WEBVTT

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You

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I

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Met Spencer chairman of the board and chief executive officer of Honeywell

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Honeywell is of course you know is a large diverse and very rapidly growing company

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From the company's beginning in 1885 until today. We've seen our business steadily expand in sales in

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Profitability and employment and we expect this growth to continue

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This depends however on each of us doing our job well

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To work effectively we all have to have the same understanding of what the company is

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And what I'm going to talk about today in a few minutes is what we are

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What we stand for and how we manage our business

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First of all Honeywell is one company

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Important common bonds unite all our very diverse businesses into a single corporate entity

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These ties include a commonly held set of values or standards

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common technologies and a philosophy of doing business that we all share together

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Our values are incorporated into our business objectives and those objectives are written

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One of our business objectives in fact one of the most important is profitability

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Profitability is an ongoing long-term goal throughout the company

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We must have profits to assure the continued health and growth of the company and

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Towards this end Honeywell is committed to innovation

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Increased productivity and the very highest standards of excellence we can achieve in respect to our products and the services

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We offer our customers

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The second objective is a commitment to doing business in an ethical way

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We will be honest and straightforward with employees customers vendors and shareholders

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Most important we believe in doing what is right rather than what may seem to be expedient

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We will be sensitive to the ecology and we operate our business in a way that conserves natural resources

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Finally we value the individual we respect your dignity and your privacy

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We support your goals because we know you want professional growth and advancement to the greatest extent possible

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we believe in the maintenance of course of a safe and healthy place to work and

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We believe and it's very important that we keep you informed about the company and your relationship with the company

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Profitability is a key objective to assure Honeywell's long-term success and survival as a company

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Profitability also means job security for you as a Honeywell employee

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Honeywell's basic strategy to maintain profitability is to provide top quality products and services on an ongoing basis

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Honeywell takes several important steps to ensure product and service excellence over the long term

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The company structures its work environment and its pay and benefit programs to attract retain and encourage

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top quality people

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The company establishes an atmosphere that encourages technological and manufacturing innovations

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Technological advances and improved production methods enable Honeywell products to do a better job at lower cost

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These are important factors in keeping customers satisfied a

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Second common objective is ethical business dealings

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Honeywell is a highly ethical company the company believes in doing business honestly

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Honeywell believes in dealing with employees customers and shareholders in a fair straightforward way and

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Honeywell has a responsibility to the communities in which it operates and

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Is responsive to community needs

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Honeywell is also firmly committed to the value of each individual employee as

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A Honeywell employee you are entitled to be treated in a way that acknowledges your individual worth and dignity

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This includes providing within the limits of the company's capabilities

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opportunities for personal and professional growth

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It means

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Communicating with you about Honeywell in general and about your own relationship with the company in particular

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We've talked about values or standards which are incorporated into our business objectives and are an important common bond throughout the company

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Another important bond is common technology

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The Honeywell we stay in businesses we know about

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These are businesses that tend to be based on certain highly advanced technology

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Like integrated circuits for example

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ICs are a rapidly growing technology that pervade almost all of our product lines

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Confining our business to common technologies has a lot of advantages for example

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breakthroughs in one technology may result in improvements in a broad range of products

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Manufacturing improvements made in one factory may well be applied to improve manufacturing processes at other locations

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Also and most important we can economize on engineering and production

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Investments getting the advantages of investments in one part of the company to use in another

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Commitment to these common highly advanced technologies and to improving them broadening their application sharing their usefulness in Honeywell products

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Is a very important factor that unites us into one single company

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They are common to many different Honeywell products

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The company pools its resources around common technologies in several important ways

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Researchers working on related projects exchange relevant information

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This can speed the research process and reduce duplication of research efforts

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And the advances that apply to one product may apply to increase the efficiency or reduce the cost of other products, too

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Parts of the company responsible for manufacturing or assembling similar parts or equipment also share information

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Cost-saving manufacturing innovations spread quickly to all Honeywell locations where they can be applied

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These are a few examples of the reasons common highly advanced technologies are an important common bond at Honeywell

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Common values that are part of our business objectives and common technologies shared throughout Honeywell

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Those are the common bonds that make us a single company

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The same time however, we've got to recognize that Honeywell is made up of many different businesses

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These businesses are part of Honeywell because they share the same basic values and objectives and the same technologies

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What then makes them different?

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The basic reason for the difference is that we market our products to different customers and we mark market them in many different ways

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Honeywell technologies go into a broad range of products these products compete against a variety of competitors in different locations

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And they help solve very different kinds of customer problems

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Let's talk about competition for a minute

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Some of our businesses compete nationwide and worldwide against the giants of industry

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other businesses consider their competition to be small firms

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Headquartered in small cities and with factories in rural America and they may compete for a very narrow market segment

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The design production and marketing of each product line requires different skills different talents and different knowledge

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That's where individual businesses come in requiring differences in management style and differences in operating policies

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For example

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Each of us has a part to play in that growth and we each need to know how the company is managed

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So we can effectively do our part

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As I've described there are certain fundamental philosophies we share in common

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At the same time as I've also mentioned we're many different businesses

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These businesses make their own decisions about the things uniquely affecting them

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So it works out that the people who know most about the company as a whole

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Make the decisions in areas that affect the whole company and the people who know each business best

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That is the general manager and his management team

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Make decisions that affect that business

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In this way decisions made at every level take into account our common values and common business objectives such as profitability

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ethical business relationships and the value of the individual

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Whether the decisions are made at corporate headquarters or at the level of the individual business

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These management decisions will reflect Honeywell's basic identity as a strong

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unified corporation

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Certain decisions that affect the company as a whole are made at the corporate level

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Personnel decisions are made more effectively at the business level as well

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Your Honeywell business sets hiring employment and training policies and rules

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Your business determines your pay system and your business is also responsible for those parts of your benefit program

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Such as your medical plan where local variations have an impact on the shape this plan should take

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So at Honeywell business decisions consider commonly held objectives and values and are made by people

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Who know best the area the decision affects?

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We are indeed one company we manage our business that way and there are a lot of advantages in so doing

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To repeat we hold certain values and philosophies of doing business in common such things as profitability

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Ethical business relationships and the value of the individual

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We're also united throughout the company by common technology

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To market our products effectively. However, we're organized into many many different businesses

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Decisions that affect Honeywell as a whole are made at the corporate level decisions that affect only your business are made at the business level

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That's been a very successful way to manage our company in the past

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And you're now going to hear more about it as we explain how our pay program is managed in the future