Manufacturing Hall of Fame 2012 Inductee: Lewis Campbell

Dec. 17, 2012

As the CEO of Textron in the 2000s, Lewis Campbell spearheaded one of the most impressive corporate transformations in modern manufacturing history. In 2002, Campbell launched Textron Six Sigma, which has become a fabric of the company’s operations.

Josh Cable

When Lewis Campbell was named CEO of Textron Inc. (IW 500/100 ) in July 1998, the industrial conglomerate seemed to be on a roll.

Textron -- whose portfolio of companies includes Bell Helicopter, Cessna Aircraft and E-Z-Go -- was in the midst of a 40-quarter run of year-over-year net-income or earnings-per-share improvement. Beginning in May 1999, when its stock peaked at $98 per share, Textron recorded six consecutive quarters of year-over-year EPS growth of more than 15%.

"My birthday is in May, and I remember thinking to myself, having been CEO for about a year, 'Gosh, this job is great. It's not going to get any better than this,'" Lewis recalls.

Lewis had no idea how right he would be. By late 2001, Textron's stock had dropped to around $30 per share, operating income was deteriorating and it had become clear that Textron's EPS-focused business model -- which was the catalyst for a slew of ill-advised acquisitions -- wasn't working.

That perfect storm, however, set the stage for one of the most impressive corporate transformations in modern manufacturing history.

Under Campbell's leadership, Textron shed non-core businesses -- most notably its automotive-trim unit in 2001 -- and restructured the company to take advantage of common processes and shared services. Campbell and top managers also decided that return on invested capital -- not earnings per share -- should be the company's key financial metric.

In 2002, Campbell launched a companywide continuous-improvement program -- Textron Six Sigma -- which, Textron says, "has become part of the very fabric of our company." Today, more than 95% of Textron's global leadership team has attained green-belt certification.

A mechanical engineer by trade, Campbell joined Textron in 1992 as COO after a 24-year career with General Motors Co. (IW 500/4). He retired from Textron in 2009, only to be lured out of retirement in August 2012 by commercial-truck maker Navistar International Corp. (IW 500/86 ).

"You're going to be amazed at the progress you see at Navistar," Campbell says. "It's a company that I think you'll see turn the corner much more rapidly than most people would guess."

For a full list of the Manufacturing Hall of Fame inductees, click here.

About the Author

Josh Cable | Former Senior Editor

Former Senior Editor Josh Cable covered innovation issues -- including trends and best practices in R&D, process improvement and product development. He also reported on the best practices of the most successful companies and executives in the world of transportation manufacturing, which encompasses the aerospace, automotive, rail and shipbuilding sectors.

Josh also led the IndustryWeek Manufacturing Hall of Fame, IW’s annual tribute to the most influential executives and thought leaders in U.S. manufacturing history.

Before joining IndustryWeek, Josh was the editor-in-chief of Penton Media’s Government Product News and Government Procurement. He also was an award-winning beat reporter for several small newspapers in Northeast Ohio.

Josh received his BFA in creative writing from Bowling Green University, and continued his professional development through course-work at Ohio University and Cuyahoga Community College.

A lifelong resident of the Buckeye State, Josh currently lives in the Tremont neighborhood of Cleveland. When the weather cooperates, you’ll find him riding his bike to work, exercising his green thumb in the backyard or playing ultimate Frisbee.