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Performance That Endures. Sustainability. Many definitions New term – old concept Triple Bottom Line - economic, environmental, and social balance . John Deere Values. “I will never put my name on a plow that does not have in it the best that is in me.” Integrity, Quality, Commitment. - PowerPoint PPT Presentation
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Performance That Endures
Sustainability
• Many definitions• New term – old concept• Triple Bottom Line - economic,
environmental, and social balance
John Deere Values
• “I will never put my name on a plow that does not have in it the best that is in me.”
• Integrity, Quality, Commitment
John Deere History – Worker Safety
• 1901--Worker Compensation introduced 10 yrs ahead of State Laws
• 1947--Corporate Industrial Safety Dept established
• 1975—Safety program established in Total Quality Mngt. framework resulting in continuous
improvement through 2002• 1983—Off-the-Job Safety Program introduced • 1984—Ergonomics program formally introduced• 2000 – ZERO Safety Incident Goal established
John Deere History - Product Safety• 1938 Product Safety Committees Formed• 1940 PTO shields made standard on tractors and
retrofit program established • 1963 Starting interlock for lawn & garden tractors• 1966 ROPS introduced• 1972 ROPS retrofit option provided for most post -
1960 tractors• 1984 Bypass Override Valve developed and
introduced• 1990 Operator presence system for cotton pickers
established• 1999 New Turn-signal modules introduced for
lighting and marking tractors and implements
John Deere History - Environment
• 1920 First cloth screen exhaust filters installed• 1936 First foundry with complete mould and core and
finishing dept dust control system• 1949 First boiler emission control system• 1957 Deere adopts strict water effluent standards• 1962 First pollution prevention projects involving cyanide
elimination installed. • 1967 First Corporate environmental policy established• 1973 Formal Energy Management program started• 1981 Pollution Prevention program installed• 1993 Chlorofluorocarbons eliminated as a refrigerant for
all product A/C systems• 2000 Soybean used as base material for sheet molded
panels
John Deere Today
Mannheim, Germany
Richards Bay, South Africa
Nigel, South Africa
Pune, India
Beijing, ChinaJiamusi, China
Stadtlohn, GermanyGummersbach, Germany
Horst, NetherlandsEnschede, Netherlands
Bruchsal, Germany
Zweibruecken, Germany
Arc-les-Gray, France
Saran, France
Madrid, SpainSantiago, Chile
Catalao, Brazil
Horizontina, Brazil
Rosario, Argentina
Saltillo, MexicoMonterrey, Mexico
Torreon, Mexico
Valley City, ND
Fargo, ND
Minneapolis, MN
Dubuque, IAHoricon, WI
Waterloo, IA
Moline, ILEast Moline, IL
Welland, Ontario
Edmonton, Alberta
Davenport, IA
Des Moines, IA
Langley, British Columbia
Ottumwa, IA
Springfield, MO
Coffeyville, KS
Thibodaux, LA
Raleigh, NC
Greeneville, TN
Redondo Beach, CA
Augusta, GA
Springfield, ILToano, VA
Santo Angelo, Brazil
Filipstad, SwedenJoensuu, Finland
Woodstock, OntarioRock Valley, IA
Klemme, IA
Paragould, AR
Melbourne, Australia
Tokoroa, New Zealand
*
Tianjin, ChinaPiqua,OH
Burnsville, MN
Jeffersonville, INAlpharetta, GA
Exeter, England
2001 Sales: $13.3 Billion
Agricultural 47% Construction & Forestry 16%
Commercial & Consumer 20%
Credit 11%
Other 6%
Sustainability Today
• Agriculture - provide customers with tools to meet demands for less intensive, less intrusive farming• No till planting• Precision farming• Soybean based plastics
Sustainability Today
• Forestry - provide products with less impact on forest during logging• Life cycle assessment – tree harvester• Recyclability analysis – feller/buncher• Operator training• “Walker”
Recognition
• Crain’s Chicago Business - named John Deere lllinois’ most-trusted company; in a nation-wide survey, Deere beat 13 other prominent companies
• Business Ethics magazine - named Deere one of its 100 Best Corporate Citizens for 2002, ranking the company 64th on its annual list
• Manager of the Summit Total Social Impact Fund, a Cincinnati-based mutual fund, recently ranked Deere among the top five companies in the S&P 500 for its ethical behavior
John Deere’s Challenge
• “Build a business as good as our products” –Bob Lane, CEO
• Improve performance, but• “Performance that Endures”
Global Challenges
• Machine recyclability – steel vs. plastic• Machine safety – ROPs in India• Facility location – brownfields in China• Rapid changes• Employee turnover
Integration with Key Business Processes
• Business Conduct Guidelines• Environmental Policy• Environmental Management System• Auditing and evaluation• Standards and Guidance
Introducing Sustainability
• Should the term “sustainability” be used? • Work within the processes & structures
already in place. • Three Distinct Entry Points:
• Long Range Planning• Environmental Management System• Supply Management
A Range of Approaches to Sustainable Development
Thrust Stay withthe pack
Take thehigh road
Costleadership Differentiation Growth
Questions
Action
Should I do anything?
Wait and see;track the
issues
How can I better alignwith stake-
holders
Strengthencommunities
and environmental
protection
How can I get cost
advantage?
Improveeco-efficiencyof processes
How can Icapitalizeon SD?
Createproducts andservices with
uniquecharacteristics
How can Ileverage SD totransform theorganization?
Leverage SDto better learninnovate, andmanage for the future
Introverts Extroverts Bottom-liners Top-liners Transformers
Understand Your Reality
• Understand your company impacts• Understand your customer impacts• Understand the forces that will shape the
future for you and your customers• Identify your strengths
Final Thoughts
• Focus on core values• Focus on your markets and
customers• No guarantee
• Technologies• Culture
Nothing Runs Like a Deere