Current CEO of United Technologies Corporation, Gregory Hayes, explains the power and necessity of future promise when investing in a company. He tells that CEOs must have the presence to make investments that conjure up benefits in the short run, yet yield an even greater occurrence in the long run. One specific example of this investment in the future that UTC has made is the Pratt & Whitney Geared Turbofan engine, which was an investment of more than 10 billion dollars over 20 years to be a pioneer in cutting emissions and noise pollution. UTC also believes in investing in human capital, hiring many new workers to their team who will bring these new and advanced technologies to the table, and also paying for their degrees through the Employee Scholar Program so they can advance throughout a multitude of career options.
Prior to current CEO Gregory Hayes, United Technologies Corporation was led by CEO Louis R. Chênevert. He truly blossomed the ideas that Hayes talks about, as he invested and had faith in the future of UTC. When he joined UTC in 1993, he was able to lift the company out of recession and raise UTC’s share price from $37 to $117 in a single week. His effort and commitment started very early in his leadership.
Many think that if Chênevert was able to make profits and gains this tremendous, there had to be sacrifices elsewhere in the corporation. But this is opposite of the truth, as Chênevert did not ship any jobs overseas or cut out any investments in the workforce.
The final founding principle that made Chênevert such a successful CEO was the fact he could combine the intricacies of a market economy with the creativity and imagination one needs to dream big and accomplish anything. As described by Hayes, the investment in the Geared Turbofan engine proved to be one of Chênevert’s riskiest yet most fruitful and rewarding efforts, proving once again how he has pioneered the promise that UTC will continue to innovate through investment.
Watch Chênevert speak: