At Raytheon, performance means promises made, promises kept. It means leveraging the best processes, metrics and oversight to deliver on our customer promises. This focus makes us more efficient, provides consistency of priorities and goals, and creates a framework for predictability that we all share. One example is our Integrated Product Development System (IPDS), which creates consistent evaluation and execution at each milestone in the life-cycle of a program, providing a business roadmap that the entire company can follow.

Oversight is also very important to us. Our operating reviews, annual operating plan reviews, human resources reviews, strategy reviews and capabilities provided by our internal audit team and our Raytheon Company Evaluation Team enable Raytheon managers — from the corner office to the factory floor — to understand our business objectives and performance goals so that we are aligned as an organization. It is this level of understanding and alignment that allows us to create value from our broad and deep portfolio of programs and contracts.

A few highlights of our focus include:

MISSION ASSURANCE — Performance is achieved when business objectives meet customer needs in a quality environment. As I said in my letter to you last year, whether the user of our systems and services is a soldier, sailor, airman or Marine; a researcher in the Antarctic; an air traffic controller; or a passenger or pilot in one of our Beechcraft® or Hawker® aircraft — our customers depend on us to do the job right. At Raytheon, we call this Mission Assurance. It means that when our customers see the Raytheon name, there should be “no doubt.”

Raytheon employees around the world embrace Mission Assurance — and “no doubt” — as our customer-focused measurement of success.

RAYTHEON SIX SIGMA™ — Raytheon Six Sigma (R6σ®) is an example of process discipline at Raytheon. Over 70 percent of our employees are now R6σ Specialists, while more than one percent of the company’s employees are now trained Six Sigma Experts. R6σ thinking (define the “to-be” state, describe the current state and fill the gap) is embedded in the DNA of our company and we are proud to say we have successfully brought it to our customers as well. We were especially pleased by the exceptional attendance of our customers who were part of our annual R6σ forum.

ENVIRONMENTAL, HEALTH & SAFETY — We believe that environmental, health and safety flourishes when a company has strong process discipline. Since 1998, we have reduced our lost workday injury rate by 72 percent. In 2005 alone, we reduced our lost workday injury rate by 19 percent to 0.21 per 100 employees, our best effort ever. We are not satisfied, however. Our ultimate goal is to strive for an injury-free workplace, and we are continuing our efforts in this direction.