Next Northrop CEO : Kresa Choice Surprises Few, Pleases Many

Kent Kresa, the man who will be giving orders as Northrop Corp.’s new chief executive, is said to have risen through the ranks because he has excelled at building jet products, a talent that should serve him well as the company’s emphasis shifts to the factory floor.

Thomas V. Jones, outgoing chief executive at Northrop, said Kresa has been tapped for the firm’s top spot partly because he has the experience and engineering know-how to ensure that the company develops quality fighter planes and other equipment for the Pentagon and other customers.

“He’s the right guy by attitude,” Jones said, “and now that he’s been through management, he knows how to get the people who can do the (production) job right.”

Kresa, 51, Northrop president and chief operating officer since 1987, will succeed Jones sometime late this year. Jones will continue to serve as chairman of the company. The selection of Kresa is not surprising, say industry analysts, because Northrop is moving from a period of heavy research and development into a heavy production period.

With projects such as the B-2 stealth bomber on line, Northrop is expected to get 70% to 80% of its sales from production of actual jet equipment over the next three to four years. Currently, research and development accounts for about 60% of the company’s revenue.

Known as Creative

“His considerable understanding of technology . . . may be one reason they (Northrop) moved now and selected him,” said Paul H. Nisbet, aerospace analyst at Prudential-Bache Securities. “The B-2 bomber is ready to move into full-scale production, and he (Kresa) has concentrated on production. He’s more internally focused on production than Tom Jones.”

Nisbet said Kresa, who joined Northrop as a vice president and manager of the Northrop Research and Technology Center in 1975, is also known as a creative manager--one good at getting departments to research and develop prototypes. Kresa’s skills as a production manager and development specialist “put him on a fast track,” Nisbet said.

Michael Beltramo, a management consultant in the aerospace industry, also said it has been clear for some time that Kresa was being groomed for high places at Northrop.

“What I’ve heard is that he’s a stickler for performance but also that he’s a reasonable guy,” Beltramo said.

Describing his priorities at a Thursday press conference, Kresa sounded the same theme.

“My principal priorities are performance, performance, performance,” he said. “The Air Force is depending on us and we have to deliver. . . . I see Northrop as a company with a tremendous responsibility because of the confidence our customers have in us. We have to continue to earn that confidence.”

Kresa, who was also corporate vice president and general manager of Northrop’s Ventura division--which develops and produces unmanned aerial targets and remote-piloted vehicles--cited his varied experience as a factor in his success.

Responding to questions about the company’s legal problems--the government on April 11 filed criminal charges against the company’s Precision Products division and two current employees--Kresa said they don’t reflect any fundamental problems at the company.

“If there are problems, we investigate and fix them--and fix them right away,” he said. “This is an ethical company, and we believe we are doing things right.”