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Western Eiectric There may not be universal agree m e n t a b o u t w h a t t h e f u t u r e h o l d s f o r Western Electric, but nobody disputes that, whatever it turns out to be, it will be different. Change is the order of the day, and some of us are somew^hat uncertain as to how we'll be affected. Some changes have already taken place; some will occur in the near future: and some will proceed at a measured, evolutionary pace. For Western Electric's top manage ment, the past year was one of intensive planning for the future—plan ning that, in some ways, has been even more difficult than for the rest of the AT&T enterprise. In large measure their roles are clearly spelled out b>- the Modification of the Final Judgment and by the Federal Communications Commissions Computer Inquiry 11. In contrast, as AT&T's vice chairman and WE Board Chairman James Olson noted recently, Western's situation is different. "Certain aspects of Western Electric's new mission," he said, "seem difficult to get our arms around. There are more questions and more intangibles to grapple with at this point in the process." Even so. Western's planners have laid out a fairly comprehensive road map showing the way. To get a sense of direction for the future, WE Maga zine spoke to our 10 top executives. Most of this issue is based on their comments. Second Quarter Contents 35th Year Page 5 2 Looking Ahead The view from the top 24 The Road to Deregulation A chronology Test Your Reorganization 26 Know-How Getting the terminology straight 28 Exciting New Products Some of our top items 30 T h e R B O C s W h a t a n d w h e r e t h e y a r e What's Going to Happen 31 to My Stock? T h e s t o c k s i t u a t i o n i n b r i e f 32 Benefits A few words on pensions and other benefits 33 J i m O l s o n S o m e c o m m e n t s b y o u r n e w c h a i r m a n WE is published for employees of Western Electric. President: D.E. Procknow; E d i t o r ' s N o t e Secretary: A.M. Zigler; Treasurer: R.E. Ekeblad. The dominant themes of this special T h i s i s s u e h a s b e e n s t a f f - w r i t t e n . P a r Editorial office: 222 Broadway, NY NY 10038 Telephone: (212) 669-2621 issue are the extensive planning our ticular credit goes to ex-Associate top people have done to prepare us Editor, Lydia Whitefield. George Gray Steve Tomczyk for the future and the many changes The portraits of executives were done Editor Design that will be a consequence of that Saul Fingerman Leonard Stern by Dennis Lyall. planning. Many of those changes were Managing Editor Photography already in effect by early June when Adele Donohue-Evans Thomas J. O'Donoghue Associate Editor Production we went to press. Others may have been made since press time, and Copyright ® 1983 by Western Electric Co., Inc. a d d i t i o n a l m o d i fi c a t i o n s w i l l e v o l v e a s All Rights Reserved. the company prepares for its new Printed in the United States of America. Title "WE" is a registered U.S. trademark. b u s i n e s s c l i m a t e . Western Electric "These are days for taking stock, for capitalizing on strengths and overcoming weaknesses, for looking ahead and for careful planning." Don Procknow President These are chal s e r v i c e s t h a t o u r c u s t o m e r s w a n t a n d lenging times for need. We have our well-deserved repu Western Electric. tation for quality, reliability, and The New AT&T T h e d e c i s i o n s w e service—and these are the strengths make today . and traditions we're going to build on. The new AT&T will be a smaller and tomorrow . Our greatest strength is in our company than it is now, but it will determine people. The Western Electric em will no longer be constrained by the kind of business we will be in and ployee today is highly skilled, highly o u t d a t e d r e s t r i c t i o n s o n t h e the kind of success we will enjoy for motivated and very, very capable. 1 kinds of business opportunities it many years to come. These are days know that some of our people are can pursue. In the future, AT&T for taking stock, for capitalizing on c o n c e r n e d a b o u t t h e i r o w n f u t u r e a n d will be free to apply its technol strengths and overcoming weaknesses, that of Western Electric. All 1 can say is ogy in new businesses, including for looking ahead and for careful that we're doing everything in our unregulated businesses for data planning. power to address these concerns. processing and other information Our strengths will stand us in good services. For the people of Western Electric, stead as we meet our competition there is approaching a period of sharp head on. After divestiture, we'll be Aside from a headquarters transition. The System we've been a fully separated from our traditional staff, AT&T will be made up of part of for more than a century will customers, the Bell Operating Com five principal organizations: cease to exist in just a few months. panies. We have to do everything We'll be doing business in entirely possible to maintain their confidence, ■ Bell Telephone Laborato new and difierent ways. But, as sorely their respect, their business. That's our ries, the world's leading as we will be tested, 1 am just as sure goal, our number one priority. industrial research and develop that we have the basic strengths and ment organization. resources to come out on top. W e a l s o w a n t t o e n t e r n e w m a r First of all, we have a business plan ketplaces, new businesses. To do this, ■ Western Electric, this coun that will help keep us on the right we're going to have to stay on top; to try's foremost supplier of high- track. To live up to our mission and to make sure that we continue to have technology products, systems, achieve our goals, we know what we the right products in the right place at and services. have to do. Part of the plan is devoted the right time. And we're going to to repositioning Western so that it is in have to make sure those products are ■ A new interexchange or the best possible shape to take advan priced right.. right from the ganization, which will operate the nationwide long distance tage of the opportunities that will be moment they're introduced. We have network while marketing and open to us. have a fine plan; our to strengthen and enhance our mission today is to manage by that tradition of cost control. Every penny providing a range of long dis t a n c e s e r v i c e s t o r e s i d e n c e a n d plan. We also have the strength of our we can save is a penny we don't have b u s i n e s s c u s t o m e r s w i t h i n t h e continued relationship with Bell Labo to earn back. United States and to points ratories. The Laboratories, ATTl, and And, finally, our most compelling Western are working together as part challenge is to maintain and around the world. of a sector headed by Jim Olson—and strengthen the fine reputation we have I'm convinced that the working rela earned over the years. Today we are ■ American Bell, AT&T's new est subsidiary, formed to market tionships within this sector will reeognized as the world leader in become even stronger and more effec telecommunications equipment. As we and service high technology tive in the future. enter our new world—looking to sell products and systems for the We have a fine product line and to the Bell companies, the inde home and office through two divisions. Advanced Information we're adding to it every day by intro pendents, to new businesses, both ducing state-of-the-art products and d o m e s t i c a n d i n t e r n a t i o n a l — o u r Systems (AIS) and Consumer reputation is our calling card.
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