Most CEOs focus on the bottom line. Robust quarterly results and an annual report showing good growth in the company’s earnings are what impresses Wall Street analyst and shareholders. Conventional wisdom suggests that any CEO serious about keeping his or her job should pay more attention to the numbers than anything else. However, there are some who take a different approach.
To appreciate Louis Chenevert’s mindset, we only need to consider his background. In 1997, Chenevert earned a bachelor of science degree at HEC Montreal. From there he went to work for General Motors (GM) and remained with them for 14 years. Following GM he joined Pratt & Whitney’s Canadian division, that was 1993. Pratt & Whitney is a division of UTC. At UTC his career took off. Then in 1999, after only six years, Mr. Chenevert became the president of Pratt & Whitney.
Mr. Louis Chenevert finally achieved the top job at UTC in 2006, when he was named CEO of the company. Once he was in command, Chenevert set out to restructure UTC. His vision called for the formation of a centralized organization where all of UTC’s best minds would be able to rub elbows. To that end, he transferred several of the company’s divisions to locations close to the corporate headquarters in Hartford, Connecticut.
Between 2006 and 2014, by the time Mr. Chenevert stepped down, he had overseen a spree of business acquisitions. The intention of which was to create synergies and increased efficiency within the business’s operations. During this period UTC managed to outperform the S&P 500 in increasing shareholder value. In fact, it was not even close. While other companies were operating in the present, Louis Chenevert was always thinking ahead.