A business legend known as Louis Chenevert successfully ran the United Technologies Corporation for many years. He was regaled as a legend during his departure party from UTC. This party was meant to honor the work he conducted during his time at United Technologies Corporation. Louis Chenevert successfully led this company even during a global recession.
The first reason that he was able to successfully lead his company was that he looked into the future to see what trends the culture had and then prepared for them to become reality. Evidence of this can be seen in United Technologies Corporation moving to be more environmentally friendly. Countries were becoming more strict on the various industries that impacted the environment and were passing stricter regulations. He knew that United Technologies Corporation had to change or else they would no longer be able to compete. Working with engineering department, he was able to decrease the water consumption by 53% and also produce 26% fewer carbon emissions.
The second reason he was able to successfully lead his company was that he led United Technologies Corporation to diversify their portfolio. As was mentioned previously, United Technologies Corporation was experiencing the impact from the largest recession known in the American economy. During this recession, the average company could not afford to hire a third party source for transport. This created deficits in United Technologies Corporation’s profits. Louis Chenevert decided to offset those deficits by purchasing other similar companies who are not affected by the recession.
Some examples of the companies that United Technologies Corporation purchased were Pratt & Whitney, which gave them valuable military contracts. Otis, which provided them the connections they needed to work on Corporation infrastructure. And the one that changed at all, Goodrich. It cost United Technologies Corporation $16.3 billion to acquire Goodrich.
The last thing that he did to help United Technologies Corporation thrive was to limit spending. Louis Chenevert discovered that one of the main expenses for United Technologies Corporation was transporting their own goods. He moved the main factory’s closer together and saved them $115 million every single year.