When GE announced a major strategic change (spinning off its healthcare unit and selling its stake in Baker Hughes), GE chairman and CEO, John Flannery, had to reassure employees, shareholders, and the financial media that he was doing the right thing by streamlining GE into a company that focuses on power, aviation, and renewable energy.
GE’s John Flannery is a seasoned leader and communicator. He needed to call upon those skills to pass this week’s round of interviews. Flannery had to be clear, concise and confident. His interviews offer valuable lessons for any leader who has to get buy-in for major decisions.
Let’s start with Flannery’s interview with The Wall Street Journal. Remember, he had to be clear, concise and confident. My comments are in brackets.
WSJ: You’re separating health care. Why are you keeping power and why not let investors choose between power and aviation?
[This is not the time to appear indecisive, or even to hint that the decision is up for debate].
Flannery: This is the plan. We’re finished. This is the way we’re going to go forward.
[You can’t get more direct than that. Now, watch as Flannery takes control of the interview and methodically structures the message into three talking points].
Flannery: The second thing. This is a dramatic change in the company. It’s a dramatic change in the portfolio, it is a dramatic change in the way we run the company. The third thing is we really looked at what is the best way for the businesses to flourish…Everything’s on the table, with no preconceptions and no sacred cows.
[Shareholders, employees and stakeholders of any company want to feel as though the leadership is confident about a major decision and that senior executives have a roadmap for the future. Later in the interview, Flannery takes an opportunity to do just that and to reassure his audience].
Flannery: We have gone to the four corners of the company, looked at everything. I’m highly confident we’ve got our arms around everything. We’re making sure that the company is on sound footing.
[Flannery takes several opportunities to write the new GE story and—very importantly—tells the story consistently. He doesn’t say one thing to one media outlet, only to change his words with another. Consistency signals confidence.]
In a 20-minute appearance on CNBC, Flannery was pressed by David Faber to give “a commitment” that he had analyzed every aspect of the company and that there would be “no more surprises.” Flannery responded with a message consistent with the one he gave to the Wall Street Journal. According to Flannery, “I examined every possible combination you can imagine. We [the board] arrived at a unanimous conclusion. We’ve covered the company corner to corner in terms of analyzing all aspects of the company.”
Flannery’s responses are often grouped in threes, showing a disciplined approach to keeping the message concise, yet thorough. On a conference call with analysts, Flannery said, the plan will create “a simpler, stronger and more focused company.” At the end of his CNBC interview, Flannery was asked for his message to the stockholders who have seen the stock price tumble over the last year. Flannery hit on three points to connect the outcome to his own financial well-being and, once again, to reflect confidence in his decision. Flannery said:
First, I share in every sense, the pain. My life savings is in the stock. I have the same sort of connection to the issue. Second, we’ve gone through a tough patch. We’re dealing with the issues. We have a plan. We know where we are. We know where we want to go with the portfolio, the balance sheet and how we run the company. We know exactly how to get there. Third, I have to look forward. I am really optimistic and invested in that.”
Finally, Flannery uses a technique that I often recommend—make sure the core message is crystal clear. In fact, tell your audience it’s the key takeaway. In several interviews, Flannery preceded his message with the words, “The core message is…” or he took the opportunity to deliver “The big picture.” For example, in one interview, Flannery said,
Here’s the big picture. GE is 130-years-old because it keeps changing and evolving. This is another chapter…a third of the world’s electricity comes from GE. We’re now going heavily into renewables. Two out of three flights are GE engines. We’re the backbone of everyone’s day to day life. It’s an unleashing and a revamping of a great historic company for our future.”
If you have major, complicated financial decisions to announce, it’s important to remind your audience of the big picture—the story that you want your listeners to take away. It’s also critical to make your message clear, concise and confident. Flannery is a CEO who is running a complex company at a challenging time. It helps that he’s an expert communicator.