Document 3J0nJzmoBZ6Rx0M3ezJN1rdwy

'riii-c i -e( )ck j skhtt* a jmi'anv \^T NEWHAVgfl.CO'JMCCTlCUtOSWUSA NTERNAL MEMORANDUM show Nivt. mu iNo cobaosaiion of oofS'EC and aoc>sc* DATE. February 6, 1980 TO: Addressees Listed Above fROMSUBJECT. E. S. Reed principles of business management for rockbestos 3 S PIAINTIFPS 1 EXHIBIT__ ! E-T37 - OTHER ADDRESSEES FOR INFORMATICS E. E. Barth W. F. Hogan G. G. Littlehales A. H. Lybeck UT . R. Marth R. L. Mullen / F. R. Postma / To assist you in carrying out your assignments, I am attaching a list of principles that seem to be appli cable, in general, to Rockbestos management. ESR/rhd attachment RBB 0129'' rRIN'TPU:S OF n ns Tunis'; MANAGEMENT FOR RfCKl'IiSTOS Every company has its own opportunities and challenges which must be handled with consistent, yet flexible response if the company is to continue to grow pro fitably and earn a satisfactory return of stockholder's investment that justifies reinvestment in the business. Some thoughts on this line........................... We are in busi/wss for the long-term. This principle should bo reflected in the products we design, in the quality that we produce, and in the relationships that we maintain with our customers. We should design and market products that instill a sense of con fidence in the user that the product will perform its intended purpose effectively and without need for replacement or maintenance which might bo experienced were he to buy an inferior product. We know that the environment i.n winch our products are operatina is constantly changing, therefore, we anticipate change and develop new product designs with needed performance characteristics. We cannot make a satisfactory long-term return on our investment with the buildings, machinery, and equipment representing that investment, but with the people who manage and operate the business. We must, employ the most knowledgeable and highly motivated people available. They must bo compensated fairly in proportion to their contribution to the growth and development of the company. When faced with problems, each individual must learn to act first and not to react later. If, however, our only choice is to react; we should react promptly and effectively to control the problem as quickly as possible. facilities must bo maintained to provide a hospitable environment for our employees with attention paid to the safety of our equip ment and procedures and to the proper training of our workforce. Those responsible for the selection, purchase, installation, and operation of manufacturing equipment, should keep in mind that being in business for the long-term means that we need to carefully con sider the cost per service hour of the equipment we purchase and not just the initial cost. Every individual employee should have a clear understanding of their function and how they fit into thr overall success of the company. The supervisors have the responsibility of clearly identifying these factors for their employees, and the employee has the responsibility to himself to be certain that he understands and is effectively discharging his function. There should be no confusion on this point, but if there is, the individual should take the responsibility to clear it up immediately. Rbb 01292 PRINCIPLES OF BUSINESS HAMAGF.HrNT FOR ROCKRECTOS Page 2 E. S. Reed The Harmon phi losophies r elating t o business- ethic:;, equal oppor tunity and affirmative action are clearlyone of the basic reasons for the long-term success of The Harmon Group. Rockbestos personnel should be completely aware of these policies and embrace them in all of their business relationships. It. is our belief that to remain .successful in our business on a long-term basis, we require a foundation constructed on our quality reputation and our fair treatment of vendors and suppliers of our basic needs. We believe that to be successful on a long-term basis requires that Rockbestos be the low cost producer in the selected product/ market segments of the business plan. Manufacturiny management has the responsibility to the rest of the organization to provide output of quality product on time with com petitive costs. This can be accomplished provided that supervision controls losses from scrap, excess material usage, or inefficiently utilized labor. Overhead expenses are subject to control and must be controlled to the minimum necessary to provide essential services for the manufacture of the product. Markctina management lias the responsibility to secure the volume of business at the profitability visualized in the husim'ss plan while maintaining a close control on expenses. At th^ same time, administrative control must bo exorcised to insure that orders are accurately and completely prepared to reflect our obligation to the customer so that cable produced meeting requirements of the purchase order can be shipped without delay and accepted by the purchaser. ESR/rhd 2/5/80 RBB 01293