Spotlights: C-Suite
understanding their business as well or better than they understand it. You have to spend a lot of time with your customers and know their needs, not only today’s needs, but what their needs are going to be in the future. My management philosophy is if I do the right five things and set the right five goals for the company, I’m going to win. I also want to be sure that the entire team has their five goals to support the company goals. And what I find is people will have a list of 20 things because they don’t know how to prioritize, what matters most. When Caterpillar developed its strategic goals in 2017, it was so simple. It was focused on profitable growth. And to achieve profitable growth, we were going to focus on operational excellence, services, and expanded offerings. Simple is always more successful. HM: That sounds like servant leadership. Ainsworth: Yes, I believe in servant leadership. The higher you go on the corporate ladder, the more people you serve. It’s called upending the pyramid. Leaders are there to serve the employees and to serve the customers. By doing that, you achieve great returns for your shareholders.
HM: So, you evolved that business? Ainsworth: Railroads generate a lot of scrap. There’s approximately 1.6 million rail cars in the country, and those have a life of 30 or 40 years. So, you can do the math. There’s going to be 40 to 50 thousand railcars a year scrapped. We started scrapping cars and we realized that the components off the cars could be reused. The railroads reconditioned those components in their own shops. It was like the automobile business was years ago when they owned iron ore mines and steel mills and most everything that was necessary to build an automobile. But eventually they outsourced those businesses and focused on their core business, assembling and selling autos. We figured that eventually the railroads would do the same thing and focus on their core transportation business and outsource non–core activities. So, we started positioning ourselves to provide these services to the railroads. On a railcar, you have steel wheels running on a steel rail. The wheels and rail wear down, but you can recondition them. We brought in people with the expertise, and we had one wheel shop and then two and then a network. In ’89 I went to one railroad and said, “Hey, you’re going to outsource your wheels one day.” They threw me out of the office; however, in 2000 we were awarded 100% of their business. We had a vision and developed a strategy to grow in the high-volume components that need to be serviced regularly. That produces a consistent income stream. We transitioned from just scrapping railcars into a railroad services business, reconditioning components. The wheels were just one part of our strategy. Over time, we built a whole portfolio of reconditioned rail components and select new components. HM: As you evolved, did you have a particular approach, a particular philosophy? Ainsworth: You can never lose sight of the customer and their needs. You have to create the best value for your customer. You must be willing to obsolete your own practices and say, “Hey, the industry’s going somewhere else and we’re willing to look at it a different way.” Because if you’re not willing to adapt, somebody else will. It’s
HM: From your perspective, does servant leadership apply across the org–chart?
Ainsworth: The people that have worked for me who have been successful are the ones that when they come into my office, it’s about the people that work for them. They are focused on helping their employees succeed, taking obstacles out of their way, helping them focus on key priorities. The people that aren’t as successful are the ones that come in and say, “Where’s my next move? I think it’s time for a raise.” And it’s okay to meet with your boss and talk about your goals occasionally, but over time the people that focus on their team’s success are the most successful. The person cleaning the plant is as important as the person in the executive office. And you have to show everyone how they contribute to the success of the company and make them feel good about it.
26 Harbert Magazine, Spring 2025
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