How "deep" is your "bench"? This company's Genuine Asset is great at recruiting and engaging talents!

Today, let’s talk about an example highlighting the importance of RDS’ first foundation—Genuine Assets—in business strategy. Ready?

Keep reading the article below.

How "deep" is your "bench"? This company's Genuine Asset is great at recruiting and engaging talents!

In the competitive world of global business, the strength of a company often lies not just in its products or market share. It’s also about having a secret weapon, an edge that competitors can’t easily replicate. 

Imagine a powerhouse of talent, a reserve of experienced and capable professionals ready to step up at a moment’s notice… 

This hidden asset can drive innovation, ensure stability, and propel a company forward even in the most challenging times. 

Also known as “deep bench,” this concept is a game-changer… and for one industry giant, this strategy is not just a buzzword but also a core pillar of success.

General Electric (GE): “Building A World That Works”

GE is an American multinational conglomerate founded in 1892, incorporated in the state of New York, and headquartered in Boston. The company has several divisions, including aerospace, energy, healthcare, and finance.

In 2020, GE ranked among the Fortune 500 as the 33rd largest firm in the U.S. by gross revenue. In 2023, the company was ranked 64th in the Forbes Global 2000.

Today, GE is separated into three public companies: 

• GE Aerospace
• GE HealthCare
• GE Vernova

Each of these divisions focus on developing, manufacturing, and providing equipment necessary for the aviation, healthcare, and energy sectors. 

Cultivating Talent, The GE Way

Few names resonate with as much history and innovation as GE. While many are familiar with its pioneering technologies and global reach, there’s a less obvious but equally formidable Genuine Asset fueling its success: GE’s “deep bench.”

This term isn’t just corporate jargon; it also represents a cornerstone of GE’s enduring strength and adaptability. 

So today, we’ll tackle why GE’s “deep bench” is one of its most valuable assets and a key driver of its continued success.

• Leadership Continuity
  
  GE has long been synonymous with EXCELLENCE in talent development. The company’s commitment is evident in its renowned leadership programs, such as the Edison Engineering Development Program and the Financial Management Program. 
  
  These initiatives are rigorous training schemes and immersive experiences that mold employees into industry leaders. By investing in their people from the ground up, GE ensures a steady pipeline of skilled professionals ready to take on new challenges.
  
  Additionally, one of the critical advantages of having a deep bench is the assurance of leadership continuity. In the face of sudden executive departures or retirements, GE can seamlessly promote from within. 
  
  This not only maintains stability but also ensures new leaders are already well-versed in the company’s culture, values, and strategic objectives. 
  
  The result? 
  
  A smooth transition that keeps the company on course!
  
  
• Innovation and Adaptability GE’s robust internal talent pool is a hotbed for innovative thinking. Employees who have grown with the company understand its intricacies and are well-equipped to drive forward-thinking solutions. 
  
  This internal expertise allows GE to stay ahead of industry trends and continually adapt to market changes.
  
  
• Crisis Management
  
  GE’s “deep bench” ensures the company can swiftly fill critical roles with capable leaders during crises, providing stability and effective management. 
  
  This resilience is not just about surviving tough times but also thriving in the midst of such situations, demonstrating GE’s ability to steer the ship through stormy waters with confidence.
  
  
• Operational Excellence
  
  Long-tenured employees bring a wealth of institutional knowledge that translates into higher performance and operational efficiency. 
  
  Familiarity with the company’s processes, systems, and strategic vision means they can hit the ground running, driving projects to success with precision and speed. 
  
  This operational excellence is a direct outcome of GE’s investment in its people.
  
  
• Proactive Succession Planning
  
  At GE, succession planning is not an afterthought but a proactive strategy. The company meticulously plans for the future, ensuring there are always ready candidates for key positions. 
  
  This foresight minimizes disruptions and guarantees business continuity, reassuring stakeholders that GE is always prepared for the next chapter.
  
  
• Reputation and Trust
  
  GE’s commitment to developing internal talent bolsters its reputation as an employer of choice. This not only attracts high-caliber candidates but also builds trust among current employees, investors, and customers. 
  
  In fact, many new graduates pass up job offers of higher immediate compensation in exchange for “getting into GE” just to be ingrained in the GE philosophy! 
  
  This clearly shows that the company has been able to sustain returns and competitive advantages in its business lines throughout the 90s and the early 2000s through its “deep bench.”
  
  

As seen in the key points above, “deep bench” allows GE to recruit and engage top employees in ways extremely difficult to match by other companies. 

The brand’s focus on the right measures and metrics for wealth-creation, such as growth and return on invested capital, has created a company whose entire culture strives toward the high returns the company exhibits. 

Sure, let’s say an operations management framework that GE developed can be copied by others… but the years of being trained and ingrained in a culture driven towards returns and wealth-creation? 

Not really. 

That aspect in the company cannot be easily replicated and should other firms try to do so, it would take them a looooong time and lots of resources to incorporate the system into their business strategy and philosophy.

We hope you learned A LOT from GE’s “deep bench” strategy! 

Never ever disregard the importance of nurturing talent from within your business. 

You’ll see, as markets evolve and new challenges arise, you’ll be thankful for investing in a strong internal talent pool that will enable you and your business to be resilient, adaptable, and unwaveringly committed to excellence. 

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If you’re looking to gain a better understanding of Return Driven Strategy and Career Driven Strategy, we highly recommend checking out  “Driven”  by Professor Litman and Dr. Frigo. 

Click  here  to get your copy and learn how this framework can help you in your business strategies and ultimately, in ethically maximizing wealth for your firm.

Hope you found this week’s insights interesting and helpful.

Stay tuned for next Tuesday’s Return Driven Strategy!

The traditional pact between employees and employers has eroded completely. With this, a new pact that reflects the new way of working is needed.

Learn more about  the new paradigm of work  in next week’s article!