ALIGNING OF MISSION, VISION AND VALUES –

TO BUILD A REAL AND STRONG CULTURE IN THE

ORGANISATION

Group 7

Submitted by:

Rahul Bhate (Roll No. 7)

Chetan Jadhav (Roll No. 17)
Deepak Sharma (Roll No. 25)
Manish Mehta (Roll No. 34)
Nikunj Jain (Roll No. 43)
Pooja Didwaniya (Roll No. 53)
S. Yogendra (Roll No. 62)
Vivek Tembe (Roll No. 73)

PGDIE 35

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Contents:

S. No. Title Page No.

1 Introduction 3
1.1 Mission 3
1.2 Vision 5
1.3 Values 6
1.4 What is culture? 7
1.5 Some Types of Culture 8
1.6 Taking Values, Mission and Vision together 9
1.7 Organization Alignment 10
2 A Leadership Mission 12
3 Success Story of IIM, Ahmedabad 13
4 IT Culture in Infosys 17
5 The Transformation of General Electric Company 20
6 References 22

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1. Introduction:
In this report we are explaining the link between mission, vision and values which is
required for building a dynamic and successful organization.

1.1 Mission:

Mission or Purpose is a precise description of what an organization does. It should

describe the business the organization is in. It is a definition of “why” the organization
exists currently. Each member of an organization should be able to verbally express this
mission.

Additionally, each person needs a mission for his or her life. The alignment of your life
mission with your organization’s mission is one of the key factors in whether you are
happy with your work and workplace. If they are incongruent, you are likely dissatisfied
with your work choice.

Some Examples

1) "Our goal is simply stated. We want to be the best service organization in the world."
(IBM)

2) "FedEx is committed to our People-Service-Profit Philosophy.

We will produce outstanding financial returns by providing totally reliable, competitively

superior, global, air-ground transportation of high-priority goods and documents that
require rapid, time-certain delivery." (Federal Express)

3) "To give ordinary folk the chance to buy the same thing as rich people." (Wal-Mart)

4) "Our mission is to earn the loyalty of Saturn owners and grow our family by
developing and marketing U.S.-manufactured vehicles that are world leaders in quality,
cost, and customer enthusiasm through the integration of people, technology, and
business systems." (Saturn)

5) "In order to realize our Vision, our Mission must be to exceed the expectations of our
customers, whom we define as guests, partners, and fellow employees.(mission) We will
accomplish this by committing to our shared values and by achieving the highest levels of
customer satisfaction, with extraordinary emphasis on the creation of value. (strategy) In
this way we will ensure that our profit, quality and growth goals are met." (Westin Hotels
and Resorts)

6) "To preserve and improve human life." (Merck)

A mission acts as an anchor, a lantern and at times, a conscience.

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The most important question in any organization is “What is the business of the
business?" The answer to this question provides the framework for all organizational
action. In a rapidly changing cultural and social environment, the question must be
revisited often, because the answer can change. Determining the business of the business
is the first step in setting priorities. Without priorities, efforts are splintered and little is
achieved. The best leaders get the organization to focus only on what matters the most.
Leadership frames the organization's mission and values in ways that transform it.

So every organization has its own mission statement, which

1. Justify our existence
2. Identify our place in the community
3. Inspire, inform and motivate employees

The mission of an organization normally answers the following questions:

1) Why does organization exist? What purpose do we serve?
2) What value do you bring to the community?

Employees (as well as boards) need a clear mission for themselves and their
organizations. They need to feel that they make a difference-a need that a paycheck does
not always fulfill. A mission statement should clearly demonstrate the value of individual
contributions.

A good mission statement will differentiate your arts organization from others in the
community. It will create your identity and serve as your calling card. It should capture
your beliefs. It serves as the foundation for all business decisions.

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1.2 Vision:

As Donella Meadows has written, "Vision is necessary to the policy process. If we have
not specified where we want to go, it is hard to set our compass, to muster enthusiasm, or
to measure progress. But vision is not only generally missing from policy discussions; it
is missing from our culture. We talk easily and endlessly about our frustrations, doubts,
and complaints, but we speak only rarely and with difficulty about our dreams and
values."

Vision determines the direction of change in an organization and in the individual.

There is no more powerful engine driving an organization toward excellence and long
range success than an attractive, worthwhile, and achievable vision of the future.
As Donella Meadows has written, "Vision is necessary to the policy process. If we have
not specified where we want to go, it is hard to set our compass, to muster enthusiasm, or
to measure progress. But vision is not only generally missing from policy discussions; it
is missing from our culture. We talk easily and endlessly about our frustrations, doubts,
and complaints, but we speak only rarely and with difficulty about our dreams and
values."

Example of vision:
 Georgia Tech will be a leader among those few technological universities whose
alumni, faculty, students, and staff define, expand, and communicate the frontiers
of knowledge and innovation. Georgia Tech seeks to create an enriched, more
prosperous and sustainable society for the citizens of Georgia, the nation, and the
world.

Example of Vision Statement

The principal goal of the Calgary Fire Department is to improve the quality of life to our
customers through the reduction and/or elimination of the negative effects of fires,
environmental spills, accidents and disasters, from the actions of people or nature.

 Royal Bank
 Management: Conflicting Vision
 Discuss the vision with key managers. State the vision - together. Only managers
who believe in the vision should participate in the inner circle.
 A single vision is crucial - you cannot drive with double, triple or quadruple
vision.
 Limit the key management group to those who buy into the vision.
 Key managers must be capable of contributing to the accomplishment of the
vision.

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 Work together on the vision statement (see Section 2, Chapter 1: Planning for
Growth) - agreement on the purpose of being in business is essential and
revealing.

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Subtle difference between vision and mission:

The simple clause to describe vision statement is, "What the organization want to be?"
and for the mission is, "How the organization achieve the vision?

1.3 Values:

The constellation of likes, dislikes, viewpoints, inner inclinations, rational and irrational
judgments, prejudices and association patterns that determine a person’s view of the
world.

Types
•Personal Values
•Managerial Values
•Corporate Values
•Business Values

Examples

ambition, competency, individuality, equality, integrity, service, responsibility, accuracy,

respect, dedication, diversity, improvement, enjoyment/fun, loyalty, credibility, honesty,
innovativeness, teamwork, excellence, accountability, empowerment, quality, efficiency,
dignity, collaboration, stewardship, empathy, accomplishment, courage, wisdom,
independence, security, challenge, influence, learning, compassion, friendliness,
discipline/order, generosity, persistency, optimism, dependability, flexibility

A Human Resources Development office chose:

 Integrity
 Belonging/Caring
 Helping/Contributing
 Inner Harmony, Peace of Mind
 Personal Growth, Learning, and Self-Actualization
 Achievement /Accomplishment
 Financial Stability
 Fun

A University Student Health Center staff developed the acronym “I CARE” as a tool for
remembering and expressing values. In the final document, each word is defined by a
series of value statements which describe how the value is expressed in their workplace.

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  Integrity
 Compassion
 Accountability
 Respect
 Excellence

Values are powerful determinants of personality and organizational culture, but the
depth of their contribution to motivation has been greatly underestimated. Research
studies have consistently found a strong relationship between values and bottom-line
performance, making an understanding of values essential for success in today's
business climate.

1.4 What is Culture?

Basically, organizational culture is the personality of the organization. Culture is
comprised of the assumptions, values, norms and tangible signs (artifacts) of organization
members and their behaviors. Members of an organization soon come to sense the
particular culture of an organization. Culture is one of those terms that's difficult to
express distinctly, but everyone knows it when they sense it. For example, the culture of a
large, for-profit corporation is quite different than that of a hospital which is quite
different that that of a university. You can tell the culture of an organization by looking at
the arrangement of furniture, what they brag about, what members wear, etc. -- similar to
what you can use to get a feeling about someone's personality.

Corporate culture can be looked at as a system. Inputs include feedback from, e.g.,
society, professions, laws, stories, heroes, values on competition or service, etc. The
process is based on our assumptions, values and norms, e.g., our values on money, time,
facilities, space and people. Outputs or effects of our culture are, e.g., organizational
behaviors, technologies, strategies, image, products, services, appearance, etc.

The concept of culture is particularly important when attempting to manage organization-

wide change. Practitioners are coming to realize that, despite the best-laid plans,
organizational change must include not only changing structures and processes, but also
changing the corporate culture as well.

There's been a great deal of literature generated over the past decade about the concept of
organizational culture -- particularly in regard to learning how to change organizational
culture. Organizational change efforts are rumored to fail the vast majority of the time.
Usually, this failure is credited to lack of understanding about the strong role of culture
and the role it plays in organizations. That's one of the reasons that many strategic
planners now place as much emphasis on identifying strategic values as they do mission
and vision.

1.5 Some Types of Culture:

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There are different types of culture just like there are different types of personality.
Researcher Jeffrey Sonnenfeld identified the following four types of cultures.

1) Academy Culture
Employees are highly skilled and tend to stay in the organization, while working their
way up the ranks. The organization provides a stable environment in which employees
can development and exercise their skills. Examples are universities, hospitals, large
corporations, etc.

2) Baseball Team Culture

Employees are "free agents" who have highly prized skills. They are in high demand and
can rather easily get jobs elsewhere. This type of culture exists in fast-paced, high-risk
organizations, such as investment banking, advertising, etc.

3) Club Culture
The most important requirement for employees in this culture is to fit into the group.
Usually employees start at the bottom and stay with the organization. The organization
promotes from within and highly values seniority. Examples are the military, some law
firms, etc.

4) Fortress Culture
Employees don't know if they'll be laid off or not. These organizations often undergo
massive reorganization. There are many opportunities for those with timely, specialized
skills. Examples are savings and loans, large car companies, etc

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1.6 Taking Values, Mission and Vision together:

An organization's own vision, mission, or values (VMV) statements offer another means
to link an audit issue to "higher ground." The vision statement outlines what the
organization plans to be in the future. The organization's mission is its purpose. And, an
organization's values define how it acts. If management truly supports the VMV, then an
audit issue having a direct impact on the VMV will get attention. For instance, if the
mission of a vehicle maintenance department is to "keep the trucks running," then the
internal audit should provide information about the department's ability to carry out that
mission. An audit issue that can be linked directly to that mission will get attention more
quickly than one that is not linked.

The underlying rationale for mission, vision and value statements needs to point to the
"why" instead of the "what" and the "how" of an organization’s existence. The "why"
points to the reason for an organization’s existence.

The "why" carries much more clout than what an organization is going to do and how it’s
going to do it.

An employee must sense an emotional connection, a meaning-filled connection, between

the success of his/her organization and what the employee is going to do to ensure, on
his/her part, that success. A purpose statement provides that emotional connection.

When an employee feels this emotional connection, then s/he will to what it takes to
make good on that connection; that the emotional connection generates an employee
engagement that is wrapped in positive energy and commitment. Mission and vision
statements often lack this emotional buy-in.

These values-based behaviors must be in sync with the organization’s reason for
existence. Moreover, there must be benefits of values that are adhered to and
consequences for those that aren’t.

And, for me, this is the major issue challenging most organizations — the lack of
integrity, honesty and transparency when it comes to living one’s values

The foundation upon which leaders and managers and employees buy into the
Mission, Vision and Values is trust. Without trust, there’s no "given" that anyone will
support the Vision, Mission and live the values

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 1.7 Organization Alignment:

Organizations are dynamic systems and, like all other systems, they function best when
their components are designed to work together smoothly and efficiently. Any change we
introduce to an organization, then, must be aligned to fit the existing system — or must
modify the system to accept the change. The model below is a simplified systems
framework for understanding the relationship between organizational components.

Organizational alignment requires compatibility between the strategic and cultural

"paths," and consistency within them. Values should be compatible with goals: a group
that values flexibility should think twice about goals focused on developing very tight
control systems. Day-to-day behavior should be consistent with stated values: a group
that values responsiveness should not answer customer requests with —sorry, that's not
my job.—

Organizations have traditionally emphasized the strategic path. Most invest considerable
effort in defining strategic goals and objectives. Fewer address the cultural path with
clearly defined statements of values, and fewer still make a consistent effort to ensure
that values and strategy are compatible and that work behavior represents their values.
Yet the way we do things influences results fully as much as what we do.

Organizational values, like organizational goals, are business necessities. Maintaining an

aligned organization requires clarity about values as well as strategies and goals. For
example, achieving and maintaining market share requires setting relevant goals and
testing actions and decisions against those goals. It also requires communicating relevant
organizational values and ensuring that typical behavior in the organization reflects those
values.

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In recent years, increasing competition and rapid change have generated more interest in
the "values side" of the organization — the side most strongly associated with culture.
When customers perceive less and less difference among companies in products and
services, they begin to place more and more importance on how those companies work
with them.

Organizational alignment occurs when strategic goals and cultural values are mutually
supportive, and when key components of an organization are linked and compatible with
each other. Market strategies should be consistent with organizational values, and so
perceived by members of the organization. Group objectives should be derived from
organizational strategy and supported by management practices. People's day-to-day
activities and behaviors should be consistent with mission, strategy, and values.

Organizational alignment is linking strategy, culture, processes, people, leadership and

systems to best accomplish the needs of a company. An aligned organization is one
whose performance influences are mutually supportive and are focused on effective and
efficient delivery of results.

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2. A Leadership Mission:

The Senn-Delaney Leadership Mission

The mission of the Senn-Delaney Leadership is to profoundly impact the leadership skills
and organizational performance in an ever increasing number of large companies,
through state-of-the-art consulting, coaching, seminars, workshops, and implementation
activities and products, thereby increasing accountability, enhancing personal
productivity and business effectiveness, and fostering greater job satisfaction at all levels.

This mission will be accomplished by working directly with the CEO and senior
executives to assist them in:

 Enhancing the teamwork and alignment among themselves and at all levels of the
organization
 Evaluating and managing the impact of culture, structure, strategy, and systems
on operating performance
 Developing and integrating the leadership skills necessary to manage in today's
complex business environment
 Assessing and implementing corporate renewal in response to changing business
conditions

The Senn-Delaney Leadership Vision

Vision is seeing and believing in the possibility of a brighter tomorrow. And when those
of similar vision choose to work together, something extraordinary occurs. That
something extraordinary is the Senn-Delaney Leadership Consulting Group, Inc.

The vision and values of the Senn-Delaney Leadership are our statement of "who we are"
and "what we believe." They define our purpose and philosophy of business. These are
not just words on paper or public relations slogans. This is our commitment to leadership.
In our every action, both among ourselves and with our clients, we strive to live these
principles every single day.

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3. Success story of IIM, Ahmedabad

The Indian Institute of Management, Ahmedabad was established in 1961 as an

autonomous body with the active collaboration of the Government of India, Government
of Gujarat, and industry.
Dr Vikram Sarabhai and a few other public spirited industrialists realized that
agriculture, education, health, transportation, population control, energy, and public
administration were all vital elements in a growing society and that it was necessary to
link these meaningfully with industry. The Institute had initial collaboration with Harvard
Business School. This collaboration greatly influenced the Institute’s approach to
education. Gradually it emerged as a confluence of the best of Eastern and Western
values.

In just four decades IIMA has evolved from being India’s premier management institute
to a notable international school of management.. It was a journey “from bringing
professionalism to Indian management to influencing global management
practices.” It was possible because it aligned its mission, vision and values to build a
real and strong culture

Vision
A globally respected institute that shapes management practices in India and abroad by creating
new frontiers of knowledge and developing ethical, dependable, entrepreneurial, and socially
sensitive leader-managers committed to excellence.

Mission
IIMA's mission is to help India and other developing countries improve their managerial
practices both in the private and in the public sectors, and adopt superior public policies.
It seeks to do this through producing risk-taking leader-managers who will pioneer new
managerial practices and set new standards; through producing teachers and researchers
who will generate new ideas of International significance; and through purposeful
consulting aimed at helping client organizations scale new heights

Objectives

 To provide learning facilities to men and women of exceptional

calibre for pursuing careers in management or becoming teachers and
researchers in different management fields.
 To promote knowledge through research, applied and conceptual, relevant to
management, and to disseminate such knowledge through publications.
 To participate in and contribute to the formulation of public policy, which would
provide answers to questions of social importance.
 To enhance the decision-making skills and the administrative

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 competence of practicing managers and assist organizations to solve their
managerial problems by providing them with consulting services based on actual
requirements.
 To collaborate with other institutions in India and abroad with a
view to further professionalizing management education and assisting in
institution building, in a meaningful manner.

Evolution
1960s - The Decade of Birth
IIMA rises beyond the acquisition of knowledge, techniques, tools, and concepts that are
not ends in themselves.

 Focus on the social purpose while pursuing excellence in management

 Integration of key activities like teaching, research, and consultancy
 Introduction of the 3-Tier Management Development Programme

1970s- The Decade of Growth

The Institute gains broader recognition.

 Overall growth in all activities

 Increase in the faculty strength to 65
 Increase in the number of participants in Post-Graduate Programme
 Launch of the Fellowship (Doctoral) Programme in Management
 Introduction of new Management Development Programmes

1980s - The Decade of Diversification

Recognized as the premier management school throughout the country, the Institute
expands it range and reach.

 Greater focus on under-managed sectors

 Formation of three new groups: The Industrial Policy Management Group, The
International Management Group, and The Entrepreneurship Group
 Introduction of Faculty Development Programme.

1990s - The Decade of Consolidation

Taking into account the substantial growth of the previous decades, the Institute focuses
on consolidating its activities and position.

 Substantial growth in the IT infrastructure of the Institute with a campus-wide

intranet and leased line access to the Internet
 Recognition as one of the top five business schools in Asia Pacific region

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  Exchange of students with reputable business schools abroad

2000 - The Decade of Internationalization

Internationalization and growth are the key words of the Institute during this decade.

 Exchange of faculty with international business schools

 Further increase in student intake with an emphasis on admitting full time
international students
 Expansion of the campus to accommodate the Institute’s international executive
development programmes.

Future Directions
With the turn of the century and the advent of new paradigms in business and academics,
IIM is continually redefining strategies and focusing on new destinations. While retaining
and building on its current strengths and assets, it is creating new relationships and
synergies. The Institute has already initiated specific actions to bring an increasingly
international perspective to present activities.

IIMA-An organization with a real and strong culture

IIM-A stands on the top among all the business schools in India till the date.

Faculty-
The faculty of IIM-A is considered to be one of the best in B-schools and has
become the stepping stone in the development of the institute in the areas like:
academics, governance, research, and consultancy. They combine the very highest
standards of teaching and mentoring with diverse backgrounds as eminent entrepreneurs,
policy makers, researchers, theoreticians and consultants The books written by IIMA's
faculty are widely used as text books and reference materials by thousands of MBA
students, professionals, executives and management consultants in the country.

Infrastructure:
The infrastructure of IIMA has played a significant role in making its brand name.
The incomparable infrastructure allows students to access the pool of data and
information on internet and gives the experience to live in the wired campus.IIMA has a
library with large collection. The Library’s collection of book is 145,996, subscribes to
615 journals and has rich collection of CD-ROMS and databases.

Governing Committee:
The governing council of any institute affects a lot on the strategies and decisions of the
institute…it is true incase of IIM-A also. The governing council IIM-A has got is one of
the capable council any institute has got and has shown calf path in the history of making

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the brand name of IIMA .The present chairman is Mr. N R Narayana Murthy, Chairman
& Chief Mentor, Infosys Technologies Limited.

Alumni:
One of the most powerful assets IIMA has built over the years is its alumni network. The
alumni family is an important component for realising the goals of the Institute – the
creation, application and dissemination of management knowledge.

Placements:
A formidable array of some of the best companies in India and the world visit the campus
year after year searching the best of talents. Having reached key positions in top
corporates worldwide and contributing at all levels in various global conglomerates, the
Institute’s alumni form a sustainable competitive advantage for the organizations that
recruit them. Over the years, the market for the Institute’s graduates has remained bullish,
as freshly placed recruits continue to deliver on their promises.

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4. IT Culture in Infosys:-

About Infosys

Software industry is one of the world’s largest and fastest growing industries. The global
software industry can be divided in two broad categories- players engaged in providing
services and those engaged in developing products. Companies like Microsoft, and
Oracle are leaders in product development; Indian companies are predominantly service
providers. Some of the most respected and reputed Indian software companies are
Infosys, TCS, Wipro, etc.
Infosys was incorporated in 1981, with seven employees with a startup capital of Rs.
10,000. Under the leadership of chairman, N R Narayanmurthy, Infosys has grown from
a small company run from rented premises in Bangalore, to become one of India’s
biggest software exporters within two decades. The company has earned a reputation for
its professionalism, strong value systems, and investor friendliness. The Infosys share has
become on of the most sought after scrips on Indian stock exchanges.
Infosys has shown the way to Indian corporates when it comes to corporate
governance. It was the first Indian company to publish a report on corporate governance.
Infosys has also pioneered the concept of Human Resources accounting and Intangible
Assets accounting. Infosys has also set off a trend among software companies by
providing stock options to employees. In March 1999, Infosys became the first Indian
company who got listed on NASDAQ (national Association of Securities Dealers
Automated Quotation). Right now Infosys have over 39,000 employees worldwide. It has
crossed the one Billion $ mark in annual revenue in 2004.

“The primary purpose of corporate leadership is to create wealth legally and ethically.
This translates to bringing a high level of satisfaction to five constituencies - customers,
employees, investors, vendors and the society-at-large”.
- N R Narayana Murthy

Mission:

"To achieve our objectives in an environment of fairness, honesty, and courtesy towards
our clients, employees, vendors and society at large"

Vision:

"To be a globally respected corporation that provides best-of-breed business solutions,

leveraging technology, delivered by best-in-class people"

Values:

 Customer Delight: A commitment to surpassing our customer expectations.

 Leadership by Example: A commitment to set standards in our business and
transactions and be an exemplar for the industry and our own teams.

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  Integrity and Transparency: A commitment to be ethical, sincere and open in
our dealings.
 Fairness: A commitment to be objective and transaction-oriented, thereby
earning trust and respect.
 Pursuit of Excellence: A commitment to strive relentlessly, to constantly
improve ourselves, our teams, our services and products so as to become the best.

Organization culture at Infosys

Signature line - “Powered by intellectual, driven by values”.

Murthy says, “Leaders create shareable vision and guide their followers towards that
vision. Fairness, transparency, integrity, and ethics define the value system of a leader.”

How much importance is given to the employee, is reflected in companies statement of

Mission, Vision, Values and the signature line. Murthy once remarked “Our assets walk
out every evening. And it is our job to ensure that they walk back in the next morning”.
Infosys takes various steps to meet employee expectations. The HR department regularly
conducted employee surveys. Informal interaction is also used to understand the needs
and problems of employees and provide necessary help wherever possible. When Infosys
realized that software engineers did not like signing financial bonds, Infosys promptly
abolishes the procedure. It also offers a host of facilities like House loans, crèche
facilities for employees’ kids, gymnasium etc.

It has a very nice appraisal system. Each employee assessed himself, and was also
assessed by hi superiors, peers and juniors. To strengthen objective of appraisal system, a
joint managing director personally reviews each and every appraisal. Infosys has also
ESOP (Employees Stock Option Plan). Murthy explains, “It is people who create wealth
here. So unless we have a mechanism where we make them principal shareholders
companies are unlikely to grow”. The company’s attrition rate is quite low as compared
to average of software industry. The company has philosophy of growing managers in
house. About 80 % of the company’s senior and middle level managers had come up
from the ranks. In 1997, Infosys became the first Indian company to undertake a detailed
valuation of its human resources using the Lev & Schwartz model.

Infosys is also very much particular about employee selection and has a very stringent
selection process. Main goal of recruitment is to select personnel with high intelligence
levels, leadership qualities and decision making capabilities. The rigorous selection
criteria of the company has been normally been satisfied by 7 % of applicants. A three
month training session is conducted for fresh joiners.

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Life at Infosys:

1. Excel at challenging and exciting work assignments

2. Continuous learning for professional and personal development
3. Enjoy a fun place to work
4. Synchronize with the Company's Business and Growths

Murthy along with his senior management team encouraged Infosys executives to lead a
simple life. It was common to put off the lights when they went out of the room even for
a few minutes, drink coffee in steel tumblers, and eat lunch in the common canteen.
Murthy has tremendous pride and faith in his top management team. He says, “There is
no substitute for hard work, and unless it is team work success has no meaning”.

Besides all this Infosys has remained debt free since 1996. Infosys turnover has
progressed from Rs 30 crore in 1994 to approx Rs 5000 crore (one billion $) in 2004.
Infosys was the first Indian company to prepare an Economic-value-Added (EVA)
statement. Infosys was the first Indian company to publish a compliance report on
corporate governance based on recommendations by CII.

Awards and recognition received by Infosys:

 Best Annual Report Award from ICAI (every year from '95)
 First in "Award for Corporate Excellence" Economic Times India (1998)
 India's most admired company by The Economic Times Survey (1999)
 Featured in Forbes Magazine's list of 20 most promising small companies in the
world (1999)
 First company to be awarded the "National Award for Excellence in Corporate
Governance" conferred by the Government of India (2000)
 Rated Best Employer of India in a study by Business Today-Hewitt Associates
year (2001 & 2002 & 2003)
 Nandan Nilekani rated among the world’s most respected business leaders in FT-
PwC survey (2004)
 Award from Global Finance magazine as the Best company in the Computer
Software Sector in Asia
 Named “India’s Best Managed Company” based on a study conducted by
Business Today and A.T. Kearney (2005)

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5. The Transformation of General Electric Company

In 1981, General Electric Company was facing a huge turmoil. Many of its businesses
were not working as per plans and expectations. The quality standards were also not up to
the mark. During this time Jack Welsh became the CEO of the company. From a period
of twenty years ie. 1981 to 2001 he transformed the whole culture of the organization
through a dense network of vision, mission and values.

The revolutionary massive changes introduced by Jack Welch worked. By the mid-1990s
GE had become the strongest company in the United States and the most valuable
company in the world, as measured in market capitalization. Today, General Electric
succeeds in dozens of diverse businesses, and is continuously at the vanguard of change.
Some years ago however, in locations throughout GE, local managers were operating in
an insulated environment with walls separating them, both horizontally and vertically,
from other departments and their workforce. Employee questions, initiatives, and
feedback were discouraged.
In the new knowledge-driven economy, Jack Welch, CEO, General Electric, "viewed this
as anathema. He believed in creating an open collaborative workplace where everyone's
opinion was welcome." He wrote in a letter to shareholders: "If you want to get the
benefit of everything employees have, you've got to free them - make everybody a
participant. Everybody has to know everything, so they can make the right decisions by
themselves."

S. No. 1981 2001

1. $25 billion company stepped in bureaucracy & $90 billion corporate
tradition juggernaut.
2. Core Competencies Core Successes
A) Lighting Industry A) GE Capital
B) Aircraft Engines B) NBC
3. Workforce – 412,000 Workforce - 310,000

GE Vision
1) Improve the performance on installed base and the way it is actually serviced.
2) Change the face of Healthcare, Media and Services

GE Missions
1) Open, Caring relations, face-to-face communication with every employee and
empowerment
2) Imagine, Build, Solve, Lead

GE Values
1) Have a passion for excellence and hate bureaucracy.
2) Have enormous energy and the ability to energize others.
3) Be passionately focused

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 4) Insist on excellence
5) Remain intolerant of bureaucracy
6) Act in a boundary less fashion
7) See change for the growth of opportunities it brings
8) Create a clear, simple, customer-centered vision
9) Create an environment of "stretch," excitement, informality and trust
10) Demonstrate…infectious enthusiasm for the customer

GE Corporate Culture
1) Hard-driving, results-oriented atmosphere prevails
- All businesses are held to a standard of being #1 or #2 in their industries as
well as achieving good business results
2) Cross-business sharing of ideas, best practices, and learning
3) Reliance on “workout sessions” to identify, debate, and resolve “burning issues”
4) Commitment to Six Sigma Quality
5) Globalization of the company

How Did GE Culture Come to Be Real and Strong?

1) Leader who established values consistent with
a) Customer needs
b) Competitive conditions
c) Strategic requirements
2) A deep, abiding commitment to espoused
values and business philosophy
- Practicing what is preached!
3) Genuine concern for well-being of
a) Customers
b) Employees
c) Shareholders

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6. References

Books
 IT Sector Volume -1 (Case Study Series), Pages 1-39
 Jack Welch and the GE way – Robert Slater (Mc. Graw Hill)
 Business World – Jan, Feb 2005.

WebPages
 www.infosys.com
 www.ge.com
 www.vault.com
 www.iimahd.ernet.in
 www.cflogic.com

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