Fall 2003

Herbert L. Henkel, MBA '79
Chairman, President and Chief Executive Officer

Ingersoll-Rand Company Limited

Herbert L. Henkel was elected chairman of the Board of Directors of Ingersoll-Rand Company in May 2000. Also, he retains his previous titles of president and chief executive officer of the company.

Mr. Henkel came to Ingersoll-Rand in April 1999 from Textron, Inc., where he was president and chief operating officer. Previously, he was president of Textron&'s Industrial Products segment. Before that, he was group vice president with responsibility for Textron&'s industrial segment. From 1987 to 1993, he was president of Greenlee Textron, a maker of tools for wire and cable installation and maintenance.

Before joining Textron, Mr. Henkel was president and chief operating officer of Southern Fastening Systems and Unifast Industries, Inc. He had previously served as vice president of sales and marketing for Chicago Pneumatic Tool Company and Hilti, Inc.

Mr. Henkel holds a bachelor of science degree in aerospace engineering and applied mechanics, and a master of science degree in mechanical engineering from Polytechnic University. Also, he holds a master's degree in business administration from Pace University's Lubin School of Business. He is a director of Pitney Bowes Inc. and C. R. Bard Inc.

Herbert L. Henkel, '79 — Building Shareholder Value With a World-Class Team

"As a company participating in the global marketplace, you must have general management skills, people who know leadership, strategic initiatives, and operations excellence," said Herbert L. Henkel, '79, president, chairman, and CEO of Ingersoll-Rand (IR), a diversified global industrial enterprise, which produces the leading brands for the markets of climate control, industrial solutions, infrastructure, and security and safety, in his afternoon lecture to undergraduate students on October 13, 2003. Henkel visited the Pace Westchester campuses as part of the Lubin Executive in Residence program. He was Executive in Residence on the New York City campus in Fall 2002.

Herbert L. Henkel meeting with a group of Lubin Leaders and Scholars during his Executive in Residence Day on Westchester campuses.
Holding B.S. and M.S. degrees in engineering from Polytechnic University, and an M.B.A. from the Lubin School, Henkel held a series of senior-level management and executive positions at Textron, Inc., Southern Fastening Systems, and Unifast Industries, Inc., to name a few, prior to moving to Ingersoll- Rand. He also is a director of Pitney Bowes Inc. and C.R. Bard Inc., and a member of the Lubin Advisory Board. In April 2004, he will receive the prestigious Pace University Leaders in Management Award at a dinner in his honor at the Plaza Hotel.

Henkel's day at the school started with a formal luncheon at the Pleasantville campus with a small group of faculty, students, and staff, during which he discussed various issues of the current business environment. In the lectures that followed in Pleasantville and White Plains, Henkel presented to undergraduate and graduate students Ingersoll-Rand's approach to building shareholder value. "We run our company with three different groups of business propositions: enterprise governance, global growth sector, and shared service model," commented Henkel, on the way Ingersoll- Rand, a $10-billion company, efficiently handles the 150 different businesses that comprise the full company. As a part of this effort, he explained that the company had instituted Ingersoll-Rand University to offer their employees a cohesive training and development program. "Collectively, those three groups create our approach to building shareholder value" he concluded.

IR University
When explaining the importance of getting 45,000 employees prepared to provide process excellence and turning them into one cohesive team, Henkel opined, "The first key building block is developing strategic competence. Ingersoll- Rand University's [mission is] to provide the technical knowhow to [employees] as to what it is that we need to be successful in our jobs."

Henkel commented that doing business the proper way is very important: "We provide on our Web site the common code of conduct and practices that every one of our employees operating in 125 countries around the world need to live by." By doing it in seven different languages, the company explains to people that sometimes "what they do locally, normally, is not an acceptable way of doing business elsewhere."

Underlining the importance of best performers within the company sharing their approach with other businesses, Henkel commented: "We leverage learning from each other, so that you only have to solve the problem once."

Pointers to the Students
Henkel's executive assistant, Louise P. Jennee, who also spent the day at the School, commented that Henkel believes young people can really make a difference in the business world. "[Mr. Henkel] understands it is very important to get young people in our company as employees, because they have the best ideas and a lot of enthusiasm," she said.

Henkel's recommendation to students: "It's helpful to broaden your perspective. You need to know how to interact with other people to the degree that you understand what solutions they have to accomplish.

"I really encourage you to look at the companies you are thinking about [in terms of] what they have in place that will make them successful tomorrow. The world in which we operate changes so fast that you want to make sure you are not signing on for companies that were successful yeste