Saturday, April 12, 2008

GE’s Immeltdown

As CEO Jeffery Immelt was apparently clueless even one month ago that GE wasn’t going to come close to making their earnings expectation.

You have to wonder how this could have happened. After all, it’s not like GE is run by folks who have never heard of forecasting, trends, or the business cycle.

Don’t they have an accountant or two who noticed that daily / weekly / monthly results were coming in below plan? No one on their finance staff who’s capable of reading a newspaper and saying something like “uhhh, economic trends don’t look good guys”?

More than likely, they do, and just chose ignore evidence by employing the time honored strategy of “management by wishful thinking”.