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Table of Contents Executive Summary ........................................................................................ 3 Stu Reed: Executive Biography ..................................................................... 4 Company and Organization Profile ................................................................ 5 Communication Strategy .............................................................................. 12 Awards & Recognition .................................................................................. 26 Volunteer Positions ...................................................................................... 27 Ethics and Professionalism in Communication.......................................... 31 Measurable Results ...................................................................................... 32 ISC Business Accomplishments through the Top 6 Priorities .................. 33 Concluding Thoughts ................................................................................... 37 DVD of Stu Reed ........................................................................................... 39 Seven Supporting Documents ..................................................................... 40

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Executive Summary Recognizing the importance of reaching and interacting with multiple stakeholders – business leaders, customers, employees, industry/financial analysts, peers, his staff, the supplier community and academia – Stu Reed, executive vice president, Motorola Integrated Supply Chain (ISC), uses communication to help drive business results. Stu often describes communication as one of three pillars – process, systems and communications – for any successful, results-driven business strategy. According to Stu, these three areas must be in balance for a business to achieve growth and profitability, especially during a time of major transformation. ISC operations certainly reflect massive change since the spring of 2005 when Stu was hired at Motorola. During that period, Motorola has shifted from four primary business units to three – Connected Home Solutions, Mobile Devices, and Networks & Enterprise. At the same time, all ISC operations have been unified into one supply chain organization, as opposed to four distinct business-focused teams with redundant capabilities. The integration effort has enabled Motorola to grow revenues, profitability and overall production output – while efficiently reducing its global manufacturing footprint by 40 percent. The integrated organization represents 36,000 employees and contractors, or more than one-third of Motorola’s overall population. Stu’s ability to convey and reinforce the key principles that spur transformation and progress has motivated a workforce that during 2005 and 2006 repeatedly set quarterly records for production and distribution – helping Motorola to meet expanding worldwide demand for its vast product portfolio. When he’s not busy leading employee town hall meetings or participating in facility tours or operations reviews in one of 11 manufacturing and fulfillment centers in nine countries (e.g., Berlin, Germany; Ft. Worth, Texas, USA; Jaguariúna, Brazil; and Tianjin, China), Stu is employing a compelling, consistent and simple messaging strategy with supply chain stakeholders from around the world. He uses the same set of critical messages consistently, tweaking as necessary, while sharing the vision of creating a best-in-class “One Motorola” supply chain organization that will enable growth and profitability, and result in a competitive advantage for the company. Stu regularly communicates about the ISC’s “Top 6 Priorities” and “4 Key Behaviors” that have contributed to creating a high performance culture worldwide. By sharing and reiterating these strategic imperatives, Stu led the supply chain to previously unscaled heights. One example is the advancement of the formerly unranked Motorola supply chain to #15 on the Supply Chain Top 25 list of AMR Research Inc. in less than one year. AMR is a Boston-based research firm that ranks the top supply chains. Regardless of challenges that culture, language and distance may pose, Stu is committed to communicating in a meaningful manner. This is his journey – to lead a major global transformation that creates a distinct competitive advantage and accelerates the benefits of rapid change to Motorola and its customers.

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Stu Reed: Executive Biography

Stu Reed Executive Vice President Integrated Supply Chain (ISC) Motorola, Inc. Stu Reed is executive vice president of Motorola's Integrated Supply Chain organization, which includes all customer fulfillment centers, logistics providers, manufacturing facilities and procurement. Stu joined Motorola in April 2005 with a mission to transform the company's supply chain into a competitive advantage. Prior to that, he spent more than 20 years at IBM Corporation, capping his career there as vice president of worldwide manufacturing for IBM's integrated supply chain. In this role, he was responsible for all hardware and software manufacturing and engineering for the $96.5 billion company. Stu served as a key thought leader and implementer among the team of senior executives who transformed IBM's supply chain operations. Prior to this role, Stu was vice president of systems and software products, with responsibility for manufacturing operations for the company's systems and software groups. Before his roles in IBM operations, he served as vice president of strategy, process and information technology. He led the development of strategy, processes and systems to support IBM's newly formed integrated supply chain organization. Stu earned a master of science degree in management from the Massachusetts Institute of Technology (MIT) and was appointed a Sloan Fellow. He holds a bachelor of arts degree in materials and logistics management from Michigan State University, where he also serves as a mentor and advisor to help advance the supply chain as a profession and enable top supply chain students to understand opportunities at Motorola.

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Company and Organization Profile

Who We Are: Motorola, Inc. Motorola, Inc. is a Fortune 100 global communications leader that provides seamless mobility products and solutions across broadband, embedded systems and wireless networks. Seamless mobility means you can reach the people, things and information you need in your auto, home, workplace and all spaces in between, enabling smarter, faster, cost-effective and flexible communication. Motorola is comprised of three businesses that power seamless mobility: Connected Home Solutions, Mobile Devices and Networks & Enterprise.

Motorola’s Integrated Supply Chain (ISC) Stu leads Motorola’s Integrated Supply Chain (ISC), reporting directly to Chairman and CEO Ed Zander, which is a bit of an anomaly among large manufacturers. This relationship places a premium on strategic decision-making since a unified supply chain directly affects the results of each Motorola business. The ISC ensures that customers of the company’s three business units receive products and services when and how they want them. The ISC does this through a coordinated network that includes customer fulfillment centers, logistics providers, manufacturing facilities and procurement.

Integrated

Supply Chain

Integrated

Supply Chain

Ed Zander

Chairman and CEO

Motorola, Inc.

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Devices

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DevicesConnected

Home Solutions

Connected

Home Solutions

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Enterprise

Networks &

Enterprise

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Motorola ISC Senior Leadership Team

“Actions speak louder than words. Stu is the only supply chain leader I know of with a full-time communications director.”

-- Greg Fern, vice president, Mobile Devices, ISC

Kathy PrattExecutive Assistant

Rich ValinFinance

Judy Baranowski

Quality & Supplier

Performance Management

Greg FernMobile Devices

Tim CawleyGlobal Logistics

Jim BrennanConnected Home

Solutions

Bob PerezGlobal Manufacturing

Arlis McLeanHuman Resources

Shail GodambeStrategy

Pattie SchieleCommunications

Pattie SchieleCommunications

Cathie KozikInformation Technology

Cathie KozikInformation Technology

Michael AnnesLegal

Michael AnnesLegal

Rita LaneChief Procurement

Officer

Rita LaneChief Procurement

Officer

Lonnie BernardoniNew Product Introduction

Lonnie BernardoniNew Product Introduction

Stu ReedExecutive Vice President

Integrated Supply Chain

Mike FlemingNetworks & Enterprise

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Quality & Supplier

Performance

Management

Strategy & Business

Transformation

SHARED

SERVICES

Connected Home

Solutions

Legal

IT

HR

Finance

Communications

Executive Vice President

Integrated Supply Chain

Global

Manufacturing

Global Logistics

New Product

Introduction

Procurement

Networks &

Enterprise

Mobile

Devices

ISC Organization Structure

ISC in Action The ISC includes all resources and processes that begin with components and extend through the delivery of the finished product to customers. At the most basic level, the ISC introduces new products, procures hardware and software, builds products, and packs and ships manufactured goods.

ISC Vision Motorola’s ISC organization will be the #1 supply chain and a driving force behind the company's growth and profitability.

Business Challenge:

Transforming the ISC into a #1 Supply Chain – Quickly!

Communication Challenge: Communicating the Transformation Effectively – Making it Sustainable!

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When Chairman and CEO Ed Zander joined Motorola in 2004, he saw an opportunity to improve Motorola’s growth and profitability through its supply chain function. In fact, one of Ed’s priorities was to achieve supply chain efficiency across all businesses to most effectively deliver seamless mobility solutions to its customers. In April 2005, Motorola recruited Stu Reed from IBM to develop and lead a transformation of the company’s supply chain function and turn it into a competitive advantage. Business Challenge: Stu saw an opportunity to transform the former structure of four decentralized business unit-specific supply chains to one integrated organization that would seamlessly support the entire company. One major element of the strategy was to continue Motorola’s growth while enacting a 40-percent reduction in the ISC’s manufacturing footprint by year-end 2006. A dedicated team led by Stu formed a new ISC organization to reach across all company businesses, functions and regions to help achieve efficiency and cost effectiveness. Stu and the ISC's 21,000 dedicated employees and some 15,000 contractors – representing more than one-third of Motorola’s overall population – in 2005 began executing the strategy of the new organization. Ed Zander said, “More than any other change in recent years, transforming our supply chain into a single, integrated function will help us operate as a unified, global technology leader.” Today, the ISC serves the company as one entity for maximum cost effectiveness – and pursues continuous improvement to enhance its competitive advantage for Motorola as a key contributor to profitability. In addition to financial metrics, the ISC has developed numerous internal measurements to gauge its progress on key Motorola objectives. But Stu also pushed for Motorola to consider third-party evaluation against the most formidable competition in the world. Formerly unranked in the Supply Chain Top 25 of AMR Research, Stu encouraged his colleagues to compare the organization’s abilities to make and move product against companies renowned for supply chain superiority, including direct competitors in cell phones and other handsets. Stu’s vision was to become a best-in-class #1 ranked supply chain organization. The AMR ranking is determined by many

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factors, including financial data, business processes and continuous improvement. (AMR Research: http://www.amrresearch.com) Knowing that the journey to #1 would result in improved efficiencies and satisfied customers, Stu saw that raising the stakes just made good business sense. His challenge, from an executive communication perspective, was how to convey this vision to a diverse cultural mix of 36,000 employees and contractors located in 11 manufacturing facilities and distribution centers on four continents. Communication Challenge: The transformation within the company to develop a One Motorola ISC organization posed key questions about how to establish and reinforce rapid culture change. A focused, sustained communications effort played a critical role.

#1 Supply Chain … How We’ll Get There: Communications Framework Striving for a #1-ranked position is rather daunting. That said, the ISC Communication team worked with Stu to create a framework from which employees could have a context for information that they would receive from Stu – and that he would receive from them during the transformation process. This was significant, given the accelerated pace at which changes were occurring – and the challenges posed by communicating in countries where English was a second language. The framework and messaging had to be simple and consistent. The graphic to the right pictorially demonstrates the vision of being a #1 Supply Chain. The ISC would achieve this vision by focusing on the organization’s Top 6 Priorities and creating a high performance culture by constantly modeling 4 Key Behaviors until they simply became a way of life. Care was taken to always ensure that the ISC’s strategies dovetailed with Motorola’s company-wide “i’MOTO” values. In fact, the ISC serves as a great example, if not the best example within Motorola, of the “One Motorola” concept – which is a key component of i’MOTO. For example, ISC managers work on alignment with each individual employee to ensure that his/her goals synchronize with the supply chain vision to become #1.

“Stu approaches the communication needs of the business like any other challenge/need we have: with a clear strategy and plan that we march to. He clearly knows that it takes constant communication and repetition of key messages to move a large organization.”

-- Tim Cawley, senior vice president, global logistics, ISC

http://www.amrresearch.com/

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Focus Areas – The Top 6 Priorities The ISC undertook a strategic analysis of Motorola’s supply chain functions and identified the Top 6 Priorities that would lead to the success of the organization. Working across all Motorola businesses, the Integrated Supply Chain is focused on: Execution Excellence Deep Supplier Relationships Manufacturing and Logistics Optimization Quality Renewal Common, Leveraged IT Solutions Organization Efficiency

4 Key Behaviors of a High Performance Culture The ISC’s 4 Key Behaviors are part of a high performance work environment. As supply chain employees regularly model each behavior, it enables the ISC to become a best-in-class organization. Below are examples of employees modeling the behaviors which were posted to the ISC intranet portal site.

Employee Examples of Our 4 Key Behaviors "Straight Talk" is simply honest, open and timely communication; it is complete trust and respect among teammates and the businesses we support. For straight talk, where we must raise and resolve issues no matter how difficult the topic, consider this description of Shmoel Baker, provided by one of his colleagues in Arad, Israel. “Continuously focused on integrity and honesty. Speaks his professional mind to both reports and managers. Dedicated and self-obligated. Candid beyond reproach while earning the respect and trust of peers.” Ligia Cunha, front-end engineering manager at our operation in Jaguariúna, Brazil, is a terrific model of "Unbridled Enthusiasm" because she brings high energy to everything she does. While recently assigned to drive the technical operations team to support a highly complex 15-line board production, she kept the team's morale and productivity up by maintaining high performance standards. Ligia has the reputation for leading her team to resolve issues quickly in a complex and deadline-driven environment. Through all of the

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and Logistics

Optimization

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challenges, Ligia is recognized as a role model for sustaining positive energy and a winning attitude! Alejandro Verduzco demonstrated "Righteous Indignation" when he saw operations in Seguin, Texas, that weren’t reaching their potential. He took several steps -- including new measurement criteria, new processes (e.g., lean manufacturing) and new assignments for key team members -- that have led to marked improvements. Alejandro was not content to let old ways prevail, so he took some calculated risks. The result was an organization that measured itself from the customer viewpoint, a team that focused on operational efficiencies and a leader that had everyone “rowing” in the same direction! Why couldn’t three phone-camera test systems be joined into one? In Singapore, the team of Chan Chee Yean, Peh Ai Lin, Mohammed Nazimudeen and Lee Weng Liang asked themselves this question and then took action to make it a reality. In so doing, they showed the power of "Innovation." Demonstration of the 4 Key Behaviors begins at the top. Below is some Straight Talk from one of Stu’s direct reports on this topic.

“No one ‘walks the talk’ like Stu. Every day he demonstrates the 4 Key Behaviors that guide the organization. When it comes to Straight Talk, he allows employees at every level to speak their minds without overreacting to negative feedback or news … this is truly impressive.”


Motorola i’MOTO Values The ISC aligns its communication efforts with Motorola’s i’MOTO values. To transform multiple supply chains into one integrated organization, the ISC’s efforts serve as tangible proof of the importance of operating as One Motorola. The ISC’s Top 6 Priorities and 4 Key Behaviors represent logical, organization-specific extensions of i’MOTO values.

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Communication Strategy To nurture the vision of creating a #1 ISC, Stu threw down the challenge of developing a best-in-class communication program. The strategic objective was to build further understanding of the ISC organization, support a high performance culture and elevate the importance of a One Motorola approach among target audiences. The ISC Communication team has developed a strategy that has been embraced by Stu’s senior leadership team and contributes to the success of the ISC organization and each of its functions. Stu’s commitment to strategic communication programs and processes enable him to effectively reach, and sustain relationships with, many internal and external stakeholders at the local, national and international levels.

“Stu is quite dynamic in tailoring or relating his message to any particular audience. Stu is a strong believer in candid, straight talk with others, and this is appreciated by diverse audiences.”

-- Mike Fleming, vice president, Networks & Enterprise, ISC The ISC’s internal communication objective is to build understanding of, and support for, the new Integrated Supply Chain by focusing on the Top 6 Priorities, 4 Key Behaviors and Motorola “i’MOTO” values. The ISC has established and institutionalized a communication program that incorporates one-way, two-way, upward and downward, sustainable communication vehicles with metrics. The program supports Stu’s vigorous advocacy of effective, consistent and simple communication aligned with corporate strategy.

“Strategy is where all of Stu's management starts from. He will not engage in discussion on communication or messaging without first understanding how it supports the overall strategy. A good reference point is us becoming the #1 supply chain. All messaging has been consistent with that goal.”


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ISC’s Internal Communication Vehicles Stu interacts regularly with all levels of the ISC work force through institutionalized communication vehicles that enable him to share supply chain strategy and successes.

“Stu shows up in lots of different venues – town halls around the world, mentoring relationships with high-potential talent, analyst meetings, business unit meetings, his own operations reviews ... the list goes on.”

-- Judy Baranowski, corporate vice president, quality and supplier performance management, ISC

ISC Portal: The ISC publishes more than 300 original articles annually on its intranet portal — featuring ISC news of business performance, new strategies, best practices and updates from Stu. The portal is accessible by nearly 10,000 ISC employees and all email-enabled Motorola employees. The portal’s unique users have increased by more than 40% during 2006.

ISC PortalISC Portal Quarterly Quarterly Town HallTown HallProcessProcess

Leadership SummitLeadership Summit Town HallsTown Halls DL CommunicationDL Communication

Straight TalkStraight Talk

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Quarterly ISC Town Hall Process: Following Motorola’s quarterly financial earnings release, about 700 associates representing several levels of leaders within the ISC, receive a town hall leader toolkit containing a PowerPoint slide deck with speaker notes, and an overarching message from Stu. Leaders are expected to customize the deck with regional and/or local content and conduct face-to-face town hall meetings during a two-week window, using the deck to ensure consistent messaging across the entire ISC.

“Stu communicates effectively to diverse audiences through his frequent and regular travels to all the worldwide locations of Motorola manufacturing and distribution facilities – as well as those of suppliers and customers.”

-- Shail Godambe, senior vice president, strategy, ISC

Straight Talk with Stu: Stu updates ISC employees with a short personal "Straight Talk with Stu" email message one to two times a month, reporting on new developments, challenges and strategic focus areas. Here is a list of his messages over the past year and a half.

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Straight Talk Live: Stu hosted semi-annual "Straight Talk Live" broadcasts that were viewed through videoconference technology by groups of employees in meeting rooms and/or by individuals with computerized webcast capabilities. These sessions were always conducted twice in a day to accommodate time-zone differences in the Eastern and Western hemispheres.

“The communication meetings that Stu plans involve sufficient time for a dialogue with the meeting attendees. In the case of the 'Straight Talk’ sessions, he requests that associates ask any question through the electronic network either ahead of, or during, the meeting. He also addresses all of the questions immediately or soon thereafter. In addition, in each of the face-to-face employee town hall meetings he conducts globally, Stu fields all the questions personally.”


ISC Leadership Summit: Stu has hosted an annual “Destination One” Leadership Summit during which he brought together the top 150 ISC leaders to acknowledge their good work for the previous year, set the strategy and cadence for the year to come, and ensure that all leaders are committed and held accountable for executing on the agreed-upon strategy. Town Halls: Stu visited employees at each of the ISC’s 11 facilities to share and reinforce his vision and supply chain strategy. He conducted countless Q&A sessions, ensuring associates understood their important roles in Motorola’s journey to #1! This is an especially critical communication tool for associates without email and ISC portal access.

Direct Labor Communication: Stu met regularly with the ISC’s direct labor associates, who work in Motorola manufacturing and distribution facilities and may not have regular access to email or the ISC portal.

“Stu is as effective with direct labor in Asia as he is with his own leadership team. He exhibits real humanity and empathy regardless of level or geography. This is a real skill.”


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Internal Communication Metrics: The Results Speak for Themselves The ISC leadership team expects rigor in evaluating the effectiveness of communication. Internal measurement efforts include quick email surveys to employees on various topics, handwritten evaluations requested after special events, email questionnaires following town hall meetings and Straight Talk Live, and a variety of polling exercises enabled through the ISC portal.

Infrastructure

ISC Leadership Summit:

• 99% understood our 2006 challenges

ISC Straight Talk Live Participants:

• 91% understand ISC strategy

• 90% believe it is a good use of time

ISC Town Hall Leaders:

• 100% believe it is a good use of time

• 100% value our toolkit

ISC Portal Users:

• 89% satisfied with the site

• 42% increase in unique visits YTD

ISC Supplier Conference:

• 92% understood gaps related to quality

Connecting the

Unconnected

Collaborative

Consistency

Discipline Focus

Global Governance

Guidelines

Innovative Policies

Processes

Rigor Simple

Strategic Sustainability

Templates

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Executive Communication Leader Stu Reed in Action

To reinforce the need for rapid transformation and other strategic imperatives, Stu regularly interacts with culturally diverse groups of associates in the Americas, Europe and Asia.

Internal Communications Worldwide

Germany

Germany

In addition to an in-depth factory tour, Stu presented an achievement award (center) to a deserving employee during a town hall meeting. He also underscored the importance of Motorola’s “i’MOTO” values and demonstrated his commitment by signing (right) a giant wall emblazoned with the company’s core values.

During a visit to Motorola’s facilities in northern Germany, Stu shared the ISC vision during a town hall meeting (center), and discussed operational questions (right) as part of a plant tour.

Flensburg

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China

Malaysia

Hangzhou

In addition to a plant tour and a meeting with the manufacturing facility’s management team, Stu reviewed performance metrics (center) with the head of operations, and fielded questions as part of the town hall meeting.

Stu enjoyed one-on-one time with associates (center) upon completion of a town hall meeting, and presented an achievement award (right) during the session.

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China

United States

From ISC headquarters, Stu hosted multiple “Straight Talk Live” sessions with several hundred associates attending. His message was webcast to thousands of employees worldwide, who were able to email supply chain questions for Stu to address.

Stu spoke of Tianjin’s world-class performance (center, top row) during a town hall meeting and received a first-hand look (right, top row) at manufacturing capabilities during an operations review. Also during the visit, Stu was honored to receive a custom Chinese jacket (bottom row) from the Tianjin team to commemorate his one-year anniversary with Motorola.

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Stu in Action across Motorola Stu and the Integrated Supply Chain also have generated awareness through Motorola’s major corporate-level communication vehicles:

Motorola Employee Portal: ISC has been featured on the company’s employee portal, called “my.mot.com,” which is accessible by about 75% of Motorola's 63,000 employees worldwide. TALKMOTO: Stu was featured on Ed Zander's TALKMOTO radio podcast, which was heard by about 15,000 Motorola employees worldwide. Motorola TV: Selected ISC messages were highlighted on Motorola TV, which is regularly viewed by thousands of employees at 10 of Motorola's largest facilities worldwide.

Motorola Headline News: The company’s weekly e-news service for all Motorola employees, known as Motorola Headline News, featured 22 stories about the Integrated Supply Chain in 2006.

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External Communications Worldwide

The ISC external communication objective has been to drive consistent messaging that supports supply chain transformation. This was accomplished by targeting top-tier industry analysts, industry awards, speaking opportunities, trade associations and publications, as well as establishing a One Motorola global supplier communication policy. The ISC Communication team received 40 requests during 2006 for Stu to speak at various external conferences and more than a dozen requests for interviews from supply chain trade publications. However, the external strategy called for selective choices on where he should speak and share the ISC transformation story to avoid unnecessary dilution or overexposure. For instance, he agreed to speak at the AMR Research Supply Chain Executive Conference as well as keynote at the Midwest Supply Chain Management Forum. In addition, Stu granted several key media interviews. This strategy was in part driven by his humble nature and desire to leverage external media opportunities only when it made sense for Motorola and the ISC, versus elevating his profile as an executive. That said, below are a few examples of Stu’s external strategic communication accomplishments.

Midwest Management Supply Chain; University of Wisconsin Stu gave the keynote address to 220 attendees of the Midwest Supply Chain Management Conference in Grand Rapids, Michigan, where he shared the ISC transformation story and fielded more than a dozen questions. A few days later, Stu conveyed the ISC vision to University of Wisconsin-Madison graduate students who are pursuing supply chain studies. Motorola’s visibility in these venues is important to support strategic recruitment efforts of top supply chain talent. AMR Executive Conference During a one-hour "fireside chat," where he was peppered with questions from AMR Chief Research Officer Bruce Richardson, Stu discussed progress to date on the transformation journey of Motorola’s ISC with more than 400 attendees at the annual AMR Research Supply Chain Executive Conference in Phoenix, Arizona.

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A. G. Edwards Commentary Financial analyst firm A.G. Edwards published a detailed commentary in 2006 about Motorola and its ISC advances. Some of the Edwards remarks linked directly to two of the ISC’s Top 6 Priorities. Forrester Case Study Industry analyst Forrester interviewed Stu for a case study that positioned Motorola’s ISC transformation as a best practice: ''Motorola’s successes so far in turning its business around is another data point that shows that growth and profitability are predicated on supply chain alignment. A well-tuned supply chain is not a luxury anymore; it is the only way that a global company can grow and protect its shareholders’ value.'' Gartner Vendor Rating In its annual vendor rating, industry analyst Gartner specifically highlighted Motorola’s supply chain: ''Strategic execution in 2005 and 2006 has been impressive, particularly in supply chain, distribution and partner management. A particularly bright spot is the progress made in applying the supply chain rigor under Stu Reed across all Motorola businesses, which has profoundly affected vendor/supplier management.” Journal of HRPS The Journal of the Human Resource Planning Society's special issue on innovation, titled, “When Innovation Becomes Efficiency: Motorola’s Global Supply Chain Initiative,” featured comments from Stu and other members of the ISC senior leadership team. Korn/Ferry International Feature In ''The New Supply Chain Executive: Using the ISC as a Competitive Weapon'' by Bill Fello and Peter Everaert, recruiter Korn/Ferry International examined the evolution of the integrated supply chain and its implications for executive roles and responsibilities. Analysis and insights were collected from interviews with Stu and supply chain leaders at two other leading companies.

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Inside Supply Management Cover Story Stu was featured in the cover story of Inside Supply Management magazine, published by the Institute for Supply Management. The article, “Working Hard to Avoid the Labor Shortage,” focused on changing workforce demographics.

India Press Conference Stu contributed to a press conference with fellow Motorolans and India government officials in conjunction with the company’s plans to build a manufacturing facility near Chennai, India. Nogales Adopt-a-Mile Groundbreaking Stu joined colleagues and Mexico government officials at the groundbreaking ceremony for the Adopt-a-Mile program in Nogales, Mexico, located down the block from Motorola’s manufacturing facility. Financial Analyst Meeting Stu shared the ISC transformation story with analysts during Motorola’s annual Financial Analyst Meeting in Chicago. Footage of his remarks is included with a DVD enclosed with the entry materials.

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Stu presents a Supplier Appreciation award to a representative from Qualcomm.

Supplier Conference Motorola hosted its second annual DELIVERMOTO Supplier Conference in Singapore. The event enabled the top 85 strategic suppliers to hear from Stu and other key corporate and ISC leaders on the themes of agility, cost, innovation, quality and service.

External Perspectives

Kevin O’Marah, Senior Vice President, Strategy & Market Development, AMR Research, Inc.

“Stu might be the best executive communicator I have ever seen. He manages to mix accessibility with gravitas better than most and clearly knows how to use communications internally, externally, individually and in groups to achieve his goals. Chief among the things he seems able to influence with a conscious communications strategy is organizational change. He sets bold goals publicly, and then communicates with the team how they are doing against those goals. He has also shown an appetite and aptitude for various channels of communications including big stage messaging, which he does brilliantly, and small group interaction, where he is compelling and well prepared. He understands and uses multi-media to affect his audience more profoundly than is always possible with words alone.”

“In Q3, margins were better than expected across all Motorola businesses, with clear contributions from the Supply Chain restructuring.”

UBS Equity Research

Known for ‘Straight Talk,’ Stu conducts a candid conversation with suppliers during Motorola’s Supplier Conference.

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“The good news is that 1) cash flow remained strong in the quarter; 2) the backlog heading into Q4 for mobile devices is the strongest it’s ever been; 3) operating margins are seeing benefits from Supply Chain and other initiatives; and 4) low end of guidance, in our opinion, will likely prove conservative.” “Leading companies like Motorola have realized that supply chain centralization is a must for transformation. This is because a centralized function can leverage collective purchasing power, production capacity and existing relationships with service providers, as well as share best practices and tools across functions.”

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Awards & Recognition

Outstanding Alumnus Award Michigan State University (MSU) is widely recognized as a supply chain leader in higher education, and is an ISC target university for recruiting top talent. Stu was honored by the Eli Broad College of Business at MSU as Outstanding Alumnus, based on business, community and personal accomplishments.

Distinguished Alumnus Award Stu was selected as Michigan State University’s 2007 Metro Chicago Distinguished Alumnus. Stu’s outstanding contributions to the fields of materials and logistics management and community service led to his selection. IABC Awards Motorola’s ISC received an IABC Gold Quill Award, an IABC Pacific Plains Silver Quill Award and an IABC Chicago Spectra Award for communication excellence. Motorola ISC Communications Director Pattie Schiele was asked to provide the keynote address at the Chicago Spectra Awards luncheon to share the ISC transformation story from a communication perspective. “We asked Pattie to present the topic of transformation communication to demonstrate how a business leader such as Stu Reed leveraged communications as a strategic tool to reinforce common messages to a wide variety of audiences,” said Nadine Sudnick, president, IABC/Chicago.

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Volunteer Positions

Stu has devoted time to volunteer and share his many talents by serving in unique and meaningful ways within his neighborhood, the academic community and Motorola.

MSU Digital Enterprise Leadership Board Aligned with Motorola's strategic recruitment focus on top graduate students from leading supply chain programs, such as Michigan State University (MSU), Stu serves on the board of the Center for Leadership of the Digital Enterprise (CLODE).

University Mentor Stu has served as executive sponsor within Motorola for Michigan State University (MSU) as well as the Grainger Center for Supply Chain Management in the School of Business at the University of Wisconsin-Madison. He has visited each university at least twice a year, interacting with students and professors, serving as a guest lecturer, participating on panel discussions and providing informal mentoring for supply chain students. He also has served on the Grainger executive advisory board.

Habitat for Humanity Stu has contributed time and effort to Habitat for Humanity projects.

Youth Soccer and Basketball Coach Stu has effectively combined his passion for sports with a desire to give back to the community. He has served as a soccer or basketball coach in Illinois, New York and Vermont for more than 20 years. Stu began coaching long before he had children of his own. Most recently, he has supported the head coach/professional trainer of his daughter’s soccer team and regularly spent several hours on weekends with his son’s traveling soccer squad.

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Supply Chain Leadership Program The Supply Chain Leadership Program (SCLP) is an 18-month regimen designed to provide select MBA graduates, who hail from schools that have leading supply chain programs, with high-profile growth opportunities after they have been hired. Stu has met regularly with program members to offer leadership guidance. Three participants, one from each of the ISC’s target schools, began this program in July 2006.

Asian Business Council Stu has served as co-executive sponsor of Motorola’s Asian Business Council (ABC) and met with them several times annually, sharing his vision for what makes a good leader, hosting Q&A sessions and participating in the annual awards program.

Business Leadership Development Program Stu has met every six months with participants of the Business Leadership Development Program (BLDP), a high-profile growth opportunity designed to provide select, “early” career Motorolans with a variety of challenging job rotations, intense educational experiences and coaching that broadens their capabilities to learn and lead.

Mentoring Future ISC Leaders Stu has consistently mentored many of Motorola’s future ISC leaders to build bench strength and support Motorola’s talent development process. In addition, he holds bi-weekly sessions with each of his 15 direct reports, always starting the dialogue with “Do you love your job?”

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The Academic View

Dr. David Closs, Chaired Professor, Department of Marketing and Supply Chain Management, Eli Broad Graduate School of Management, Michigan State University

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A personal note from Verda Blythe, Director, Grainger Center for Supply Chain Management (SCM), School of Business, University of Wisconsin-Madison, follows.

Stu’s leadership style is hands-on in that he cares about understanding how each function/person contributes to the overall picture, whether it’s on the loading dock, in the corporate office, or at the university. He’s approachable, highly intelligent without being a know-it-all, and curious and willing to learn from others. He trusts his people and does not micromanage. He admits when he is wrong or has made a mistake. All of these qualities generate respect and the willingness to go the extra mile from his team and allow him to effectively motivate a far-flung team to operate as a cohesive unit; I would even say he has the ability to make his team feel like a “family” working towards collective goals.

Because of the above qualities, Stu is able to effectively interact with, motivate and gain respect from people at different organizational levels and in different environments. I have seen him interact with various people, such as line workers, customers, suppliers, executives within and outside of his organization, university faculty, undergraduate and graduate students, and government officials.

One of Stu’s primary communication strategies is what he calls “straight talk,” meaning (blunt) honesty, transparency and accessibility regardless of the audience. I believe this strategy contributes to success in an organization, whether it is the corporation or the university, because it creates a sense of effective teamwork, openness and trust, which makes each person feel they are part of the organization and have a role to play.

Whether it’s “straight talk” sessions with his global team, speaking at seminars for graduate and undergraduate students on important issues in supply chain management, or being the thought leader of an Executive Advisory Board comprised of 13 executives from multiple industries at the UW Grainger Center for SCM, Stu is willing to share his knowledge and experience, as well as gain knowledge and insights from his audience. Additionally, he is willing to be a personal mentor to colleagues (including myself) and students.

Because of Stu’s approachable, honest and, at times, witty and comedic demeanor, communication with him generally seems more personal in nature regardless of the environment. And, in situations where a team member or colleague is experiencing a personal crisis, Stu demonstrates genuine concern and offers to assist however possible.

Stu is always professional and respectful of others. As mentioned above, he is curious and willing to learn from others, regardless of their role/position. He understands that

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other people and organizations are different and thus may have different views or approaches to a situation. He may not always agree, but he is always professional and ethical.

Ethics and Professionalism in Communication In leading the ISC, Stu has committed to the highest ethical and professional standards. He has required his team to follow Motorola’s business code of conduct and set the expectation that ISC suppliers around the world also will uphold those standards. Stu has participated in regular ethics committee meetings during which action can be taken on any issues surfaced through the Motorola Ethics Hotline. Stu’s staff members have seen his leadership on how to do the right thing.

“Stu regularly handles ethics issues quickly with consistency of message. Whether they are internal issues with Motorolans, or external with suppliers, the decisions are quick, appropriate and consistent.”

-- Judy Baranowski, corporate vice president, quality and supplier performance management, ISC

“Stu constantly reinforces the message that we need to implement a governance model and cadence that is world-class. The disciplined structure for operations reviews and regimented follow up on open items is best in class.”

-- Lonnie Bernardoni, corporate vice president, new product introduction, ISC “Stu embodies the very highest ethical standards. He follows his own mantra of ‘Straight Talk’ and requires it of those around him.”


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Measurable Results From a business performance and communication excellence perspective, the ISC has year-over-year results to demonstrate successes and identify areas that need more work as part of the organizational commitment to continuous improvement. Challenge: In 2005, Motorola’s annual “MYSAYMOTO” Engagement Survey results indicated that the ISC needed to enhance communication effectiveness and clarify roles and responsibilities to more clearly align with the organization’s objectives. Solution: The ISC developed internal communication strategies and tools to complement and enhance processes, guidelines and metrics across the ISC. Prominent among those efforts were: an award-winning Employee Engagement Leader Toolkit regular “Straight Talk with Stu” email messages an award-winning ISC intranet the development, launch and institutionalization of a quarterly global town hall process an internal campaign promoting ISC’s 4 Key Behaviors and Motorola’s “i’MOTO” values Results: A year later, in 2006, Motorola’s follow-up survey showed the following improvements: 63% of employees felt they were well informed about the progress their business unit or

function was making against its goals 71% of employees agreed that within their department, they worked well as a team 70% of employees saw a clear link between their work and ISC’s objectives and strategy,

while 77% of employees believed their performance was critical to the success of their business unit or function within the ISC

71% of ISC employees knew and understood Motorola’s “i’MOTO” values 63% of employees believed that the senior leadership team supported them

“Stu's multi-channel approach to getting the message out is working nicely. Survey results show that the extended teams are aware of the Top 6 Priorities.”

-- Lonnie Bernardoni, corporate vice president, new product introduction, ISC.

“Stu is a machine when it comes to creating a unified management system that keeps the organization on track to achieve results. He dedicates his own time tirelessly, and is relentless about his expectations for his leadership team to engage in the same way.”

-- Tim Cawley, senior vice president, global logistics, ISC.

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ISC Business Accomplishments through the Top 6 Priorities The organization sketches depict the supply chain function before and after the ISC transformation.

Where We Were:

Where We Are:

By executing on the Top 6 Priorities, Motorola’s ISC has become a much more operationally efficient and effective business – which has repositioned the supply chain as a distinct competitive advantage for the company. As a corporation, Motorola has witnessed a dramatic bottom-line improvement and the emergence of sustainable cost advantages because of the ISC transformation. While Stu and other ISC leaders recognize the significant progress already achieved through supply chain integration, they have also emphasized that there is more to do in the quest to become #1. After all, markets change, competitors react and innovations reshape the business environment. The ISC, however, has shown that steadfast attention to the Top 6 Priorities can lead to record-breaking success.

#1) Execution Excellence: Organization and practices to achieve customer focused

best-in-class performance. The ISC goal was to become One Motorola, driving efficiencies in every aspect of operations. This led to the development of a management system to transform the supply chain while continuing effective responses to an aggressive, competitive, ever-changing business environment. An unrelenting focus on Execution Excellence allowed the ISC during 2005 and 2006 to support the growth of Motorola's businesses, boost financial performance, improve the value chain and set an unprecedented standard for labor productivity. 51% increase in quarterly revenue per ISC employee 75% increase in quarterly units shipped per ISC employee #15 ranking on AMR Research’s Supply Chain Top 25 list

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#2) Deep Supplier Relationships: One Motorola approach to supplier collaboration

and cross-business procurement leverage. The first step to drive deep supplier relationships was to align the ISC closely with each Motorola business to create One Motorola. Next, were efforts to reposition suppliers as business “partners,” particularly by identifying companies that were most qualified to fulfill strategic sourcing needs. The procurement group redefined its processes, and focused on logical, collaborative approaches that would address ongoing needs for quality, cost, speed and flexibility. Results included: Achievement of savings targets A significantly rationalized supply base (e.g., in one category the number of suppliers

was decreased from 170 to 10; other categories also promoted a new emphasis on contracting only with firms with the best overall capabilities)

A dramatically increased proportion of spending with the Top 150 suppliers – approaching 91%

A vigorous emphasis with suppliers that “perfect quality” was the new expectation Institutionalized supplier-performance management Reinforcement of key strategic messages – especially, Motorola’s desire to strengthen

supplier relationships – through the 2nd annual DELIVERMOTO Supplier Conference

#3) Manufacturing and Logistics Optimization: Standardize operations and

increase production output, while improving cost and service performance.

The ISC strategically improved productivity and continued Motorola’s growth in both manufacturing output and profitability by redefining the mix of items Motorola would manufacture and the products to be outsourced. In addition to creating new, more-efficient uses for Motorola facilities, the ISC launched lean manufacturing processes and best-practice sharing activities across all sites through the Teaming for Manufacturing Excellence initiative. An added resulting benefit of using a One Motorola approach in standardizing the operations globally is that potentially any product could be manufactured at any facility. Specific results included: 40% reduction in manufacturing footprint during 2006 22% improvement in inventory turns, which has significant bottom-line impact

Motorola is #6 Among China’s Top 500 Manufacturers The National Bureau of Statistics of China has ranked Motorola #6 on its list of the nation's Top 500 Manufacturers. Motorola (China) Electronics Ltd. was the only foreign company to be ranked among the top 10.

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#4) Quality Renewal: Pervasive deployment of “quality” principles across all businesses

by utilizing a back-to-basics approach. Product quality has a direct impact on efficiency metrics, as exemplified by highlights such as: Significant reduction in defective components Motorola received from suppliers. Sizeable reduction in the cost of poor quality (COPQ)

“Quality continues to be a major issue, but, in our opinion, Motorola is moving in the right direction, as business unit quality assurance, supply chain improvements and operational improvements are having a positive effect.”

Motorola Named 2006 Alltel Supplier of the Year Alltel Wireless, a strong #3 in the United States in CDMA technology, named Motorola as its 2006 Supplier of the Year. This annual award recognizes suppliers that excel in areas such as delivery, new product introduction (NPI), portfolio/technology, quality and service. Motorola's overall product-quality return rates declined significantly as a function of improved execution and quality both from a design and supply chain perspective.

#5) Common, Leveraged IT Solutions: Leveraged IT expenditures, and investment

only in systems that cement best-in-class processes. The ISC focused on process first to assess and combine the supply chain information technology needs of each Motorola business. Then, the One Motorola approach was used to focus, whenever possible, on IT expenditures that standardize supply chain requirements of every business unit. Highlights included:

More than 80% of project expenditures were on leveraged systems Significantly increased ability for business partners (i.e., customers, suppliers) to access

our electronic management systems Development of more comprehensive tools for use by senior management in order to

access business-critical data (i.e., product inventory, shipments) electronically in a timely manner

InformationWeek magazine ranked Motorola #1 in the manufacturing industry segment for the ISC’s use of innovative technology, and ranked Motorola #12 overall among the top 500 IT innovators in 2006.

August 2006

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#6) Organization Efficiency: Support structure, culture and metrics to further advance

best-in-class performance. Successful transformation can only occur in an environment that removes impediments to change. The ISC mandate was to promote and celebrate the best ways to serve and delight customers.

Created culture of “doers” not “talkers”

Encouraged brute-force commonality

Improved indirect labor productivity – a headcount reduction of about 15%

Achieved greater variability in terms of production capability and capacity

On-track Performance Metrics: Stu told financial analysts that from 2004 to 2005, the ISC would realize a 10% improvement in conversion costs, cost of poor quality, inventory turns, material savings and supply chain overhead. Upping the ante, Stu said the improvement in each of those metrics from 2004 to the end of 2006 would be, 40%. To date, the ISC is on schedule for delivering on Stu’s promise.

Third Quarter 2006 Results Demonstrate ISC Achievements: ISC’s contributions were punctuated in Motorola’s financial results for the third quarter of 2006. The ISC contributed to record-breaking achievements across the organization. Motorola shipped 53.7 million Mobile Devices units, up 39 percent versus 2005 and up 3.6 percent compared to 51.9 million handsets shipped during the second quarter of 2006. In addition, the ISC set a new quarterly record in Connected Home Solutions, shipping nearly 2.5 million digital entertainment devices. In short, the ISC set manufacturing, packing, programming, ramping, shipping and sourcing records in just about every ISC facility and operation during the third quarter. Ongoing efficiencies resulting from the ISC’s transformation initiatives contributed to Motorola’s positive operating cash flow of $1.6 billion.

Stu has consistently acknowledged and thanked the team for their efforts and focus. “First, a big thank you to everyone throughout the Integrated Supply Chain (ISC) organization for another phenomenal quarter! Without a doubt, we contributed to the company’s solid performance in big ways, including record-breaking achievements across the organization in the third quarter of 2006. The key theme to our success continues to be teamwork – tremendous teamwork locally, regionally and globally – both within the ISC and across Motorola. My heartfelt thanks for the tremendous efforts of a world-class supply chain!” Stu Reed, Executive Vice President, Integrated Supply Chain, Motorola, Inc. “Thanks to the supply chain team and Stu Reed, who is an unbelievable ally, we shipped 53.7 million units in Q3'06, up 39% from Q3’05 – and up 3.6% from the 51.9 million we shipped in Q2'06.”

-- Ron Garriques, President, Mobile Devices business

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Concluding Thoughts Utilizing communications strategies to drive transformation through a large, global organization, Stu Reed has led Motorola’s ISC to a new level of performance. By emphasizing the Top 6 Priorities and 4 Key Behaviors, it has become the emblem of “One Motorola” – an organization that operates more efficiently, provides a distinct competitive advantage and meets or exceeds customer commitments. The development of strong processes, systems and communications has enabled the ISC to continue driving growth and profitability.

The CEO Perspective On Stu and the ISC Team “You’ve really brought the word 'team' to a new level of meaning inside our company. No matter how well you have done, you want to do better, and that is a great attitude. You want to win, and winning is what it’s all about.” -- Ed Zander, Chairman and Chief Executive Officer, Motorola, Inc

Straight Talk with Stu’s Staff From developing a unified, consistent, motivating message to developing an ability to reach employees at all levels of the ISC, Stu has earned in-house accolades as an executive communication leader.

“Stu's ‘Straight Talk’ has empowered the entire team to speak frankly and directly with an openness that was not previously a part of Motorola's culture.”

-- Lonnie Bernardoni, corporate vice president, new product

introduction, ISC

“Stu has shown exceptionally effective skills in communicating with Motorola's ISC employees, as well asMotorola’s business unit presidents and the CEO. This is extraordinary, considering he came from outside

Motorola and achieved high credibility in such a short time.”


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“Stu has a fantastic ability to reach all levels of the organization. His messages are clear, consistent and focused. The manner in which he speaks and interacts with everyone makes us all (even in large)

audiences feel that he's giving each of us a personal message. He is approachable without anyone losing sight of the fact that he is the leader. He is also direct in giving tough-to-hear feedback but does it in a way that it does not come across as attacking, but instead it comes across that he genuinely cares and wants things improved. I’m a huge fan.”

-- Rita Lane, chief procurement officer, ISC

“Since joining Motorola, Stu has demonstrated a focused vision that has galvanized all ISC Motorolans globally. His constancy of message has made it clear to all the direction in which the team

needs to move; the results demonstrate the message’s success. He’s all about higher inventory turns, fewer quality spills to customers, the ability to support rapid revenue growth, and expansion into new markets.”

-- Judy Baranowski, corporate vice president, quality and supplier

performance management, ISC

“What I find unique about Stu is those key words he uses which have now become a standard part of our vocabulary. They stick with you. The most famous is ‘Straight Talk.’ I hear these words in all the facilities now.

This is just one of the ways in which he communicates. Another skill is his ability to listen to new ideas. For example, I talked to him in the morning about an idea and by mid-morning he accepted it, had a roll-out strategy and was talking to one of his staff members about implementation. We are making a lot of changes and have many issues facing all of us daily; however, he keeps the organization marching along and sticks to the governance principles he established. He also meets regularly with his staff just to talk in general.”

-- Bob Perez, senior vice president, global manufacturing, ISC

“Stu demonstrates every day his commitment to clear, consistent and meaningful communication. His drive to ensure we all stay on message has made this rapid transformation possible. It

starts with his leadership. He handles global communication well – ensuring that his message is understood. Team members regardless of level feel he’s approachable. He’s definitely one of the best strategic communicators I’ve worked for.”

-- Cathie Kozik, corporate vice president, information technology, ISC

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DVD of Stu Reed For a first-hand look at the personal communication style of Stu, a DVD featuring presentations to a variety of audiences is enclosed.

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Seven Supporting Documents

1. Motorola Integrated Supply Chain (ISC) Communication Plan 2. “Straight Talk with Stu”

a. Example of an issue of Straight Talk which highlights measurable year-over-year communication results from Motorola’s annual Employee Survey

3. Big Family, published by Motorola’s Tianjin, China operations

a. Includes three issues as an example of the consistency of Stu’s messages globally

4. Midwest Supply Chain Management Conference

a. Includes brochure with description of Stu’s keynote address, Stu’s presentation (“Motorola Integrated Supply Chain: A Key to Business Transformation”) and media coverage example from MBizWest

5. Inside Supply Management magazine cover story (published by Institute

for Supply Management), “Working Hard to Avoid the Labor Shortage” (page 22)

6. The Journal of the Human Resource Planning Society cover story, “When

Innovation Becomes Efficiency: Motorola’s Global Supply Chain Initiative” (page 23)

7. “Case Study: Motorola’s Quest for Supply Chain Excellence,” Forrester

Research, Inc.

iabc 2007 excel award winning nomination package

Documents

business results

academia stu reed

isc business accomplishments

dvd of stu reed

isc operations

primary business units

communication strategy

executive biography