By Clive Morton (auth.)
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14 These ideas were accepted by the immediate circle but on his visits to Crotonville to meet managers under training, Welch still came away frustrated with blockages in the organization, where managers were 'not walking the talk'. Something had to be done. Work-out was designed to deliver the Crotonville experience to the great mass of GE employees. It began with four major goals: • Building trust: GE staff at all levels had to discover that they could speak out as candidly as top executives could do without Change • • • Management 39 jeopardizing their careers.
But when the outside world started to change, many of GE's procedures and systems became irrelevant ... 6 As with the earlier UK examples, the key ingredient was the focus from the CEO on change: 'the process of transformation requires personal commitment and the willingness to persevere'. Noel Tichy, a professor of organization at the University of Michigan School of Business and a long-time consultant to General Electric, took a two-year sabbatical from the university to run, as a change agent, GE's Change Management 37 Management Development Institute at Crotonville which became the hothouse for organizational renewal and represented a significant change in Welch's style during the first decade of his revolution.
This it did, over time and not without trauma, and in the process helped the company adapt to having a structure within a structure giving radical solutions and knowledge creation. Collaboration among project teams to promote knowledge creation fproiect-team laver' V roject t e a m laye1 accessibility to knowledge base by individual members Market Teams are loosely coupled around organizational vision Team members form a hyper network accross business systems (Business-system layerW Dynamic knowledge cycle continuously creates, exploits and accumulates organizational knowledge r Knowledge-base layer Corporate vision, organizational culture, technology, databases, etc Fig.