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Freakonomics Radio

452. Jeff Immelt Knows He Let You Down

Freakonomics Radio

Freakonomics Radio + Stitcher

Documentary, Society & Culture

4.632K Ratings

🗓️ 18 February 2021

⏱️ 46 minutes

🧾️ Download transcript

Summary

Not so long ago, G.E. was the most valuable company in the world, a conglomerate that included everything from light bulbs and jet engines to financial services and The Apprentice. Now it’s selling off body parts to survive. What does the C.E.O. who presided over the decline have to say for himself?

Transcript

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0:00.0

So there is a silly question that a lot of authors get asked, which is, why do you write

0:06.0

this book?

0:07.0

Silly because it's usually obvious.

0:08.3

But in your case, I don't think it's such a silly question because, A, you don't need

0:12.9

the money, let's be honest, and B, you don't have a tale of triumph to tell.

0:17.7

So why did you write the book?

0:19.8

I'd say really two reasons.

0:22.4

I felt like the story had been out there, but lacking context.

0:27.7

And quite honestly, not always being truthfully told.

0:32.1

And the second thing is, today all leadership is crisis leadership, and I have a lot to

0:37.2

offer to that debate.

0:40.8

That is Jeff Emelt.

0:42.7

I worked at GE for more than 35 years.

0:46.0

I was the CEO for 16.

0:49.6

And yes, GE, that's general electric, gave Emelt a lot of experience with crisis leadership.

0:56.0

I lived and led at a time of immense volatility and change, always did my best, something's

1:03.0

worked and something's didn't.

1:04.9

Okay, let's start with what didn't work out.

1:09.0

When Emelt inherited the CEO position in 2001 from the legendary Jack Welch, the stock

1:15.2

price was around $38, representing a market capitalization of just over $400 billion.

1:22.5

When Emelt left in 2017, the stock price had fallen to around $25, with a market cap of

1:29.3

around $220 billion, a drop of roughly 45%.

...

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