Business Week's cover story asks: Can GE Still Manage? The story points out that GE's market value has been cut in half over the past ten years. The question is: What's wrong at GE? In the article, author Diane Brady focuses on leadership development at the company. She interviews a number of experts who question whether GE has fallen behind the times in the area of leadership development.
I would like to offer a different perspective. Perhaps GE's problem is not in the area of leadership. Perhaps GE has a strategy problem. My question is: Does GE's unrelated diversification strategy still make sense in the year 2010? Can this $157 billion conglomerate be managed highly effectively by anyone? Before GE tackles a transformation of its leadership development approach, it needs to determine whether it has the right strategy for the decades ahead. The corporate strategy will drive what types of leaders it will need moving forward.