Honeywell 2013 Annual Report Download - page 3

Download and view the complete annual report

Please find page 3 of the 2013 Honeywell annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 146

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146

There is a lot more opportunity to ensure “the machinery” works better every day through
our key process drivers the Honeywell Operating System (HOS), Velocity Product
Development™(VPD™), and Functional Transformation (FT). Improving those processes
constantly allows our 131,000+ employees to be more efficient and effective every day. We
can make all kinds of great business and strategic decisions, but if there aren’t great
processes to implement them, it doesn’t matter much.
Culture is equally important to sustained performance. The ability to learn and evolve
faster than our markets, to be a “Thinking Company”, to recognize “The Trick is in the Doing,”
to see the difference between “Compliance with Words” and “Compliance with Intent,” the
ability to accomplish “Two Seemingly Conflicting Goals at the Same Time,” to achieve our
quarterly targets while “Seed Planting” for quarters three years from now. Culture makes a
difference... and ours is hugely different from what it was.
Leadership
Our Business Model works because we have terrific leaders to make it happen.
Leadership also makes a difference.
I often say that Leadership requires three elements of which only one is very visible. The
first is the ability to mobilize or excite a workforce. This one is the most visible, gets the most
attention, and I’d say is only 5% of the job of a leader. The second element is the ability to
pick the right direction…and to be able to do it even in the face of what’s considered
collective wisdom at the time. Some have referred to that collective wisdom as “Fad Surfing,”
a term I like myself because that’s exactly what happens. Many leadership errors occur
because leaders follow fads and don’t think for themselves. The third element is the ability to
get the entire organization moving step-by-step in the right direction. This one is tough
because many leaders start to think their job is to just make the decisions and let others
handle the step-by-step, get it done, work. That’s also a leadership mistake. Leaders have to
be involved in ensuring that step-by-step the organization moves in the right direction. That
the machinery works. That’s not micro management, that’s leadership that understands no
good decision is worth anything unless it actually gets done.
Our strength as a company has been those second and third elements that aren’t as
visible but that represent 95% of leadership. Having a sound, consistent strategy and
executing against it day-by-day. Letting our competitors be the guys making the wonderful
new strategic shifts every couple of years that get a lot of attention…and no results.
Cash Deployment
Our focus on implementing the Business Model and having the right kinds of leaders has
shown up in operating results, stock performance, and cash flow. That has resulted in a cash
balance at year end of $6.4 billion and debt of $8.8 billion causing a lot of investor questions
along the lines of, “So Dave, what are you going to do with the cash?” My first response is
that no one should worry about me blowing it or doing something silly. After 12 years in this
job, it’s really nice Investors generally accept that, because they weren’t so sure in the
beginning.