Strategy is about choosing what NOT to do. Strategy is not just
about creating nice slides. Good companies ponder daily their business
mix.
(An extract from Jeff's article)
Finally, simplification was all about reallocating resources
to fund more growth and identify and solve customers' problems better. When
companies are slow, it is typically a sign that their costs are in the wrong
place. One of the reasons big companies fail is that they don't think they can
afford something and aren't willing to free up the resources to make bold
moves. We are investing heavily in making GE a digital industrial company. Last
year we put about $4 billion into developing our analytics software
and machine-learning capabilities and another $2 billion
into building a leadership position in additive-manufacturing equipment and
services—an emerging field that is going to revolutionize manufacturing. We had
to run leaner in other places to make those investments.
--
Alex Lew,
CFA