After a year of gathering dust in my bookbag, Lights Out: Pride, Delusion, and the Fall of General Electric finally graduated to my nightstand. Once a devout disciple of Jack Welch and his managerial gospel, which I eagerly absorbed to compensate for what I felt my business education lacked, my fascination with GE gradually dimmed (as I grew up?). This book reeled me back in, meticulously dissecting GE's complex unraveling while demonstrating how not to run a business.

There are volumes written on the GE failure. This is one of them. It's a good read, but it drags on (and on) in spots.

If you don't want to wade through all 57 chapters, here is the TL;DR: GE failed because of bad strategy and bad leadership.

GE's downfall narrative is a lesson in the consequences of prioritizing short-term financials and perpetually increasing dividends over the foundational principles of sustainable growth, sharp focus, and unwavering integrity. The book zeroes in on GE's ill-advised venture into financial services—a leap far outside its industrial stronghold—and spotlights the hazards of straying too far from core competencies. This misstep, coupled with a "yes-man" culture that smothered dissent and innovation under Jeffrey Immelt's reign, paints a really vivid picture of how internal dynamics can lead to external collapse.

Here are my key takeaways:

• Have a Sustainable Vision: Always balance immediate financial results with the long-term health and vision of the organization.
  
• Stay in Your Lane: Don't diversify too much (hello, Tesla...are you listening?). There is value in being very good at one thing.
  
• Integrity is Paramount: Leaders and their companies must uphold ethical standards and ensure transparency, even when it's challenging. GE's story demonstrates that compromising integrity for short-term gains can lead to sudden disaster (as happened when Sarbanes-Oxley was thrown into the wheels of GE's money machine). Encourage a culture where honesty is valued, and ethical dilemmas are addressed openly.

In essence, Lights Out serves as both a cautionary tale and a guidebook for corporate leadership and strategy. The book not only chronicles the end of an industrial titan but also offers valuable lessons for today's business leaders. It's an essential read for those looking to understand how companies fail or aiming to glean insights that could avert a similar fate. ( )

I noticed that a number of present and former GE employees gave this book a high rating so I can feel comfortable that the author did his research and due diligence in telling the story. Maybe it was just me, but I found the telling of the story a bit "dry." To be fair there were a number of anecdotes but this read like a textbook in parts. Also GE appeared to be a fairly buttoned up organization, especially under Immelt. There were a few "scandals" but nothing that severely impacted the future of the company. Mistakes were primarily bad financial and strategic decisions. Based on this book, I would remove any thought of adding Jack Welsh to the business CEO Mt Rushmore class.

Good textbook for business students; so-so read for the general reader. ( )