February - March 2008
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Article 1:

Supporting Soldiers ... with More than Products

ITT employees are running grassroots programs to meet the "human needs" of U.S. soldiers stationed around the world.

U.S. forces serving in Iraq, Afghanistan and other areas of the world know they can count on ITT.

We are the company with night vision goggles. With battlefield radios. With counter IED technologies ... and with employees who care about the soldiers in the field.

While our products serve the needs of soldiers, our people provide support on a more human level. For proof, look no further than our Defense facility in Clifton, New Jersey, where ITT employees are helping soldiers in too many ways to count.

The undertaking began five years ago as a small effort to send school supplies and a few packages to one soldier. With the help of lead coordinator Joan Damurjian, who works in Clifton's Human Resources department, it spread from there.

Clifton employees held a yellow ribbon campaign to raise money for Fisher House, which enables military families to stay nearby when a wounded loved one is hospitalized. Another campaign enabled them to purchase phone cards for soldiers of several deployed units, and that evolved into the purchase of 70 web cams to allow soldiers to "see" their families. They also assisted in the sponsorship of the Wounded Warrior Project, which assists the men and women in the armed forces who have been severely injured during conflicts around the world.

Care packages are constantly streaming out of Clifton to their "adopted" soldiers overseas. Employees have sent everything from chocolates, books and toothbrushes to holiday trees and ping-pong tables. 

"One senior executive donated his frequent flier miles to a soldier's mother so she could fly to Walter Reed Hospital to be with her wounded son," says Damurjian.

Other ITT sites are seeing their grassroots programs grow in similar ways. In Fort Wayne, Indiana, Jo Bird, an assembler for the ITT Aerospace/Communications Division, leads an annual holiday donation drive to collect gifts for employees with relatives in Iraq. This year's shipment was the biggest ever.

In Roanoke, Virginia, employees at ITT's Night Vision value center raised money and collected supplies to aid children in need in Kosovo, on behalf of a U.S. Army battalion stationed in that country.

And in Rochester, New York, Al McLiverty, who heads the Veteran's Network group for ITT's Space Systems Division value center, recently shipped 17 boxes filled with more than 500 pounds of employee-donated necessities and "goodies" to soldiers in Iraq. 

"Every package goes to a unit that has an ITT family connection -- siblings, spouses, children, nieces and nephews," says McLiverty. "There were 13 different units in Iraq and Afghanistan that received an ITT care package this past December."

From thank you notes to site visits, the soldiers on the receiving end of this generosity show their appreciation in different, but equally heartfelt, ways. One day, a package from Iraq arrived in Clifton. Inside was a dust and sand-encrusted flag that had flown over Baghdad in honor of ITT employees.

"We were told it was a simple gesture," says Damurjian, "but the only way these soldiers could thank us for all we had done for them."

Article 2:

How the CEO Sees It

Creating an ITT Learning Organization

In this regular feature, CEO Steve Loranger takes a closer look at ITT's corporate priorities. Here, he explains what ITT is doing to create a learning organization.

Since ITT became an independent company in 1995, we have been evolving steadily from a holding company to a true operating company. We want to be more than a collection of companies with the same name; we want to be a united operation that moves forward with a shared vision and set of values toward a common goal.

This year, we are accelerating our journey. One of our top corporate priorities for 2008 is creating an ITT learning organization. Learning organizations provide consistent training and development in terms of content and quality.

What does this have to do with building a united ITT company? Simple. If we want everybody to be on the same page, we need to make sure we are all using the same "textbook." Training and development is one of the key levers we can pull to create a culture and environment where everyone has the same understanding of where we are heading and how we want to get there. As one of our employees pointed out to me recently, when you have a strong training program, individuals need less management and are better able to achieve their goals -- and our collective goals.

By creating a learning organization, we will become a company that:

• Leverages the strength and breadth of our entire enterprise


• Competes more effectively by being collaborative and sharing best practices


• Uses the best processes to make better decisions


• Represents more value to our customers because we can bring collective solutions together in a distinctive way


• Provides greater talent development and opportunities by offering richer challenges for employees

Five Areas of Concentration

The creation of the ITT learning organization has commenced. Class is in session.

First, we identified the five key areas of our ITT curriculum. In each of these areas, we are developing consistent content that will drive ITT-wide training and development activities going forward.

• Living Our Values -- understanding our vision, values and ethical standards


• ITT Management System -- understanding and using our strategic processes such as Value-Based Management and Value-Based Product Development


• Leadership and management development -- understanding our leadership competencies (create the future, lead with character, build through teamwork, inspire commitment and deliver results) and what we expect from managers at ITT


• Functional excellence -- building technical competencies in all of our jobs


• Skills training -- giving employees increased access to general education and training sources from inside and outside ITT

You recently got your first glimpse into our future as a learning organization when you attended the ethics and compliance training session at your site. You heard the same messages and received the same materials as your coworkers across the globe. In the next year, everyone at ITT will also attend a Living Our Values training session so that we are all in alignment around our vision and values.

The Next Steps

A learning organization also provides self-directed learning opportunities to its employees. We are currently developing an electronic learning management system that will support training and self-development activities -- giving you 24/7 online access to a wide range of courses and certification programs. 

This virtual learning portal will offer both ITT-specific courses and the best offerings from universities and professional organizations. We are working with a learning management provider and piloting this technology at our Water and Wastewater and Industrial Process value centers.

This is an important step forward for ITT. This year, with the acquisitions of EDO and IMC, we will be a $10 billion company for the first time in our history. The moment has come for us to create a comprehensive, consistent set of training and development tools that will enhance the growth of our people and our company.

Article 3:

Lighting the Way

Ultraviolet disinfection is the "green" way to clean water, and ITT has a new product -- Spektron -- that outshines the competition.

Clean water customers are seeing the light. With environmental awareness and regulatory pressures on the rise, municipalities that provide drinking water to their residents and companies who need pure water for their products are turning to ultraviolet (UV) light equipment as their preferred disinfection treatment technology.

The UV market is experiencing double-digit annual growth because it offers numerous benefits. UV technologies eliminate harmful bacteria by zapping the water with ultraviolet light, disrupting the DNA of the microorganisms so they can’t reproduce. It gets the job done with no chemicals, no dangerous byproducts and no more expensive price tags. 

As the cost of UV equipment has dropped, customers -- including municipal drinking water plants, private drinking water providers, and companies that use water as an ingredient for their foods, drinks or pharmaceuticals -- are taking a closer look at UV light solutions.

And now, ITT has come up with a UV product that outshines the competition.

The innovative new Spektron UV disinfection system is being manufactured in ITT's plant in Herford, Germany and sold under the Wedeco brand name. Ranging in size from seven inches (19cm) to 40 inches (1m) in diameter, this line of UV reactors introduces an elbow configuration so customers can easily fit it into vertical or horizontal spaces. It also features ITT's patented CrossMix flow control technology that ensures even and efficient treatment of the water.

"In many traditional installations, the configuration of the inlet and outlet piping causes water to flow asymmetrically through the reactor. As a result, the UV treatment is less effective," explains Glen Trickle, vice president and director of treatment engineering and technology for ITT's Water & Wastewater business. "The CrossMix straightens the water flow, thereby allowing the Spektron to operate at a higher efficiency. The result is pathogen-free disinfected water at a significantly lower lifecycle cost."

Spektron was designed to meet the very strict drinking water regulations in Germany, Austria and Scandinavia, and is currently being marketed in these three regions. Customers install it as part of the water treatment process -- sometimes following a filtration step – and depending on the quality of the water, very often there is no need for further treatment after it passes through the Spektron UV reactor.

For drinking water applications, some customers might still decide to dose the water with chlorine as an added safety measure for their distribution system. But Spektron allows them to reduce the chemical loading and does the heavy lifting in terms of disinfection.

The product helps further enhance ITT's place as a global water leader, says Trickle.

Article 4:

A Team Approach to Inclusion and Diversity

Bob Ellis leads the new global leadership team dedicated to creating a world-class inclusion and diversity culture at ITT.

In December 2007, ITT took its inclusion and diversity efforts to the logical next level with the appointment of a global leadership team. 

• Bob Ellis succeeded Usha Wright as Chief Inclusion and Diversity Officer. He joined ITT from Northrop Grumman, where he established the strategic diversity function for a key division. He now leads ITT’s inclusion and diversity work on a global basis from ITT's home office in White Plains, New York.


• Tomas Leal comes to ITT with extensive inclusion and diversity experience in the oil and gas industry and oversees ITT's inclusion and diversity efforts in Europe and Asia. He is based in Basingstoke, U.K.


• Amy Taney, who helped build the inclusion and diversity program for ITT's Industrial Process business, is now developing inclusion and diversity programs and processes for North America sites from her office in Seneca Falls, New York.

They -- along with the recently appointed inclusion and diversity champions at every value center -- form ITT's new Inclusion and Diversity Center of Excellence. Recently, Ellis offered insights into his team's plans for making inclusion and diversity more ingrained in ITT's culture.

Where would you say ITT is on the path to building an inclusive and diverse work environment?

Usha Wright and her team did an outstanding job of laying the foundation by creating three regional workforce strategy councils and a company-wide inclusion and diversity commitment statement. Our priority for the newly formed Inclusion and Diversity Center of Excellence is to build on that foundation. We want to establish ITT as a premier global organization that truly understands the value of having an inclusive and diverse workforce as a source of competitive advantage.

What are your immediate priorities?

First, we want to collaborate with ITT leaders at all levels to define and institutionalize a corporate-wide global mindset. Next, we will partner with our Value-Based Leadership Development team to enhance the operational excellence of our inclusion and diversity champions. Finally, we will facilitate authentic and multi-directional communication to enable innovation and continuous improvement of our inclusion and diversity efforts.

How does the creation of the new global leadership team accelerate ITT's inclusion and diversity progress?

Both Tomas and Amy bring significant and diverse intellectual and emotional qualities to the table. As a team, we will leverage our global resources, including thought leaders and best practices, to foster world-class levels of employee engagement.  And we will also utilize lean and Six Sigma processes -- including more rigorous measurements -- to improve our people processes and performance.

What is the main message you want to relay to employees?

Inclusion and diversity is an exciting and challenging journey that includes all employees at all levels of the company. Done right, it creates a value stream that impacts every way in which ITT conducts business. And with a strong foundation and a strong team, we have the elements we need to do it right.

Article 5:

Honoring Outstanding Communications Efforts at ITT

Recently, ITT recognized the most outstanding communications efforts from 2007 with the annual Communications Best Practice Awards. There were four winners representing strong programs that support each of ITT's four key strategic platforms. Click on the links below to read more about the winners:

Growth
How a crisis communications team helped Night Vision survive a serious export compliance violation and continue growing its business.

Communicators: Allison Moore, Kendra Edwards, Courtney Reynolds and Tom Glover

In March 2007, ITT accepted a plea agreement from the U.S. government for violations of the Arms Export Control act that occurred at its Night Vision value center. It was a low point for the business, but an extensive reputation management and crisis communications plan was crucial in bridging the perilous gap between the company and its key publics and partners.

To understand and address all issues and key audiences, the Night Vision communications team collaborated early in the process with senior management and legal counsel. They developed key messages and communications documents, created a timeline of communications tactics and conducted media training for everyone from security guards to the general manager of Night Vision.

Instead of hiding, the team was very responsive to the media, and tried to meet their needs, as well as ITT's needs. Employees, customers, suppliers and the community were kept up-to-date through verbal, written and videotaped communications.

This only scratches the surface of the team's efforts. As a result of their work, the bulk of the media coverage was contained to three days, employees praised the honest relay of internal communications, and customers didn’t feel blindsided by the news.  In the marketplace, there was minimal impact to the ITT stock price and to the ITT business. ITT is still viewed as the premier provider of night vision technology, and production quotas continue to be at capacity.

Resource Optimization
How a small Fluid Technology communications team made ITT a huge presence at the world’s biggest water event.

Communicators: Bjorn von Euler, Monica Spendilow and Ylva Ponsby

Since its inception in 1990, the Stockholm World Water Week has grown to become the world's premier event dealing with the current state and future of the world's water resources. ITT has been a key player since day one, and this multinational communications team guided the company's involvement every step of the way. In the process, they have helped build Stockholm World Water Week into a major global event and enhanced ITT's brand equity by association.

The team makes sure ITT is always a large presence at the annual event. ITT is a founding member of the Stockholm Water Prize and a primary sponsor of the Stockholm Junior Water Prize. ITT attendees participate in panel discussions, lead committee discussions, appear on global television broadcasts, host customer events and judge award ceremonies. For 10 months prior to the annual event, the communications team works to prepare presentations, write speeches and come up with new innovations -- such as the Global Water Tool -- that ITT can introduce in Stockholm.

The communications team ensures that commercial interests do not cloud the messaging of the event. In this way, ITT has become recognized as a "thought leader" in the area of water. ITT is recognized by the outside world as a company that deeply understands its business, the needs of its customers and the broader marketplace in which it operates. For a relatively minimal investment, this team has greatly enhanced ITT's reputation as a global water leader.

Operational Excellence – Process Improvement
How a Flow Control communications team updated the value center Web site to deliver real value.

Communicators: Katie Church, Jon Paterson and Rich Occhipinti

When it comes to business Web sites, age and disorder are kryptonite to customers and potential customers. Outdated information and confusing navigation drives them away -- and keeps them from coming back.

That was the scenario facing ITT's Flow Control business. The value center had different Web sites for each of its three main brands. Updates were sporadic, and old data were not removed from the site. Navigation was difficult, and the e-catalog system was not user-friendly.

Today, customers are raving about the Flow Control Web site, thanks to the work of this communication team. After gathering input from sales, marketing and product personnel -- plus customers -- they developed a unified site that is easy to navigate, easy to maintain and a pleasure to use. 

Web site hits for all three brands -- Jabsco, Rule and Flojet -- are up dramatically. Customer service reps are handling fewer calls, because customer needs are being met online. And Flow Control customers are sending compliments -- instead of complaints -- like this one from an end-user in the United States: "I just wanted to tell you that your Web site is probably the best I have ever used to find information about a product."

Leadership
How two employees teamed up to develop training that helps ITT non-engineers learn more about pumps so they are better able to do their jobs and serve customers.

Communicators: Bob Went and Louise McIntyre

When new employees join ITT's Water & Wastewater business in the U.K., they attend a pump training course for beginners conducted by Bob Went. The course was developed after a meeting with Louise McIntyre, general manager of marketing, who was new to the business and wanted a training course in "plain English" that avoided acronyms and technical jargon. From a chance conversation, they jointly developed the idea for the course: Pumps for Beginners and Non-Engineers. 

Went developed a training course with sufficient information so that new employees and non-engineers can understand what pumps are, what they do, the different types and how they operate. By understanding the terms and phrases used in their daily work lives, these employees can better perform their jobs.

The course proved so popular that it is now run at regular intervals throughout the year, with many new employees attending as part of their orientation program. One manager who has been with the company for 20 years comments that even she had learned a lot from the course.

Article 6:

Code Corner:

Having the Courage to Stand Up For What's Right

By Cornett Lewers, Senior Counsel and Director, Corporate Ethics & Compliance Programs

As we look back on 2007, we can all be proud of the progress ITT has made in strengthening our ethics and compliance program.

As a company, we are striving to meet the highest ethical standards every day. We are creating a future where every employee recognizes his or her essential role in creating a positive organizational culture: treating each other with respect, acting with integrity, and taking responsibility for our actions. 

Increasingly, employees and managers are displaying the courage to discuss difficult issues, express concerns and hold each other accountable for their behaviors. This is a true sign of progress.

In 2007, the ombudspersons and other Ethics & Compliance staff were asked to follow up on 99 potential violations of law, regulation or ITT policy. This represents a substantial increase from years past -- 57 reported violations in 2006, 76 in 2005 and 60 in 2004 -- and reflects greater awareness and trust in our program.  In fact, mid-year we began to see an increase in the frequency of reports, especially in the number of employees contacting EthicsPoint, our third-party, 24 hours a day, seven days a week hotline. This coincided with the launch of Code of Conduct training for our ITT Defense Electronics & Services group. We anticipate that these numbers will continue to rise as this program and additional ethics and compliance training and communication reach every employee in all three groups and ITT headquarters.

Despite this performance, we know that there are times when individuals want to report a possible violation -- but do not. Part of the problem may be concern about the ultimate consequences for the reporter and the violator. At ITT, we work extremely hard to ensure no one ever faces retaliation for raising concerns. We are also increasing training for ombudspersons and Ethics & Compliance Review Boards to help ensure that the confidentiality of all reports is protected to the maximum extent possible.

Ethics & Compliance Review Boards at the value centers, groups and ITT headquarters do take action when investigations confirm misconduct. The table below demonstrates this point:

Of the 99 cases that were investigated in 2007, most were simply misunderstandings. However, 26 of the investigations did require action: seven received disciplinary review, a written warning or reprimand; five led to terminations and 13 brought further action such as policy review or management training. All reports are taken seriously, and we respect the confidentiality of everyone involved to the maximum extent possible.  

In addition to these cases, there were a few long-term investigations and compliance issues that led to significant action in 2007. Several site-level general managers, as well as top managers at the value center, group and ITT corporate levels, have been separated from ITT, demoted, or lost a percentage of their compensation due to recent compliance challenges. Our ombudspersons, Ethics & Compliance staff and senior management have received inquiries about these actions. We wanted to let you know that action has been taken, but that we decline to offer more specific information out of respect for the privacy of the individuals involved.

As we all become more confident and aware of the ethics and compliance resources available, we are optimistic that more and more employees will share their concerns. Our progress on this path to addressing all ethical and compliance concerns should be encouraging to every ITT employee. Thanks to you and your participation in our program, we are closer than ever as we strive to "Do the Right Thing – Always".