Jeffrey R. Immelt, General Electric

November 2005

Finding a way to drive economic growth is the most serious challenge facing this generation of business leaders, said Jeffrey R. Immelt, General Electric chairman and chief executive officer, at the sixth annual Charles F. Dolan Lecture on Nov. 2. Immelt began his presentation, "Growth and Leadership," by noting that 300 of GE's employees, several of whom are officers or senior executives, are Fairfield University alumni. "Good product development," he quipped, sparking laughter in the packed Kelley Theatre.

Product development, however, is only part of the equation for success. "Unless you know how to generate your own growth, you can't be a successful company," said Immelt, who joined GE in 1982, held a series of leadership roles in the company, and assumed his current post at the helm of GE in 2001.

Today, the world's economy, Immelt explained, is driven by slow growth; volatility illustrated by technical, economic, and political change; and increased regulatory pressure, which is a result of the fear derived from slow growth and volatility. In the United States, Immelt expects the Gross Domestic Product to increase only 2.5 to 3.5 percent. The bulk of economic growth for the next five to 10 years will come from developing nations, primarily India, China, and Russia. "This is the future," he said, "and this is where we need to go." Indian airlines, for example, are expanding while some U.S. airlines are filing for bankruptcy. GE is no stranger to globalization, with approximately $85 billion of its revenues coming from outside the United States and more than 300,000 of its employees in other countries.

Companies can position themselves to grow, said Immelt, outlining several factors that will make growth happen. In addition to having a quality product, a company must also take advantage of new technologies that will shape our world, he added. GE, for example, positioned itself to be a leader in energy efficiency and renewable energy. In addition, a company needs to generate customer satisfaction and be able to differentiate itself from others in the marketplace.

Growth is also dependent on good leaders, and good leaders drive change. "Change, in the beginning, has a constituency of one," he explained to the students in the audience, "and that's you."

Good leaders also have the ability to learn, work in teams, instill optimism, develop other new leaders, and inspire innovation, which is urgently needed in the United States today, he said. "Losers perfect the execution of old business models. Winners are rapidly adapting new ideas."

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