Dear Aerospace Colleague:
I am announcing exciting, evolutionary and impactful changes to the Aerospace Leadership Team (ALT) and our organization today that will greatly benefit our customers and near-term revenue focus. The new leadership structure will drive faster sales growth and accelerate the delivery of innovative products, software and services -- including our vast Connected Aircraft offerings – to existing and new customers and markets around the world. Today’s changes will further drive aftermarket revenue, concentrate resources on great new products, improve our speed and decision-making and emphasize a culture of growth and customer service excellence. As important, this structure further empowers our Gold Business Enterprises, giving these leaders more responsibility, authority and accountability.
For the vast majority of employees and managers, daily responsibilities will not change, with the same people, in the same jobs, doing the same things -- but now aligning to a new structure and/or leader. At the ALT and HOS Gold Business Enterprise Leader level, however, changes are substantial. Further, while we will continue watching our costs during this extended industry economic slowdown, today’s announcement is not motivated whatsoever by cost savings. In fact, additional investment in certain areas is underway to spur faster growth.
Please join me for one of the previously scheduled ‘Aerospace Business Update’ live webcast sessions later today, where I will provide more detail regarding these invigorating changes and our focus on faster growth in 2017.
In short, I have organized the leadership team into four areas:
Four Businesses – Electronic Solutions, Engines & Power Systems, Mechanical Systems & Components, and Services and Connectivity, and their commensurate Gold Enterprises and leaders within each. These business leaders will manage the relationships and pursuits with our long-term Original Equipment Manufacturers (OEM) spanning our Commercial and Defense customers, such as Boeing, Airbus, NASA, Gulfstream and Lockheed Martin, and many others.
Three Short Cycle Sales and Channel Management groups – America’s, EMEA-I and APAC, covering all of our markets including air transport and regional (and airlines), business jets, defense, helicopters and space.
An expansive HOS Gold organization.
The most impactful changes include the four businesses and now 12 Gold Business Enterprise teams evolving to oversee more critical aspects of their business. This includes product strategy, new business development, development program management, dedicated engineering resources and demand management.
Regarding Retrofit, Modifications and Upgrades (RMUs), we will have a vertically integrated aftermarket RMU Center of Excellence in the Electronic Solutions business under Carl Esposito. Similarly, demand management for all sources of demand across all businesses will be managed in the Engines and Power Systems business under Brian Sill.
Our focus on services, software, the connected aircraft and connecting our vast product portfolio is a critical part of the Services and Connectivity business, which will also set our strategy for aftermarket sales and cross-selling our connected portfolio.
The three Short Cycle Sales and Channel Management groups are regionally organized, with much more local authority, decision-making and aftermarket customer relationship ownership. This means we have aftermarket sales and channel management teams completely dedicated and directly engaging the owners, operators, commands and airlines who maintain, repair and upgrade their aircraft, and acquire supplemental services.
The HOS Gold role has been expanded to more effectively unify our enablers and initiatives to drive growth, effectiveness and cycle time optimization improvements across the entire Aerospace Enterprise. This team now includes Strategic Marketing, Honeywell User Experience, Program Management Office, Velocity Product Development, Commercial and Sales Excellence, Pricing, Marketing Communications and Data Management and Governance.
For most of the Functions including Integrated Supply Chain, Customer and Product Support, Information Technology and Human Resources & Communications, changes to support our new businesses and sales teams will only be small, organizational adaptations. Further, the Chief Financial Officer and related finance organization adds Government Compliance under its realm while Law, Contracts & Export Compliance adds Licensing to its responsibilities. Mergers & Acquisitions will now directly report into the corporate team with a strong dotted line to the ALT.
For the Engineering Function, integrating our development engineering teams directly in to the businesses is a change that will be key to our growth, and will generate faster and more focused product development and execution, which will be directly aligned to our product strategies. The Chief Technology Office will continue to be responsible for centralized engineering organizations such as Advanced Technology, Product Integrity, Product Support Engineering, Engineering Operations and Engineering Fellows. More detail regarding this significant change will be shared with the Engineering organization in a follow-on message shortly.
Please join me in welcoming Mike Edmonds (Services and Connectivity business), Ben Driggs (America’s Short Cycle Sales and Channel Management), Joe Kenney (CTO), and Steve Slijepcevic (HOS Gold) to the new Aerospace Leadership Team. A complete organization chart is attached.
Over the last year, we have outlined the weak economy and business conditions throughout the industry while emphasizing our need to grow short-term sales. Today’s announcement is an evolution of our business, customer-focused and reflects months of planning from the ALT and our Gold Enterprise Leaders - and a lot of feedback from all of you - to best charter us to grow, faster, especially in aftermarket short-term sales. I am confident this new structure will give us all the empowerment, agility, speed, accountability, mindset and customer orientation required to do just that.
I am sure you will have many questions, so in addition to the two scheduled webcasts mentioned above, individual ALT leaders will be sharing more detail and specifics regarding their own organizations and teams starting now and over the next 60 days.
Thank you for your engagement and support, and I kindly ask that you remain focused on your day-to-day work, while giving these new leaders the assistance they need for a fast transition. As I mentioned, the vast majority of people remain in the same roles, and our overriding obligations must always be to take good care of our customers and to work safely at all times.