lockheed martin - the employer of choice mission

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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