The 2006 Forte Corporate Best Practices Summit Cathy

The 2006 Forte Corporate Best Practices Summit Cathy Frierson GE Energy Financial Services May 3, 2006

GE… • Intense Performance Culture • Shared Values and Growth Traits • Disciplined and Rigorous Process

GE Operating System…Performance Culture Core business processes GE Opinion Survey February January Session C Development & Succession Session D Compliance April March Global Leadership Mtg. (GLM) Corporate Executive Council (CEC) Leadership meetings S-II Operating Plan Growth Playbook Session C Follow Up June May August July CEC C-Debrief C-II Follow Up October September December November Corporate Officers Mtg (COM) CEC SEB Orientation Meeting

Key Development Process … Session C Focuses both on the individual + the company Individual Company – Feedback – Organization – Development – Career – Leadership – Initiatives

The Session C Process Who • GE Leaders own the process. . . HR leaders deeply involved • Leaders committed to developing themselves and others What • Review of individuals and organizations – Individuals > accomplishments, strengths/development needs, career – Organization > structure, succession plans, pipeline • Progress on key initiatives When 1 Q • Bottom up • EMS reviews • Org. reviews 2 Q • CEO visits/Leadership reviews • C Wrap up • CEC debrief 3 Q 4 Q • Follow up reviews • BOD Committee review [MDCC] • C-II prior to S-II • Full BOD review Where • At the business location. . . significant leadership interaction How • Company wide digitized process

Business Session C Agenda 1. Business Leadership • • Direct Report organization chart Overall rating/promotability - Officers & SEBs Succession Plan for direct reports Organization restructuring plans 2. Pipeline • • • Overall rating/promotability - EBs VP and SEB potentials Diverse representation and trend Retention initiatives Training nominations 3. Growth & Culture • Commercial Excellence • Globalization Consistent agenda… Discussion varies by business needs

Session C Begins With 2 Forms EMS-2 EMS-3 People have an obligation for continuous improvement as well as the organization

9 Block POTENTIAL High OVERALL RATING Top Talent Highly Valued Less Effective Medium Low

Driving Growth … leadership, capability & process Growth … As a Person & GE Leader Growth … As a Business Process