L.E.A.D.
prepares the Next Generation

Investments in innovative technologies, expanded manufacturing capabilities and new products and services will help Caterpillar meet a new era of demand. The most important investments, however, will be made in the people who ultimately drive the business to realize its potential. Accordingly, leadership development is a key focus of Caterpillar's Vision 2020 strategy, and the company is investing more time and money in the effort than ever before.

Ironically, it took the downturn of 2008-2009 to underscore the need for increased leadership development. "It was the deepest recession employees had ever experienced," says Bonnie Fetch, Caterpillar director of People and Organizational Development. "It awakened us to the need for superior leadership throughout the company and the development of a high-performance culture that can perform through the business cycle."

To this end, Caterpillar has created the Leadership Excellence in Accountability and Development program, or L.E.A.D., a global initiative introduced in 2011. L.E.A.D. focuses on four levels of leadership – first-line supervisors, managers, department heads and executive officers – in all countries where Caterpillar operates.

L.E.A.D. offers innovative coursework combined with learning in the field. Each level of leadership engages in learning programs tailored to their needs and focused on the strategic needs of the company.

For leaders with the potential to grow to senior executive level, L.E.A.D. offers Digging Deep – our flagship program developed in partnership with Stanford University Graduate School of Business. In addition to classroom instruction from Stanford faculty, participants also spend a week on job sites in growth markets like China and Brazil and participate in Corporate Social Responsibility activities. These trips offer a firsthand look at sustainability efforts and interaction with clients in different parts of the world.

"We're merely stewards of the business," notes Caterpillar Group President and CFO Ed Rapp. "As I see it, the most critical role I have is to make sure that I leave the business better than I found it and to turn it over to more capable hands when I leave."

Development from the ground up will ensure Caterpillar's future remains in the hands of people with the best interests of Caterpillar in mind. "We recognize that Caterpillar is important in the world marketplace," adds Fetch. "We're taking ownership of ensuring we have leaders ready to lead." The goal is to develop leaders who can thrive in a continually changing marketplace, engage their workforce, focus on their customers' needs and shape a culture of accountability and performance.