Christine Vision

(post 4/1/99)

Subject: Message from Christine Davis

March 29, 1999
From: Christine Davis

In 1998 we focused on becoming "one company" while implementing
company-wide pay and benefits designed to ensure that we remain
an industry leader. In late February, the SES leadership team,
together with members of SES's and RSC's Human Resources
organizations, and Dr. Wayne Brockbank, a people expert from the
University of Michigan, worked through a process to help us align
our people and business strategies.

The sessions started with an overview of the kind of performance
that world-class companies like Disney, Intel, Unilever, and 3M
achieve by aligning their human resources policies, practices, and
strategies with their business objectives. Dr. Brockbank next led
us through an analysis of SES's current state using his proven tools.
The tools caused us to look outward to our customers to determine
what they really want. We then looked inward at how we currently
operate and behave, to assess if what we are doing supports those
customer needs. Where we found gaps, we have taken action to better
align our people strategy with our customer-driven business strategy.
While we have much of which to be proud, we all agreed that we need
to devote time in a few key areas to improve our current human resources
approach.

We concluded that in order to grow in this new world we need to:

1. focus relentlessly on growth and productivity
2. be lean and agile
3. use market-focused creativity.

This means we must work together in a fast and efficient way while
using our knowledge of the customer and technology to define best-value
solutions to needs. When we do this, we will have lower costs in all
aspects of our business and greater innovation in new products, markets,
and cost-reduction efforts. We will establish a track record of
first-to-market
with profitable products. We will also be able to address new customer
agendas and grow our business. To achieve all of this, we must have a unity
of purpose and alignment on how to get there. Our human resources systems,
such as performance reviews, rewards, and discipline, must reinforce this
way of thinking and behaving.

Our people strategy session concluded with the formation of five teams to
evaluate and improve:

Systemic, effective communication,
External reality checks,
Leadership,
Performance management, and
Reassignments.

These teams will be developing action plans by mid-April. We will share team
outputs as they become available. Other human resources systems will be
addressed over time.

We have begun a very exciting journey together in the new Raytheon Company.
We know there are things we need to improve in the people part of our
business,
and we are taking action. By working together on these critical issues we will
become one company -- one winning company that is admired worldwide.

Regards,
Christine Davis