Georgia Oglethorpe Conference September, 2003 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or.

Georgia Oglethorpe ConferenceGeorgia Oglethorpe Conference September, 2003September, 2003

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2003. product or service names are the property of their respective owners. © Motorola, Inc. 2003.

Mark HurlbertMark HurlbertDirector & Master Black BeltDirector & Master Black Belt

Office of Business ExcellenceOffice of Business Excellence

Motorola, Inc.Motorola, Inc.

Our Journey Towards Our Journey Towards Performance Performance ExcellenceExcellence

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. product or service names are the property of their respective owners. © Motorola, Inc.


AgendaAgenda

Overview of CGISSOverview of CGISSMalcolm Baldrige AwardMalcolm Baldrige AwardOur Journey towards Performance Our Journey towards Performance

Excellence Excellence Lessons LearnedLessons LearnedQuestions & AnswersQuestions & Answers



CGISS Vision Be the trusted integrator and leading provider of

innovative communication and information solutions for the public sector and business

critical enterprise customers.

About Motorola CGISS

Broadband Communications

Sector

Global Telecom Solutions

Commercial, Government, & Industrial

Solutions Sector

Semi-conductor Products

Integrated Electronics Systems

OFFICE OFTHE CHAIRMAN

PersonalCommunications

Sector



What We Stand For…What We Stand For…

Our ValuesOur Values Constant Respect for PeopleConstant Respect for People

Uncompromising Integrity in Everything Uncompromising Integrity in Everything We DoWe Do

75 Years Strong!



Motorola Commercial, Government & Motorola Commercial, Government & Industrial Solutions Sector (CGISS)Industrial Solutions Sector (CGISS)

Oldest Motorola Sector Oldest Motorola Sector

– 14,735 Associates Worldwide14,735 Associates Worldwide

$4 Billion Annual Revenue $4 Billion Annual Revenue

– 27 Million Users Worldwide27 Million Users Worldwide

– 7100 Points of Presence Worldwide7100 Points of Presence Worldwide

Mission Critical Communication And Information Mission Critical Communication And Information SolutionsSolutions



What We DoWhat We Do

Communication & Information Solutions

. . .

Wireless DataSolutions

Command & Control Solutions

Managed Network & IT Services Solutions

Point to Point Wireless

Conventional Wireless Systems

Lifecycle Support Services

Trunked Wireless Private Networks

Indirect Direct

Direct Direct



1st Two-Way Radio

1st PortableCellular Phone

1st

TotallyIntegratedWireless,Data and

MessagingUnit

19401940

19641964

1983

19951995

19961996

1st

Pager

1998 - 20031998 - 2003

DigitalPrivate Radio

NetworksTETRA &Project 25

ConsumerTwo-way

Radio

Heritage of Innovation and Heritage of Innovation and LeadershipLeadership



Customer IntimacyCustomer Intimacy

Operational ExcellenceOperational Excellence

Technology SupremacyTechnology Supremacy

Key Success FactorsKey Success FactorsThere are 3 fundamental reasons for CGISS success in maintaining There are 3 fundamental reasons for CGISS success in maintaining our market leadership position in our Industry. our market leadership position in our Industry. They are:They are:



AgendaAgenda





What is the Malcolm Baldrige What is the Malcolm Baldrige National Quality Award?National Quality Award?

Initiated in 1987Initiated in 1987 Recognizes those who Recognizes those who

demonstrate exemplary demonstrate exemplary performance performance

Provides a comprehensive set Provides a comprehensive set of evaluation criteriaof evaluation criteria

It‘s It‘s NOT JUST QUALITYNOT JUST QUALITY

Malcolm Baldrige National Quality Award



The Baldrige CriteriaThe Baldrige Criteria

LeadershipLeadership StrategicStrategic

PlanningPlanning

Customer Customer

& Market & Market FocusFocus

Information & Information & AnalysisAnalysis

Human Human Resource Resource

FocusFocus

Process Process Manage-Manage-

mentment

Business Business ResultsResults

120120

PointsPoints

8585

PointsPoints

8585

PointsPoints

9090

PointsPoints

8585

PointsPoints

8585

PointsPoints450450PointsPoints

1000 Points



External Validation by Senior & Diverse External Validation by Senior & Diverse Group of Business ProfessionalsGroup of Business Professionals

Group of Nine ExaminersGroup of Nine Examiners– Technical Capability DiversityTechnical Capability Diversity

• 3 Senior examiners3 Senior examiners• Lead Examiner was a womanLead Examiner was a woman

– Functional DiversityFunctional Diversity• CEO, COO, CFO, CPA, President, Vice President, Director, CEO, COO, CFO, CPA, President, Vice President, Director,

OwnerOwner

– Industry DiversityIndustry Diversity• US Army, construction, property management, IBM, Kimberly-US Army, construction, property management, IBM, Kimberly-

Clark,Clark, logistics, welding, high tech resource placement and logistics, welding, high tech resource placement and sourcing, hospitalsourcing, hospital



AgendaAgenda


ExcellenceExcellence Lessons LearnedLessons LearnedQuestions & AnswersQuestions & Answers



Why Performance Excellence?

It is a It is a Systems ApproachSystems Approach to Business to Business ExcellenceExcellence

Commitment to an Ongoing Journey of Commitment to an Ongoing Journey of Continuous ImprovementContinuous Improvement Towards Towards Value Value CreationCreation

The Framework is an Ever-Evolving Set of The Framework is an Ever-Evolving Set of Results Focused CriteriaResults Focused Criteria

To Grow and ProsperTo Grow and Prosper



The Journey Starts With LeadershipThe Journey Starts With Leadership

BaselineAnalysis

Results

Deployment

HIGH PERFORMANCE BUSINESS SYSTEM

Approach

May 1999

June 19991999 - 2002

2001 - 2003



Customer &Market Focus

ProcessManagement

HumanResource Focus

Leadership

StrategyPlanning

Information & Analysis

Continued Focus on a Disciplined Business Frameworks an Enabler of CGISS Vision

1999 Baseline

CGISS Baldrige Assessment

World Class PerformanceOrganizational Leadership

Public Responsibility & Citizenship

Strategic Development

Strategic Deployment

Customer & Market Knowledge

Customer Satisfaction & Relationships

Measurement of Organizational Performance

Analysis of Organizational Performance

Work Systems

Employee Education, Training & Development

Employee Well-Being and Satisfaction

Product and Service Processes

Business Processes

Support Processes

20022001

2000

1

0

0.2

0.4

0.6

0.8



1.1.a.1: How do senior leaders set and deploy organizational values, short-and longer-term directions, and performance expectations, including a focus on creating and balancing value for customers and other stakeholders? Include how senior leaders communicate values, directions, and expectations through your leadership system and to all employees.

Role of The Senior LeaderRole of The Senior Leader



Ass

ess

Set

& D

eplo

yC

om

mu

nic

ate

Annual Strategic Planning Process

Compensation& Rewards

LeadershipLeadershipCreating & Balancing Value for StakeholdersCreating & Balancing Value for Stakeholders

CustomersShareholders Suppliers EmployeesCommunities

EmployeesCustomersShareholders Suppliers Communities

AllAssociate

s

Personal Commitmen

t

CGISSScorecard

CorporateScorecard



Align the Entire OrganizationAlign the Entire Organization

Strategy Creates Performance Strategy Creates Performance Excellence Scorecard Excellence Scorecard InitiativesInitiatives

Scorecards Cascaded Scorecards Cascaded Throughout The OrganizationThroughout The Organization

Organizational And Individual Organizational And Individual Goals Aligned Through Goals Aligned Through Personal Commitment Personal Commitment

Reward And Recognition Directly Reward And Recognition Directly Linked To Scorecard Linked To Scorecard ResultsResults

AALLIIGGNN

OOBBJJEECCTTIIVVEESS//GGOOAALLSS

StrategyStrategyStrategyStrategy

PerformancePerformanceReviewReview

PerformancePerformanceReviewReview

CommunicateCommunicateCommunicateCommunicate

Reward & Reward & RecognitionRecognitionReward & Reward &

RecognitionRecognition

Performance Performance MeasurementMeasurementPerformance Performance MeasurementMeasurement

Personal Personal CommitmentCommitment

Personal Personal CommitmentCommitment

VisionVisionVisionVision

Scorecard Scorecard InitiativesInitiativesScorecard Scorecard InitiativesInitiatives



Performance Excellence Performance Excellence ScorecardScorecard

DivisionCGISS Group

Strategic Direction Performance Measurement

Performance Excellence Scorecard

Strategic Objectives

CurrentYear

Initiatives

Business Processes

Business ResultsVision

Corp.



14,735 people make a 14,735 people make a Personal CommitmentPersonal Commitment

Jan – Mar July 15 Sept 30 Dec - Jan Feb - Mar Oct - Dec

Individual Personal CommitmentIndividual Personal Commitment

MetricsIndividual GoalsBehavioral

Goals Rewards

Planning Planning Checkpoint Checkpoint Checkpoint Checkpoint RelativeRelative

PerformancePerformanceAssessmentAssessment

Summary Summary Differential Differential Investment Investment



CGISS Digital CockpitCGISS Digital Cockpit

Our “cockpit” gives us a quick way to tell where we

stand on our key goals



Scorecard coverage of all stakeholders

Scorecard linkage of strategies and performance management process

Scorecard integrated into Senior Executive review process

Proactive systematic continuous improvement processes in all areas

Deployment of M-Gates

Comprehensive employee communication process

Evaluation of performance operational metrics process

CGISS Best Practices Transferable Benchmark Processes



CGISS Best Practices Transferable Benchmark Processes

Customer satisfaction process Market intelligence and analysis Customer response system (Customer complaint

handling) Substantial team activities, empowerment & innovation Corporate citizenship & EHS Business continuity and crisis management Knowledge sharing in Compass Institutionalized support and supplier processes



Orders $M $1,890 $1,727 9%

Sales $M $1,859 $1,691 10%

Operating Earnings $M $192 $112 71%

Operating Margin 10.3% 6.6% 3.7 ppts.

Number ONE in Customer Satisfaction > 2X Market share of nearest competitor Positive Cash Flow during 1H’03 and in 5 of Last

6 Quarters

Commercial, Government andCommercial, Government andIndustrial Solutions Segment ResultsIndustrial Solutions Segment Results

( Excluding Special Items)Favorable

(Unfavorable)1H’03 1H’02



Recent Analysts comments Results: Recent Analysts comments Results:

MotorolaMotorola “Stellar Specialized Radio”“Stellar Specialized Radio”Sum of the parts valuation has CGI at the highest Sum of the parts valuation has CGI at the highest value in the company at 8.1B or 22% of total value in the company at 8.1B or 22% of total lifting the valuation of this neglectedlifting the valuation of this neglected unit to the unit to the top of the companytop of the company

Dresdner Kleinwort Wasserstein Research – Per LindbergDresdner Kleinwort Wasserstein Research – Per Lindberg

CGISS continues to be MOT’s strongest business CGISS continues to be MOT’s strongest business in terms of growth and profitability. Homeland in terms of growth and profitability. Homeland security initiatives were a key driversecurity initiatives were a key driver

CSFB – Tim LongCSFB – Tim Long



Chris and Mike Praise CGISS During Q2 Chris and Mike Praise CGISS During Q2 Earnings Release Call with AnalystsEarnings Release Call with Analysts

““CGISS is a very unique and complex business that is the CGISS is a very unique and complex business that is the company’s specialty. Bookings are up and we think it could company’s specialty. Bookings are up and we think it could grow in the low double digits and continue to earn even more grow in the low double digits and continue to earn even more than it is today. CGISS has great process controls and serves than it is today. CGISS has great process controls and serves a very unique need in world society, so we’re optimistic about a very unique need in world society, so we’re optimistic about it as we have been for 65 years.”it as we have been for 65 years.”

–– Motorola Chairman and Chief Executive Officer (CEO) Chris GalvinMotorola Chairman and Chief Executive Officer (CEO) Chris Galvin

““CGISS is the oldest business within the company. It’s a jewel. CGISS is the oldest business within the company. It’s a jewel. The name recognition it has with police and fire departments – The name recognition it has with police and fire departments – not only in the U.S., but also all over the world – is second to not only in the U.S., but also all over the world – is second to none. none. It’s a $4-billion business, but we think both internally and It’s a $4-billion business, but we think both internally and with some partnerships it can be significantly greater than $4 with some partnerships it can be significantly greater than $4 billion.billion.””

– – Motorola President and Chief Operating Officer (COO) Mike ZafirovskiMotorola President and Chief Operating Officer (COO) Mike Zafirovski



AgendaAgenda





Benefits Of Cross-Functional Teamwork Benefits Of Cross-Functional Teamwork

Highly Effective In Tackling The White Spaces Highly Effective In Tackling The White Spaces

““Top” Lessons LearnedTop” Lessons Learned

Learning And Leveraging Best PracticesLearning And Leveraging Best Practices Huge Learning OpportunityHuge Learning Opportunity



““Top 10” Lessons LearnedTop 10” Lessons Learned

PridePride

Lots Of Work And Lots Of Fun Lots Of Work And Lots Of Fun Built Enduring TeamworkBuilt Enduring Teamwork

Leadership CommitmentLeadership Commitment

Unshakable Unshakable Commitment Is Commitment Is Critical Critical To SuccessTo Success

Focus On LinkagesFocus On Linkages

Focus On Individual Focus On Individual Categories Is Not Categories Is Not

Enough Enough



Constructive Dissatisfaction & Constructive Dissatisfaction & PassionPassion For For Continuous ImprovementContinuous Improvement

Winning Raised Our Stakeholder ExpectationWinning Raised Our Stakeholder Expectation

““Top 10” Lessons LearnedTop 10” Lessons Learned



The award is a key milestonevalidating that we are doing

the right things right!



Georgia Oglethorpe Conference September, 2003 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or.

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