The CEO is working to bring back some of the qualities that once set GE apart

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• Featured Interview: Diane Brady sits down with Peter J. Arduini, CEO of GE HealthCare.
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Morning Briefing

Good morning. Among the most impressive corporate transformations in recent years is the one led by Larry Culp at General Electric. Appointed in late 2018 as the company’s first external CEO, Culp restructured the aging conglomerate into three separate Fortune 500 companies: GE HealthCare Technologies, GE Vernova, and GE Aerospace. The first to become independent was GE HealthCare, which debuted on the Nasdaq on January 4, 2023. Since its listing, shares have climbed nearly 50%. GE Vernova, which launched in April 2024, has soared 400%, largely fueled by the surge in AI-powered energy demand, while GE Aerospace’s value has more than doubled.

Recently, I had a conversation with Peter J. Arduini, CEO of GE HealthCare, about his efforts to shape a new era for this $20 billion medical technology and digital health leader, all while drawing from GE’s rich heritage. Arduini began his career at GE under the guidance of Jack Welch and Jeff Immelt, departing in 2005 before being recruited back by Culp.

Our discussion was a reminder of why GE commanded such respect for much of its 133-year existence. Founded by Thomas Edison, GE was renowned for a management philosophy so influential that investors believed it could be applied to everything from light bulbs and nuclear power to Saturday Night Live and the complex GE Capital division. At its height in 2000, GE’s market value approached $600 billion—equivalent to over $1 trillion today. However, the company faced a series of setbacks, including the dot-com bust, 9/11, the Enron collapse, and the 2008 financial crisis, as well as missteps during Jeff Immelt’s tenure, who struggled to recapture the magic of his predecessor. Ultimately, GE’s vast scale proved unmanageable, leading to its breakup.

Arduini has worked to restore many of the qualities that once set GE apart, from talent development to product innovation. “The GE approach was exceptional, and honestly, before Larry’s return, some of those practices had faded. Even our performance reviews had changed, but he reinstated them,” Arduini explained. “I aimed to revive the best aspects of the classic GE: our leadership pipeline, our focus on developing leaders, and the creation of our own virtual Crotonville for professional growth.” Still, he doesn’t miss the days of being part of a massive corporation. “In a larger organization, decisions often take longer. Focus is critical in our field. It’s all about maximizing clarity and minimizing distractions. Bigger companies inevitably have more noise.”