Lights Out: Pride, Delusion, and the Fall of General Electric

by Thomas Gryta

Immelt wanted division heads to generate imaginative new product and service concepts, which in turn would generate the new organic revenue on which his vision depended. It was a tall order: a handful of product ideas that would each pull in $100 million in new sales for each business. More important, Immelt wanted these “breakthrough” sessions to be led by each unit’s marketing department—to have the division that usually dictated advertising and branding stepping into the role that had been the province of product engineers. Immelt’s inspiration for the directive was an article he read about a smaller industrial conglomerate called Danaher Corporation that had formed an internal incubator to develop new ideas that could drive revenues and profits. Its CEO was a young whiz named Larry Culp who, at age thirty-seven, was even younger than Immelt had been when he took the reins.