The United Technologies Corporation just hosted a celebration in honor of one of its greatest chief executive officers. The skills of Louis Chenevert led the United Technologies Corporation to becoming one of the most dominant aerospace manufacturers that North America had ever seen.
During the celebration, many executives went to the podium to tell how he single-handedly brought this company to greatness. Though many executives said their own piece, three things dominated most the conversation.
One thing the executives said about him was that he had an uncanny ability to foresee what was going to happen to the industry. This foresight allowed him to not only plan in advance, but also come up with ways his company could take advantage of those changes. One example of this occurring is his foresight regarding environmental regulations. He foresaw that Canada and America were both going to pass stricter regulations which would force his industry to become green. Knowing this was going to happen, he lowered gas emissions and water consumption. This allowed him to continue competing once the regulations were passed
Another thing that was mentioned at the celebration was his ability to diversify the portfolio. When he took over United Technologies Corporation as the chief executive officer it was during the great recession that occurred throughout the 2000’s. Many other companies were closing their doors and those who had not did not have enough money to purchase third-party equipment. He realized that if United Technologies Corporation was to continue, they would need to acquire businesses to offset the deficit. His strategy was rather simple, he would acquire companies that were similar to the United Technologies Corporation but were not identical enough to be hit by the great recession. He would then use the profits of these companies to pay off the debts to the United Technologies Corporation.
The last thing that was brought up was his ability to decrease spending. UTC was spending an absurd amount of money transporting goods between their main factories. By moving them closer together, he was able to save the company $15 million a year.