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well raytheon is a 23 billion dollar
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defense company all around the world and
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you know we clearly are a leader in many
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areas of mission systems and we really
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are not one of the platform guys i think
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that's what makes a big difference there
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and
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i run the command and control systems
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product line that is part of
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the network centric systems
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you know it's very interesting we've
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been moving the last several years
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really out more into
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one modernization so fcs is a big part
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of my my portfolio as well as the
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zumwalt tdg program so as you look at
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the modernization budgets and what may
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happen there compared with reset
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recap as the army the navy the air force
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are all looking at due to the war and
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the equipment that's worn out where they
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go there'll be trade-offs that have to
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be made there so we're constantly from a
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strategy standpoint looking in that
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in addition we've been growing
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internationally quite a bit into
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adjacent
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core markets for command control as well
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as adjacent markets for security
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homeland security command and control in
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those areas
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we we feel strongly that our core you
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know is strong
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we have to continue to be more agile i
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think as a business so that we can
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offset and look at how the budgets are
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being crunched you know if you look at
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europe many of those countries have
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severe budget constraints so some of the
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international
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we're looking at how we may may offset
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those that but really focus in some of
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the key areas brazil's still going to
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have money the middle east still going
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to have money saudi arabia
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some of the other areas so
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well i think everyone feels the crunch
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one so we have to look very much at how
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do we get more efficient we're very
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process execution oriented company we
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use six sigma lean processes to
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consistently improve the way we do
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things
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consistently improve productivity
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especially on the software and on the
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manufacturing sides of things you know
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how do we streamline so we've been
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kicking off a number of initiatives
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across the board
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to bring those costs down shortened
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timelines especially on our
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fixed price
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areas we're looking at our our new
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business resources and how we allocate
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and chase work very very carefully so
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that we're sure we're investing it
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wisely and
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you know my experience has been
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at larger organizations there's always
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plenty of
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fat let's call it that you can find and
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seek out if you're looking to slim down
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and so we are being very aggressive in
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looking at that
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but we also need to be
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careful about our talent acquisition and
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make sure that we can take advantage
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of what's happening in many of the other
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markets that may have extreme talented
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engineers and leaders and
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strategic thinkers to be able to bring
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those into
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our organization i think this is the
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right time for this industry to take
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advantage of
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acquiring talent that's out there across
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other industries that can come in and
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help us grow
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very interesting question we've been
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meeting with various consultants various
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advisers that
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since before the elections that actually
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represented
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the thoughts of what a clinton
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administration might look like what am
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you know
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mccain administration might look like
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and what an obama administration and i
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think
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what we've all kind of seen is
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president obama you know leading into
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the elections didn't speak a whole lot
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about the dod challenges ahead he spoke
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a lot about the war
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spoke a lot about you know looking at
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some of the big programs and those
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things but they really didn't spend a
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lot of time
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understanding the challenges that lie
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ahead i think for dod and for the
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industry and so now we're starting to
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see
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the continuity with secretary gates is a
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very positive thing for the industry
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and i think you know when you look at it
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it's going to be very interesting i
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think right now we all have
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sort of our our glass that we're looking
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at and trying to speculate where things
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are going to go but clearly health care
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issues that the president has laid out
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in terms of i.t and automation and those
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things so we see opportunities there i
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actually have a health care business
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the ship program we do a lot within the
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medicaid
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managing medicaid for the various states
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we do it in dc and looking at another
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area so that ship program as it grows we
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look at how we can take advantage of
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that
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the threats around the world are serious
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especially in the cyber world so we see
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a lot of opportunities especially in how
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do you do command and control within a
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cyber environment how do you share
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information about network attacks how do
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you apply that to protecting the
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critical infrastructures
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not just in the networks but everything
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today is becoming more and more
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networked
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i don't know about you but i'm always
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home worried my computer starts to lock
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up or get slow what bot is on my
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computer what's happening am i being
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hacked and
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and those kinds of things so
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you know i see a lot of opportunity in
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the areas where the president's come out
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in this administration and seeing
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particularly in our business it may be a
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shift from our core but it's certainly
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right up our alley of our capabilities
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that we can provide
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you know it's a challenge certainly we
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are a technology company we have you
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know our engineers and i say that all
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the time i've been with raytheon now two
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and a half years and it's an engineering
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company we definitely are innovators we
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have some of the best technologies
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across the board and we invest a lot of
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money in those technologies and
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and in innovating those but
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it's really fostering that creative
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thinking that strategic thinking
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i think sometimes that can become
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a challenge in
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a large defense company where you're
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always focused on earned value
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management you know integrated uh
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product development you know processes
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you know all very process-oriented six
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sigma how do we you know get in and
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follow and ensure that we deliver on
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time on schedule and under cost
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and those are all
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attributes that are wonderful because we
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have to provide that capability to the
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warfighter but at the same time we've
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got to unlock that creative thinking of
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our engineers we've got to have
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technologists that we're investing in to
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go off and do the big thinking i mean
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there's an area that we've been working
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on the last several years
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is in the counter ied i mean if you look
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at what's happening to
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uh these great young men and women
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across the board that are that are out
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there fighting for our freedom and for
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the freedom of others
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it's it's it's really awful to see the
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injuries to see the death to see what's
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happening in those and as there's a
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threat of ieds coming even into this
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country or into other areas of more
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civilian life we have to we feel that
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there's a lot of technology and
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innovation that we raytheon 72 000
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strong
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as an innovative company can bring to
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bear and so we're investing a lot of
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money in those areas working with
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government organizations
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that invest in innovation darpa and
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jaedo and across the board so
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it's an interesting balance i think what
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we try to do is get some of those folks
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off to the side where they're not
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necessarily so tightly coupled and
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constrained by our processes and get
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them to think outside the box and come
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up with the great ideas
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i think it varies
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across the board but we are definitely
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not a
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a low end
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you know
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lowest cost provider we definitely come
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in we are very much mission assurance
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our brand is
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raytheon it will work the first time
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every time when you turn it on it's
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guaranteed and assured that it's going
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to win regardless of the mission and
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that's something our ceo has pushed down
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throughout the organization we have
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mission assurance
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awards for our folks on a regular basis
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and it's something we feel very
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seriously about because
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you know when a soldier's out there
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putting their
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life on the line that they deserve to
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have
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equipment to have capabilities that
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works every single time and the first
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time so that's something we very much
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focus on quality mission assurance
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you know cost schedule best value if you
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will and it's something that we do
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differently than our competitors
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in the top five
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are we're not a platform provider so
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we're not out trying to sell airplanes
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or vehicles or ships we're providing the
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core
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mission equipment the electronics the
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software the command and control the
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communications all of those pieces that
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make the mission work and make it work
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from end to end sensor to shooter from
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whatever those capabilities are that you
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need for the mission so that's really
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our differentiation there is regardless
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of it we're not trying to sell a
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particular ship or a particular platform
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it's the capabilities of the sensors of
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the electronics of the command control
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i would have to say culture number one
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you know if you look at the
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international
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landscape and for
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those of us including me who grew up in
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this country
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and have grown up in the aerospace
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industry primarily domestic focused with
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some ancillary international sales
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and increasingly focusing in that area
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it's learning the cultures it's learning
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the pace of the cultures know we talk
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about low context versus high context
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cultures and you know when you go over
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season you meet with some of the people
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from
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saudi arabia from india from you know
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various other cultures
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they don't get right down to business
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right away so understanding those
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nuances where we come in and right away
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we start wanting to sell them our
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capabilities or our our you know
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products and technologies but
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understanding that we've got to get to
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know them first we've got to build that
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relationship and so that's a challenge i
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think communication you know languages
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when people make commitments what does
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that mean
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understanding work-life balance may be
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different across those cultures and then
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time
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you know that we have international
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businesses where we have pieces in paris
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and pieces in california that's a nine
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hour time delta when you're having a
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meeting
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someone's getting up very early and
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someone's staying up very late so just
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the logistics of it and keeping those
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people aligned and how you align you
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know just given the time challenges and
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deltas so
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i think as you move forward the good
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news is
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it gives you more diversity you know in
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the portfolio it gives you more
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opportunity to grow and it gives
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individuals who want to grow
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personally outside of
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our
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or sort of u.s culture but understand
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the rest of the world in the bigger
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scope tremendous opportunities and i
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personally
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really love those and getting overseas
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and meeting new people and learning new
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cultures and most importantly eating
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great food
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that is one of the markets that we've
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done several strategic acquisitions in
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the last year
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we've acquired companies with expertise
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in very much discovering vulnerabilities
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in software
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and
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going in and doing analysis of software
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and we've put processes in place
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that enable very similar to the
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capability maturity model for
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integration cmmi but how do you build
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software
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in a secure fashion how are you
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from
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you know upfront design and analysis
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throughout ensure that that software
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doesn't have malware in it doesn't have
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uh viruses etc and so having ways to do
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that ensuring that engineers aren't just
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out on the web i mean the open source
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push is an exciting push in being able
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to reuse software but you have to know
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where that software came from you have
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to be able to ensure
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that this that it is secure and that it
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isn't loaded
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with you know with malware or with
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viruses or with software that's going to
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be trying to steal our technologies or
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disrupt things that we deliver to our
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customers most importantly
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so we take it very seriously we're
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building the capability from within to
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first insure as part of our mission
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assurance
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that our products and technologies
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are
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assured from an information security
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information insurance perspective and
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then bringing that to our customers how
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can we help them in addition protect
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their networks protect their equipment
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and do those things so it's it's an area
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of growth obviously for everyone in the
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industry cyber
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is clearly a growth area we all see
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and and so there's challenges you have
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to both defend internally protect
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and ensure that our processes
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you know deliver products that don't
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have security
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flaws and
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and exposures there so
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