E-Z-GO 1999 Annual Report Download - page 8

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6 Consistent Growth
... and stronger
perform
Driving Operational
Excellence
A commitment to operational
excellence has always been a
cornerstone of Textron’s strategy.
And like every other aspect of
business, it requires continuous
renewal and redefinition.
At Textron, we drive continuous
improvement and operational
excellence through Textron Quality
Management (TQM). TQM defines
the way we approach every aspect
of our business – the quality of our
products, the efficiency of our
processes and the level of our cus-
tomer commitment. Our goal is to
delight our customers – design it
right, develop it right, test it right
and launch it right – the first time.
Championed by our President
and Chief Operating Officer
John Janitz, TQM is unifying and
intensifying the various continu-
ous improvement techniques
that our managers use across our
diverse businesses. Success is mea-
sured by common metrics that
track our performance in growth,
quality, cost, efficiency, safety and
customer satisfaction.
The backbone of our TQM
program is an in-depth, rigorous
quarterly review process reinforced
by a new management incentive
program triggered only when
stretch goals are reached and
sustained.
Through Textron Quality
Management we will make signifi-
cant progress toward two of our
key financial goals: margins and
ROIC. We are attacking margins
with a vengeance, committed to
achieving at least a 200 basis point
increase by 2003. This, coupled
with a renewed focus on reducing
invested capital, should drive ROIC
to 15% by 2003. Key initiatives
include aggressive supply chain
management, strategic outsourcing,
inventory reduction, investment in
technology and accelerated acquisi-
tion integration. Selected segment-
specific programs are outlined in
the following pages.
Leveraging E-Business
Textron is embracing the transfor-
mational technologies of the
internet to drive growth and
achieve quantum improvements
in the very way we do business.
E-business is revolutionizing the
way we think – from the way we
serve our customers and design
our products, to the way we make
them on the shop floor.
In 1999, we initiated an intense,
company-wide e-business initiative
that began to hit its stride as we
entered the new millennium. Every
aspect of every business strategy is
being examined to ensure we are
making e-progress at e-speed.
Supporting our e-business strategy,
in January 2000 we announced a
first-of-its-kind strategic alliance
with Safeguard Scientifics Inc., a
unique internet operating company
with interests in 250 internet-
based technology companies.
Through this partnership, Textron
has preferred access to the most
advanced and emerging e-business