Commentary by Dr. Whitesel: General Electric, probably one of the most siloed companies in America, is restructuring to create a “horizontal organization” that better shares its assets. This is the “diversified multiplication” model that I’ve been advocating for years (along with organizational scientists). It means rather than launching competitive organizations (such as independent church plants) or siloing departments within an organization (as we do with multiple campuses), it requires diversifying – while sharing as many assets as possible. To understand more of the diversified multiplication model and how even small churches can grow quickly by implementing it, see my books ORGANIX and The Healthy Church. Then read this article to see how the business world does it successfully.
GE is undergoing the most radical transformation in its 124-year history, by Robert Stephens, Business Insider, 1/13/15.
…A key reason for this potential is GE’s focus on breaking down the walls between its different divisions, which, in the past, have generally operated on a nearly mutually exclusive basis.
Through the adoption and focus on the GE Store, the company is intent on developing its horizontal capabilities through shared innovation, with technological advancements, ideas, and support from one part of the business being made available across all parts of the business.
Undoubtedly, such a scheme has little value when the different divisions have limited common ground. For example, GE’s consumer credit arm, Synchrony, had little to share with GE’s healthcare department, and vice versa.
However, with the company disposing of multiple financial assets, including Synchrony, as it seeks to become an industrial company that is enhanced rather than dominated by its capital arm, scope for a more collaborative, value-added approach is likely to enhance innovation, productivity, and, most important, profitability.
GE is well on the road to generating its targeted 75% of profit from its industrials division, with the remainder to be derived from its capital division.
This split makes good sense, since GE envisions a world in which financial volatility, geopolitical uncertainty, and development opportunities in the developing world are emphasized in future years.
To take advantage of those factors, GE must innovate, become more productive, and tap into the $70 trillion that is forecast to be spent on global infrastructure between 2014 and 2030…