Tim Solso, chairman and CEO of Cummins Inc., retooled his companies culture. Employees today are encouraged to take smart business risks, while at the same time promoting data-based decision-making through the use of Six Sigma and other analytical tools.
For example, Cummins has become the technological leader in meeting stringent diesel engine emissions standards worldwide, which gives the company a competitive advantage in the market. That innovation has resulted in Cummins forming new businesses in recent years, first to meet its own needs and now to also meet the demands of existing and new customers.
The company’s strong financial position today allows it to aggressively pursue profitable growth opportunities in related markets. For example, Cummins has launched a light-duty diesel engine program in both the United States and China that will allow it to enter new market segments with significant volumes by the end of the decade. These products are based on proven Cummins technology and driven by the demand for efficient, clean-running diesel engines in vehicles, such as light commercial trucks, pickups, SUVs and commercial marine applications.
Additionally, Cummins has in the past year established a “Growth Office” within the corporate organization to foster, analyze and where appropriate, pursue ideas for new business opportunities. This entrepreneurial office is designed to operate with a small permanent staff and draw in “free agents” from around the company to assist as their skills and the projects merit. The goal is to develop disciplined ways to quickly respond to potential market opportunities.
HOW TO REACH: Cummins Inc., www.cummins.com