John Deere Mission Statement Analysis

• Company: Deere & Company
• CEO: John C. May
• Year founded: 1837
• Headquarters: Moline, Illinois, USA
• Number of Employees: 75,847
• Type: Public
• Ticker Symbol: DE
• Market Cap (Nov 2024): $109.46 Billion
• Annual Revenue (2024): $44.77 Billion
• Net Income (2024): $7.10 Billion

Products & Services: Agricultural, Construction, & Forestry Machinery | Heavy Equipment | Diesel Engines | Drivetrains | Lawn & Garden Equipment | Agricultural and Construction Financial Services | Technology

Competitors: Caterpillar | Kubota | CNH Industrial | AGCO | Mahindra & Mahindra | Claas | Komatsu | Massey Ferguson | Ponsse | Hitachi | Doosan

Did you know? In 1837, John Deere invented the first steel plow designed to cut through sticky prairie soil.

John Deere is a global agricultural, construction, and forestry equipment leader. The corporation was named after its founder, John Deere, an innovative blacksmith who invented the first commercially successful steel plow in 1837. John Deere’s mission, values, principles, and sustainability goals drive its success. In Oct 2024, the corporation invested $13.5 million to expand its John Deere Reman Core Center facility by 120,000 square feet. This plant remanufactures parts to offer affordable components with like-new performance. [1]

John Deere products include tractors, mowers, excavators, dump trucks, skid steers, utility vehicles, harvesters, and feller bunchers. The company generates most of its revenue from the agriculture sector. It was the leading farm machinery manufacturer worldwide as of 2022. In 2023, John Deere generated $61.25 billion in revenue and $10.17 billion in profit. [2]

Image source: John Deere’s Revenue

To understand John Deere’s secret to success, here is a comprehensive analysis of its mission statement, values, principles, and sustainability goals:

John Deere’s Mission Statement

We Run Like No Other.

John Deere’s mission is reflected in its purpose statement, “We run so life can leap forward.” This slogan guides its operations and employee conduct. [3]

Here is our analysis of John Deere’s mission statement:

1.  Run for all

John Deere aims to sustain lives and livelihoods everywhere. The company acknowledges that the world needs more food, fiber, fuel, and infrastructure to support the ever-growing population. Its employees and partners are driven by the organization’s purpose to innovate for productivity and the planet and design machines that improve all lives. For example, John Deere revealed its new ExactShot and an electric excavator on CES 2023 to help farmers boost productivity, profitability, and sustainability. ExactShot protects the environment and communities by minimizing the effects of run-off fertilizer on water supply and greenery. [4]

2. Deliver purpose-driven tech

John Deere strives to create machines that advance its business, customers, partners, and communities. The company designs its products with purpose-driven technology to address tomorrow’s challenges. It invests in top tech talent and R&D efforts to advance smarter machines, alternative power options, connectivity, and data. In Jan 2024, John Deere was named a CES 2024 Innovation Awards Honoree in the Sustainability, Eco-Design & Smart Energy category. The company integrated its autonomous tractors and fertilizer optimization technologies with the cloud to enable real-time decisions and enhance efficiency for over 2 million US farms and millions more globally. [5]

3. Run with nature

John Deere strives to support and protect the planet. Since its founding, John Deere has won prestigious accolades for its smart innovations. The company leverages advanced technologies to improve sustainable agriculture and meet the world’s increasing demand for food. For example, John Deere unveiled its See & Spray Ultimate sprayer in 2022, reducing herbicide use by over two-thirds. The technology saved farmers around 8 million gallons of herbicide mix on over 1 million acres applied during the 2024 growing season. It targets herbicide application only to weeds, delivering cost savings and improved sustainability. [6]

Checkout: John Deere’s Revenue by Segment

John Deere’s Core Values

John Deere lives by five core values: integrity, quality, humanity, commitment, and innovation. The company has never forgotten or outgrown its founder’s principles for over 180 years. These values are integrated into every John Deere product, service, and interaction. [7]

Here is our analysis of John Deere’s core values:  

1.  Integrity

John Deere is committed to conducting business with the highest ethical standards. The company complies with all applicable laws and regulations across its operations. Its Code of Business Conduct guides employees on how to represent John Deere ethically. In Mar 2023, Ethisphere named John Deere one of the 2023 World’s Most Ethical Companies. The company has been recognized on this list 16 times. [8]

2. Quality

John Deere prioritizes product quality. This value has helped the company dominate the agricultural machinery sector. Its team offers unparalleled service experience across product and solution lifecycles. They achieve this goal sustainably to unlock higher value for customers. A recent Consumer Reports survey found that John Deere is the most reliable brand for lawn tractors. [9]

3. Innovation

John Deere strives to deliver innovative products. The company is committed to creating intelligent machines. In 2020, John Deere began its 5G deployment by acquiring dedicated spectrum licenses through the Citizens Broadband Radio Service. The company had deployed over 100 automated guided vehicles controlled via 5G as of Mar 2024. It is leveraging 5G to improve its assembly-line processes, productivity, and safety. [10]

4. Commitment

John Deere is committed to creating sustainable value for its customers, employees, and stakeholders. It helps people thrive by addressing hunger, strengthening communities, investing in education, and empowering its workers. For example, John Deere Reman has donated over 450 hours at The Food Bank by allowing its employees to sign up for monthly volunteer sessions with Ozarks Food Harvest. This initiative offers eight paid hours to volunteers and enhances access to fresh produce for starving communities. [11]

5. Humanity

John Deere had four core values for nearly 190 years. These beliefs align with its founder’s philosophy. In 2024, John Deere added a fifth value: humanity. It is powered by the company’s purpose, “We run for all.” John Deere fosters a purpose-driven work culture and helps advance lives and livelihoods worldwide. [12]

Checkout: John Deere’s Competitors

John Deere’s Purpose Principles

John Deere’s reputation is based on purpose principles that shaped its character as a business. These principles focus on protecting the company’s legacy, serving customers, leveraging cutting-edge technologies, and protecting the environment. [13]

Here is an in-depth analysis of John Deere’s purpose and principles:

1. We Live Up to the Legend

Founder John Deere invented his famous steel plow in 1837 and simplified farming for millions of farmers. Deere & Company is committed to upholding its founder’s legacy. “Our iron carries the weight of legend,” states the agricultural equipment manufacturer. John Deere has enriched lives globally for over six generations by pioneering technological revolutions and empowering customers to shape the world and prosper. In the past few decades, the company adopted self-driving vehicles, front-end displays, Internet of Things, machine learning, and cloud computing. John Deere is leveraging these innovations to unlock customer economic value. [14]

2. We Serve with Sincerity

John Deere stands by its customers. The company is committed to nurturing mutually beneficial relationships with farmers, builders, dealers, and employees. It prioritizes honesty in all internal and external communications. This principle guides John Deere employees across departments, from R&D to production and maintenance services. For example, the company works in good faith in all its ventures. [15]

3. We Forge the Cutting Edge

John Deere’s tech-development efforts focus on unlocking customer economic value. The company makes great leaps in technology today to help the planet sustain people and communities everywhere tomorrow. Its R&D and manufacturing teams collaborate to design and test machinery and train farmers to overcome challenges so life can leap forward. For example, John Deere launched its autonomous 8R Tractor and tillage in 2022 to help farmers tackle two jobs simultaneously. This industry-changing solution saves time and labor without sacrificing the quality of the job. [16]

4. We Stay Ever Green

John Deere is committed to protecting the environment. The company defines its employees as stewards of the land, water, and air that sustain communities. It prioritizes long-term goals over short-term gains and sticks to its mission and values to stay evergreen. In 2021, John Deere showcased its 310 X-Tier E-Power electric backhoe that eliminates tailpipe emissions and reduces operating costs and jobsite noise. The company introduced new E-Drive and E-Power machines in Feb 2023. [17]

John Deere’s Sustainability Goals

John Deere seeks to increase crop protection efficiency by 20% and reduce 15% of customer CO2 emissions by 2030. The company has also pledged to deliver 1.5 million connected machines by 2026. These sustainability goals are powered by the slogan “Great Leaps for the Good of Everyone.” [18]

Here is how John Deere is implementing its sustainability initiatives:  

1. Sustainable Financial Growth

John Deere is committed to maximizing its shareholders’ return on investment. Its 2023 revenue was $61.25 billion, up 16% from 2022. In 2023, the company generated $9.32 billion in shareholder value added (SVA). John Deere posted 21.9% equipment operations OROS (Operating Return on Sales) and 52.5% operating return on assets (OROA) in 2023. [19]

2. People & Communities

John Deere is committed to delivering value to its customers and employees. Its John Deere Inspire program has offered job opportunities to over 113k youths. In 2023, the company increased African American representation in senior management to 13.9% and added women in STEM-related positions from 15.2% to 19.8%. The John Deere Foundation offered $19 million in grants in 2023 to eliminate hunger. It supports One Acre Fund and the Nature Conservancy to help uplift millions of vulnerable smallholder farmers globally. For example, the John Deere Foundation awarded the Nature Conservancy a five-year grant worth $6.5 million in 2023. The organization will use the funds to plant and protect 12 million trees and generate income for marginalized farmers. [20]

3. Emissions & Efficiencies

John Deere is committed to protecting the environment. It seeks a 15% reduction in Scope 1 and 2 GHG emissions by focusing on renewable electricity sources. In 2023, the company launched 2 hybrid-electric and 4 electric turf and compact utility vehicles and unveiled 2 X-Tier Loaders with E-drive technology. These products advance John Deere’s alternative power solutions. [21]

4. Sustainable Measures

John Deere seeks to integrate connectivity enablement in 100% of new small agricultural equipment and increase connected machines to 1.5 million by 2026. The company is exploring viable low/no carbon alternative power solutions. It has launched initiatives to cut more than its Scope 1, 2, and 3 CO2 emissions. In 2023, the John Deere Operations Center documented 388 million unique acres with at least one operational pass. The company recorded 86% Intelligent Boom Control adoption and 45% grade management technology adoption. These developments help John Deere minimize its environmental impact beyond its carbon footprint. [22]

References

1. John Deere (2024, Oct 14). John Deere Reman Announces $13.5M Expansion. Deere.com
2. Placek, M. (2024, May 24). John Deere’s net sales and revenues 2001-2023. Statista
3. Deere & Company: Our Company and Higher Purpose. Deere.com
4. Deere & Company (2023, Jan 5). John Deere Debuts New Planting Technology & Electric Excavator during CES 2023 Keynote. Deere.com
5. Birch, K. (2024, Jan 15). John Deere Ploughs Sustainable Farming Forward with Cloud. Sustainability Magazine
6. Deere & Company (2024, Sep 18). See & Spray Customers See 59% Average Herbicide Savings in 2024. Deere.com
7. John Deere. Governance: Code of Conduct. Deere.com
8. Deere & Company (2023, Mar 13). Deere Recognized as One of the 2023 World’s Most Ethical Companies. Deere.com
9. Deere & Company. John Deere: Quality Policy. Deere.com
10. Townsend, W. (2024, Mar 20). John Deere Accelerates Manufacturing Innovation with Private 5G. Forbes
11. Volunteer Spotlight (2023, Oct 24). John Deere Reman advances Humanity through Hunger Relief. Ozarks Food Harvest
12. Chambers, K. (2024, May 22). Humanity and Innovation: Fostering a Purpose-Driven Work Culture. From Day One
13. Deere & Company (2023). Your Career at John Deere. Deere.com
14. Deere & Company. Your Winning Edge: Why John Deere? Deere.com
15. Deere & Company. John Deere: Our Higher Purpose. Deere.com
16. Deere & Company (2022, Jan 4). John Deere Reveals Fully Autonomous Tractor at CES 2022. Deere.com
17. Deere & Company (2023, Feb 28). John Deere Expands Options by Introducing New E-Drive and E-Power Machines at CONEXPO-CON/AGG 2023. Deere.com
18. Deere & Company (2024, Jan 10). John Deere: Sustainability. Deere.com
19. Deere & Company (2024, Jan 1). John Deere: 2023 Business Impact Report. Deere.com
20. Deere & Company (2024, Jan 14). Beyond the Soil: Creating opportunity from the ground up. Deere.com
21. Deere & Company (2024, Jan 23). John Deere’s 2023 Business Impact Report Highlights Progress & Commitment to Sustainability through Innovation. Deere.com
22. Theng, L. (2023, Sep 11). John Deere 2022 Sustainability Report: Mitigating the Impact of Climate Change on Agriculture. John Deere Asia
23. Featured Image by chris robert