Raytheon Reorganizes Defense Electronics Business; Streamlines Company Operations
LEXINGTON, Mass.---Raytheon Company announced that it has reorganized its defense and government electronics businesses, flattened its organizational structure, and made other changes to speed communications and decision-making to focus on bringing value to customers, shareholders and employees. The changes provide for a more direct connection between the operating units of the company and the corporate executive office.
"We have simplified our organizational structure to encourage faster information flow; more clearly defined and aligned roles and responsibilities; and more direct lines of accountability,'' said Dan Burnham, Raytheon's chairman and chief executive officer. "We believe the results will be a lean organization even better positioned to meet the needs of our customers and win significant and complex programs.''
In the new structure, the Raytheon Systems Company (RSC) has been phased out; a new Electronic Systems business has been created by combining the company's former defense systems and sensors and electronic systems segments; and domestic and international business development has been combined in one organization to provide focused customer solutions worldwide.
"The Raytheon Systems Company structure was necessary as we consolidated our businesses following an intense period of mergers and acquisitions. We have substantially achieved our cost savings objectives and built teams with strong industry and customer knowledge. Now that the transition has been largely completed, we can bring together complementary technologies and continue to reduce overhead structure,'' Burnham added.
Details of the organization and staffing changes the company announced today include:
**The Electronic Systems business combines Raytheon's former Defense Systems and Sensors and Electronic Systems Segments into a new organization. The like technologies and capabilities that existed in each segment will be combined, allowing for more efficient technology development, manufacturing management and customer coordination. The foundation of Electronic Systems will be air defense and missile systems, radar, naval and maritime systems, and electro-optic technologies; pro forma revenues in 1998 were approximately $7.9 billion. William H. Swanson, a Raytheon executive vice president and previously chairman and chief executive officer of the Raytheon Systems Company, has been named president, Electronic Systems; he will continue to be an executive vice president of the company. Swanson will report to Burnham in his new position and will be based in El Segundo, Calif., the headquarters for the new Electronic Systems organization.
**Three businesses that were part of RSC will now report directly to Burnham. These include: --Command, Control, Communication and Information Systems (C3I), which had revenues of approximately $3.5 billion in 1998. Francis S. Marchilena will continue to serve as a senior vice president of the company and is appointed president, C3I. --Training and Services, which had revenues of approximately $1.6 billion in 1998. Philip T. LePore will continue to serve as a vice president of Raytheon and is appointed president, Training and Services. --Aircraft Integration Systems (AIS), which had revenues of approximately $1.2 billion in 1998. James E. Schuster, who took the helm at AIS last month, is appointed president, AIS. Raytheon Aircraft Company, Raytheon Engineers & Constructors and the company's Commercial Electronics business will continue to report directly to Burnham.
**A new business development organization has been created that is central to the company's long-term growth initiatives, government affairs and customer relationships. Kenneth C. Dahlberg is appointed as Raytheon executive vice president for Business Development and president, Raytheon International, Inc., reporting to Burnham. Dahlberg's responsibilities include domestic and international business development, government relations, and the development and execution of growth initiatives that integrate across Raytheon's defense and government electronics businesses. This new organization combines the international and domestic business development functions under one leader to enable the company to provide a total company solution to customers worldwide. Dahlberg will also oversee complex international programs such as ASTOR, the United Kingdom's Ministry of Defence Airborne Standoff Radar program, in addition to other strategic programs. Previously, Dahlberg was executive vice president and president and chief operating officer of RSC. Dahlberg will continue to be based in Washington, D.C., to best serve Raytheon's customers.
**Consistent with the company's recent moves to refocus its commercial electronics businesses with high growth potential, the commercial training division has been moved from Training and Services to Raytheon Commercial Electronics under the leadership of Del E. Lippert, vice president, Commercial Electronics. Commercial Electronics was recently reorganized with an expanded mission to house the company's commercial electronics businesses under one roof.
**All chief financial officers of Raytheon's businesses will now report directly to Franklyn A. Caine, senior vice president and chief financial officer. The operational CFOs will continue to have strong reporting relationships with the leadership of their respective businesses. The direct reporting relationship to Raytheon's CFO reflects the company's previously expressed desire to further enhance financial forecasting and streamline the finance organization.
"Ultimately, we expect this reorganization to improve communications within the company, more directly align our activities with our customers' needs, allow us to take advantage of the consolidation activity previously accomplished, and focus our businesses on winning and executing programs. I believe we have the best people, including the best leadership team, to move Raytheon forward. By acting with even greater agility, we can aggressively pursue growth opportunities in the competitive global defense and commercial markets in which we operate,'' Burnham said.
Raytheon Company, based in Lexington, Mass., is a global technology leader that provides products and services in the areas of commercial and defense electronics, engineering and construction, and business and special mission aircraft. Raytheon has operations throughout the United States and serves customers in more than 80 countries.
