Winning Now, Winning Later

How can you win today without compromising your ability to win tomorrow? The answer lies in blending short-term wins with sustainable long-term strategies.

1. Ask Tough Questions to Build a Culture of Precision

Paying attention to details and cultivating a culture of analytical thinking can transform an organization. David Cote's experience at Honeywell highlights this when he disrupted a carefully prepared aerospace presentation by asking specific questions about costs and inefficiencies. By digging deeper, he uncovered how hidden problems were impacting not only the department but the entire organization.

To foster this culture of critical thinking, Cote encouraged employees at all levels to contribute and explain their reasoning. Starting with the most junior voices in meetings ensured candid responses instead of repetitions of higher-ups' viewpoints. Moreover, insisting on data-driven decisions over gut feelings forced accountability and curbed sloppy problem-solving.

Instilling this mindset throughout the organization moves a company from reactive habits to proactive learning. This approach helped Honeywell leaders adopt long-term thinking while addressing present-day concerns effectively.

Examples

• Cote exposed hidden financial discrepancies in Honeywell’s aerospace division by asking detailed questions.
• He required HR to base a policy change on data rather than opinions, gaining better insights.
• Starting meetings with junior employees' opinions brought honesty and diverse perspectives.

2. Align Strategic Plans with Goals Everyone Embraces

Without a clear strategy, even the hardest-working teams can find themselves rowing in different directions. At Honeywell, workers optimized short-term metrics like Earnings Per Share but used temporary accounting tricks to do so. Cote responded by creating a cohesive strategic plan anchored in both analysis and long-term goals.

This plan demonstrated how day-to-day tasks connected to broader objectives, ensuring coordination throughout the business. He also required frequent strategy updates, helping teams monitor their progress and adjust where necessary. A significant success was Honeywell’s multimillion-dollar refrigerant R&D project, which aligned perfectly with environmental goals and market strategies.

When employees collectively work toward the same vision, short-term challenges become manageable, and lasting success becomes achievable.

Examples

• Cote reduced confusion by linking short-term performance to five-year strategic goals.
• His refrigerant innovation project combined environmental responsibility with economic gain.
• Regular follow-ups kept leaders updated on contracts, avoiding mistakes like oversized deals.

3. Address Legacy Problems Head-On

Taking over a business means inheriting problems that stem from past decisions. Ignoring these only worsens the issue. When Cote became Honeywell’s CEO, he faced costly environmental lawsuits resulting from years of regulatory avoidance. Rather than sidestep the issue, he confronted it directly by replacing key staff and prioritizing corporate accountability.

Honeywell improved its reputation by working on environmental cleanups and partnering with regulators. For example, the company's $100 million rehabilitation project in Baltimore both remedied legal exposure and built goodwill with the public. Taking accountability isn’t just ethical—it also demonstrates commitment to solving problems rather than deferring responsibility.

By addressing such challenges immediately, organizations can avoid the compounding risks of financial losses, reputation damage, and operational inefficiency.

Examples

• Honeywell rebuilt its environmental division with well-respected lawyers to ensure credibility.
• The company collaborated on a Baltimore harbor redevelopment, improving public sentiment.
• Its proactive stance led JP Morgan to upgrade its stock, citing better management of risks.

4. Improve Processes Gradually, Not Overnight

Every business operates on processes—from manufacturing products to managing teams. Improving those systems often holds the key to better performance, but rushing those changes can backfire, as employees struggle to adapt. Honeywell’s Operating System (HOS) took years to fully implement, but its gradual rollout ensured its stability over time.

Improvements often start with detailed audits, like when Honeywell reviewed its compressed air systems and identified leaks that saved over $800,000 annually. By involving employees in the design of process changes, Cote also secured their commitment. For example, structured workshops (Kaizen events) allowed factory workers and plant managers to collaborate on improvements.

Patience and collaboration ensured enduring gains in efficiency rather than temporary fixes that don’t last.

Examples

• Fixing factories’ compressed air systems reduced energy costs significantly.
• HOS rollout lowered defect rates in an Italian factory by 80 percent.
• Kaizen sessions helped bridge gaps between workers and managers on the factory floor.

5. Build Your Company Culture as a System

Every lasting organization shares one thing—an identity that its people believe in and act on. This culture guides how employees approach work, decisions, and problems. When Cote took over, Honeywell was divided between workers from its merger with AlliedSignal and existing Honeywell staff. To unite them, Cote launched a "One Honeywell" initiative and outlined 12 common principles.

For example, he encouraged cross-department meetings and chose products from within Honeywell divisions, strengthening bonds between teams. This cultural unification paid both symbolic and financial dividends, including major efficiencies like switching to internal suppliers for key components.

Culture is not optional—it’s a tool that touches every aspect of a business.

Examples

• The "One Honeywell" initiative unified employees from two different corporate backgrounds.
• Bringing leadership together boosted shared understanding of overlapping challenges.
• Favoring internal suppliers increased revenue and bound teams closer together.

6. Limit Leadership to Just What You Need

Leadership rosters sometimes grow unnecessarily, hampering efficiency. Honeywell was not untouched by this issue, and Cote addressed it whenever turnover occurred. By analyzing whether vacancies genuinely needed filling, he often found ways to redistribute responsibilities instead of hiring replacements.

This approach favored lean and productive leadership. At the same time, Cote invested significantly in nurturing top-performing leaders via thoughtful compensation systems tied to long-term results rather than quick wins. A reduction in redundant management combined with steady financial incentives helped set a standard for efficient leadership.

Result-focused leadership trims bureaucracy while boosting overall team performance.

Examples

• He canceled indulgent overseas travel and eliminated redundant executive positions.
• Savings from reducing leadership numbers directly contributed to Honeywell’s stock growth.
• Linking pay to restricted shares encouraged strategic, future-oriented decision-making.

7. Invest Equally in Customer Satisfaction and Innovation

Customers are key to short-term revenue—Inefficient processes undermine their satisfaction. For instance, Honeywell customers regularly received delayed orders due to internal errors that leaders failed to measure properly. Fixing these issues quickly boosted customer trust and revenue.

However, Cote didn’t let immediate concerns overshadow innovation. By allocating resources strategically, he tripled R&D spending while also addressing customers’ most urgent challenges. A priority-based approach enabled Honeywell to remain both relevant and prepared for future industry demands.

Balancing short-term wins with long-term investments ensures that businesses can endure.

Examples

• Improved delivery metrics and customer focus solved order delays and miscommunications.
• Redirecting R&D efforts to growing global markets optimized both spending and outcomes.
• Balancing small-scale improvements alongside large innovations strengthened Honeywell's adaptability.

Takeaways

1. Start meetings by involving junior staff to uncover honest insights and foster inclusion.
2. Conduct detailed step-by-step audits of key processes to find inefficiencies.
3. Mix short-term customer-focused upgrades with long-term product innovation for stable growth.