By Jeanny Lim
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Ben Cornett, CEO, Honeywell Security |
Honeywell Securitys Chief Executive Ben Cornett is always on the go. "I try to travel to all of the different countries that we are doing business in," he says. He also makes sure that all his senior leadership team travels a lot and listens to the customers very carefully. "Its pretty easy, for example, to sit in New York or Los Angeles and think you know the Asian market. But it just doesnt work," says Cornett. Over the past year, he has made several trips to various parts of the world. He has several more trips already planned.
Honeywell is a US$ 26 billion global company investing over US$40 million a year in research and development in the security business alone. With sales of US$2 billion in 2005, Honeywell Security is one of the worlds largest providers of security products. The head of the security giant estimated that his companys growth in 2004 was phenomenal and 2005 was the best year in the companys history.
COME, LISTEN AND WIN
Cornett attributes his companys success to a program called "Partner of Choice." It is Honeywell Securitys unique strategy for systems integrators and dealers. The company wants to remain strictly as a technology and product provider and do not want to compete with them directly. It is kind of a Win-Win business strategy where Honeywell Security provides technologies and products that systems integrators and dealers need to compete and win projects, and there is no conflict of interest. And the company is ready to do whatever it takes to be the partner of choice in the security industry. "We think that most important thing we have to offer and the reason we are number one is we listen very carefully," says Cornett. "So the most important strategy is to come, listen, learn and try to fully understand what is needed by the integrators and security companies." Everyone in his company from the chairman all the way down to the newest salesperson is really out talking to customers on a regular basis. And what they were told is translated into products. Cornett believes it is not scientists who decide what is going to be a great new item that we should invent, but the customers. "I think staying in close contact with all of our customers and listening very carefully and producing what our customers have asked for at a fair price and with excellent quality is a reason why our growth has been what it is today," he says.
"After all, its all about people, all about relationships." -Ben Cornett, CEO, Honeywell Security-
OUT IN FRONT LEADING THE CHANGE
According to Cornett, a 30-year security veteran, probably the single greatest trend in security is integration. By integration, we have totally integrated and interoperable security systems. There isnt one technology that is the great thing, but its the integration of all the different technologies that really counts. Other than that you have to go to every different part of the world. In every different part of the world different things seem to be the important item for that part of the world. When asked about what Honeywell Security is doing in the era of integration, Cornett says that the company tries very hard to make sure that every item they design and manufacture works well with all of their other products not only with their newest products but is backward compatible to the items that they had ten years ago. For example, Honeywell Securitys intrusion business has been around for over 70 years and their keypads today work perfectly with their systems from 15 years ago. That means you can upgrade your system without having to replace the entire system. "Thats not true with many manufacturers and thats one of the things that sets us apart," says Cornett.
A Chinese proverb says, "When the wind of change blows, some build walls, others build windmills." In the security industry, the transition from analog to digital has already begun and today we see a strong trend toward the use of network connectivity in security systems. As the wind of change hits the industry, there will be huge losers and equally great winners. The ones who resist change will surely be left by the wayside as this worldwide transition unfolds. From Cornetts point of view, changes are always good. They sometimes get you into a predicament, but how to get out of it will reveal your true strength. "One of the beautiful things about being Honeywell is that the company has phenomenal engineering capabilities," he touts. "Life would be very easy if there were never any changes. But we would not be the best if that were the case because everybody else would catch up to us."
As far as communication technology is concerned, its always going to be different communications necessary for different parts of the world. There are normal dial-up telephone lines being used, dedicated lines being used, voice over IP being used, GSM being used and Internet monitoring beginning to happen. Honeywell Securitys goal is simply to make sure that they provide the proper technologies to allow their partners and customers the ability to use whichever communications tool they choose to use. Cornett explains the ability to change rapidly as is necessary keeps the company well ahead of the competition.
OUTPACING THE MARKET
Cornett predicted that in 2006 in the security market, there would be phenomenal growth in Asia Pacific, solid growth in the U.S., very good growth in Latin America, but single-digit growth -- very low -- in Europe because the economy there had yet to turnaround. The growth for all of security business in 2006 was expected to be somewhere in the 7 to 8% range. When it comes to annual growth rate, Honeywell Securitys growth has always been at least twice the market growth. They have been fortunate enough to take some share away from others. And through the "Partner of Choice" program, they could find ways to help their customers grow. The global security player finds it as the easiest growth path there for them. But doing both of those topics, Cornett believes the company can have double-digit growth, at least twice the industry level.
PEOPLE, THE LIFEBLOOD OF BUSINESS
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Ben Cornett and his security leadership team |
No matter how well you have been doing, future success is not assured by past glories. Cornett considers the biggest challenge Honeywell Security has is trying to remember how they get to where they are. He says, "We are trying to make sure that we never become complacent and that no one in our team ever develops any arrogance about being number one. As soon as you do that, you soon cease to be number one."
As an entrepreneur, he puts great emphasis on people. He believes an organization is only as good as the people in it. Getting the right people to do the right jobs is his job. With some of the best people anywhere, he thinks if he sends those people out to walk in the shoes of the customers throughout the world, they will learn very well and then come back and be able to produce what is necessary. "We have the kind of people who are fully dedicated to doing a great job for our customers everyday. Our customers grow, our growth will be automatic. We wont have to worry about where our growth comes from." But he seems to worry about one thing at least: what do the customers really want? Thats why he is constantly asking the question: how can we help you win?
Jeanny Lim is editor-in-chief of SecurityWorld INTL. Send your comments to swied@infothe.com.
For more information, please send your e-mails to swm@infothe.com.
ⓒ2007 www.SecurityWorldMag.com. All rights reserved.
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