Case Studies
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Case Study - Pratt & Whitney
Transformation
By partnering with David, Pratt and Whitney:
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Fulfilled their original goal of increasing sales while reducing costs through optimization of overall performance, ultimately growing the business from $7.5B to $10B
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Integrated five silo'd divisions into one functioning company
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Resolved union organizing of engineers by designing and implementing an employee engagement process with the Senior VP of Engineering
“David, we remapped a major iconic company and put it on a new course. We truly created the company where anyone would be proud to have their kids come and work. Few people do this in their lifetime. The roadmap we executed went totally beyond expectations. Pratt has a bright future given what we mapped. Generations of shareholders, customers, and employees will benefit.”
- President, Pratt & Whitney; Chairman and CEO United Technologies
Company Overview
Pratt and Whitney is an American aerospace manufacturer with global service operations located in East Hartford, CT. Generating upwards of $16B in revenue each year, it primarily manufactures aircraft engines and turbines. It is now a subsidiary of Raytheon Technologies.
Challenge: Firing on All Cylinders
Unable to free themselves from their downward spiral and struggling to find footing with a new CEO, Pratt & Whitney needed to grow EBIT by increasing revenue and reducing operating costs.
P&W's five divisions were not functioning as parts of a cohesive whole, instead effectively working as separate organizations. This silo'd organizational structure caused them to bleed millions over the years with no end in sight.
A breakdown of cross-communication meant each division followed a different strategic plan and ultimately caused the company to under-perform in every area.
Strategy and Solution
David engaged the top 50, 250, and thereafter 2500 leaders in the then 30,000 person organization to design, develop, and execute both 1 and 3-year strategic financial and operational plans to grow the business across all divisions while simultaneously cutting costs.
This change management process effectively reduced costs and improved operational excellence by implementing shared services used by the engineering, operations, HR, and IT divisions. By supporting the implementation of quality standard work in all operations and key suppliers through the use of the ACE program (Achieving Competitive Excellence).