A Personal Pivot

You are accountable for your turnaround

When I walked out of GE for the last time in 2017 after 35 years with the company, it was one of the saddest moments of my life.

I had been CEO for 16 years of one of the world’s largest and most essential companies. I’d earned my share of accolades – three-time CEO of the year, most admired company, even advisor to a U.S. president. I had led the company after 9/11 and the financial crisis. I had followed an icon but carved my own path.

GE was my second family. It still is. Over nearly four decades, I worked with thousands of the smartest and most interesting people in the world. The phone rang constantly with invitations from world leaders, business CEOs, entrepreneurs, investors, journalists, and celebrities. Many became friends.

Anyone who has had a senior position in a big organization such as GE knows how work permeates your life. There are 90-hour weeks and endless decisions to make. Even your “time off” is often spent with peers or customers at dinners, on an airplane, or in a meeting room. One Saturday each month, I would bring a senior executive to my home to explore their career and role in the company. I sacrificed quality time with my family. Work becomes your identity.

But when I left – and in the way I did – it all vanished. People looked at me differently, avoiding eye contact, as if someone close to me had died. Others just ignored me. My phone calls went unanswered. Board offers were withdrawn. In some cases, the GE team turned its back on me, including some who knew the truth, but refused to speak it.

I survived. I put one foot in front of the other. Many people helped me: big CEOs, new friends, founders, students, Bible study, and my family. I also helped myself by staying vulnerable and by trying new things with new people. First, I found sunlight, next I found purpose, then I found my voice, and ultimately, I found joy.

While I was recovering, I realized a few things. No one has a perfect career or dismount; nor is happiness guaranteed. My friend, David Solomon, was doing a terrific job as CEO of Goldman Sachs, but still takes shit from its alumni. Steve Ballmer helped build one of the world’s great companies but receives no credit. John Donahoe was a massively successful CEO with a tough, final run at Nike. Rob Portman had been a long-term public servant from Ohio and a friend. Despite his record, he couldn’t run for a third term as a senator; he didn’t endorse January 6 as a great day for democracy. Margaret Keane, after retiring as CEO at Synchrony, lost her husband to cancer. Sometimes life is hard.

When I was CEO of GE, I would occasionally run into my predecessor, Jack Welch. He was always active and public, appearing on CNBC monthly. But he desperately missed the limelight. Instead of teaching at a university, he launched a “for-profit MBA.” For retired executives, it turns out that making money is easy; having a purpose is hard.

As a CEO, I was known for weathering cycles. I was a respected “crisis leader.” I am an optimist. I taught my team that good leaders thrive in bad cycles. Now, I was in a bad personal cycle. Could I lead my own turnaround? I did, and here is what I learned.

Don’t Be Cynical, No One is a Victim

I never felt sorry for myself or became cynical. After all, I am a very lucky man. I have a great family, and I am set financially. I was just sad. I felt like I had let some people down, including my family.

Don’t expect all of your friends to “show up” for you. If you do, you will lose a few friends. Rather, give special love to those who hung close on the tough days. Life is tough for everyone. People have their own challenges; it is unfair to expect them to understand yours.

When going through a change you must: be anonymous without hiding; be vulnerable, but not weak; accept criticism from some you don’t respect; and seek goodness. It is hard.

Give Yourself Time to Reflect

Writing and launching a book helped me reset my life. Not because it was my story; more because it allowed me to examine myself. I saw my life in complete thoughts, prose versus bullet points. Business – too frequently – speaks in PowerPoint. Beyond business, many of us are so busy that we stop understanding our life. Life is about feelings, stories, and ideas. I tell my students at Stanford to keep a diary ... record what they see. Before I could learn a new trade, I needed to “re-baseline” my skills, my successes, and my failures.

In my case, shining a light on my flaws ignited a decision to get better. For instance, understanding the mistakes I made with my own board helped me be a better board member. Sharing the rawness of my story strengthened relationships with peers. That would serve me well.

Defend your friends and your ideas; not yourself

I had a great comms team led by Gary Sheffer. Through multiple crises, he taught me to treat the media with respect and never be defensive. I generally agree with him. However, when the bullets meant for you hit others, you have the responsibility to defend your friends. And, when lies stand as facts, bad things can happen. Critics said GE had no capability in Life Sciences, but they ran it well. Today Amersham’s bioprocess manufacturing business is worth more than GE Healthcare. In 2018, board members went on CNBC saying, “The Power business is shit...” Now they love it. Critics are always welcome, but frequently wrong. Push back.

Stay Active

I didn’t want to hide, but I desired anonymity: I needed a place where what I knew was more important than who I was. I have always been willing to try new things, without a fear of failure. Importantly, I had to rebuild my confidence, to find someone who says, “you don’t suck.” I needed a platform where I could “show” what I could do. I couldn’t fight my mess with words alone.

It may seem obvious, but changing the direction of your life requires “change.” Think about doing new things with new people in new places. I began by leaning into core values. I am a learner. I wanted to go where I could participate in the future.

Change Your Scenery

My wife, Andy, and I moved across the country to California. This was her 12^th move in 40+ years of marriage. Now that is love. I joined New Enterprise Associates (NEA) as a venture partner. We got a small apartment in downtown Palo Alto and moved our furniture into storage. I wanted to feel like I was starting over. My office was the smallest I had had in 25 years, far away from the firm’s managing partner.

In my case, the West Coast was perfect ... nice weather, interesting people, different priorities. I could be anonymous, but still busy. Silicon Valley is a bubble. Venture people don’t follow New York media. California has great people and a lot to do, both personally and professionally. The government sucks, but you don’t feel it. NEA is a big, successful VC firm. The platform matched my capability ... so did the culture. I formed a special closeness with the managing partner, Scott Sandell. He gave me exactly what I wanted: freedom with a chance to make a contribution, while learning.

Keep Learning

The world has changed. Silicon Valley is now the capital of the global business world. Disruptive start-ups are crushing legacy companies every day. Why? I grew up in an era of professional management, one where GE was in the lead. But we live in a technical age, and I wanted to see the impact. I was convinced that venture capital was a better pursuit to create the future than private equity. There is a huge difference between thinking “growth first” versus “cash first.”

From Silicon Valley, it is easy to see the baggage we carry as legacy managers in traditional industries. We seldom make big bets. I look at the products from my old company that dominate today. They were all engineered in the toughest cycles as a conglomerate; would they be allowed to do it again as free-standing companies? There are dozens of companies launching new systems in space or defense tech, while traditional players are never mentioned. Legacy investors hate investments in innovation. Let Claude analyze annual reports/investor reports searching for “innovate” versus “capital allocation.” You will be depressed.

There are three big ideas where professional managers need to catch up. Focus on growth. Microsoft is a 50-year-old company; they focus on growth. DuPont has divided itself into six companies, who really cares? Learn how to invest. Today, Walmart can compete head-to-head with Amazon, but only because they had the freedom to invest. Other retailers have fallen behind. Regain digital competency. I wish I had spent a year in Silicon Valley before becoming CEO. My era missed a generation of technology. Digital innovation is a technical differentiator, not an administrative program.

Become a Helper

A comment from Scott Sandell of NEA helped set me on a new path. He said venture partners are “helpers.” The role of a public company CEO is multifaceted. I had built businesses and developed hundreds of good people; but I was also the boss. Now, I was a volunteer.

I started working with founders; more than 30 start-ups over eight years. They range from industries I know well, like healthcare, to software and AI. I serve on boards, as a salesman; really, I’m a helper.

Here is what faces a founder, most of whom have never seen a bad business cycle. Every day: economic volatility, uncertain policy, global complexity, uncertain liquidity, rapid technical cycles, and a challenging workforce. In this environment, a guy like me can be pretty helpful. Founders want the toolbox for progress, not perfection. I try to see the world through their eyes, holding them accountable for their own ideas. It takes courage to start a company. The best ones have immense curiosity, and working with them is rewarding.

Redefine Success

There are many ways to measure success in a business career: money, title, and impact. Early on, in my recovery, I decided that people would be my legacy. I will be there for the people I developed at GE ... founders I met ... the communities I cherish ... and my friends. I cheer for their success.

The first pillar of “The Long View” is about executing a personal pivot.

TLV Tips:

• No Cynicism and No Judgment ... No one likes a victim

• Deep Reflection ... Know your story; don’t be afraid to own it

• Seek a Personal Change ... New geography yields new ideas

• Defend Ideas (Not Yourself) ... Trust that time will show the truth

• Stay Active ... Find anonymity, not irrelevance

• Learn ... Don’t hang onto the past; recognize changes to your world

• Become a Helper ... Use your skills for others

• Redefine Success ... there are new “wins” in your second life

My hunch is that with AI, all of us will need a pivot. Let’s keep exploring.