Harman Kardon 2007 Annual Report Download - page 9

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It is my sincere pleasure to lead the Harman
International team, and I offer my thanks to
Dr. Harman, our board of directors, and the
other new colleagues whose confidence has
empowered me to take this exciting role. I am com-
mitted to leveraging this dynamic corporate spirit
to achieve value for our shareholders.
My decision to join Harman was influenced both
by the company’s powerful market legacy and by
the wealth of opportunities I believe are available
in the quality audio and infotainment sectors.
During the past three decades, I have had the
privilege to work and live in six countries while
traveling to many more. The fast-changing lifestyles,
infrastructure and skills which characterize today’s
markets represent rich opportunity for companies
who are committed to innovation, operational
excellence, and value-based marketing.
During my travels around the company,
I have identified several areas where
we can sharpen our performance. These
include controlling costs, managing
risks, simplifying our business
processes and expanding our activities
in mid-range markets.
In the area of costs, we must
maintain a more predictable
source of supply for the
skills and materials
from which we craft
our products. We must
become more disciplined
in “shopping smart” around the world, combining
the purchasing power of multiple Harman units
to create a world-class supply chain that matches
our world-class products. We must deploy our
skilled human assets across both industrial and
emerging markets.
Risk management is another key priority. Whether
we’re launching a new consumer product, manag-
ing a new automotive platform, or refining our
global footprint, our approach will be to improve
the company’s processes for identifying potential
risks and moving responsibility higher into the
organization. I will expect my senior management
team to have full visibility into this process, and to
act forcefully when risk mitigation is required.
Harman’s global footprint will take on a sharp
focus in controlling costs and putting resources
close to new customers. Like many diversified com-
panies, Harman has grown rapidly, creating
a rich but complex corporate landscape. We will
simplify this landscape through restructuring
actions that consolidate our manufacturing and
engineering footprint – along with a wide range
of internal processes.
We are proud of the Harman quality that is built
into products manufactured in the industrial
markets. But achieving this quality does not mean
we must procure every component, service, and
skill locally. Our value chain must reach across
both geographic and business boundaries to main-
tain quality while improving agility, reliability and
competitive costs.
Message from the Chief Executive Officer
The fast-changing lifestyles, infrastructure and skills
of today’s markets represent rich opportunity.
Harman International 2007 Annual Report 7