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Optimization focuses on efficiency, which drives short-term profits, but doesn’t build anything for the long term. Welch’s layoffs created profits, but undermined GE’s ability to build capacity. In 2001, after a lengthy succession process, Jeffrey Immelt was named Jack Welch’s successor and he began his star-crossed tenure. Yet while Welch’s rise marked a new era of shareholder capitalism, the new CEO at GE, Larry Culp has taken a different turn.

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