14-15 September 2016

Lisbon, Portugal

#DeloitteSharedServices

Deloitte Shared Services, GBS & BPO Conference

Plenary 5: GE Enabling Business Agility - building an 8,000+ strong multifunctional shared services organisation in 3 years

Bjorn Bergabo, GE

Imagination at work

GE Global Operations Enabling business agility at GE

Bjorn Bergabo, General Manager, GE Global Operations – Europe, Russia & CIS

September 2016

GE Today

DIGITAL INDUSTRIAL: Leading a new productivity revolution

GREAT PORTFOLIO: Solving big global problems

GE STORE: Foundation for world-class performance

VALUE: Win in the market, build with investors

CULTURE: Simplification for customer outcomes

GE is transforming

IndustrialConsumer Financing

Divest

Alstom

Renewables

Thermal

Grid

GE Power

GE Energy Connections

GE Oil & Gas

GE Lighting

GE Aviation

GE Transportation

GE Healthcare

Vertical Finance

Digital

GE Digital

Predix

Culture + Transformation

Invest + Disrupt

The first Digital Industrial company

Capital

Synchrony

Appliances

The Digital Transformation

Speed of change requires months to days, scalability

Building on current IT investments and assets

Increased opportunities for software-defined everything;& data as a revenue generator

New Business Models

Cloud-basedPlatform

Convergenceof IT & OT

GE Digital Wind FarmCurrent, powered by GE

GE Digital

Predix Industrial Internet Operating System

How we are evolving

Different at GEOur goal

Scarcity drives teamwork, accountability & prioritization

Changes GE’s cost structure to sustain investment while growing margins

Leanmanagement

Outcompeting based on speed; everything is “on the clock”

FastWorks: Process driven/ITTest + learnProduct cost/margin

Competitiveness

Global share"Front-end" marginsImproved project margins

Excellent customer experiences … better commercial operations, responsiveness, regional speed

Commercialintensity

Support SG&A goals Global productivity. Improve risk management

Fewer ERPs and more reliability … distributed leadership and shared services

Digitalcapability

+

+

+

How we think about Simplification

Simplification is a company shift

Focus on Performance Development. Annual reviews replaced with regular and more often touchpoints and feedback, in addition to a brief annual summary.

Facilitate the remake of GE into a leaner, innovation-driven companyCulture

+

GE’s shared services opportunity

Simplify structure and process

Proven model … valuable Resource Allocation

Beyond SG&A … Enterprise wide

Shared benefits today

RevenueRevenue

+ O2C … leads, inside sales, collections+ Documentation … channels, contracts+ Analytics … customer 360, leads+ Compliance … Know Your Customer

+ Infrastructure … facilities, IT+ Cycle time … sourcing, customs+ Leverage … deflation+ Compliance … Know Your Supplier, contracts

Process Unit Cost

50%

Centers of Scale

60%

Shared Services

65%

ERP

90%

'12 '13 '14'11 '16F

SG&A cost out(Industrial SG&A % of sales ex-BD)

17.5% 15.9%14.0%

~12%

18.5%

Transactional

Gross MarginsGross

Margins

+ Common Process … cost, quality, speed+ Scale + leverage … lean structure+ Analytics … data, metrics, insights+ Capacity

SG&ASG&A

t

The GE StoreOur competitive advantage

GE DIGITAL

ENERGY CONNECTIONS

Electrification, controls and power conversion

technology

POWERCombustion science

and services, installed base

AVIATIONAdvanced materials,

manufacturing, and engineering

productivity

TRANSPORTATIONEngine technology and localization in

growth regions

LIGHTINGLED is gateway to energy efficiency

OIL & GASServices and technology—

a first-mover in growth regions

HEALTHCAREDiagnostics

technology—a first-mover and anchor in

growth markets

RENEWABLE ENERGY

Sustainable power systems and storage

GLOBAL RESEARCH

CENTER

GLOBAL GROWTH

ORGANIZATION

CULTURE & SIMPLIFICATION

Global Operations

• Shared Services is a critical enabler of the company’s simplification efforts.

• In Global Operations, we bring our process and domain expertise to create capacity in the GE Businesses.

• By centralizing support services from 6 global functions into one framework, we’re taking a wing-to-wing look across GE to streamline and standardize Company processes and ensure consistent quality.

Where does Global Operations fit in?

Global Operations

GE: ~65% of enabling functions will be Shared

Achieving our targets Global Operations will …

Deliver~50% of Shared, with 80% to Standard, and 60% in a Center,

= $1.2B Opportunity

3.2K

1.8K

4.75K

2014

4-7K

6-8K

2017

LocalSites

Centers

Global Team

Enterprise Data

Commercial

Finance

HR

IT

Legal/EHS

Supply Chain

Tax

Multi-functional Centers

10-15K

Asia: Pudong, China

Europe & Russia/CIS: Budapest, Hungary

Latin America: Monterrey, Mexico

US/Canada: Cincinnati, Ohio

Network of Centers and Sites, supported by Global Delivery Teams

• Regulatory or functional requirement for work to be done in country or at a specific location

• Non-scalable work that requires local coordination

• Leverage local knowledge or expertise

Local Sites

• Regional, captive, multi-functional services, leveraging common infrastructure

• Scale to operate large processes and volumes

• Business process expertise & productivity

• Work is not location dependent

Regional Centers

• Multi or single region process work

• Scale and concentration of expertise enable productivity

• Location enables benefits from local labor market and/or proximity to key global stakeholders

• Creates capacity and provides business continuity option for Regional Centers

Global Delivery Teams (GDT)

Regional Operations Center Local Sites

GDT

Who we are Today | What we do

Global team Deep multi-functional expertise

99 nationalities; 39 languages spoken; 62% female … operating in 81 countries

2,287 Bachelors degree + 2,631 Masters, Doctorate or JD

61 CPAs or equivalent

106 CAS graduates; 602 leadership program grads

1,577 Quality trained

Diversity + Experience

Proud of Global Operations; proud of GE

4.8K

3.2K

8K

2015

4-7K

6-8K

10-15K

2017

Local Sites

Centers

2012

Resources

Service Offerings

Shared Services Maturity

12

25

2x

2.5K

Level 1 Level 2 Level 3

How we are using data

Operating reviews done on live dashboard

What we are playing for … brand new world

New way to Work

Horizontal / Flat organization

Experiment with new ideas

Passionate about problem solving

Make decisions based on data

Op reviews using digital dashboard & no power point

Democratize information

Embracing Digital age

99 nationalities & 39 languages

~700 from Leadership Programs

62% female

Global & Diverse

Contemporary Leadership

Learn how to be vulnerable

Always have the teams’ back

Walk in others’ shoes & empathize

Organizational overview

Global Process Owners Regional Operating Leaders Enabling

Process architects,Own functional councils &

Enterprise Standards

Own operations,Optimize Global design,

Locally accountable

Accelerate migrations,Global governance design,Continuous improvement

Shared Functional

Finance, HR, Compliance, Communications, Legal, IT

Global Functional Leadership

Regional + Business Leadership

Enables acceleration

Execute with minimal structure to create business capacity & enable growth

$340MM of annualized indirect deflationwith supplier negotiation as OneGE

GE Global Operations … 3 years in

Silo’d teams

Process variation

Customized by business needs

Individual task simplification

Enterprise standards defined

Global Operations Centers opened

Multi-functional scope

Embracing FastWorks…Growth Board

Fully operationalized network of Centers and sites … 55% in Centers

Multi-functional, integrated teamsdelivering wing-to-wing processes

Living the GE Beliefs

Driving competitive advantage for the GE Businesses

82K account reconciliations eliminated

80% reduction in Customer onboarding process (KYC)

35% reduction in legal entities

70M clicks eliminatedfrom HR

15% reduction in facilities spend

Partnered with the businesses to create

GENIUS + MyGlobalMetrics

$35MM annual revenue for GEHC through telemarketing

Creating capacity in the GE Store

Overhead reduction from 30% -10% … on path to zero

15% B2P unit cost reduction on 16MM invoices

The journey of Global Operations

2013 2016

I MP A C T

Nationalities

promotion rate YTD

Countries Covered

Global Operations Center, Budapest

Enabling GE growth

Languages

Female talent

years

Training hours

On board

Gen Y

GE Global Operations Center, Budapest

GE was awarded the“Company of the year for Regional Shared Services Centers” for 2014 in Hungary by the Ministry of Foreign Affairs & Trade and Hungarian Investment Promotion Agency

GE United & Toastmasters

The Power of Culture

Women’s Network & Working Parents

Program

BuildOnHealthAhead & GLBTA

GEVolunteers

40+ Participants Enhancing Public Speaking Skills Through

Toastmasters

Raising funds to build a school in Nicaragua 1800+participants

45+members

35+Nationalities30+

Languages

20+Events

…Poorest country in Latin America

4.6yrs

68%

2nd

…Live on little more than $1 per day

…Average length of schooling

Sport Day17 competitive and

non competitive activities

HA Day20+ healthy events & medical checks and

screenings

GCC Challenge 100day competition

3000+ Participants To Date!

80 Active Members All Day Diverse Programs

Awareness Campaign Adopt a Village Project

Ambassadorship Horse Therapy

Forest Saving

Working Parents#geworkingparents

Initiative started at GE in Hungary200+ participant’s for ‘Working Parents Day’

Initiatives#godigital – Raising Digital Awareness

#gemyconnection – Women & Technology#gewnexternal – Future Wings - Giving children

access to professional role models

19

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