The timing could not have been better. One year ago, as the economy and the manufacturing industry were dusting themselves off from the effects of recession, Keith Nosbusch was poised to become chief executive of Rockwell Automation. With his appointment occurring in the year of Rockwell's 100th anniversary, and with important bets already made on transforming Rockwell into a more consultative, solutions-oriented business, expectations were high as Nosbusch, a 30-year Rockwell veteran, prepared to succeed Don Davis, Rockwell's longtime chief.
As luck, or some might say events, would have it, economic and industry conditions cooperated with the change of command. As Nosbusch prepares for his first anniversary as CEO next month, he will do so with four straight fiscal quarters of sales growth and a 6% to 8% growth projection for 2005. "I've been very lucky that the economy has been a tail wind rather than a head wind," he said at Rockwell's Automation Fair in Orlando.
But Nosbusch knows that luck has its limits. Even as underlying conditions were improving over the past year, Nosbusch has been making a series of changes at the automation giant that, in sum, will have a major effect on the company in years to come. In brand identity, internal IT, key executive positions, alliances such as with Intel on application specific chips and in how it goes to market with its foundation Logix architecture, Nosbusch has begun to put his stamp on Rockwell Automation.
Brand identity, for example, is being honed. "One of the insights I've had in the first year on the job is the need to keep the message very simple," he says. "We had prided ourselves on having messages that were complicated. We're getting pretty close to crystallizing what the brand means to customers. Now, we want to sharpen that message -- and not in technology terms." Insiders say a new brand identity campaign will be rolling out shortly.
Another key initiative, which will have important ramifications with customers, is in IT. Last year, Nosbusch named Mike Jackson as CIO. Jackson's charter is to bring rationality and order to Rockwell's IT infrastructure -- the company has about 65 data centers -- as well as to modernize its applications portfolio. Improved operational efficiency, as well as better customer order management, are among Jackson's priorities.
The Logix strategy is also changing. "We will continue to evolve our vertical go-to-market model," he says when discussing Rockwell's overall marketing approach. "Logix is a horizontal platform, but we need to take the next step and show what Logix can do for an automotive customer or a pharmaceutical customer." Rockwell has said that Logix has been a key player in the company's financial performance, and Nosbusch is very upbeat about its prospects going forward. "We think we can grow it 20% or so for an extended period of time -- for the next five plus years," he says. Logix is also slated for important functional extensions. Control Systems SVP Steve Eisenbrown says he will introduce a safety module for the architecture this quarter.
As he enters his second year, now with the added title of chairman, Nosbusch is focused on execution, and it's sometimes hard to get him off the subject. But when asked to reflect on his first year as CEO, an almost innocent expression crosses his face. "You do come to understand you're accountable for all of it," he says. "There's a little bit of awe to that."