CFO business strategies: Supercharging transformation at General Electric

In the world of finance, change is constant and Carolina Dybeck Happe’s professional experience is living proof. From the serene landscapes of Sweden to the helm of an American industrial titan, Carolina’s CFO journey is nothing short of remarkable. As the Chief Financial Officer of General Electric (GE), she sits at the epicentre of one of the most audacious transformations in corporate America. In her interview with Jack McCullough, Carolina unveils the blueprint of GE's metamorphosis into three powerhouse entities.

1. Leveraging a global perspective for transformative leadership

With her vast international experience spanning from tech industries in Sweden to industrial roles across Europe and the U.S., Carolina brings a unique perspective to her role as CFO at General Electric.

Carolina describes:

I have worked and lived in seven countries, worked across different industries, and been a large-cap CFO for 13 years.

Carolina's journey through the finance world has given her a rich understanding of exactly why and how things change constantly. She's seen it all (and from different corners of the globe), which helped equip her with in-depth knowledge of sustainable business practices and innovation strategies.

Right now, she's got a big job ahead of her at GE. They're splitting into three separate companies – GE HealthCare, GE Aerospace, and GE Vernova. It's a massive task, but Carolina's diverse background in leadership and finance from various industries guides her approach to tackle it head-on.

Carolina says:

My background and experience in operational CFO roles on a smaller but highly complex scale — and having many years of expertise within roles that have grown in both operational and strategic ways — have helped me enormously.

2. Embracing digital transformation for a competitive edge

In a world where technology dictates market leadership, Carolina Happe's approach to digital innovation stands out as a cornerstone of GE's transformation. She reflects on her transition from tech to a more traditional industry, a path less traveled yet instrumental in envisioning a tech-enabled future for GE.

Starting in the tech world, my earlier years were formative and made me a digital believer for life. If you look at ASSA, how we moved the company from a traditional industrial company to mechanical solutions to electromechanical solutions to digital and SaaS solutions was an enormous transformation of the company.

She uses the transformative power of digital tools, including AI in finance and lean methodologies, to redefine traditional business operations, financial forecasting, and product development strategies. This use of tech and data helps address immediate operational challenges and sets the stage for long-term innovation, ensuring GE remains at the forefront of industry trends.

Looking back at our work on the manufacturing floor, we can see how technology impacted everything and massively improved safety, quality, delivery, and cost. I believe the same will be true with AI for office workers. We will improve the quality, the delivery, and the costs.

3. Strategic decentralization and lean management

Carolina's vision extends beyond financial restructuring, diving deep into operational excellence and efficiency.

I believe that my strong background in decentralization and "lean" was critical for me in guiding principles for transformation

Carolina emphasizes giving more power to decision-makers at the operational level. This change sets the stage for a quicker and more flexible organizational structure.

We decided to go from five P&Ls to 30 P&Ls or business units. What was important for those 30 teams was that they would have the right tools to drive the impact. They can also measure and see if their actions are creating the impact they want. If not, they can pivot. It's much cleaner and closer to the customer action-oriented solution, which is also important.

This CFO strategy streamlines processes and fosters a culture of innovation and accountability across GE's diverse business units. By situating decisions closer to their impact points, GE has seen significant improvements in efficiency and responsiveness to market changes.

4. The role of strategic acquisitions in value creation

With a history of orchestrating numerous acquisitions, Carolina leverages her vast experience to ensure that each acquisition fits strategically with GE's long-term objectives and promises operational synergies.

Having done almost 200 acquisitions in my previous roles at ASSA and successfully integrating those over time has also helped me enormously in understanding what works and what doesn't. I do think this is about being a change agent, staying agile, and being able to adapt to any situation. That is a skill set that served me well.

Under her guidance, GE prioritizes acquisitions that enhance its competitive edge and align with its overarching goals, ensuring seamless integrations into the company's fabric. This value creation extends beyond the acquisition, involving continuous alignment with GE's strategic vision and operational optimization.

Finding a dual math that works that it's a win-win. That's where the value creation happens.

This acquisition-focused CFO strategy showcases how well-executed mergers can be powerful catalysts for organizational growth and innovation.

Other CFO strategies: Transforming finance with innovation

Financial change management often encounters formidable challenges, from risk aversion and stakeholder resistance to operational disruptions and the constant pressure of regulatory compliance.

The good news?

Leveraging technology can dramatically enhance your overall CFO strategy.

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As Gabriela Leovac, Accountant at Porsche e-Bikes shares:

We now have more time to analyze the expenditure, which, before Payhawk, was consumed by acquiring all the data from employees. Now, we have more transparency, tighter control of spend, and less paperwork.

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