Caterpillar 2013 Annual Report Download - page 13

CATERPILLAR INC. 2013 YEAR IN REVIEW
11
CONSTRUCTION INDUSTRIES
Global Strength
Through Local
Leadership
Caterpillar’s global presence, depth and breadth of our product line
and fi nancial strength are unmatched in the industry. A key factor to
this global strength is a distinct focus on local leadership development.
“As we look at building out our Business Model around the world, building
local leaders is at the top of our priority list,” explains Ed Rapp, Group
President with responsibility for Construction Industries. “Development
of local leaders around the world is what we have to do if we truly want
to be a global company.
“If you think about how strategy execution happens, it starts with a clear
articulation of where you want to go, followed by someone driving that
execution throughout the organization to turn vision into reality,” says
Rapp. “And if you think about how that’s going to happen around the
world, it is so much more effective when it’s driven by someone from
a local culture in a local language.”
Caterpillar Vice President with responsibility for China Operations Qihua
Chen is a prime example of where building local talent has proven to be
successful. Chen started his career as an engineer with the Chinese
state-owned company Xuzhou Construction Machinery Group (XCMG).
Years later, when Caterpillar formed a joint venture with XCMG, creat-
ing Caterpillar Xuzhou Ltd. (CXL), Chen was the fi rst employee to join
the company.
Throughout his career at Caterpillar, Chen spent time developing
skills in multiple parts of the business and multiple locations across
the world. Today, Chen is responsible for leading Caterpillar’s “Win
in China” strategy by providing overall leadership to the company’s
growth in China, which includes 26 facilities, four research and
development centers, three logistics and parts centers and more than
15,000 employees. He also has direct responsibility for leading opera-
tions at CXL and Caterpillar Suzhou Co., Ltd.
Leading such an effort requires strong ties and deep relationships
throughout the country. Chen also acts as the company’s country
manager, responsible for being the “face of Caterpillar” in broad-based
dealings with government offi cials and the general media in China.
“Refl ecting on my personal journey, I think it’s vitally important for us
to build our local talent pipeline,” says Chen. “Having leaders in place
who understand local cultural nuances, who know the organization and
Business Model and who can bring people together to build on Caterpillar’s
values and culture is a key differentiator that we can leverage to help
us be even more successful.”
Currently, more than two-thirds of Caterpillar’s manufacturing facilities
in China are led by local leaders, with a target to increase the local
leader population to 90 percent.
“We have a clear strategy in place, built on three elements – attract,
develop and perform – that is going to help us to get there,” explains
Chen. “We’re focused on attracting the right people, maximizing on
their strengths so they can grow and develop and providing the clarity
needed, so they can successfully perform. Our focus on local leader
development is a key part of our strategy that will pay benefi ts for us
in the long term.”