Establishing strategic clarity for growing and guiding our industry into the next era

Semi truck driving on highway

How do you build a strategy that guides a company, leads an industry through significant change and stands the test of time through the next decade and beyond?

My role as Vice President of Corporate Strategy at Cummins Inc. requires defining the direction of our company's global strategy - in other words, answering the question above. The thought of establishing a decades-long strategy can be daunting, particularly for our industry, which experiences frequent change with many factors outside of our control. Our reaction to this dynamic environment must be agile while maintaining strength and stability.

Building a strategy is like navigating a journey toward a distant, faraway destination.

  • The journey requires you to first determine your intended destination. In business terms, this means defining your long-term ambition.
  • In strategic leadership, your next job is to set the initial direction toward that destination. A strategist is often like a navigator who must chart a path to head toward the destination, even if not every step of the journey is clear.
  • Lastly, it's important to consistently re-evaluate your progress and the path you're taking despite the inevitable challenges, missteps and setbacks you may experience along the way.

This is the process of establishing strategic clarity.

While every business will face its unique challenges, there are key steps that Cummins has considered when establishing our strategy for the next era that I believe are transferable.

1.   Start with the why. Are your mission and vision aligned with your winning aspirations?

The natural inclination when building a strategy is to start with the “what”—our products, services, and what we provide customers—and the “how”—through first-of-its-kind technology and innovation. Growing in a way that successfully guides your company through the next era also requires a clear understanding of why growth is needed in the first place.

In his 2009 TEDx Talk, “How great leaders inspire action,” American author and business leadership speaker, Simon Sinek, explained that what distinguishes inspirational leaders and companies from competitors is that they begin with the why.

The “why” may manifest as a mission and vision statement, both of which I believe ground a strategy. They are the lighthouse in the distance that reorients the ship back on its path, giving purpose to all that you do and why you do it. As Sinek says, people don’t buy what you do; they buy why you do it.

For Cummins, we don’t simply sell power solutions; we are making people’s lives better by powering a more prosperous world. We are powering some of the world’s most demanding applications – and we find new and better ways to do it by constantly innovating for our customers to power their success.

I challenge you to ask yourself and your colleagues:

  • Why does your company exist? What is its purpose?
  • What is the driving force behind all you do – that shared belief between you, stakeholders, customers and the world?

At Cummins, we acknowledge that our mission and vision must go hand-in-hand with our aspirations. Cummins believes that every essential industry has a viable path to sustainability and lasting prosperity. It's an aspiration that will take time, money, investment, infrastructure, partnership and immense innovation.

Your mission, vision and aspirations shouldn't simply be statements. They are the pillars of your strategy and must align to achieve success.

2.   Know what you need to reach your destination and how you intend to do it.

How do we aim to achieve our "why"? This is the meat of your plan. It's your opportunity to clearly state what you intend to achieve and who you intend to serve. It's also where you should reinforce your strategy for "winning" your market, audiences and customers.

The strength Cummins brings to the table is our partnerships, talent and comprehensive portfolio of the cleanest, most efficient, cost-effective and reliable power products in the world – all supported by a robust service and support network that keeps our customers’ operations running.

The transportation industry operates at a time when one solution or product does not and cannot fit all. Cummins must be agile and develop innovative solutions that give our customers flexible fuel and power options that deliver their equipment's operational requirements, improve efficiency and achieve decarbonization.

In the last few years, we have significantly strengthened our position by evolving our portfolio. Today, we design, manufacture and support power products for global commercial and industrial customers across their entire operational lifecycle. Whether through our core businesses, the launch of a fuel-agnostic engine platform – Cummins HELM™ – or our zero-emissions solutions through Accelera™ by Cummins, we will meet the needs of our customers and guide them and others through the energy transition.

Ask yourselves the same:

  • What do you intend to offer customers? What should execution entail, and how do you plan to implement that work?
  • What are your company's strengths? Are they strong enough to be the customer's preferred choice and propel your business through the next decade?
  • Is this work serving not just any customer but the right customer for your business?

I'll add that it's important to identify the qualities and capabilities that give your company an advantage. What do you provide that your competitor can't? Is it your company's deep history and knowledge of its particular industry? Is it the ability to innovate because of top-tier talent? Access to funds that power greater research and development efforts? Perhaps the well-established partnerships, systems and methods make your operations unparalleled. Whatever sets you apart can be a defining factor in a customer's decision to choose you over the competition. Sharing these superpower qualities could make all the difference. 

3.   Make the steps along the journey quantifiable and actionable.

The world thrives on data. We crave concrete answers that tell us the truth about our performance. Numbers, as they say, don't lie.

I don't think it's news to readers that capturing relevant data is your strategy's final piece of the puzzle. After all, we're looking to establish a strategy for growth that drives us into the next era, so naturally, we need to know where we started to understand how much - or little - our strategy has helped us grow.

Know your key performance indicators. Identify the areas where you're seeking to make the biggest impact. If the strategy is not producing results, it's time to revisit it.

Our strategy for the next era and beyond is working. By intentionally weaving together Cummins’ business and environmental strategies, we’ve already seen the positive results of such an approach. In 2023, Cummins achieved record revenues of $31.4 billion with a record operating cash flow of $4.0 billion. Such performance has allowed us to raise our expectations for 2030. We’ve invested over $1.4 billion in research and development, empowering over 75,500 employees to build solutions for tomorrow. Giving back to our surrounding communities remains essential and resulted in employees completing 343,000 hours of community service in 2023, helping Cummins achieve $42.1 million in total giving.

Navigating a journey toward distant lands is bold and demanding. It includes unexpected roadblocks, hours of reflection and recalculations, and perhaps even rerouting the course entirely. The same is true for building strategic clarity. Forming a strategy to navigate and expand your business amidst ongoing change is challenging. At Cummins, it's been no different. Despite daunting challenges in the industry, our strategy propels us toward greater growth and impact for our customers, communities and planet.

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Jeff Wiltrout headshot

Jeff Wiltrout

Jeff Wiltrout is the Vice President of Corporate Strategy at Cummins. In this role, Jeff oversees cross-functional efforts to define and develop the company's strategic direction globally, including business development, partnerships, mergers, acquisitions, and divestitures.

Prior to his current role, Jeff served as Executive Director of Corporate Development, where he was responsible for leading the company's merger, acquisition and partnership activities. Jeff joined Cummins in 2009 and has experience in strategy roles supporting Power Systems and Cummins Generator Technologies.

Jeff earned his bachelor’s degree from the University of Notre Dame in South Bend, Indiana (U.S.), and his Master of Business Administration (MBA) from the Kelley School of Business at Indiana University in Bloomington, Indiana (U.S.). Prior to Cummins, Jeff worked at National City Bank in Indianapolis.

STEM Project Unites Children in the UK and Uzbekistan

Zoom call with West Park School and the Children's Home

If you ever doubted the ability of young minds to grasp what many adults would consider complex concepts, then you'll be amazed by the achievements of two groups of young children - one in a school in northern England, and the other 4,000 miles away in an orphanage in Uzbekistan.

With the support of Cummins, children ranging from six to twelve years of age have managed to bridge the language, culture, and time divide. They are collaborating with great success on building a basic electric racing car.

The story begins with a visit by Cummins to Rudmash Export Service, which has been representing Cummins in Tashkent, the capital of Uzbekistan, since 2018.

Rudmash has an impressive list of clients in mining, construction, gas, and power generation.

It is also a highly respected supporter of community initiatives, a key focus for Cummins.

During the visit, Amit Kumar, Cummins' Technical Territory Manager for the Commonwealth of Independent States (CIS) region, mentioned the work he was doing with local schools involving the Greenpower Education Trust in the UK.

Amit suggested that Rudmash might consider introducing local children to the fantastic learning opportunity that comes from building an electric car.

The Rudmash executive team loved the idea and reached out to their friends at the local orphanage (Children’s Home 22), about the proposed connection with children from West Park Academy – a primary school near Cummins' manufacturing plant in Darlington, England.

Students at the Children's Home working on the car
The children from Children's Home 22 building the car

Speaking through a translator, Rudmash Sales Manager Mr. Mavlonberdi Akhmedov said there was no hesitation from the orphanage. "Everyone was excited about it," he said. "When we showed them pictures of the car, the children's eyes lit up with interest.

"The only issue we encountered was not being able to involve the older children, but I think Amit has something in his mind for them. It will involve a similar collaboration with a UK school on a larger electric car that they can fit in!"

Over in Darlington, teacher Mr. David Fraser and his group of 9 to 11-year-olds were thrilled at the prospect of working with children from another country.

Students from West Park Academy
The children from West Park Academy

"Before our first session, I showed the children a map of Uzbekistan and explained how the time zones worked," Mr. Fraser said. "Tashkent is four hours ahead of us."

"When they started hearing a different language, they were a little hesitant although still excited. However, towards the end, once they got used to the translation pauses, lots of questions were being asked."

"They adapted very quickly, and every session with the orphanage has become more engaging. The children have greatly benefited from the relationship. It's been a great learning experience."

The car involved in the project is called the Greenpower Goblin G2. It comes as a flat-pack kit including chassis, wheels, steering, disc brakes, a 24V electric motor, and two 12V batteries.

Students at West Park Academy working on the car
The children from West Park Academy building the car

"The project is all about inspiring young children to take an interest in engineering in a fun and innovative way," said Amit Kumar, who earlier this year received special recognition at the North-East England STEM (Science, Technology, Engineering, and Mathematics) Awards for his years of dedication to STEM Education.

"The build introduces children to basic mechanics and electronics and might be the first step on the pathway to a career in engineering or another STEM field.

Mr. Fraser said the children soon started discussing aspects of the car such as frames, brakes, and steering geometry. There was a lively question-and-answer session on different materials that could be used to design and make the car's body. Their last session was about controls and driving.

"There are also other general discussions, as the children are eager to learn more about each other's countries," said Amit, who leads the sessions.

Students at the Children's Home looking at the car drawing
The children from Children's Home 22 talking about a drawing while on a zoom call

Rudmash service engineer Mr. Abdullayev Shakhzod said the children were enjoying the experience of working in teams.

"It's a fantastic new chapter in the history of a place that has a storied past. It was established in 1942 during the Second World War to care for evacuees from all over Eastern Europe. Children of over 40 different nationalities have been cared for by this children's home.

"The home is named Antonina Pavlovna Khlebushkina after the woman who ran it in the early days. She would be so proud of what is happening there today.

"As the summer vacation times differ in the two countries, the West Park school children have already finished building their cars, while the Uzbekistan car is about 40% complete.

"When the children return from their summer camp in September, they will start the rear axle, motor, and electrical components. Then they can take it for a drive," Amit said.

"Just before their summer term ended, the West Park children conducted a demonstration for their new friends in Tashkent. They set up a track and showcased driving the car on it. It was a great success."

Mr. Akhmedov, speaking through a translator, mentioned that the management team at Rudmash was considering how the project could expand beyond the children's home and into schools and youth organizations throughout Uzbekistan.

Mr. Akhmedov praised Cummins for their support of the project. "They have shown great responsibility at every stage and been very proactive, always striving to ensure things are done right.

"This is just the beginning for these children. It's already motivating them to learn more and develop their skills in broader technical applications.

"I would say that this project is not only important for the children's home but also for our city of Tashkent and the Republic of Uzbekistan, as it is nurturing an educational culture that is highly valuable. I can't thank Amit and Cummins enough."

Amit expressed that it's a privilege to help Cummins inspire young people about engineering and science from an early age.

How is the United States investing in clean energy?

GR hero

Our planet is facing a dire crisis: carbon dioxide concentrations in the atmosphere continue to soar above record highs. If gone unaddressed, the collective stress of climate change will produce an irreparable impact. Our health, energy, water, and food ecosystems are at risk. 

As it stands, there are many long-term effects of climate change. In North America, climate change is forecasted to cause decreasing snowpack in the western mountains. It will also lead to a 5–20% increase in yields of rain-fed agriculture and great intensity of heat waves. In fact, over the last five years, the United States has incurred roughly $120 billion a year in damages as a result of natural disasters caused by extreme weather and climate events.

Beyond natural catastrophes, climatic risks to the United States will have a cascading effect on the country's interconnected ecosystems. Reduced labor and overall economic productivity, and altered crop yields, will disproportionately harm lower-income and marginalized populations. These groups lack the resources to prepare or cope with extreme weather and climate events.

The world is investing in clean energy innovation

Combating the intensifying climate crisis requires a strategic combination of research and development (R&D), innovation, technology — and bold attempts.

Around the globe, countries are investing in clean energy to contribute to a livable planet now and for generations to come. In 2022, the US passed the Inflation Reduction Act, which includes a historic $370 billion investment to address the climate crisis. The Inflation Reduction Act provides tax credits and incentives to power homes, businesses, and communities with clean energy by 2030. The Act will increase investments in the fastest-growing power generation technologies, solar and wind. It will also advance cost-saving clean energy projects and protect two million acres of national forests. These initiatives are in addition to substantial tax credits and rebates offered to families and businesses in the United States.
Consequently, a stronger clean energy economy will contribute to overall economic growth and competition. As a result, there will be millions of new well-paying jobs for Americans to make clean energy.

It is possible to start decarbonizing now

Governmental policy strategies and investments in decarbonization technologies are part of the solution to produce increasingly cheap, dependable, and clean energy.

Strong communities and vibrant economies depend on a healthier planet. As a global power technology leader, Cummins is in a unique position to power customer success by leading during this energy transition. We intent to do so by providing customers with the right technology at the right time, understanding of their needs and applications.

We think of this journey to carbon neutrality in two distinct and complementary ways. First, by innovating zero-emission solutions and introducing them in markets and applications where the infrastructure, development and deployment are ready. Secondly, by advancing internal combustion engines through efficiency improvement and by running them on cleaner alternative fuels for a well-to-wheels solution.

Through Destination Zero, we are advancing low- and no-carbon platforms. This includes diesel and natural gas engines, hybrid, and electric platforms, as well as powertrain components, controls, and related technologies.

Join Cummins in powering a better tomorrow

Cummins environmental sustainability strategy includes goals timed for 2030. Progress toward the reduction of carbon emissions from company plants and facilities — in addition to our products — is in full swing. For more than one hundred years, we have brought technological solutions to market. As a power solutions leader, we will continue to power a more prosperous world for today and tomorrow. Are you ready to consider investing in new power solutions?

Traci Kraus headshot

Traci Kraus

Traci Kraus is a Director of Government Relations where she leads US federal advocacy for Cummins. She focuses on energy, climate, hydrogen, transportation and budget legislative and regulatory issues. 

Prior to joining Cummins, Traci worked for former U.S. Senator Russ Feingold.  She has a Master's in Public Administration from the George Washington University and B.A.s in Government and Politics and Communication from the University of Maryland in College Park. She is originally from Chicago, and now lives outside of Washington, D.C. with her husband, Aaron and two children Liam (8) and Sloane (5).

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