A need for coordination among Eaton's various European businesses and functions was perceived during the energy crisis of 1973-74, when the UK was forced to adopt a three-day workweek. Eaton's president asked the European managing directors and the director of finance-all based in the UKto meet regularly to see what could be done about conserving energy and exchanging information about energy requirements among the different organizations in the UK When the energy crisis passed, the president suggested that the meetings continue to be held not less than four times a year, that the agenda include topics of common interest and that the chairmanship rotate among the four members. Each member was expected to attend in person. This was the genesis of the European coordinating committee.
The committee's purpose was to enhance coordination function; it gave members a chance to exchange useful information. Meetings were held on a monthly basis, and detailed minutes were kept and sent to corporate headquarters in Cleveland. Each of the operating executives delivered a 10-minute report on the state of his particular business and any significant related issues. The director of finance gave a financial forecast and discussed important common financial matters. A different corporate officer (staff or line) always attended and reported on a specific corporate topic. His presence also assured that committee messages would be transmitted back to Cleveland by him personally. The remainder of the agenda was open so that special subjects could be addressed if necessary. The agenda was circulated well ahead of the meeting so that such topics could be included.
After several years of meetings, the European coordinating committee became moribund in the summer of 1979, when a corporate study recommended that it meet on an "as needed" basis. The major reason for this was that the operating divisions did not find it useful. Also, the committee's charter did not include the authority to make decisions or recommendations, just to meet. Finally, the historical independence of the product divisions and their marketing differences make regional coordination via a committee impractical. The international division and the corporate planning unit today perform many of the coordination and information functions that the committee was originally intended to handle.
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