Louis Chenevert and United Technologies
In April of 2008, Louis R. Chênevert was chosen for the positions of President and Chief Executive Officer at United Technologies Corporations. Two years later he was also elected to be the company’s chairman where he held those positions until he eventually retired in 2014. After spending 14 years as a Production General manager at General Motors, He joined Pratt & Whitney, a company that was struggling with the economy and in need of strong leadership. Chênevert became President of United after working with a team of key executives. With the team’s comprehensive understanding of what a customer needed, they became a successful company in manufacturing civilian and military aircraft engines.
Chênevert made a strategic move by eliminating the outsourcing of cheap foreign suppliers and foreign labor. He then moved workers to one location in the U.S. The reason for this was to have their best minds all in one place, working together, and efficiently solving issues. Despite this method not being cost efficient it didn’t decrease the value or quality of the product. Chênevert’s presence proved to make a substantial impact as United’s stock value rose by 80% since he took leadership.
Believing that having the right team makes all the difference, he knew United would need a little help with its production. Chênevert sought out a company called Goodrich Corporation since it was one of the world’s largest rubber companies which specialized in aerospace manufacturing, a collaboration would allow United Technologies Corporations to be able to lower their cost of production. Acquiring the Goodrich Corporation took a year to finalize due to prolonged negotiations while they discussed details of the agreement. Merging Goodrich with United made these two companies a multinational conglomeration.
In spite of his success at United Technologies Corporations Louis R. Chênevert eventually resigned in 2014, to the shock of his peers, and is now currently doing what he loves, designing and overseeing the construction of his several Yachts and enjoying his time sailing.