Honeywell CEO on AI, Split, and Navigating Activist Investors

Vimal Kapur, the Chair and CEO of the newly formed Honeywell Technologies, sat down with Francine Lacqua on 'Leaders' to discuss his career trajectory, the strategic breakup of Honeywell International, and the impact of artificial intelligence on the industrial sector.

From India to the C-Suite

Kapur, who began his career with Honeywell in India in the late 1980s, reflected on his early days at the company, describing it as a startup environment where roles were fluid and learning was accelerated. He emphasized that there isn't a single definitive path to the top, highlighting his own journey spent largely in customer-facing and business roles, rather than traditional corporate functions.

Redrawing Workflows with AI

Discussing Honeywell's adoption of technology, Kapur noted that AI is a fast adopter within the company. He sees the most significant impact of AI currently in productivity gains, particularly in software development and testing. However, he believes true transformation will come from integrating AI agents into workflows, which requires reimagining work itself. "Transformational will occur if we redraw our work right, in which we can use agents as part of our workflow," Kapur stated.

The full discussion can be found on Bloomberg Podcast's YouTube channel.

Navigating the Honeywell Split

Kapur detailed the bold decision to break up Honeywell International, a move that coincided with the arrival of an activist investor. He explained that the conglomerate structure, while successful in the past, was becoming complex for future growth. The emergence of AI and the growth in aerospace presented opportunities for distinct, focused companies. "It was clear to me that our next 50 years, the earnings growth will come from top line growth, and top line growth is hard to accomplish if you are a complex structure with addressing multiple segments," he explained.

Activist Investors and Strategic Clarity

Addressing the pressure from activist investor Elliott Investment Management, Kapur described the interaction as collaborative, with strategic goals largely aligned. His advice to other CEOs facing similar situations is to have conviction in their strategy and communicate it with passion. "If you have a conviction on your strategy, that's what you need to really think about and worry about. If that's clear, then it's less about what they believe in. It's more about what you believe in," he advised.

Leading Through Change and Uncertainty

Kapur acknowledged the challenges of leading a U.S.-based company in the current political climate, where policies can be unpredictable. He stated that businesses thrive on predictability, but the reality is constant change, which CEOs must adapt to. He stressed the importance of focusing on foundational aspects of the business, such as doing what's right for shareholders and customers, rather than worrying about external factors beyond one's control.

The Value of Continuous Learning

When asked about new skills he has recently learned, Kapur highlighted his efforts to understand AI, including the distinctions between generative AI and agentic AI. He also shared his approach to career development, emphasizing the value of learning from experiences and treating challenges as opportunities for growth.