Continental's Kozyra Advocates Collaboration

Industry Cooperation Necessary for Better Products, Greater Profitability

TRAVERSE CITY, Mich., Aug. 3 -- In a presentation at the Management Briefing Seminars (MBS 2005) in Traverse City today, Continental Automotive Systems, North America, President and CEO Bill Kozyra challenged an audience of automotive industry leaders to shed hierarchical management systems in favor of a new business model in which automakers and suppliers collaborate to achieve more innovative products and greater profitability through collective intelligence.

"A new business model -- multi-enterprise collaboration -- is emerging that entails new ways of structuring our relationships, new ways of interacting with one another, new ways of solving problems," said Kozyra. "This change is not unlike what is going on elsewhere in our culture where new technologies harness the talents and resources of millions to provide companies with new sources of innovation and wisdom."

Continental is working toward a formal process for multi-enterprise collaboration for its business and encouraged attendees to consider doing the same. The Industry Round Table program provides an opportunity to encourage competition and innovation among suppliers and OEMs and creates a forum for continuous learning and knowledge creation within the industry.

"We chose the metaphor of the round table because it reminds us of King Arthur and his Knights and their outstanding deeds," said Kozyra. "The notion of the round table evokes camaraderie, equality, common purpose, unity, and connecting many to many. It represents offense against protocol, and it embodies a contradiction to rigid, hierarchical systems. These are all attributes of multi-enterprise collaboration."

Kozyra explained the methodology of an Industry Round Table by describing its components, among them:

* Identify a pre-competitive challenge you want to solve: A pressing issue that can be addressed more effectively by collaborating with other organizations and requires several seats at the table.

* Identify other organizations with the same interest: Map out a prescribed set of criteria for collaborating with other organizations. A seat at the table should be determined by decisive factors such as partner compatibility, competence, business sense, solution orientation, judgment, knowledge, and interpersonal skills.

* Hire a skilled convener and assemble participants: Locate a facilitator that is skilled in inter-organizational group dynamics to oversee the interactions at the table.

* Jointly create a vision, mission, and a set of concrete and attainable goals and objectives: Each collaborative effort must have a shared vision and concrete, clear, and attainable goals and objectives that are developed mutually.

* Mutually provide the necessary resources: All seats at the table should share in the deployment of resources. Each seat should provide their best and brightest and contribute equally to the collaboration.

* Establish a structure and processes for operating and ground rules for communicating: Processes and structures must be precisely defined. Each entity in the collaboration must share a stake both in the process and the outcome of the collaboration. Clearly defined and interrelated roles that constitute a formal division of labor are created and collaborating partners clearly understand their responsibilities and how to carry out those responsibilities.

* Measure, measure, measure: The organization must be committed to measuring its progress relative to its agreed upon goals. Each firm must be dedicated to meeting the group's long-term and strategic goals.

* Share the rewards: Finally, each organization shares in the product created by the group's efforts. Everyone wins. Rewards can be equally allotted, or they can be proportionate to participant contributions.

"The joint problem-solving processes that occur as a result of networked agreements and trusting relationships will lead to the development of human capital, increased innovation, accelerated time to market, and industry cohesion," said Kozyra. "Ultimately, multi-enterprise collaboration leads to enhanced customer satisfaction and loyalty, improved margins, and higher return on investment for our shareholders."

With 2004 sales of approximately $15 billion (US), Continental AG is a major supplier of brake systems, chassis components, vehicle electronics, tires and technical rubber products. Continental Automotive Systems' North American operation is headquartered in Auburn Hills, Mich. For additional information, visit these websites: http://www.conti-online.com/ and http://www.contitevesna.com/ .

Company News On-Call: http://www.prnewswire.com/comp/437525.html

NOTE TO EDITORS: Copies of Kozyra's full remarks are available upon request. Please contact Jennifer Rass at 248-393-5218 or Elizabeth Weigandt of the Continental News Bureau at 248-362-4200 or eweigandt@baileypr.com .