Electronic Components Now Part of Motion & Flow

Message from Steve Loranger

Over the last few months, we have informed you of a number of changes we've made to increase our organizational efficiency, all important steps on our path to becoming a premier multi-industry company. A team of company leaders has analyzed our structure and recommended ways to streamline, with the goal of optimizing growth, speed, customer focus and efficiency. The ITT Executive Council has reviewed the recommendations and we are announcing the decisions from this process.  

Effective immediately, the two Value Centers of Electronic Components (EC) will be integrated into the Motion & Flow Control organization.  This will result in ITT operating with three management companies instead of four. The EC Value Centers will now report to Nick Hill, who is President of the Motion & Flow Control group. Nick has also been elected a Senior Vice President of ITT Industries by the Board of Directors. Many of you know that Nick spent much of his ITT career in the Electronic Components group, and the EC businesses will benefit from his experience and leadership. 

Consistent with our desire to build on the "Engineered for Life" philosophy, we are pleased that Brenda Reichelderfer has been appointed to the position of senior vice president, chief technology officer and director of engineering for the corporation, based in White Plains reporting to me. In this role, Brenda will be responsible for engineering functional excellence and leadership development, Value-Based Product Development, innovation and intellectual property recognition and technology planning. Her engineering background and her experience in each of our management companies uniquely qualifies her for this new role.

In addition to the previous consolidation of Value Centers within Electronic Components, we have also accomplished significant consolidation within our Fluid Technology and Motion & Flow Control businesses, reducing the number of Value Centers (and their infrastructures) from 25 to a total of 18. These combinations include:

• The Industrial Products Group was combined with the Engineered Process Solutions Group to form the new Industrial & Biopharm Group.
• Our Conoflow Value Center was combined with Aerospace Controls.
• Jabsco and HydroAir are being combined into a single Value Center.
• Our Fluid Handling Division and Water Technology Division have been combined to form the new Commercial and Consumer Water business.

These organizational changes have resulted in a number of new assignments and responsibilities.  Consistent with our long-term goals, more than 70 percent of the leadership positions filled during this process have been filled with internal candidates. 

While change presents us with challenges, it can be invigorating and is necessary to keep our business evolving. It is always best to undertake change from a position of business strength, as we have had within ITT recently. With these significant changes behind us, we can move forward in planning for 2006 with a clear view of the organizational structure, and devote our attention to improving operational performance. I look forward to working with you to ensure the continued success of the company as we wrap up 2005 and look forward to a successful 2006.

 

The Electronic Components business will now report to Nick Hill, president of Motion and Flow Control. Brenda Reichelderfer, former head of all EC businesses, has been named senior vice president, chief technology officer and director of engineering for ITT.