037_Reed, Charles

              Interview Summary
Dr. Charles A. Reed with Louis Kraar, FORTUNE May 13, 1977
The following is a summary of FORTUNE Magazine's Louis Kraar interview with Charles E. Reed on Thursday morning, May 13, 1977. The summary is reconstructed from notes and is not intended to be a verbatim account of the interview.
Q.   I have a difficulty understanding what's so different about strategic planning as GE does it.
A.   The problem in a corporation like GE is to get an understanding of the strategic planning process to permeate throughout the organization.  It takes a long time to get understanding of a new program of this type. (Explanation of factors considered in strategic planning) That's really what we've done in GE over the past 7 years.   Now it's becoming a way of life.  The key is judgement.
Q.   Your background in this...
A.   On CPC for a number of years.  Technology emphasis.  And for 15 months had strategic planning at a time when we were trying to pull together an overall articulation on strategic planning.  Bow Bob Frederick is trying to pull together an overall organization strategy...  I am now conducting in-depth technology study of the whole corporation.
Q.   Would strategic planning identify an opportunity in a new field? A.   If you want to talk of the ideal, it certainly would. Q.   Does it in fact?
A.   Yes, I think so.  One of our businesses which has done one of the best jobs is plastics.  My background is there.  A beautiful example.  We've come forth and identified that sector of the plastics field where GE can make the best contribution: engineering plastics (Here a history of the plastics business.) We came into the 70's and the plastics business took an overall look at our stable of plastics and came up with Valox, filling a big gap. Now we fill the whole range.  This is one of the fastest growing businesses we have.  A real strategic approach... since 1969.  On stream last year with new plant in Mt. Vernon.  You should talk with Dr. Welch.