Lessons from David M. Cote

David M. Cote, the former Chairman and CEO of Honeywell, is a highly respected business leader known for his transformative impact on the industrial conglomerate. During his tenure from 2002 to 2017, he grew Honeywell's market capitalization from $20 billion to $120 billion, delivering returns of 800 percent. [1][2] His leadership philosophy and key learnings, many of which are detailed in his book "Winning Now, Winning Later," offer valuable insights into achieving sustained success.

On Balancing Short-Term and Long-Term Goals

A cornerstone of Cote's philosophy is the imperative to manage for both the present and the future simultaneously. He argues that these are not mutually exclusive objectives but are, in fact, mutually reinforcing. [3]

"Success is about achieving two seemingly conflicting things at the same time. Most people want to focus on just one thing at a time, because it's easier." [3]
"Parallel focuses on the short term and long term are not mutually exclusive—they are mutually reinforcing." [3]
"We need to invest in the long term, because the long term eventually becomes the short term. And if the seed-planting has not been done, then you run out of gas." [3]
"Short-term performance provides validation that you are on the right long-term path." [3]
"You don't have to be a genius to achieve remarkable short- and long-term performance (we certainly weren't). You also don't need to have some magic formula. What you do have to do is believe you can achieve two seemingly conflicting things at the same time — short-term performance and investment in the future." [4]
"Planting seeds for the future while also achieving short-term results is much harder to pull off than just aiming for one of these goals exclusively. It's so hard, in fact, that many executives and managers throw up their hands.” [1]
"The best way to fund future growth is to grow your business, but keep your fixed costs constant." [4]
"Don't cut all of your growth investments just to get the best possible shareholder returns." [5]
"It's vital that you retain both a short-term and a long-term approach in the challenging times which will inevitably arise in the years ahead." [4]
"If you survive the short term, but you don't survive the long term, then it hasn't really done much for you." [6]

On Leadership and Decision-Making

Cote emphasizes the importance of intellectual rigor, independent thinking, and creating a culture of honesty and transparency.

"A huge insight was the power of simply telling employees the truth. If things aren't going well, tell them." [7][8]
"Have a relentless commitment to consistency of message. It might be the 15th time you've given the speech, but some people may never have heard it. Or, some people may have heard it four times but it's the first time they've internalized it." [7]
"Leadership matters — it really does. And the trick, as I like to say, is in the doing." [4]
"Smart leaders abound, but leaders who can think independently are rare." [5]
"It's your job to be right at the end of the meeting." [9]
"Ask tough questions that create an environment of analytical rigor and attention to detail." [10]
"When Cote went around a room and asked for opinions, he always started with the most junior employees present so he'd know their true ideas and not just a repeat of what their bosses thought." [10]
"One of the leader's most valuable but least valued contributions is avoiding trouble, not addressing it once it's occurred." [5]
"Carve out the time you need for blue book sessions, and make use of the other techniques I've described. Challenge yourself to reflect on your business or organization. And challenge yourself to think independently." [1][5]
"You want people empowered, but you want good controls so nothing bad happens." [6]
"The core principles of effective leadership are universal." [11]
"You have to get results and get it in the right way." [11]
"I always said to all the leadership classes that I would talk to, that there were two things you had to be able to do yourself in order to get ahead... The first one is to get results and get them the right way so that there aren't a pile of dead bodies lying around that you've killed in the future because of what you did to make numbers." [11]
"The toughest transition for me was when I was an individual contributor. and all of a sudden I had three people working for me. because that's the first time you start to face. oh I have to trust other people to what extent do I trust other people how do I learn to delegate. but not abdicate. how do I learn to delegate. but not micromanage." [12]
"Leadership isn't about having all the answers or having control of everything. Leadership means bringing out the best in your employees, creating paths that work for your business, and building a presence that exists in small and big moments." [13]

On Strategy and Execution

For Cote, a brilliant strategy is worthless without flawless execution. He stresses the importance of process, performance management, and a focus on results.

"The trick is in the doing. Too many initiatives go too fast, so an organization can't assimilate the change." [3]
"What gets measured gets done." [3]
"Don't kick legacy issues down the road – solving them will win goodwill and save you money in the long run." [10]
"Process improvements are important, but they shouldn't be rushed." [10]
"Create a strategic plan that aligns with your long-term goals and make sure everyone understands it." [10]
"Define your company culture and use it to guide your processes." [10]
"If the mind-set doesn't change, operations won't change either." [5]
"Be Results Oriented, Have Goals, And Recognize That Hard Work Does Not Always Pay Off." [14]
"Hard work is important. Just make sure you're working on the right thing." [14]
"If you're working on the wrong thing, it doesn't matter how hard you work, nothing will ever come of it." [14][15]

On Personal Growth and Career

Cote's own journey from a student with a 1.8 GPA to a celebrated CEO informs his advice on self-awareness, continuous learning, and resilience. [9]

"Be self-aware. You can't control the skill set with which you were born, but what you can control are your behaviors, how you look at life, and how you maximize the skills you do have." [15]
"Get out of your comfort zone… Better Yet Get Comfortable About Being Out of Your Comfort Zone!" [14]
"Be a learner! Embrace discomfort for learning." [14]
"Successful people have failures… sometimes spectacularly embarrassing ones… but they learn from it and move on to the next success." [14]
"Don't always wait for approval or perfect knowledge. Do something. Have the confidence in yourself to take that chance." [14]
"Your performance can't just be okay. You have to be in the top 10%." [16]
"You also need visibility. If you're performing well but the person who can do something about your career can't see it, nothing will happen." [16]
"I had a lot of ambition. and no direction. so I had no idea what good looked like or where a career could go." [9]
"You can't always listen to friends and family you wanna hear what they say. but it doesn't mean you have to do it because it's your life." [9]

On Life and Perspective

Cote also offers broader wisdom on enjoying life, maintaining perspective, and the importance of relationships.

"Enjoy Your Life! Live life on your terms." [14]
"Keep problems in perspective, stay level-headed during crises, and prioritize family and friends." [14]
"My Dad used to say that if every man just took care of his own family, the world would be a much better place." [5]
"Recognize the Significance of Family and Friends Prioritize meaningful relationships." [14]
"Don't dwell on what's wrong with your life, and don't hang around with people who do." [15]
"I've taken some risks in my life, and they didn't all work out, but I'm happy to say I have no regrets." [15]

Learn more:

Lessons from David M. Cote

On Balancing Short-Term and Long-Term Goals

On Leadership and Decision-Making

On Strategy and Execution

On Personal Growth and Career

On Life and Perspective

Written by Antoine Buteau

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