Freakonomics Radio 452. Jeff Immelt Knows He Let You Down
Feb 18, 2021
In this discussion, Jeff Immelt, former CEO of General Electric, reflects on his tumultuous tenure when GE was once the world's most valuable company. He candidly shares the tough decisions and risky strategies that contributed to the company's decline, emphasizing the importance of leadership accountability. Immelt also dives into navigating innovation, the emotional challenges during crises, and the impact of corporate narratives. His insights shed light on the complexities of corporate governance and the lessons learned from failures.
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Immelt's GE Roots
- Jeff Immelt's father worked at GE's aircraft division for 38 years, sparking his early interest in the company.
- As a child, Immelt fondly recalls visiting GE facilities and watching planes, fostering a deep connection.
Near-Death Experience
- Jeff Immelt, as head of GE Plastics, missed earnings estimates by $50 million, facing harsh criticism from Jack Welch.
- Immelt vowed to fix the issue, proving his resilience and commitment to the company.
Culture of Earnings
- GE's culture, under both Welch and Immelt, prioritized hitting earnings targets, sometimes through aggressive accounting practices.
- This focus on short-term gains contributed to long-term instability, despite external audits and oversight.
