Episode Details

Jeff Immelt is the former CEO of General Electric and author of the new book: Hot Seat: What I Learned From Leading A Great American Company.

Jeff has had a lot of critics over the years and stepping into a role after the legendary Jack Welch was not an easy task. In his 16 years leading GE as the CEO he had to lead the company through 9/11, the financial crisis, and the 2011 meltdown of the Fukushima’s nuclear reactors--which were designed by GE. He definitely knows what it’s like to lead under pressure.

Why Jeff wrote his book (he almost didn’t) Jeff admits that his career didn’t end the way he wanted it to. As he shares, “I was just unhappy, I felt like the whole narrative around GE had been lost. And that, you know, truth equals really facts plus context. And I felt like the context had been lost. So one of the reasons why I wrote it is, I wanted to tell a more complete story. I didn't want it to be defensive, I wanted it to be complete.”

Jeff, who is also a Lecturer in Management at Stanford University Graduate School of Business, says that his students don’t want to learn from a perfect leader who has everything figured out. These students have lived through financial crisis, Covid, and turbulent times---they want to know how to survive through volatility and what to do when things don’t work out. Because of this he felt like there was also an audience for his book that wouldn’t necessarily care about GE.

Those are the two main reasons he wrote his book.

If there is one message that Jeff would like his critics to take from the book it would be that there were people in the company that tried their best and did perform well.

“If you look at cumulative earnings, market share, you know, if you go back to 2016, this was a top 20 market cap company. It was number seven on Fortune most admired, it was number one on companies to hire leaders. We were leaders in digitization and globalization, you know, but the stock didn't work. succession planning didn't work, there were things that didn't work.”

He says it would be one thing if the criticism was just about him, but there are thousands of people that have been hurt through this process, and this book sets out to correct that.

What was it like working with Jack Welch Jack Welch, who passed away in 2020, is still considered one of the most famous CEOs of the century. Jeff was actually the CEO that took over after Jack left. So what was it like working for Jack?

Jeff says Jack was challenging, giving, and creative. He was someone who liked to portray himself as “tough as nails” but Jeff says that’s not the person he saw. He was one of the best leaders to run something at scale and he was a great communicator.

Jeff says this about taking over for Jack, “But by the end of the 90s, it was a company where perception didn't equal reality. We were 50% financial 50%, kind of an old industrial company. We traded like Amazon at a 50 P/E. And so kind of following him, you know, the trick was to drive the appropriate kind of change, while never looking backwards and never casting blame. And that's challenging. Look, it's easier to follow a jerk than it is to follow, you know, the best leader of the previous century. Right. But I never wanted to be him. I never wanted to act like him. And I felt like the company needed change.”

While there were elements of his leadership style that were timeless, like his focus on people and metrics, there were also some elements that wouldn’t work well in an organization today. Jeff says that Jack didn’t really respect technology and he had an element of short-termism, that with the pace of change, would be a problem.

Jack also believed you shouldn’t do anything as a leader unless you can control it, but as Jeff shares there are a lot of things that as a CEO of a public company you just can’t control.

“I think, you know, the trick with every generation of leadershi