Lights Out: Pride, Delusion, and the Fall of General Electric by Thomas Gryta

When Thomas Gryta’s 2018 book, Lights Out: Pride, Delusion, and the Fall of General Electric, was released it became an instant best seller. It was featured in business publications and press outlets around the world. In it he tells the story of the great fall of an iconic American manufacturer and the iconic leader behind its downfall.

General Electric was founded by Thomas Edison in 1892 and went on to become one of the largest companies in the world. GE has been involved with some of the most revolutionary technological developments, from televisions to jet engines. But by 2018, the company was in trouble.

When Jeff Immelt took over as CEO in 2001, GE’s stock was near an all-time high. Immelt’s plan was to build an “industrial internet”, a cutting-edge array of software and machines that would help companies optimize their efficiency and quickly respond to customer’s needs, but Immelt was too eager to chase the new vision and left the core businesses behind.

Immelt failed to recognize the larger industry trends and didn’t anticipate economic downturns in the markets he was investing in. By 2007, GE was in turmoil and had lost $130 billion of its market value.

Thomas Gryta’s book carefully unravels the story of GE’s fall from grace. As the events unfold we see how Immelt’s decisions had dire consequences, but he stubbornly remained convinced that he alone the right path. It’s a fascinating story of hubris, ambition and the limitations of technology.

Through interviews with dozens of former GE executives, Gryta makes the case that Immelt was too caught up with trying to win public approval and secure Wall Street’s trust that he neglected the most important part of his job: caring for his employees, customers and shareholders.

Gryta’s book is an illuminating account of the power of corporate advice, and how even the best CEO’s can make mistakes if they’re not well-informed or mindful of changing needs. Lights Out provides a gripping portrait of one of the most storied companies in the world, and demonstrates how even the most successful corporate leaders can befall to their own delusions.

Though GE has now recovered some of its lost value, Lights Out offers a sobering reminder of how difficult it can be for even the most successful companies to stay atop the ever-changing corporate landscape. This comprehensive and engaging book is a must-read for any business leader.