READY™ to shape the future - S2E1

Show ID (00:04):
This is Power Onwards, the podcast that unveils how power technology shapes your everyday life.

(00:16):
You are listening to Power Onward. What is power in your world? Power Onward.

Kim Nguyen (00:26):
This is Power Onward, the podcast that unveils how power technology shapes your everyday life.

Kim Nguyen (00:33):
It's a warm summer morning and you're getting ready to drop your daughter off at the WNBA All-Star STEM event. As you arrive, a group of volunteers and matching tees greet the kids, check them in and hand out name tags. Inside, others are busy setting up a table stacked with Cummins engine, Lego kits ready to engage the kids in hands-on learning. Maybe you don't think much of it, maybe you drop your kid off, smile, nod, and get on with the rest of your day. But behind each of these events is a decision, a choice by a company to show up, not just in the marketplace, but in the community. Not just to power the world, but to make a positive difference. At Cummins, that choice isn't new. For decades, leadership in our global communities has been a strategy, one that's intentional in evolving to me a changing world. Hi, I'm Kim.

Jim Schacht (01:23):
And I'm Jim.

Kim Nguyen (01:25):
Jim, let's start with why community involvement is so important to you. What led you to this work?

Jim Schacht (01:30):
Well, thanks for asking, Kim, and it's nice to be with you. I've been aware of community involvement for most of my life for many reasons. The first is that I grew up in a small Midwestern town called Columbus, Indiana, which happens also to be the headquarters community of our company, Cummins, which means I have been aware of the positive impact a large company can have on its community and vice versa for my entire life. Another reason is my dad worked for Cummins for 31 years, and so by extension, the people I knew growing up, my role models, the adult coaches and counselors that I had, in hindsight, they worked at Cummins and they left a big impression on me because they all were involved in the community and that is a value that was important to them that they instilled in me. And the third reason is I've worked at Cummins for 15 years and throughout that time I've had many jobs doing more traditional things associated with our company power and torque. I've learned about engines and customers and channels, but throughout that time I've also been very engaged in our community. So when I had the chance to join what is a function we call corporate responsibility, I jumped at it. And the reason is that's where my passion is and where I think I can have the greatest impact. Effectively. Going full circle to my upbringing.

Kim Nguyen (03:03):
What a very special connection, not just to Cummins, but to the community and beyond. Was there a moment or experience that shaped your passion for community impact?

Jim Schacht (03:12):
The experience I had was largely two of them. One is growing up as I mentioned and watching not only my dad but my mom and her engagement in our community. She was involved in everything. And that left a great impression on me and started me thinking about what does engagement in a community look like and how do you add value just as a citizen? And then while I was at Cummins, I started to get involved in a nonprofit called Girls Inc. I ended up volunteering. I ended up serving on their board, and this was very inspirational to me, which I found a rewarding. And so that was a pivot to my continued leadership in the community.

Kim Nguyen (04:00):
Can you tell me more about Cummins legacy in community leadership?

Jim Schacht (04:03):
Our company has a long and very proud legacy of community leadership, and you have to go back all the way to the founding of our company in 1919. And since that time, values have defined our company Cummins. And to understand the legacy, you really have to think all the way back to our legendary and visionary chairman, Mr. JI Miller, who throughout his career of leading Cummins for over 40 years instilled in the company a value-based approach, a commitment to purpose over profits, and a commitment to community involvement and community leadership that remains with us today.

Kim Nguyen (04:53):
What is spectacular history to be always surrounded by? I know that our history tends to feel everything that we continue to do here at Cummins, and that might be one of the most special things I've learned in my two years here with the company so far.

Jim Schacht (05:06):
Well, I think after two years for you to begin to internalize, that is wonderful. It's one of the most important things about our company. And there's lots and lots of data points that we refer to. I mentioned the founding of our company. Other examples are that in 1954, Mr. Miller decided that we should establish the Cummins Foundation, which is today the giving platform of our company. In 1963, Mr. Miller, who was personal friends with Dr. Martin Luther King, supported him in the now very famous march on Washington. He advocated for the Civil Rights Movement and for the Civil Rights Act of 1964. And then in 1972, Mr. Miller codified his beliefs and his values in establishing a function which we call corporate responsibility to this day. So the legacy is long, it's very proud and is part of who we are.

Kim Nguyen (06:09):
The easiest way to summarize all of this is that Cummins is not new to this. We are absolutely true to this.

Jim Schacht (06:15):
Oh, I love that phrase. I got it from you. It's not new to us.

Kim Nguyen (06:19):
It's true to us.

Jim Schacht (06:20):
It's true to us. Exactly.

Kim Nguyen (06:22):
Now, when I first joined, my first week, I remember doing a triple EEC opportunity and we were able to volunteer outside with Growing Places Indie. There have been so many various volunteer opportunities. So what makes community engagement so unique at Cummins and how do we focus our efforts?

Jim Schacht (06:41):
I often say that I believe we have a very uniquely effective corporate engagement model, and it is organized in three levels. We have a corporate team, which I'm part of that thinks about corporate responsibility. What is our strategy? Where should we direct our resources? And we kind of set the direction or the vision of corporate responsibility for the company. We then have regional leaders. We have eight regions within our company, and those regional leaders view themselves also as community leaders. So they interpret what we're trying to accomplish. And then we have community involvement teams. We have 425 CITs, we call them around the world, which are teams of volunteers that engage in their community, volunteer their time and talent, and get to know the nonprofits as well as prioritize what's needed in the community. And that's our model. You asked about focus. So this is a challenge for all community and philanthropic activities is where do you focus your energies?

(07:48):
Because the needs of communities far exceed any of our resources to address them. So the way we think about it is that we focus our efforts at the intersection of our company's imperatives, what's important to the company and community imperatives, what's important to the community. And in so doing, we align what's important to the company and to the community and have greatest impact. And over the years, that's led us to focus on three strategic areas, which are equity, education and the environment. And that's how we do it. We have a unique community engagement model combined with focusing on those three strategic priority areas, education, equity, and the environment. That's how we stay focused and hopefully maximize the impact, the positive impact we can have on our communities.

Kim Nguyen (08:45):
So Jim, when we were volunteering at the WNBA All-Star STEM event, I noticed a lot of banners promoting Cummins READY. Can you tell me more about what Cummins READY is?

Jim Schacht (08:55):
It's important first to say, Kim, that we are not new to our commitment to education. Our involvement in education goes back to 1957, which is the year that we wrote our first Cummins grant, which actually was to the Lillian Schmidt Elementary School in our headquarters community of Columbus, Indiana, which is still in operations today, which we support through our volunteer efforts and through ongoing grants. Cummins READY is our global strategic education strategy where we today have the biggest impact. It started with a question. I was traveling in Mexico into our San Luis Potosi plant about three years ago, and I had the privilege of visiting a volunteer activity that the engineers in the plant put together, which was a STEM program, which stands for science, technology, education, and mathematics. And our engineers had put together with Lego sets, little cars that ran around a track, and they had invited children from the local school to come in, tour the plant and engage in this activity as a learning environment.

(10:16):
And as I was standing there, my team and I started to think about and ask a question, which is, can we leverage our skillset in the area of STEM more globally to have greater impact? And that led us to our new strategy, which we call Cummins READY. So Cummins READY is our global education strategy, which tries to address to your question, what we understand is a global crisis in education, which is that students and workers increasingly do not have the skills required to be ready for the jobs of the future. And so Cummins READY is our effort to combine what we believe is our skillset in stem science, technology, engineering, and mathematics. We are an engineering oriented company filled with engineers. So we have this skillset and combine that with the very skills that we understand are needed for the jobs of the future. So what Cummins READY does is it focuses our efforts on the entire continuum of education from early learners all the way to adult learners and upskilling existing workers to focus on the skills that are required for them to be ready for the jobs of the future. And our goal with Cummins READY is to create pathways to both educational and career success by empowering these individuals with the skills required for the jobs of the future. And we hope to impact and affect more than a million students and workers by 2030.

Kim Nguyen (12:07):
A major milestone ahead.

Jim Schacht (12:08):
We're looking forward to it.

Kim Nguyen (12:10):
Jim, I really appreciate your time to just tell us a little bit more about community involvement, a little bit of your background and what makes you so passionate. When I first met you, you were telling me and my team about community involvement, your role with corporate responsibility. And at first I was like, yeah, I've read a couple of things and I've learned a couple of things here and there. However, hearing you come and speak today and hearing the impact that you like to create within our communities, it is very contagious and we look forward to continuing to carry out these efforts.

Jim Schacht (12:43):
Thank you, Kim. And I think that if there's anything I could leave you and the listeners with is that Cummins is committed to corporate responsibility and our engagement in our communities. And most importantly, as you just mentioned, it's a passion. It's a passion of the companies, it's a passion of mine personally. It's a passion of everyone in the company. And so it's a pleasure talking with you.

Kim Nguyen (13:07):
Thank you, Jim. Alright, so what's the big idea for this episode? Community involvement isn't a team or a department. It's a value that's been in Cummins DNA since day one. We heard how Cummins is advancing equitable educational systems and high quality learning environments through Cummins READY. That business strategy becomes successful when you align customer goals with community needs and make that alignment part of how the company grows. Because when a company shows up with intention, listens to what the community actually needs and stays committed, that's when responsibility becomes real impact. And for others looking to do the same, it starts with asking one simple question: where can we listen better and lead smarter?

Show ID (13:51):
Power Onward.

Kim Nguyen (13:58):
Thank you for listening to Power Onward. Your support means the world to us. If you enjoyed this episode, please don't forget to subscribe, rate and review on your favorite podcast platform. If you want to dig deeper on what we covered today, check out the show notes for additional links or go to cummins.com/podcast. Until next time, power onward. We are from Cummins, the company that's been innovating toward the future for more than a hundred years. We're no strangers to rapid change, global shifts and economic uncertainty. We want to be your constant during the energy transition whenever, wherever, forever. Power onward.