In an era of rapid change and intense competition, organizations must continuously evolve to maintain their competitive edge. One powerful method for driving organizational change is the Work-Out meeting, a process pioneered by General Electric (GE) under the leadership of former CEO Jack Welch. This case study of GE Medical Systems (GEMS) illustrates how Work-Out meetings can address organizational challenges, improve productivity, and foster a culture of trust and involvement.
The Context of GE Medical Systems
GE Medical Systems (GEMS), a key division of General Electric, faced significant internal challenges that hindered its performance. Extensive interviews with managers revealed dissatisfaction with existing systems, including performance management, career development, and organizational climate. Managers felt constrained by excessive bureaucracy and unrealistic goals, leading to frustration and a perceived inability to perform quality work.
The Work-Out Meeting Process
Work-Out meetings are designed to gather employees and managers to discuss critical issues and develop actionable plans. The primary goals are to leverage employees' knowledge to improve work processes, eliminate unnecessary tasks, build trust by encouraging open communication, and prepare the organization for future challenges.
For GEMS, internal consultants facilitated the Work-Out process by conducting interviews and gathering insights from managers. These findings informed the agenda for a five-day Work-Out session involving 50 GEMS employees and managers, including the group executive, his staff, employee relations managers, and informal leaders from key functional areas.
Initial Steps and Observations
During the Work-Out session, participants were divided into teams to tackle business problems and re-evaluate existing structures and processes. An essential component of the session was "bureaucracy busting," where teams identified and eliminated unnecessary approvals, policies, meetings, and reports that stifled productivity. To ensure candid discussions, senior managers were excluded from these initial sessions.
Facilitating Communication and Action
At the end of the week, senior management listened to the concerns and proposals from the different teams. This inclusive approach allowed management to understand the issues, communicate effectively with employees, and build trust. Proposals focused on reorganizing work and improving returns to the organization. According to the traditional Work-Out method, managers were required to make immediate decisions on each idea, choosing between approval, rejection with reasons, or requesting more data for a decision within a month.
Outcomes and Reflections
The Work-Out session concluded with nearly a hundred written contracts to implement new processes and procedures or eliminate unnecessary work. These contracts were between individuals, functional groups, and different management levels, ensuring accountability and commitment across the organization.
One significant outcome of the Work-Out effort was a decision to continue regular follow-up meetings to monitor progress and adjust priorities as needed. This ongoing engagement ensured that the initial momentum was maintained and that changes were effectively institutionalized.
Implications for Organizational Development
The case of GE Medical Systems demonstrates the transformative potential of Work-Out meetings in addressing organizational challenges and driving performance improvements. By involving employees in the change process and fostering open communication, organizations can enhance productivity, build trust, and create a more agile and responsive culture.
Conclusion
Work-Out meetings are a powerful tool for organizational development, enabling companies to harness employee insights, streamline processes, and foster a culture of trust and involvement. The experience of GE Medical Systems highlights the effectiveness of this approach in driving significant improvements and preparing organizations for future challenges. At OrgEvo Consulting, we specialize in facilitating Work-Out meetings and other organizational development interventions to help companies achieve sustainable success.
Connect with OrgEvo Consulting
OrgEvo Consulting offers comprehensive services in organizational development, including Work-Out meetings, change management, and productivity improvement. Our customized interventions are designed to enhance employee involvement, streamline processes, and drive organizational success. Contact us today to learn how we can support your organization.
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