From my experience, this approach produces substantial savings. We’re reviewing other support functions and in 1999 we’ll organize them to deliver services in the most cost-efficient and effective manner. We began replicating reliable processes across the company. One key process involves how we deploy capital. To help increase the effectiveness of our investments, we’ve put in place a disciplined process of reviewing each request for capital. As we review these requests, they must demonstrate that they are the most cost-effective way of supporting our long-term strategies. Only projects that meet our strict criteria receive capital. This approach eliminates nonstrategic efforts, develops better-planned projects, and eliminates waste and rework.

We believe this process will ultimately increase the effectiveness of our capital spending by 20 to 30 percent. But our disciplined approach to capital spending is already producing results. By applying a “one-company” approach to investments, we reduced our capital expenditures, excluding acquisitions, this year by $41 million compared with our spending in 1997. Other reliable processes will help us produce a safer and more productive work environment. >