Motorola 2002 Annual Report Download - page 20

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18 Motorola, Inc.
2. Lowering the Break-Even Sales Level
Again, the numbers speak for themselves. We continued to reduce our break-even sales level during
2002 and have achieved a 25% reduction since the start of our restructuring in the latter part of 2000.
We expect to further lower the break-even sales level of the corporation during 2003.
3. Strengthening the Management Team
We continued to bring in new talent as w ell as promote internal M otorola talent in 2002. From the very
beginning of the year to its end, 12 of the 18 senior leadership team members w ere new in their roles.
At the same time, we retained 97% of our 200 most effective executives. We completed a rigorous
ranking of 1,200 executives as part of our new Leadership Supply process, which is designed to
ensure that we can locate – internally or externally – talented, trained, respected and motivated
people always ready to accept new assignments.
During the year, our Leadership Supply process ensured quick and effective transitions in the
naming of a new president and chief operating officer, a new chief financial officer and four business
sector presidents. Among them were three new M otorolans:
>David Devonshire, executive vice president and chief financial officer – formerly CFO at
Owens-Corning and Ingersoll-Rand Company.
>Greg Brown, executive vice president of M otorola and president and CEO of our Commercial,
Government and Industrial Solutions Sector – formerly chairman and CEO of M icromuse Inc.,
a leading provider of service and business assurance software.
>Dennis Carey, executive vice president of Motorola and president and CEO of our Integrated
Electronic Systems Sector – formerly executive vice president of business development,
strategy and corporate operations at The Home Depot, Inc.
4. Pursuing Growth
We invested $3.8 billion in research and development in 2002. This investment is funding ongoing
innovation in the new products and softw are applications that are continuing to build a global society
and drive the company’s future growth.
5. Evaluating Strategic Options and Portfolio
Over the past two years, w e acquired six businesses, divested six businesses and made investments
in more than 40 other companies. These actions demonstrate that we are divesting businesses that
are no longer key to our strategies. At the same time, we are strategically acquiring companies and
investing in technology partners.
As w e entered 2003, we revised the five-point plan to reflect w hat w e learned in 2002. Our focus in
2003 will be:
1. To persistently enhance the management team and work environment.
2. To aggressively focus on strengthening the balance sheet and generating cash.
3. To relentlessly pursue cost competitiveness, quality and customer satisfaction.
4. To pursue grow th through profitable innovative products, systems, software and
customer relationships.
5. To continuously reassess and improve our business strategies and portfolio.