lockheed martin - the employer of choice mission
DESCRIPTION
Lockheed martin's story of developing a new culture by integrating all the cultures within the organisation through a series of processesTRANSCRIPT
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THE EMPLOYER OF CHOICE MISSION
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Space SystemsAeronautics
Information Systems &
Global Solutions
Missiles &Fire Control
Mission Systems &
Training
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COMPANY OVERVIEW
• Formed by the merger of Lockheed Corporation with Martin Marietta
• Founded : 1995• Headquarters : Maryland , Washington USA• Area served : Worldwide• http://www.lockheedmartin.com/us/who-we-are/global.
html• World’s largest defence contractor• Operating Income : $4505 billion• CEO : Marilyn Hewson ( 2013 )
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CORE BUSINESS
• Space and strategic missiles• Electronics• Aeronautics• Information & services• Energy & Environment• Global telecommunications
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VISION AND VALUE STATEMENT
• Vision : Be the global leader in supporting our customers to strengthen global security, deliver citizen services and advance scientific discovery
• Value statement : -
Do What's Right
Respect Others
Perform With Excellence
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Disken’s task
• Ken disken , VP, HR, Electronics sector• Task : Identifying best practice elements to transfer
across organisation• Challenges : - Cost competitive, non-traditional players• Study comprised all aspects of Employee development• Goal : Becoming an employer of choice
Respect and empowerment
Perform with excellence
Mission importance and customer’s trust
Competitive salaries and remuneration
Respect for human rights
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CORPORATE STRUCTURE
• 60 operating companies• 939 facilities, 457 cities, 45 states in US• Business in 56 Nations• Developers of Aircrafts, Hubble space telescope,
Missiles, submarines, Space shuttles, ATC, Night vision , post office automation, Transaction processes,
• Research facilities like Atomic Power national laboratories
• Highly classified products and services • Ranked 59th Fotune’s 500 list of largest industrial
corporations , 2014• Employees :- 1,16,000 , Dec 2012
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CHANGES IN DEFENSE INDUSTRY
• Cuts in defence expenditures• Series of failures, acquisition of NG • Consolidate or evaporate – message from defense Min. • Highly competitive industry• Highly dependant on innovations• Requires large investments in R&D• Non traditional suppliers like Microsoft and Motorola
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HRM APPROACH
• Cultural and organisational integration while satisfying customer and business objectives
• Hard task to effectively blend 17 cultures• Highly technical industry • Zero tolerance for failure• Command and control mentality• Increased competitiveness , for survival they needed a
change
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EMPLOYER OF CHOICE INITIATIVE
• Started as an effort to attract top talent• A company that was able to attract, motivate, train and
retain the most highly talented people available• Exhibit 6
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CHALLENGES
• Tough labour market for management and technical talent
• Recruiting only US Citizens• Control oriented culture• Competition with dot-coms• No stock option incentives• LM manager’s words • 45% management over 50• Needed to rebuild the pipeline of leaders• Company culture ( tech exp. over leadership ability )
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LM-21 INITIATIVE
• Making fundamental changes in doing business by creating a new corporate culture
• In past , more focus on technical strength not on contracts
• Competitors occupied similar technical capabilities• LM 21 initiative was to remain competitive
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CORPORATE INITIATIVE
• Many world class processes existed but no business was world class
• Identification and sharing of best practices• Unified implementation• Scope in 7 core functional areas i.e. engineering,
procurement, operations, program management, indirect cost, employee development and corporate center
• Expected benefits
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BENCHMARKING & IMPLEMETATION
• Identified best practice area of focus within a functional area , then conducted interviews at both internal and external companies
• Identified several benchmarking elements• Created a matrix and sorted into categories (exh.10)• Presentation to functional manager• Use his feedback and recommendation• Choices of implantation to individual companies• The transfer process , pilot trial• Organisation wide implementation
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CULTURAL INTEGRATION
• Confusion about heritages within the company• Integration into one common culture• Building a support network
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EMPLOYEE DEVELOPMENT
• Benchmarking team comprised of HR representatives across the corporation
• Interviewed senior functional managers, HR personnel, Employee representatives
• Ten best practice areas ( Exh. 9 )• Team prepared a detailed report for ken Disken• Disken’s key objectives :
Productivity enhancement
Enhancing LM image as an employer of choice
increasing job satisfaction & employee retention
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• Discovering and sharing best practices, • Common culture• Standardisation of management practices• More robust process in recruitment• Align the company’s interests with jobs • Motivate, perform and develop the talents• Clear performance expectations • More accountability• Stringent performance monitoring
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EXPECTED RESULTS
• Individual/ team effectiveness and productivity• Knowledge and overall know-how• Job satisfaction• Employee retention
• This would further improve :-• Cost reduction• Increases in quality, time to market, customer service• Goal of tying HRM initiatives to corporate strategy and
shareholder value• According to Disken (Paragraph)
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THE DECISION
• How to effectively position the employee development initiatives to catch the attention of the leadership ?
• Commitment of the leaders• Amount of attention on the results of external
benchmark studies• Risk of raising the performance without following any
other organisation’s models
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LEARNINGS FROM TALENT MANAGEMENT PERSPECTIVE• The importance of financial, operational and cultural
integration• Cost competitiveness• Importance of organisational culture
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RANJAN . E . RAJAN