How GE CEO Larry Culp pulled off the turnaround of the century

Key Points:

• When Larry Culp became CEO of GE in 2018, the conglomerate was near collapse with $150 billion in debt and an unwieldy business model; he restructured operations, reduced debt, and split GE into three independent companies by 2024: GE HealthCare, GE Vernova, and GE Aerospace.
• Under Culp’s leadership, the combined market value of the three companies soared from $96 billion to $689 billion, with annualized returns around 30%, making GE one of the top U.S. industrial firms by market capitalization.
• Culp applied lean manufacturing principles learned from the Toyota Production System to transform GE’s culture and operations, emphasizing frontline problem-solving, decentralization, and continuous improvement through kaizen sessions.
• GE Aerospace, now Culp’s focus, dominates the commercial jet engine market powering 75% of global flights, with a $211 billion backlog and strong aftermarket revenue accounting for 70% of its income, while also investing in innovative technologies like the fuel-efficient RISE engine.
• The success of Culp’s turnaround is widely regarded as one of the greatest in modern business history, credited to his hands-on leadership style, operational rigor, and cultural reboot that fostered transparency and accountability across GE’s businesses.