CEO seeks to revive what makes GE unique

Good morning. Of all the transformations of the past few years, few can compare to what Larry Culp has done General Electric. Click as first outsider To run GE in late 2018, Culp split the failing conglomerate into three Fortune 500 Listed companies: GE Healthcare Technologies, GE Villenova and GE Aerospace. The first spinoff was GE HealthCare, which Nasdaq Listed on the exchange on January 4, 2023. Since then, its shares have risen nearly 50%. (GE Vernova’s stock is up 400% since its April 2024 debut, thanks in large part to AI-driven power demand, while GE Aerospace’s stock has more than doubled.)

I recently spoke with GE HealthCare CEO Peter J. Arduini to learn how he is building on GE’s legacy while creating a new chapter for the $20 billion-a-year medical technology and digital health company. Arduino spent much of his early career at GE under Jack Welch and Jeff Immelt, leaving in 2005 before Culp brought him back.

Our conversation reminded me why General Electric has been revered for much of its 133-year history. The company was founded by Thomas Edison and its management system was so powerful that investors once believed it could be applied to light bulbs, nuclear reactors, saturday night live Its opaque GE Capital financial arm achieved the same result. At its peak in 2000, GE’s market capitalization hovered around $600 billion, more than $1 trillion in today’s dollars. Then came the dot-com bubble, 9/11, the Enron scandal and the 2008 financial crisis, not to mention the Immelthe could never regain the aura of his predecessor. The gold standard of global leadership was deemed too big to manage and was broken.

But Arduini is trying to revive what makes GE unique, from how it develops its people to how it makes its products. “GE’s models were really great, and to be honest, some of them had disappeared before Larry came back. We didn’t even really do performance reviews in the same way, but he brought it back,” Arduini said. “I’m trying to take the old GE and take the really good stuff: how we think about our leadership distribution, how we really talk about leader development, how we build our own Crotonville Virtual Development University.” That said, he doesn’t aspire to be part of the behemoth he left behind. “When you work in a larger enterprise, in many cases, decisions take longer. And focus is important in our business. It’s all about signal-to-noise ratio; you want more signal, less noise. In a larger company, the noise has to be a little bit more.” Click here to view the full interview.

Contact CEO Daily via Diane Brady: dianebrady@fortune.com

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