That doesn't mean the manufacturing giant founded by Thomas Edison in the late 1800s will be in limbo from the time the 55-year-old Flannery takes the reins from Jeffrey Immelt on August 1 until he presents his strategy to investors in November.
Share prices were down as much as 5 percent after GE's earnings statement.
It beat analyst expectations on adjusted profit, but cash flow was weak and GE said full-year profit and cash flow will be at the low end of its forecasts. "People's openness to rethinking things or thinking about things differently or challenging many things we've taken for granted is encouraged, and people get excited about that".
Stock: Shares dipped 0.1% before the opening bell on the stock market today, after rebounding 2.4% last week from a 21-month intraday low on July 10.
Despite re-examining its spending, GE said it won't consider reducing its dividend payout, which Mr. Bornstein called "the single most important capital allocation item that we have".
GE has cut $670-million in industrial overhead costs this year, Immelt said, and will "meet or exceed" its $1-billion target for 2017 - a goal set after discussion with activist investor Trian Fund Management.
Unexpected inflation fall 'could kill off rate rise'
Wholesale prices were unchanged on the month, dampening future inflation pressures, although there was a 3.3% annual increase. According to the ONS, the fall - which analysts are calling a "blip" - was largely driven by lower petrol and diesel prices.
Flannery said he is "in the middle of a series of deep dives into the businesses".
Results: GE earned 28 cents a share on revenue of $29.558 billion.
Cash flow in GE's industrial segment was a positive $1.5 billion after a shocking first-quarter shortfall of $1.6 billion.
Net profit sagged 58% to $1.34 billion, or 15 cents per share, from $3.30 billion, or 36 cents per share, in the comparable quarter of 2016.
Estimates: Earnings per share to decline 51% to 25 cents as revenue drops 13.1% to $29.12 billion, according to Zacks Investment Research.
In all, GE's second-quarter earnings fell less than expected.