Hot Seat: What I Learned Leading a Great American Company

by Jeff Immelt, Amy Wallace (Editor), Robert Petkoff (Read by), Jeff Immelt (Prologue by)

Overview

A fascinating and candid memoir about successful leadership from the former CEO of General Electric, named one of the “World’s Best CEOs” three times by Barron’s, and the hard-won lessons he learned from his experience leading GE immediately after 9/11, through the devastating 2008–09 financial crisis, and into an increasingly globalized world.

In September 2001, Jeff Immelt replaced the most famous CEO in history, Jack Welch, at the helm of General Electric. Less than a week into his tenure, the 9/11 terrorist attacks shook the nation, and the company, to its core. GE was connected to nearly every part of the tragedy—GE-financed planes powered by GE-manufactured engines had just destroyed real estate that was insured by GE-issued policies. Facing an unprecedented situation, Immelt knew his response would set the tone for businesses everywhere that looked to GE—one of America’s biggest and most-heralded corporations—for direction. No pressure.

Over the next sixteen years, Immelt would lead GE through many more dire moments, from the 2008–09 Global Financial Crisis to the 2011 meltdown of Fukushima’s nuclear reactors, which were designed by GE. But Immelt’s biggest challenge was inherited: Welch had handed over a company that had great people, but was short on innovation. Immelt set out to change GE’s focus by making it more global, more rooted in technology, and more diverse. But the stock market rarely rewarded his efforts, and GE struggled.

In Hot Seat, Immelt offers a rigorous and raw interrogation of himself and his tenure, detailing for the first time his proudest moments and his biggest mistakes. The most crucial component of leadership, he writes, is the willingness to make decisions. But knowing what to do is a thousand times easier than knowing when to do it. Perseverance, combined with clear communication, can ensure progress, if not perfection, he says. That won’t protect any CEO from second-guessing, but Immelt explains how he’s pushed through even the most withering criticism: by staying focused on his team and the goals they tried to achieve. As the business world continues to be rocked by stunning economic upheaval, Hot Seat “takes you into the office, head, and heart of the man who became CEO of GE on the eve of 9/11, and then led the iconic behemoth for sixteen fascinating, and often turbulent, years. A handbook on leadership—and life” (Stanley A. McChrystal, General, US Army [Retired], CEO and Founder, McChrystal Group).

Product Details

ISBN-13:	9781797118031
Publisher:	Simon & Schuster Audio
Publication date:	02/23/2021
Edition description:	Unabridged
Sales rank:	1,019,992
Product dimensions:	5.00(w) x 5.90(h) x 1.20(d)

About the Author

Jeff Immelt was the ninth Chairman of GE and served as CEO for sixteen years. He has been named one of the “World’s Best CEOs” three times by Barron’s. During his tenure as CEO, GE was named “America’s Most Admired Company” by Fortune magazine and one of “The World’s Most Respected Companies” in polls by Barron’s and Financial Times. Immelt has received fifteen honorary degrees and numerous awards for business leadership and chaired the President’s Council on Jobs and Competitiveness under the Obama administration. He is a member of The American Academy of Arts & Sciences, and a lecturer at Stanford University. Immelt earned a BA in applied mathematics from Dartmouth College and an MBA from Harvard University. He and his wife have one daughter.

Amy Wallace is a writer based in California. She splits her time between magazines and books. Her magazine work has appeared in GQ, Wired, The New Yorker, New York, Esquire, Vanity Fair, Details, The Nation, The New York Times Magazine, Elle, and other national publications. Two of her profiles—“Hollywood’s Information Man” (Los Angeles, 2001) and “Walking Time Bomb” (New York, 2019)—have been National Magazine Award finalists. An archive of her work can be found at Amy-Wallace.com. In 2014, she collaborated with Ed Catmull, then the president of Pixar Animation and Disney Animation, on his New York Times bestselling book Creativity, Inc.: Overcoming the Unseen Forces That Stand in the Way of True Inspiration. Her second collaborative book, this one with former CEO of General Electric Jeff Immelt, is Hot Seat: What I Learned Leading a Great American Company.

Jeff Immelt was the ninth Chairman of GE and served as CEO for sixteen years. He has been named one of the “World’s Best CEOs” three times by Barron’s. During his tenure as CEO, GE was named “America’s Most Admired Company” by Fortune magazine and one of “The World’s Most Respected Companies” in polls by Barron’s and Financial Times. Immelt has received fifteen honorary degrees and numerous awards for business leadership and chaired the President’s Council on Jobs and Competitiveness under the Obama administration. He is a member of The American Academy of Arts & Sciences, and a lecturer at Stanford University. Immelt earned a BA in applied mathematics from Dartmouth College and an MBA from Harvard University. He and his wife have one daughter.

Table of Contents

Prologue 1

Chapter 1 Leaders Show Up 7

Threading the Needle 9

Stoking GE's Growth Engine 12

Waking to a Nightmare 14

Facing Disaster 17

Absorbing Fear 19

Putting Customers First 22

Chapter 2 Leaders Learn Every Day 27

"Don't Complain-Fix It!" 30

Be Willing to Stand Apart 32

Choose Purpose Over Money 34

See Through Your Customer's Eyes 36

Learn to Take the Heat 41

Get a Thicker Skin 44

Valuing Growth 46

Launching the LightSpeed 48

Who's Next in Line? 50

Your Peers Promote You 54

Chapter 3 Leaders Invest in Growth 57

A Time For Change 61

Technology First 63

Protect the Builders 67

Fulfilling the Dreamliner Dream 71

Don't Fall in Love with an Idea 76

Pivot to Grow 77

Seize Opportunity 81

Don't Be Afraid to Act 87

Chapter 4 Leaders Are Systems Thinkers 93

Communicating with the World 96

Green Is Green 99

The Digital Future 107

Competing for Talent 112

Bringing the Team Along 113

Not Finishing the job 116

Chapter 5 Leaders Persevere in a Crisis 119

Bundle at Your Peril 121

Beware a Cold Snap 123

Darkness Visible 126

Rolling Paper 132

"Let's Get the Money" 133

Fishing for an Anchor 136

The Killer Chart 138

Stepping into Liquid 141

Cutting the Dividend 143

Chapter 6 Leaders Make Big Companies Small 149

Facing Reality 151

Retaining the Best 153

It Starts with You 154

The Soul of GE 160

Reimagining Crotonville 161

Leadership Explorations 163

Valuing Everyone 166

Chapter 7 Leaders Compete Around the World 173

Becoming the jobs Czar 179

There's Always a Crisis Somewhere 182

Investing in Local Capability 185

Persisting Through Volatility 187

Cementing Relationships 190

Hiring Local Teams 194

China Matters Most 196

A Little Bit of We 204

Chapter 8 Leaders Manage Complexity 207

Creating Incremental Value 209

Pattern Recognition 211

An Aspiration to Lead 213

Private Equity: A Modern Conglomerate? 216

Developing Trustworthy Leaders 220

A Bias for Innovation 222

Constantly Simplifying 224

Operational Transparency 229

Peer Learning & Peer Pressure 230

Chapter 9 Leaders Solve Problems 233

Managing Risk 234

Welcome to the Hotel California 238

Shooting for the Moon 239

Keeping the Lid on Tight 243

Secretive No More 250

Leveling with Our People 251

Activists Abound 254

Sell, Sell, Sell! 256

Mission Accomplished 258

Chapter 10 Leaders Are Transparent 261

A Simple Deal (in a Market We Knew) 263

A Position of Strength 265

A Leader Stops Leading 268

Integrating Alstom 269

Overt Transparency 271

Close the Deal, Lose the Leader? 276

The Business Suffered 278

Chapter 11 Leaders Are Accountable 285

Grooming the Candidates 287

The Home Stretch 291

Valuing the Company 292

Every job Looks Easy (Until You're the One Doing It) 300

Activist Investors Weren't the Answer for GE 301

A Short Tenure 303

Chapter 12 Leaders Are Optimists 309

Owning Some Mistakes 312

The Case for Listening (Most of the Time) 315

Life After GE 316

Change for the Better 318

Acknowledgments 321

Index 325

Editorial Reviews

02/08/2021

Former General Electric CEO Immelt looks back on what he terms his “controversial” 35 years at the company in this page-turning if petulant debut. Spurred to action because of a “histrionic” 2018 article in Fortune that called him “inept,” Immelt energetically recounts triumphs, failures, and the end of his time at GE in 2017: “I’d been about as brilliant as I was lucky, by which I mean: too often I was neither,” he quips. Immelt started as CEO the day before 9/11, taking over for Jack Welch (who had no shortage of “idol worshippers,” the author notes). His defensiveness about this transition shines through, and he points out that he took over “without speaking a single negative word” about Welch, with whom he had a tumultuous relationship. Immelt’s account reveals the inner workings at GE, including efforts to clean up the Hudson River, corporate board issues, and the decline of GE Capital. Though it’s presented as a leadership book (sections are headed with such koans as “Leaders Show Up” and “Leaders Manage Complexity”), instead of guidance Immelt opts for succinct, personal writing that often comes across as self-exoneration. Readers in search of a behind-the-scenes look at GE will be entertained, but those looking for business wisdom can give it a pass. (Feb.)

Publishers Weekly

"It is a given that we learn more from our mistakes than our successes. Many chief executives, however, operate on a default setting of can-do optimism. Asked to revisit their failures, they naturally hesitate, unless they can depict them as way-stations on the road to inevitable glory. Hot Seat is a valuable addition. . . . [Immelt] offers much that is useful to other executives: about succession; about coping with crises; and about how to leave." —Financial Times

“An extraordinary combination of insights and candor. Jeff Immelt’s Hot Seat takes you into the office, head, and heart of the man who became CEO of GE on the eve of 9/11, and then led the iconic behemoth for sixteen fascinating, and often turbulent, years. A handbook on leadership – and life.” —Stanley A. McChrystal, General, US Army (Retired), CEO and Founder, McChrystal Group

“Jeff Immelt has always been one of my leadership role models. He leads with head and heart. He is an ‘all-in’ leader who is completely committed to his team and his customers, and he cares deeply about both. This book shows how leadership is a full contact sport and Jeff leaves everything on the field.” —John Donahoe, CEO, Nike

“Jeff Immelt’s Hot Seat is the ultimate and intimate insider’s account of sixteen epic years as CEO of GE. With remarkable candor and self-awareness, Jeff tells hundreds of riveting stories—sharing hard-learned lessons in leadership. Hot Seat is the brilliant, fast-paced, tough love story of Jeff’s personal devotion to his family and GE’s people. He literally bleeds for GE (spoiler alert: tattoos revealed). If you work in tech, finance, energy, or health care, this book is required reading. If you care about world affairs, global progress, or public service, it is inspiring. Hot Seat is a great gift from Jeff, a personal hero and patriotic, magnificent servant leader.” —John Doerr, Chairman, Kleiner Perkins and author of Measure What Matters

“Hot Seat is a must read for anyone wanting to learn about what it takes to lead through turbulent times. The real world is full of tail events, constraints, and circumstances you don’t control. Jeff's book is full of insights on what it takes to show up and lead and move the organization and world around you forward.” —Satya Nadella, CEO, Microsoft

“A fascinating account of the drama of what it takes to lead a great global business in times of rapid change. Hot Seat weaves through the lesson of leadership at every step of the story. It is an important read for leaders of global commerce—today and for those of the future.” —Bob Dudley, former CEO, BP

"For anyone who's endured failure or heartbreak in their professional life—and that means everyone—Jeff's tale, full of insight, wisdom, perseverance and heart, is an invaluable resource and a blueprint for dealing with the wonderful chaos of leadership." —Jennifer Aaker, Professor, Stanford Graduate School of Business and author of Humor, Seriously

"Jeff Immelt’s disarmingly candid retrospective of his sixteen-year tenure as CEO of GE dissects his successes and failures, providing insider perspective on the rationale for his most controversial decisions. He explores the emotional and intellectual challenges of the loneliest, most challenging position in any organization. There are many lessons to be gleaned from this narrative. This is an insightful perspective for aspiring, current and future leaders." —Toby Cosgrove, Executive Advisor, former President and CEO, Cleveland Clinic

“Jeff pulls back the curtain on his many battle scars, talks about lessons learned and gives us insight into the importance of optimism, growth and, most important, humility.” —Ruth Porat, SVP and Chief Financial Officer, Alphabet and Google

“Jeff has delivered the most insightful perspective on GE over a remarkable period of change and growth with the same intellectual energy, self-reflection, and bold leadership that he used in running the company for more than sixteen years. This book is the definitive account of how it all unfolded.” —Geoff Beattie, Chairman and CEO, Generation Capital

“Hot Seat is bravely honest in a way few CEO books have ever been. Jeff shows deep humility, taking you inside the boardroom during an extraordinary time in GE, and American, history. It is fascinating insight from a career filled with incredible highs and lows, and Jeff does not shy away from any of it. This is a must-read book for every CEO, aspiring business leader, or anyone who has to manage teams, big and small.” —Jeff Zucker, President, CNN

"A must-read for all students of capitalism." —David M. Rubenstein, Founder and Coexecutive Chairman, The Carlyle Group

“Hot Seat provides a detailed inside view of the intense challenges in leading the most successful diversified industrial company of the 20th century into a turbulent 21st century. The book reveals the enormous energy, passion and commitment needed to navigate a highly complex and global business. Jeff’s energetic and charismatic leadership style, based on his unwavering commitment to innovation, customers and employees, is seen through incredible events and business portfolio challenges. Hot Seat also provides many insightful business and leadership lessons.” —Joe Hogan, President and CEO, Align Technology

“Hot Seat is an interesting and captivating read. It chronicles Jeff Immelt’s career at GE, how he spent his time, especially as CEO, how he himself grew over time and helped develop others. The book provides useful background and perspective on the many critical decisions he made—selecting leaders, buying and selling businesses, where to invest and where not to. Like any big company, others may or may not agree with his decisions, but Jeff’s rationale is explained clearly. The lessons learned about business leadership are extremely valuable and thought-provoking. We can all learn something from Hot Seat. I recommend it highly.” — Omar Ishrak, Executive Chairman, former CEO, Medtronic; Chairman of the Board, Intel

"I very much enjoyed and learned from Hot Seat. There are so many valuable leadership lessons from Jeff’s experience in successes and failures. The book is so direct and honest, which makes it special. And it explains the story of GE over the last 30 years, which is fascinating in and of itself." —Steve Ballmer, former CEO, Microsoft

“The metric that matters in a business leadership book is how many pages you underline things on because you know you want to remember and refer back to them. Hot Seat scored 192 for me. If you’re looking for a ‘How great was I?’ memoir, move to the next book. If you want the real lessons of leading one of the world’s most complex companies through sixteen of the world’s most challenging and least predictable years, take a seat and turn to page one.” —Andrew Robertson, President and CEO, BBDO Worldwide

“Read this book. You’ll be a better leader for it.” —David Rogier, Founder and CEO, MasterClass

“In this artfully told biography, Jeff Immelt offers a master class to today’s CEOs who are building global businesses as they encounter unprecedented pace of change and tail risks. The reader is afforded a rare window to see how lonely leadership can be at critical times and teaches key leadership lessons that are both timely and timeless. We learn so much on how to run our businesses more effectively and be better human beings, making this not only a must-read book but a go-to reference.” —K. R. Sridhar, Founder and CEO, Bloom Energy

"Hot Seat is a compelling account of Jeff Immelt’s sixteen years as the CEO of GE. It is both a raw and honest interrogation of himself and his tenure. For me, the highlight of the book was his sharing of the personal learning journey; acknowledging success and failure, absorbing fear while acting, energizing and obtaining energy from his team. In writing this, Immelt answers his critics, displays the leader as teacher, but most importantly finds his redemption." —Gordon Cairns, Chairman, Woolworths Group

“Jeff Immelt’s approach to leadership, his work ethic, and his ability to embrace ‘systems thinking’ holds lessons for everyone. His own account of his time as head of GE is an important read that reflects the big questions all leaders face—from pivoting strategically towards the future, to balancing the needs of businesses as well as other stakeholders.” —N. Chandrasekaran, Chairman, Tata Sons

"Hot Seat delivers valuable stories and lessons that show what it’s like to lead a global company through uncertain times. As Jeff says, ‘leadership can be a lonely job.’ It takes courage and authenticity, and Jeff brings both in his memoir." —Meg Whitman, former CEO, eBay

From the Publisher

2020-12-22
The former CEO of GE writes candidly about the successes and failures of his tenure.

The son of a GE worker, Immelt assumed the top position in 2001 after rising through the ranks as the company was being reshaped by former CEO Jack Welch. He opens his memoir by recounting a discomfiting couple of hours at the Stanford Graduate School of Business, where one student asked point-blank, “How could you let this happen?” The “this” in question was a long decline as Immelt tried to shift the culture and direction of a company “where perception didn’t equal reality.” As the author writes ruefully, ideas were scarce and inertia reigned. His leadership lessons are both hortatory (“Leaders show up”) and critical. He writes, for instance, that Welch had surrounded himself with yes men and gotten bogged down in faddish management tools such as Six Sigma even as the company was overrun by finance types at the expense of engineers. By the time he took over, the largest share of GE’s business came from its insurance sector rather than from anything it made. “Transforming a big legacy company requires persistence,” writes the author. It also requires the right aides and key staff, and in this, Immelt was ill-served by ambitious managers—one in particular he thinks he should have fired despite that person’s being protected by the board of directors. He also opines that his successor as CEO, whose tenure was brief, was the wrong person for the job: “It seemed to me,” he writes, “that [John] Flannery couldn’t make decisions.” In the end, Immelt writes in an unforgivingly self-critical spirit, he took on too many projects. “I did not develop a deep enough bench of rising leaders” to help with these initiatives, he writes, adding, “I wish I had said ‘I don’t know’ more frequently.”

A valuable book full of lessons for business students and would-be leaders.

Kirkus Reviews