United Technologies | David R Dougherty

Case Study - United Technologies

Transformation

By partnering with David, United Technologies:

Implemented procurement savings through leveraging spending
Consolidated suppliers, reducing usage and creating shared corporate services
Over-achieved UTX's initial savings target of $500m. David helped the company save $750m over an 18 month period
This initiative was so successful that it was awarded the Horner Citation, a prestigious UTX Board award for excellence

Testimonial

"David was critical in developing and implementing the model and process to organize 600 team members from five global divisions into highly performing teams.

We created a best in class executive sponsorship structure and project management process. We developed a cultural alignment, planning and performance management process across multiple divisions, regions, functions and organization levels resulting in $750M in savings in 2.5 years."

"David coached and guided the SVP, program manager, the commodity managers and group directors. He passed on his knowledge and skills allowing the initiative to become a self-sustaining effort.

Much of what I am as a leader is because of my collaboration with David. UT500 is still one of my proudest professional achievements and I would not have been as successful in my roll as a program manager without his mentorship."

- Global Program Manager, UTX 500

Company Overview

UTX was an American multinational conglomerate headquartered in Farmington, CT. With over $38B in equity in 2018, it researched, developed, and manufactured products in numerous industries, such as aircraft engines, aerospace systems, and elevators and escalators. It also had large, ongoing military contracts with the US government and boasted over 240,000 employees. In early 2020 UTX merged with Raytheon Company to form Raytheon Technologies.

Challenge: Save to Grow

United Technologies sought to generate savings of $500m over a period of 18 months. Five divisions of the multinational conglomerate were severely under-performing, neither leveraging the scale of their spending nor applying procurement best practices.

Up to 18 cross-divisional commodity teams were operating without adequate support from leadership.

Strategy and Solution

The CEO of United Technologies had made a commitment to Wall Street to take $500M of cost out of the business. David partnered with the CEO to help facilitate this commitment by organizing and optimizing UTX's leadership team processes.

David helped 5 cross-divisional teams, comprised of over 600 people, identify and implement performance managements savings projects to transform and improve the business. Such a sweeping, ambitious initiative had never been done before in the company's history.