How We Work
THE ITW business model
The foundation of our company is the ITW Business Model, a unique and differentiated set of core capabilities and business practices that comprises three key elements: ITW’s 80/20 business process, customer-back innovation and a decentralized entrepreneurial culture.
80/20 Business Process
ITW’s proprietary 80/20 business process has been integral to the company’s success for nearly 30 years. Through the implementation of this process, each ITW business focuses on the 20 percent of its customers that generate 80 percent of its revenues and structures the business around serving and growing relationships with these key customers. The efficiencies gained from 80/20 deliver best-in-class operating margins, strong free operating cash flow and differentiated returns on invested capital. ITW’s commitment to 80/20 is stronger than ever, and the company continues to make the investments necessary to ensure that 80/20 remains a key driver of its competitive advantage now and in the future.
Customer Back Innovation
ITW’s unique approach to customer-focused innovation has fueled decades of profitable growth. The company’s innovation efforts are “80/20-enabled” as its businesses focus on building relationships with major customers to develop deep knowledge and insight around their key needs and pain points. Working innovation from “the customer back” sets ITW apart, and it is these key customer insights and learnings that drive innovation at ITW. The company’s portfolio of more than 16,000 granted and pending patents reflects its ongoing commitment to developing innovative solutions for our key customers.
Decentralised, Entrepreneurial Culture
The heart and soul of ITW are the more than 48,000 hard-working and dedicated people around the world who thrive in the company’s decentralized entrepreneurial culture. ITW’s unique culture is a competitive advantage, and the company is working hard to make sure that its divisions continue to think and act like smaller companies. ITW businesses have significant flexibility within the framework of the ITW Business Model to customize their approach in order to best serve their customers and maximize performance.