When Louis Chenevert took over United Technologies Corporation (UTC) in 2006, he made it his work to create a brighter future for his company by unleashing the creativity of his workforce. Mr. Chenevert who received a degree in production management from HEC Montreal is a proponent of enhancing the skills of a business’s human capital as a means of fueling innovation and productivity.
Shareholders were not disappointed by the results of these efforts. One colossal innovation has been the geared turbofan (GTF) jet engine. GTF technology is revolutionizing the airline industry. The GTF engine is 75 percent quieter and 16 percent more fuel efficient than previous jet engines. This one development alone will guarantee more significant market share for UTC, not to mention enhanced profitability due to service contracts which will result from such sales.
Another way UTC is investing in its employees is by paying for them to go back to school. A UTC employee can go back to school today, and the company will reimburse their tuition. The belief is that such an investment in your workforce only makes them more valuable to the company. Louis Chenevert understands production. His philosophy is that a smart worker is a more productive worker.
There is no need to ship jobs out of the country if you can enhance productivity, while simultaneously reducing your operating cost. By moving most of UTC’s divisions to within a few miles of Connecticut’s capital city, where the company is based, Chenevert accomplished this goal by cutting down on traveling expenses.
Although Mr. Louis Chenevert retired from his post as CEO back in 2014, his legacy will be a lasting one. The financial results he posted during his tenure proves that it can be profitable for CEOs to invest heavily in their people. In fact, their human resources may be their most significant untapped asset.