1. Leading a Virtual Team

2. Natalia Khandros, Global Sourcing, Pratt & Whitney

3. United Technologies Corporation Member of Fortune 50, the Dow Jones Industrial Average and the Dow Jones Sustainability Indexes 9/27/2011 3 Hamilton SundstrandPratt & Whitney $12.9 B Sikorsky OtisUTC Fire & SecurityUTC PowerCarrier

4. Pratt & Whitney “We have developed a game changing jet engine with Geared Turbofan technology that will redefine the marketplace for the next generation of aircraft.” - David P. Hess No Technical Data Military Engines Commercial Engines & Global Services Business/RegionalSpacePower Systems

5. Why Virtual Team  Create global presence  Leverage talent worldwide  Enable market penetration  Creates affordability for the local market Global company – Global resources No Technical Data

6. Strategy  Identify reliable partner  Location with large talent pool  Stable government  politically  economically  IP protection  State of the art infrastructure  English speaking  Advanced IT infrastructure Location, Location, Location No Technical Data

7. Key Tactics  Aligned leadership  Created engineering sourcing counsel  Consolidated supplier base  High volume  Identified relationship managers No Technical Data

8. Key Tactics  Commitment for a long term  Alignment of internal resources  Continuous learning  Gradual increase in complexity Virtual Team Set up No Technical Data

9. Key Tactics  Phone connectivity  Direct IT line  Database sharing  Teleconferencing  On-site presence Communication No Technical Data

10. Key Tactics  Introduction to the Standard Work  Access to discipline chiefs  Training and mentoring  on site  experts in the field  Compliance training for IP, export etc. Learning No Technical Data

11. Key Tactics  Use Pratt & Whitney operating system  Systematic approach to root cause analysis  Lessons Learned sharing  Implement Standard Work  Consistent performance measurement Structure – ACE culture No Technical Data

12. Key Tactics  Start with single discipline  Build discipline knowledge  Continue with a single component design  Create multifunctional team  Module/group of components design  Including multi-supply base collaboration Work Complexity EAR 99

13. Key Tactics  Encourage creation of a better solution  Productivity improvement process  Recognition for savings ideas  Multi-year corporate contract Reward Methodology No Technical Data Individual Company

14. Key Tactics  Evaluate capability  Evaluate company maturity  Key measurements identified up-front  Same process for all suppliers Results / Measurements No Technical Data

15. Summary  Well defined strategy / leadership alignment  Requires a collaborative approach  Open communication / relationship building  Requires continuous teaching and mentoring  Performance measurement  Compliance – Export & IP No Technical Data Global learning benefits both partners - innovative ideas, solutions and productivity improvements should be encouraged