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GE announced in November that it would move forward as three separate companies. Today, GE Chairman and CEO Larry Culp released a note to employees outlining the steps the company plans to take to get there. "For GE in 2022, our goals are clear," he wrote. "We are becoming three stronger, more focused companies with leadership positions in important high-growth areas such as aviation, healthcare and energy."
The engine that drives GE is Lean Management, a business philosophy focused on continuous improvement; its core principle is Safety, Quality, Delivery and Cost (SQDC). Culp said SQDC is "the foundation of running a company and serving our customers" and that "the order of the words is intentional. Safety comes first because it's the foundation of everything we do. Strengthening our A culture of safety is always our top priority," he said.
Culp and GE began implementing lean across the company when they took over as chairman and CEO in 2018. The past few years of excellence,” he wrote. “Our continued company-wide deleveraging and scaling up will further strengthen our financial position and allow GE to be more aggressive through organic and inorganic growth opportunities. "
Culp said the advance enables GE to "lead in areas where the world desperately needs it -- the future of flight, precision health and the energy transition." “These are huge challenges, and our customers deserve and demand the best work from us.” To that end, he said, GE will, in 2022, lay the groundwork for “creating three separate companies — from healthcare The health care company starts - succeeds on its own terms."
He said GE would "build well-capitalized balance sheets and investment-grade ratings for each independent company. As independent companies, each would benefit from more focused, tailored capital allocation decisions and strategic flexibility. to better serve customers and respond to different industry needs and dynamics.” He said independent companies “will also be able to capture significant future growth opportunities faster.”
"With ten days to go until 2022, our work has already begun," Culp said. "I'm excited about the way we're going."
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