GE, once the largest company in the world, has suffered a monumental downfall due to mismanagement. The company’s workforce has significantly decreased, and its share price has plummeted. Surprisingly, GE’s fall was not caused by competition or fraud but rather by the mismanagement of a complex business. The book “Lights Out: Pride, Delusion, and the Fall of General Electric” offers insight into the culture and decisions that led to GE’s demise. One major issue was the company’s focus on meeting earnings predictions at all costs, leading to hiding problems and engaging in questionable practices. Additionally, GE lacked the right talent and systems to effectively manage its diverse range of businesses. This cautionary tale should be read by anyone looking to learn from GE’s mistakes.
https://www.gatesnotes.com/Lights-Out