations in more than 180 countries. In that context, Goyder asked him to rate the global economy during their interview at the GE At Work 2014 event in Sydney today.
Citing a growth rate of up to 2.5 percent, Immelt said, “I think the world is ok. What’s interesting as business leaders is to deal with the world as you see it,”
“The long term fundamentals are going to be there. I think it’s one of these lines that’s jagged with an upward trend.”
In Immelt’s view, business leaders can still achieve sustained growth in a volatile market. “You just have to look harder for it. Growth is there, but it just might not be in the markets you’re operating in.”
Immelt cited China’s 7 percent growth and the significant opportunities which exist in certain African countries as examples. In Algeria alone, GE is witnessing growth rates of to 25 percent.
However he cautioned, that you need to have people on the ground in these markets, close to customers to capitalise on the opportunities.
“We’re in Nigeria. We don’t have people in London or Dubai on the phone telling us what’s happening in Nigeria. That just won’t work.”
Immelt emphasised the importance of businesses breaking away from ‘centralised control’ and to let go and accept some risk for greater rewards. GE continues to move senior decision makers to geographic regions outside the United States – to be able to make more decisions locally.
“Companies get in trouble when they are not adventurous from a business model standpoint,” he said. “But you have to have the strength of will to say these are the changes we have to make.”