Confidential. Not to be copied, distributed, or reproduced without prior approval.

From Rapid Efficiency to Improved Effectiveness:Transforming „Quick Hit” but Short-Lasting Actions into Long Term Strategies that Make Business Sense

April 28, 2017

Transform „quick hits” into long term strategies

1 | Strategy Level

2 | Process Level

3 | People capabilities and mindset

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 Today

3

GE

DIGITAL

ENERGY

CONNECTIONSElectrification, 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

ENERGYSustainable power

systems and storageGRCGGO

CULTURE &

SIMPLIFICATION

4

The GE StoreOur competitive advantage

GE

CAPITAL

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 | Maximizing the opportunity

“All-in” “Challenge”

5

Commercial

Finance

HR

Legal

Supply Chain

Scope

Faster,

Bigger,

Lower Cost

Redefine

World-

class

Achieve world-class benchmarks

2x Scope … 6 vs. 3 functions

½ Time … 5 vs. 10 years

(30)% SG&A … 18.5% - 12%

1/3 Overhead … 30% - 10%

Top down support … All-In Rethink … Culture + Model

Deliver for our business

partners

3,500+

employees

60%

female

Global Delivery Team

Belfort, France

Regional center

Budapest, Hungary

Commercial

Finance

HR

Legal

Supply Chain Operating in

30countries

39languages

spoken

99%University

degree

Targets … by 2017

% Sharedof GE’s enabling functions will be delivered through a shared model

GLOBAL OPERATIONS EUROPE & RUSSIA CIS

GE’S MULTI-FUNCTIONAL SHARED SERVICES

% in Global Operationsof that enabling work will be provided by Global Operations

% in a Centerof the Global Operations processes will be delivered from one of our regional centers

ABOUT US

65

50+

60

= $1.2B

Opportunity

Globally

7

Global Operations | Service Catalog

Commercial Finance

R2R

S2T

Fixed Assets

Tax

FP&A

Treasury

HR

Global Talent Recruitment

HR Operations

Learning And Development

Payroll and Benefits

Legal

Legal Shared Services

Legal COE

Supply Chain

Indirect Sourcing

Customs

Properties

Source to Pay

Travel and LivingGENIUSLINK™

Onboarding

Credit to cash

Inside sales

Sales Support

Focus

Functionally Focused & Owned Platform

Transactional Standardization

Regional Shared Services Consolidation

Transactional Automation

Cost Reduction Focus

Multiple Functions inside SS Org

Service Management Implementation

Enterprise Standards

Performance Technology Improvement

Knowledge Centers of Excellence

BPO & Managed Services Outsourcing

Service Value Focus

Service Oriented Standalone SS Entity

Service Catalog Centric

End-To-End Process Orientation

Non-Traditional Knowledge Centers

Commercial Performance Profile

Innovation

Business Value Focus

Functional Aggregation

Multi-functional Shared Services

Integrated Services

Hackett GBS value evolution model

Value

9%

41%

50%

Stage

3

Stage

2

Stage

1

Multi-function integration

Integrated services

operations

Single function consolidation

Maturity Stage

GBS governance model

Function Function FunctionGovernance

Service management

BUsBUsBUs

LeaderGlobal Business Services

End-to-End Process Management

Function Function Function

Shared

servicesShared

services

Shared

services

Shared

services

Governance

Service management

BUsBUsBUs

Leader LeaderLeader

Function

Shared

services

Function

Shared

services

Function

BUsBUsBUs

Leader Leader

© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior or written consent is prohibited

8

Global Operations | Process improvement

General More action = more improvement

„Cherry picking”

What can we improve?

Immediate „solutions”

We do not learn from improvement

Lean Eliminating waste

Focus on whole value stream

What do we need to improve?

Eliminate the root causes

Learn and adapt by usingPlan Do Check Act method

9

“Old”

Strategic … GE Store

Multi-functional … “All-in” + partnership

Engagement … Communications + proof points

Partnership … transparency, no SLAs, input/output

Make v. Buy … captive + centers; optimize delivery model

Keeping it real … external benchmarks

Culture … op rhythms, physical space, measures of

success, rewards, behaviors

“New”

Global Operations | Transforming the way we work

Slow, StalledPartnership, Agility, Speed … 2x

Outcomes

Cost out

Outsourced +

consultants

Functional silos +

distributed

workforce

Internal stakeholder

as Customers vs.

Partners

Process variation

10

Experiment with new ideas

Passionate about problem solving

Fastworks and Lean

Sustainable

productivity

beyond short-term

savings

GO

Lean

=

Focus on operating rhythm Focus on problem solving

Program focus

Global Operations | Lean management system & mindset

In ClosingTransform „quick hits” into long term strategies

1 | Strategy Level: Be part of strategy

2 | Process Level:

• Partner to move up the value curve

• „True North”... have and shape process visions – influence globally

3 | People capabilities and mindset: Live Lean