2010 Sustainability Report - Cummins.com

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Challenges ahead: Workforce As Cummins prepares for a period of growth after the global recession, there are several workforce related challenges facing the Company: Culture: Cummins expects its workforce of more than 35,000 to grow by as much as 30 percent over the next few years to meet strong forecasted growth across all its businesses. One key factor will be having processes in place to preserve the aspects of Cummins culture that make the Company great. Leadership: Chairman and CEO Tim Solso has said he wants the Company’s top leadership to “look like the United Nations,” consistent with a Company where more than 60 percent of its sales occur outside the United States. Finding ways to develop leaders globally will be critical. Retirements: A significant portion of both the hourly and professional workforce are expected to retire in the coming years. Recruiting and retaining the next generation of workers, in what is expected to be a highly competitive environment once the economy improves, will play a pivotal role in the Company’s long-term performance. Coaching and development: A lifelong journey At Cummins, coaching and development doesn’t stop when an individual reaches a senior leadership position in the Company. As part of our commitment to creating a sustainable organization, Cummins has, over the past four years, developed an executive leadership development program aimed at educating today’s top leaders – and those of tomorrow – about the breadth and depth of the Company’s business. Now beginning its third cycle, the executive development program brings together small groups of high potential senior leaders and mid-career professionals for 24 months of extensive education about the Company’s operations. All those selected are viewed as having the potential to become a member of the senior leadership team at some point. Cummins top leaders, including the CEO and President, are heavily involved in the program, and program participants gain significant insights to the issues and opportunities facing the Company through their interactions with these leaders and with one another. Members of the group have a hand in developing the program, and executive development groups have traveled globally to learn about various aspects of the Company’s business. Creating a career vision for all employees More than 60 percent of the Company’s workforce consists of employees working on the manufacturing plant floors, in our technical operations, at our service centers or in Cummins offices around the world. These employees (referred to as “hourly” or “non-exempt” in the U.S.) help design, machine, assemble, service and sell the Company’s products and are vital to Cummins’ long-term success. 100 Cummins Inc. Sustainability Report 2010
President and COO Tom Linebarger speaks at a career development forum sponsored by GOAL — the Latino Affinity Group of Southern Indiana. And, as Cummins prepares for a period of growth over the next several years, the ranks of these employees is expected to grow significantly around the world. At the same time, the demographics of this part of our work force suggest that a large number of our most experienced workers are likely to be retiring over that same period. Finding and retaining skilled workers capable of handling the increasingly technical work being done at many Cummins facilities has become a challenge and, in some cases, a significant obstacle to growth. In order to maintain a world-class workforce at all levels, Cummins is in the midst of its most ambitious effort yet to increase the long-term capabilities of our these workers around the world and improve the opportunities afforded these employees. Historically, the Company has lacked a unified approach to attracting, developing and retaining its shop, engineering technician, service technician and office workforce. A cross-functional global team led by Human Resources is out to change that. The Company’s Workforce Strategy Group has been collaborating with Cummins leaders from around the world for the past 18 months to define and articulate the Company’s “work force philosophy” and align the core strategies and processes needed to provide improved career opportunities to our employees and assure the success of the organization over the next 20 years. As the Company’s products become more complex, the skills necessary to manufacture, sell and support those products must become more sophisticated. A primary focus of the Workforce Strategy Group is to define the road map that will assure we can effectively develop and manage increasingly skilled workers who can meet the Company’s changing needs around the world. By establishing effective processes to select, manage, develop and advance workers who are capable of meeting the Company’s increased needs, Cummins can create a lasting competitive advantage. To do that, our work environments must be inclusive and the Company must be committed to providing challenging work and the appropriate rewards to its hourly workforce so that it can create a culture where career-long learning and development is the expectation, not the exception. Employee Relations 101
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Cummins Inc. Sustainability Report
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Who we are Vision Making people’s
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Table of contents This year’s Sus
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To address the global challenges we
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Environment 9,000 tons of CO 2 emis
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The Cummins Operating System The Cu
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Clessie Cummins was known for his b
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Social issues, diversity and people
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The university’s emphasis on educ
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Cummins is a major participant in t
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Chairman and CEO Tim Solso (fourth
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Challenges ahead: The environment I
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Global on-highway standards 4.5 4.0
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Remanufacturing Cummins products Re
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Non-road useful life emissions tota
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ReCon plant opens in India Cummins
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Partnering with others Our own prod
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Environmental objectives and target
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25% Percent change in revenue Since
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Cummins and climate change Here are
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Cummins accepted into U.K. Carbon T
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In December 2009, Cummins became a
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Combined heat and power 45% 85% ene
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India campus wins Chairman’s Awar
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Inside a classroom at Cummins Colle
Page 51 and 52: Partnering with Purdue, Rose Hulman
Page 53 and 54: Indiana Gov. Mitch Daniels (left) a
Page 55 and 56: Challenges ahead: Governance and Ri
Page 57 and 58: Robert J. Bernhard Vice President f
Page 59 and 60: Dr. Franklin Chang-Diaz Title: Chai
Page 61 and 62: Cummins started an Internet-based c
Page 63 and 64: Flu outbreak puts pandemic plan int
Page 65 and 66: Cummins has been working with Ithem
Page 67 and 68: Employees from the Dongfeng Cummins
Page 69 and 70: Challenges ahead: Corporate respons
Page 71 and 72: Audit Committee Chairman Marsha Hu
Page 73 and 74: A generator set operating on vegeta
Page 75 and 76: Lokesh Agrawal, Customer Interface
Page 77 and 78: Cummins employees regularly visit P
Page 79 and 80: Other Environmental Challenge grant
Page 81 and 82: GRANTEE ORGANIZATION COMMUNITY GRAN
Page 83 and 84: GRANTEE ORGANIZATION COMMUNITY GRAN
Page 85 and 86: Mary Kate (left), can only move her
Page 87 and 88: The Cummins Power Generation Plant
Page 89 and 90: “Satisfaction has increased withi
Page 91 and 92: Create a workplace population with
Page 93 and 94: Cummins’ definition of diversity
Page 95 and 96: Taking diversity to the next level
Page 97 and 98: Council plays key role The Diversit
Page 99 and 100: Smaller diverse suppliers can play
Page 101: Cummins workforce Here’s a quick
Page 105 and 106: The investment is paying off. Becau
Page 107 and 108: Pat Ward, Vice President - Chief Fi
Page 109 and 110: Six Sigma delivers for Cummins Ten
Page 111 and 112: Our new strategic principle Cummins
Page 113 and 114: Components Sales: $2.4 billion EBIT
Page 115 and 116: Production Notes Design and writing
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2010 Sustainability Report - Cummins.com

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