Raytheon CEO Gregory Hayes: How Ukraine Has Highlighted Gaps in US Defense Technologies

Gregory Hayes is CEO and chairman of Raytheon Technologies, and offers a special request on what it diagram to be operating an aerospace and defense big at a time when your entire world is fixated on the battle in Ukraine. The firm’s Javelin and Stinger missiles were key ingredients in the Ukrainian resistance to Russian advances, however Hayes warned that “the Russians are sooner than [the US] in the case of having capabilities at the moment to beginning hypersonic missiles.”­­

HBR editor in chief Adi Ignatius sat down with Hayes, who modified into as soon as originally trained as an accountant and led United Technologies sooner than that firm’s merger with Raytheon in 2020, in this episode of our video series “The Fresh World of Work”. Amongst the quite lots of topics they mentioned modified into as soon as the intense position of cybersecurity. Raytheon receives two million hack attempts every week, Hayes says, and yearly spends $1 billion on IT, noteworthy of that to guard their recordsdata and networks. In spite of that giant investment, Hayes says company cybersecurity serene depends on “day-to-day hygiene”. That’s the basics: awareness of phishing assaults, well timed machine patches, and an quick and vigilant team.

The Fresh World of Work” explores how top-tier executives glance the long term and how their companies are seeking to position themselves up for fulfillment. A week, Ignatius interviews a top leader on LinkedIn Are residing — outdated interviews included Microsoft CEO Satya Nadella and extinct PepsiCo CEO Indra Nooryi. He also shares an internal note at these conversations —and solicits questions for future discussions — in a e-newsletter unbiased correct for HBR subscribers. Whilst you happen to’re a subscriber, that you might well register here.

ADI IGNATIUS: Welcome, Greg.

GREGORY HAYES: Simply afternoon. Hiya all people.

ADI IGNATIUS: It doubtlessly makes sense to notify about what’s happening in the realm and on condition that you’re a part of a defense firm, what’s happening in Ukraine. What does it imply to be operating a defense firm at a time when your entire world is fixated on this battle?

GREGORY HAYES: It’s an spicy time whereby we’re residing. And I’d expose you that whereas we’re a defense firm, our scheme is to give our nation and our allies with the most full of life programs, weapon programs, defensive programs to strive to stop unbiased correct this kind of battle that we’re seeing in Ukraine.

No person indubitably wins in a battle. That you might well develop territory or whatever, however actually the inspiration of having a solid defense and offering this excessive skills is to strive to stop something love this from ever happening. When contaminated issues function happen, love Putin’s invasion of Ukraine, it’s enormous to note that we now bask in weapons and programs that might well abet in the strive in opposition to for democracy. And I deem that’s what retains our of us coming to work on day-after-day basis, this singular mission spherical defending democracy and connecting the realm.

ADI IGNATIUS: I love that. You made some public feedback a whereas befriend about how the battle would doubtless lead to an amplify to your industry. Some took wretchedness with that. That’s appears love a logical consequence of what’s occurring, correct?

GREGORY HAYES: Yeah. That’s shiny ample. Witness, we don’t make an apology for making these programs, making these weapons. The reality is, they are incredibly efficient in deterring and coping with the risk that the Ukrainians are seeing at the moment. The Javelin anti-tank weapon machine is a most up-to-date marvel. It might well per chance well per chance capture out a major strive in opposition to tank from two and a half of miles away. The Stinger anti-plane missile, which frankly has been spherical for the explanation that gradual ’70s, is incredibly efficient in concentrated on low flying plane, helicopters, and even jets and other missiles coming in at lower than 10,000 feet.

So I construct no apology for that. I deem again recognizing we’re there to shield democracy and actually indirectly we are in a position to glance some attend in the industry over time. The entire lot that’s being shipped into Ukraine at the moment, indubitably, is popping out of stockpiles, either at DoD or from our NATO allies, and that’s all enormous recordsdata. Sooner or later we’ll must replenish it and we are in a position to glance a attend to the industry over the next coming years.

We don’t construct an tall margin on these products. Here is all mark-basically based pricing. Nevertheless again, the inspiration here is to be obvious that that that you might well need the capabilities to take care of whatever risk might well per chance be available, and that has been the mission of Raytheon Technologies since our inception.

And Adi, please name me Greg, no longer Gregory. Easiest my dad and mother serene name me Gregory.

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ADI IGNATIUS: All correct, I love that. Well, Adi’s my nickname, so let’s scamper along with that too. I’m drawn to how a firm love Raytheon Technologies thinks about ESG, environmental social governance, for these that don’t mess spherical with that acronym. Traders increasingly more note at ESG rankings for companies as a part of their overview of their investment worthiness. I’d imagine some of the rating companies are no longer significantly generous of their critiques, given the industry you’re in. Carry out ESG raters gain your firm?

GREGORY HAYES: I deem for the most part they function, and I deem, again, it’s the epic that we must be telling. As a defense contractor, there are obvious traders that unbiased correct don’t spend money on us. In Norway, the sovereign wealth fund is no longer any longer going to spend money on defense companies. That’s shiny. That’s fully up to them. Nevertheless as you deem about ESG and the quite lots of pillars of a honest world citizen, I deem Raytheon Technologies is doing many, many issues to enhance our standing in the community.

I deem about what we’re doing from a chance, equity, and inclusion standpoint, I deem about what we’re doing in the case of community reinvestment. We’ve committed to exercise $500 million over the next 10 years on underserved communities and offering alternatives. What we’re doing to show our staff, what we’re doing with our suppliers in the case of promoting vendor vary. There are many assorted pillars of ESG. We’re unbiased correct about to position out our first ESG file. And I’m indubitably very ample with the accomplishments that we’ve made in these ultimate couple of years since we’ve brought the 2 companies together.

We’re no longer wonderful. Now we bask in a methods to scamper from the vary standpoint, however we now bask in published accurate targets and we now bask in hope, are keeping of us accountable. We’ve made a part of our executive compensation tied to vary targets. And so I don’t terrified away from DE&I.

On the atmosphere aspect, I deem what’s well-known to take care of in tips is jet gas, sadly, does make a contribution to world warming. So what we’re doing about it’s miles we developed the geared turbofan engine, which has decreased NOx emissions is by 50%. It decreased gas consumption by 15% or 16%, and we’re in the capacity of increasing the next generation of that engine called The Serve, which is ready so that you can characteristic on 100% sustainable aviation fuels. So we capture these targets significantly. We perceive native climate alternate is no longer any longer a delusion. It’s a long way a reality, and we’re going to must sustain out whatever we are in a position to to pork up our clients of their traipse to this fetch zero scheme in 2050

ADI IGNATIUS: I do know that you might well need a quite lots of of staff in Central and Jap Europe. In relation to worker family, how are you coping with and managing the team there on the bottom at this point?

GREGORY HAYES: It’s full of life, we indubitably had operations in Russia till the 24th of February, and upon the invasion, we closed our companies in Russia. We’ve pulled all of our engineers out that were supporting the pattern of a Russian plane, a industrial plane. Now we bask in stopped servicing the total Russian civil plane which might well per chance be in-nation. It’s unlucky and we’re talking about lower than 1,000 of us out of a team of spherical 180,000 of us. So no longer an tall impact.

I’d say more importantly, though, we now bask in about 10,000 staff in Poland, and about 5,500 of these staff are in belief to be one of our most stepped forward manufacturing amenities in a living called Rzeszów, which is correct on the border with Ukraine in the south of Poland. And I’m in a position to recollect visiting there loads of years ago when belief to be one of the most predominant questions I obtained asked in a town hall meeting is, “Will The United States provide protection to us when the Russians advance?” And I roughly laughed it off announcing, “Guys, you don’t perceive. That’s no longer the realm we’re residing in anymore. You’re a NATO nation, NATO ally. Unnecessary to say, The United States will shield you.” Nevertheless I mentioned, “You’re no longer going to note the Russians coming ultimately of the plains of Ukraine in our lifetime.”

Clearly I modified into as soon as wicked, as were many others about that. What’s most heartwarming though, talking to some of these of us in the ultimate few weeks: Of these 5,500 of us, bigger than 1,000 of these of us bask in opened up their homes to the refugees coming in from Ukraine, even offering them food, shelter, the entire lot that they need.

And it’s a human tragedy what’s occurring in Jap Europe at the moment with all of these refugees. We’re, indubitably, offering financial pork up, we’ve contributed over 1,000,000 and a half of greenbacks. Most of that coming from our staff to give humanitarian assist. Nevertheless I deem more importantly, all of our staff in Poland bask in opened up their homes and their hearts to these unlucky these that were displaced by this atrocity of battle.

ADI IGNATIUS: It’s indubitably a tragic moment, a not doubtless moment.

Industry for all of us has modified profoundly previously few years for a quite lots of of reasons. I’m enthusiastic, significantly in the R&D sphere, how bask in issues stepped forward for you and whether it modified into as soon as the pandemic or simply correct over time: How are you brooding about R&D now that might well per chance be different from the diagram you doubtlessly did previously?

GREGORY HAYES: It’s an spicy traipse that we’ve had over these past two years. We indubitably brought the 2 companies together on April third, about two weeks into the nationwide lockdown thanks to Covid. Industrial plane weren’t flying wherever. Our industrial aerospace industry, which modified into as soon as indubitably about 60% of the industry, obtained lower in half of. We had roughly 200,000 of us the date of the merger—100,000 of the more a will should always bask in coming to the living of work, however 100,000 wanted to be working from dwelling. And the discipline modified into: How function you continue to innovate and collaborate over Zoom? And that has proven to be an incredibly efficient tool. The foundation of video conferencing has been spherical for a actually very prolonged time. I modified into as soon as by no diagram noteworthy of a fan, and I consistently belief you wanted to be in the living of work, working together on day-after-day basis to gain issues performed. Nevertheless I give credit to our organization. We discovered concepts to scamper 100,000 of us to work remotely within two weeks of the merger.

We were in a position to continue to innovate, continue to speculate. We exercise roughly $7.3 billion a year on R&D. About half of of that comes out of our have P&L, the opposite half of comes from clients. And the request is, can you function that successfully? We’ve indubitably stumbled on that with the different video programs, whether it’s Zoom, or whether it’s Teams, or whether it’s Cisco, we are in a position to work together, and we is also very efficient. What modified into as soon as fantastic to me is productivity indubitably improved in our first year of working remotely. A number of of that we attributed to of us no longer standing ultimately of the water cooler talking, however more importantly, of us were in a position to focal point on their work of their have atmosphere in a jubilant diagram.

As we deem in regards to the roughly 60,000 engineers that we now bask in available, they’ve indubitably performed a stunning job of continuing to search out methods to connect ultimately of the companies. And capture in tips after we brought these companies together, one modified into as soon as a industrial aerospace industry, the opposite modified into as soon as a tall defense industry, however lots of very general skills, and finding methods to work together ultimately of the conducting modified into as soon as absolutely a must must construct this deal work.

We’ve indubitably realized over one billion dollars of synergies in these ultimate two years, however more importantly, we now bask in also known about $12 billion of further revenue alternatives by working together, and it’s all been performed remotely. So, kudos to the group. There modified into as soon as no playbook, absolutely, when Covid struck.

ADI IGNATIUS: I imagine, significantly with a roughly hybrid and much-off work aspect, it’s miles important to deem about cybersecurity factors plenty. I’m wondering in the event that you might well need needed to sustain out bigger than others, given the industry you’re in, in expose to be obvious that the entire lot is valid?

GREGORY HAYES: Yeah. We exercise roughly one billion dollars a year on IT, and a tall chunk of that’s for cyber. Of direction, unbiased correct to be shiny, belief to be one of our companies, our Data in Condominium industry, our INS, indubitably has belief to be one of the most biggest cybersecurity operations in the realm. We present cybersecurity through the Department of Homeland Security, to many of the .gov organization. We even bask in what I’d capture into story to be some offensive cyber capabilities.

So, we now bask in outdated some uncommon capabilities within the four partitions of Raytheon that enable us to sustain out a terribly honest job of maintaining the four partitions of Raytheon as well to the total diagram correct down to our suppliers. That’s no longer to say we haven’t been hacked. We gain about two million attempts a week. Two million intrusion attempts a week that we now must take care of.

We absolutely bask in had our a part of misuse, especially, I name it. It’s the one-off server that might well per chance be at some a long way-off region someplace ultimately of the realm that’s no longer a part of our network that will get hit by a zero-day assault, some ransomware from some small industry. Nevertheless for the most part, it’s a fleshy-on group effort to be obvious that that these intrusions by no diagram mount to something, and up to now so honest. Nevertheless it absolutely is fixed, fixed vigilance. There’s no other diagram spherical it. That you might well per chance must take care of one step forward. You’ve obtained to sustain out your, you name it your day-to-day hygiene, you’ve obtained to be obvious that your staff are privy to these phishing assaults. It is most practical to be consistently vigilant.

ADI IGNATIUS: So, for viewers who maybe don’t bask in the refined programs that that you might well need in living, and maybe who’re increasingly more skittish about cyber assaults given what’s happening in the realm correct now, what’s your advice? What function they should always sustain out first?

GREGORY HAYES: There are consistently vulnerabilities in any machine bundle that’s available. And the inspiration is, the Microsofts of the realm, the Oracles, SAPs, they fetch these items, and the request is, how quickly can you set up these patches? We’ve obtained over 300,000 devices ultimately of the realm that we video display on, on a day-to-day basis. We strive to, within seven days, be obvious that all of these patches are attach aside in living.

Also, in the event you don’t bask in the capabilities in-residence, you indubitably should always gain abet externally. And there’s hundreds of companies available that present these products and companies, however at the beginning, it’s miles making obvious that you’re following that day-to-day hygiene of developing obvious your patches are attach aside in living, monitoring what’s coming in, making obvious your firewalls are in living, and no firewall’s wonderful. I serene remind these that the biggest cyber risk doesn’t advance from Russia or China, it comes from our staff on day-after-day basis and the gain entry to to the records that they bask in.

Making obvious that that you might well need a sturdy project to video display worker exercise, and I don’t imply tall brother, I unbiased correct imply the flexibility to note if somebody’s taking more recordsdata than they’re entitled to, or attempting in programs that they’re no longer supposed to be in. You’ve obtained the flexibility to video display that on a accurate-time basis. No longer easy, and no longer low-mark.

ADI IGNATIUS: Let’s return to after we were talking about R&D. You are going to need mentioned previously that hypersonic weapons might well per chance be significantly extreme in the no longer-so-a long way-off future. There’s evidence that Russia is already the employ of these. Is that the long term of defense skills?

GREGORY HAYES: Hypersonics are an spicy thought. And again, unbiased correct to level-position the viewers, we’re talking about our weapons that flit someplace between Mach 5 and Mach 20, and indubitably, three different platforms. A number of of them might well per chance be launched ballistically. Now here is a hypersonic cruise automotive that goes up into the ambiance. It comes down noteworthy love a ballistic missile with a tall distinction that it doesn’t put together a ballistic trajectory. It indubitably is maneuverable in the ambiance, which makes it very, very refined to shield in opposition to.

Conventional ballistic missiles we now bask in something called the THAAD that we work with Lockheed [Martin] on that might well indubitably capture out a ballistic missile. Hypersonic cruise vehicles, very, very refined to hit, unbiased correct because they bask in the maneuverability. The same with hypersonic air-respiratory missiles, these are on the entire fired off of a fighter jet. They’ll also be fired as a cruise missile from a submarine, presumably.

These is no longer any longer going to be virtually as immediate. The cruise vehicles, Mach 20, correct? 17,000 miles an hour. Hypersonic air-respiratory, Mach 5, 3,500 miles an hour. But again, all of them symbolize challenges in the case of how function you shield? I’d expose you correct now, we ultimate year, for the predominant time, successfully tested an air-respiratory hypersonic weapon machine with the DOD, however we’re a prolonged diagram from being in fleshy-price production.

Chinese, alternatively, are diagram sooner than us. And even the Russians are sooner than us in the case of having capabilities at the moment to beginning hypersonic missiles. For many years in the defense industry, your entire thought modified into as soon as stealth. How function you provide protection to your air sources or your ships from enemy radars, equivalent to that you might well entire a mission without endangering the crew? Hypersonics’ velocity overcomes stealth. On account of of the velocity of these programs, and the vary of these programs, the explicit request is, how function you now shield the living of beginning in opposition to these weapons programs? And we’re working very carefully with the Department of Defense to advance up with a couple of methods whereby we are in a position to take care of them. It’s an tall technical discipline.

As we deem about this, and I do know this might sound love a sci-fi, however literally, a excessive powered microwave for a millisecond might well per chance literally fry the electronics in belief to be such a items in the event you hit it, and that might well per chance be our simplest bet. And again, that isn’t belief to be one of our core companies is microwaves, excessive powered vitality. Nevertheless it absolutely’s most efficient one acknowledge, and we’re working with DOD on coming up with what might well per chance be a layered defense, however I’d expose you correct now, we’re at the befriend of. It’s belief to be one of the most major technologies that we’re investing in ourselves and the authorities is investing in, however here goes to be a 10 or 15-year project to verbalize up to where the Chinese are at the moment.

ADI IGNATIUS: All of us in industry are coping with a strive in opposition to for skills for the time being. I’m wondering what that appears love for you to your industry. What are the abilities that that you might well per chance be seeking to carry in and presumably struggling to carry in ample of?

GREGORY HAYES: Last year we employed 19,800 of us ultimately of Raytheon. Now we were moderately successful in attracting skills, and we’re hiring on the entire lot from popping out of faculty, to of us with stepped forward degrees, to of us with the 20 years of provider. Nevertheless the hunt for skills is accurate. It’s a long way a discipline for all of us. What’s full of life is I deem of these 19,800 these that we employed ultimate year, nearly half of of them haven’t been to the living of work but. And we’re unbiased correct in the capacity of reopening our offices ultimately of the realm and this might be enormous to note these of us in individual and indubitably for them to indubitably feel love they’re a part of the Raytheon Technologies group.

Whilst you happen to deem about what skills we’re after, well obviously it’s engineering skills, program administration skills, it’s present chain skills, operations skills, namely spherical AI and machine learning. In fact, it runs the gamut. I say we gain our shiny a part of of us, of us note at Raytheon Technologies as a living they should always work because they verbalize in our mission of defending democracy and connecting the realm. I deem our attrition price, again, here is all public recordsdata, is set 6%. So that diagram out of 180,000 of us as soon as a year we’re replacing about 11,000 and we’re serene increasing. So it’s a discipline that’s no longer going to gain more uncomplicated, especially with the demographics that we glance here and in Europe.

ADI IGNATIUS: I should always flip to the predominant request from our viewers. Here is from Jesse from Fresh York, who says, many leaders cite culture as a clarification for a fleshy return to the living of work. How has the hybrid a long way-off model formed your culture at Raytheon Technologies?

GREGORY HAYES: Since we now were working remotely for these two years, this thought of how function you construct a single culture for Raytheon Technologies has been at the beginning in our minds. And as we belief of it, indubitably goes to values. And in expose we now were speaking with our of us, and I’ve been doing videos on an everyday basis, doubtlessly bigger than our of us should always note, we now bask in consistently gone befriend to values. Dignity, respect, believe, innovation, collaboration, and these are the values that we sustain firm. I’d say culture is indubitably a conclude result of learning over time. And we’re serene, I’d say, in the infancy in the case of increasing our culture.

Having excessive integrity is principally a will should always bask in. We consistently expose of us we’ve obtained a code of ethics, as function most organizations, however I love to boil it correct down to some very easy phrases love, “we don’t lie, we don’t cheat, we don’t diagram shut and we consistently strive to function the wonderful thing, even when no one is attempting.” And in the event that you might well put together these easy tips, that you might well per chance presumably also be a part of Raytheon Technologies. And reinforcing these values, reinforcing that culture is principally a will should always bask in. And again, an organization as big as Raytheon Technologies, it’s no longer love all of us advance to a single living of work and exercise all day together. Now we bask in over 200 operating sites ultimately of the realm, we characteristic in countries from Australia to Japan, to Singapore, to Poland, to the UK, you title it, US, Mexico, Canada. So having a single culture ultimately of the globe is no longer any longer easy. Having shared values though, I deem is the major to that culture.

ADI IGNATIUS: We’re also getting some questions in regards to the volatility of this era. And here is a request from a YouTube viewer, Gordon, who’s asking how your leadership has adopted new methods of working to acknowledge to this crazy unstable world now?

GREGORY HAYES: When I return two years ago in April after we brought these companies together and I consistently expose of us I couldn’t even spell Zoom. I had no thought what Zoom modified into as soon as, I had no thought how this worked. The skill to adapt to these altering skills, to the altering prerequisites to the total alternate that’s occurring in the realm, I deem is principally a will should always bask in.

I do know alternate is refined for of us. I had this dialog, I modified into as soon as at a town hall meeting in Texas a couple of weeks ago, and somebody mentioned, when’s the alternate going to conclude? My acknowledge modified into as soon as rather easy: by no diagram. That you might well per chance must learn to adapt and in the event that you might well’t adapt to alternate, it’s miles important to face the truth that you’re going to be beside the purpose over time.

As I deem about my have non-public leadership fashion, I consistently enjoyed coming into into front of of us, going out, shaking fingers, meeting of us, touring ultimately of the realm. All of a surprising that every one ended in March of 2020. So we’ve needed to adapt and I serene exit, I serene notify over with, however it’s noteworthy, noteworthy different at the moment with social distancing and the masks. Nevertheless again, we adapted by the employ of the instruments that we now bask in, especially something love Zoom, where we are in a position to exit and I function, again, regular videos, my staff does regular videos. We strive to hit on key issues of every. In the beginning indubitably, modified into as soon as worker safety. How function you capture all people safe? And I deem we’ve performed a moderately honest job over the ultimate couple of years in doing that, no longer wonderful, however a moderately honest job. Nevertheless I deem the major for me is adapting to this all straight away altering world and that’s no longer consistently easy.

ADI IGNATIUS: Here’s a request from Julia, from Boston. I deem I indubitably know her. The request is what improvements basically based spherical defense force advances function you deem might well per chance be pivoted, maybe quickly, to non-defense force employ? Clearly there’s a prolonged historical past of defense force products which might well per chance be adapted to civilian employ.

GREGORY HAYES: It’s a enormous request. So you indubitably should always deem about our entire portfolio of what we present out. A number of of the sensing technologies that we now bask in, the radar technologies which we employ both for defense force and industrial air traffic are absolutely interconnected. A radar machine is a radar and the sophistication level might well per chance vary a slight bit, however no longer so noteworthy. And we now bask in many technologies, I deem about AI: we now bask in invested lots of money in man made intelligence, as we deem about what the next battlefield appears to be love and what the next airplane appears to be love. You’re talking about how function that you might well need an independent automotive? That is somebody you don’t must either attach aside in anxiousness’s diagram or a pilot that you don’t must pay to flit 14 hours every diagram from Berlin to Fresh York. And these are challenges I deem that we’re uniquely positioned to medication because we now bask in this skills that’s indubitably a functionality to unfold it ultimately of the conducting in solving our clients’ most refined complications.

As I deem about after I confer with the engineers, I say we’re no longer here to medication easy complications, we’re here to medication refined complications. And how will we capture the total skills that we now bask in in our tool salvage and medication that next generation of complications. Whether or no longer it’s independent industrial plane or independent flight for fighter jets, we now bask in the flexibility to sustain out all of that.

ADI IGNATIUS: A quite lots of of the questions that bask in advance in wretchedness cyber battle, cyber assaults. Are you surprised that in the battle in Ukraine now that it’s miles so noteworthy of a regular battle and isn’t more of a cyber battle at this point?

GREGORY HAYES: Well, absolutely we now bask in seen cyber assaults leading up to the invasion by the Russians, that all of us know they were attacking infrastructure, however I’d expose you the Ukrainians are very, very capable from a cyber standpoint, they bask in some of the most full of life programmers in the realm there. I do know there are many companies in Europe that employ Ukraine as a recruiting ground for cyber. So I’d expose you it’s no longer that the Russians haven’t tried. They’ve been more restrained, presumably, in no longer shutting down the energy grid thanks to what that can imply in the case of seeking to capture over the entire nation. Nevertheless if cyber is on the advertise’s being fought on each day basis, however our skill to shield, and again, we’re working with these of us on day-after-day basis, our skill to title the threats and take care of is unparalleled.

But again, here is a battle that we belief we would by no diagram strive in opposition to again. Now you deem about, I imply, our entire defense force diagram for the ultimate decade has been targeted on the Indo-Pacific affirm and how function you take care of defending Taiwan? The foundation of destroying tanks and helicopters in a European battlefield is something most of us belief went away with the autumn of the Berlin Wall some 20 some years ago. And so again, cyber is on the market, it’s happening, however our skill to take care of it’s miles unparalleled.

It modified into as soon as full of life. I don’t know in the event you’ve seen the paper here, where I observed President Biden modified into as soon as at Industry Roundtable the opposite evening, talking to a community of us and what he mentioned is: be ready for cyber because it’s coming. And I deem that’s our biggest fear, is the next wave of this Russian assault might well per chance also be upon US-European infrastructure. And so we’re working carefully with the the total authorities companies, namely DHS, to be obvious that that we’re ready for what assuredly is an tall cyber assault by the Russians. To this point we haven’t seen it. And I deem, again, that might well per chance be a step that Mr. Putin doesn’t should always capture thanks to the retaliation doable that the US and European allies bask in, however we’ll glance. Nevertheless we’re enthusiastic, however I deem no longer lower than for correct now we verbalize we’re on top of it, however it’s miles an tall, big risk.

ADI IGNATIUS: What function you say to a viewer staring at this asking, “Uh-oh, what function I speed out and function to be obvious that that my firm isn’t collateral anxiousness in all this?”

GREGORY HAYES: It’s having the cyber safety protocols in living. It’s making obvious your staff know no longer to click on on malware. It’s colorful that every belief to be one of your computer programs that face the exterior world, the fetch, are protected and that the patches are in living. And we’ve seen this previously. Everyone knows that the Russians were available, the Chinese, the North Koreans, the Iranians, they’ve been available. For the most part, we now were in a position to maintain these assaults. Nevertheless we’ve also seen some successful assaults where they’ve been in a position to scamper in, you deem about Maersk, the tall delivery firm who misplaced all of its computer programs thanks to a malware assault from the Russians no longer 5 years ago. I imply, it’s miles accurate and all that you might well function is be obvious that that your security protocols are in living and that your of us are hypervigilant to these threats which might well per chance be coming in, indubitably by the second.

ADI IGNATIUS: Here’s a request from James, who’s a YouTube viewer. It indubitably has to sustain out with the roughly poisonous break that comes from weapons production and the context of the ESG dialog we were having sooner than. What is Raytheon Technologies doing to lower the impact of these items, which I pick is also poisonous, or carcinogenic?

GREGORY HAYES: We indubitably don’t construct any, what’s called the “energetics”, which might well per chance be the chemical substances which might well per chance be outdated in any of our missiles or weapons programs. We procure them from a couple of quite lots of companies, Aerojet Rocketdyne, Orbital which is owned by Northrop. The reality is we now bask in a indubitably sturdy project spherical supplies of wretchedness, we song them very, very carefully. Now we bask in targets available to strive to cast off chromate from production and loads of alternative issues. I’d expose you, the putrid stuff, we don’t take care of. We don’t take care of the energetics. We also don’t take care of the explicit warheads, these are issues that we procure basically from either one other firm love Rocketdyne or from the DOD who handles most of that. Nevertheless we now bask in a indubitably honest program spherical making obvious that, from an environmental standpoint, reducing valid break, greenhouse gas emissions, carbon dioxide, all of this stuff, we now bask in performed, I deem a moderately honest job. And again, I’d befriend you in the event you’re indubitably challenging, our ESG experiences wretchedness here in the next couple of weeks, capture a note and we’ve obtained the total targets laid out through the pinnacle of the last decade in the case of how we’re addressing all of these supplies of wretchedness.

ADI IGNATIUS: Here’s a request, here is Matthew from Alabama, here is set groups. Carry out that you might well per chance be feeling that the diagram in productivity that that you might well need skilled is attributable to particular individual heroics or group collaboration?



GREGORY HAYES: Yeah. Witness, there’s no one thing that has given us this amplify in productivity. I’d expose you what’s been fantastic to me is the flexibility to work remotely has indubitably improved our productivity because we’re no longer seeing the turnover that we observed sooner than the pandemic. The skill to give of us flexibility of their work lifestyles is indubitably promoted, I’d say, more productivity. Of us are more targeted when they gain on their projects, they gain issues more quickly and we now bask in equipped them the instruments well-known. On the same time there’s consistently going to be particular individual heroics, of us who bask in gone above and beyond who work to medication, whatever wretchedness is on the market. Nevertheless I’d say it indubitably goes to the productivity advantages of craftsmanship that we didn’t perceive till unbiased correct no longer too prolonged ago.

I modified into as soon as on a name with the head of NASDAQ and she modified into as soon as declaring that they’d been fully a long way-off since 2009. And I’m love, “How can that be?” She says, “Well, because we now bask in operations in Japan. Now we bask in operations in Switzerland, in the UK, and in Fresh York, and we unbiased correct stumbled on it more productive.” And it has fundamentally modified the diagram we capacity work, as I deem about we’ve obtained 32 million square feet of living of work attach, put up-pandemic we’re going to capture about 25% of that out. We’re going to scamper to a basically hybrid work atmosphere because I should always be obvious that we pick the advantages of this skills, as well to capturing the attend to our particular individual worker in the case of the flexibleness that we are in a position to present. So I deem about working fogeys, the flexibility to juggle schedules and no longer should always be at work at eight o’clock every morning till six o’clock every evening and they bask in flexibility thanks to this skills. These are accurate productivity improvements, accurate quality of lifestyles improvements that I deem this skills has enabled.

ADI IGNATIUS: Greg, I should always thank you for being on the stammer at the moment. Here is a no longer easy time to be a CEO, it’s maybe a profoundly no longer easy time for somebody to your world. Nevertheless I indubitably love you being on the stammer and I need you the total most full of life.

GREGORY HAYES: Thanks so noteworthy. And indubitably attributable to all of these of you who’ve listened in. And I indubitably should always say attributable to all of our staff ultimately of the realm who bask in indubitably performed the heavy lifting here ultimately of the pandemic, and it’s nearly over. So thanks very noteworthy all people. It’s enormous to note you.

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