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Lockheed martin - the employer of choice mission
Lockheed Martin, the world's largest defense contractor, was formed in 1995 and operates globally in various sectors including aeronautics, electronics, and missiles. The company faces challenges in attracting talent amidst a competitive landscape while aiming to become an employer of choice and enhance employee satisfaction and retention through cultural integration and best practice sharing. Key initiatives like the LM-21 initiative and benchmarking processes are focused on improving corporate culture and aligning human resource strategies with overall business goals.
Lockheed martin - the employer of choice mission
- 1. THE EMPLOYER OFCHOICE MISSION 1
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- 3. 3 Space Systems Aeronautics Information Systems & Global Solutions Missiles & Fire Control Mission Systems & Training
- 4. 4 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 )
- 5. 5 CORE BUSINESS • Space and strategic missiles • Electronics • Aeronautics • Information & services • Energy & Environment • Global telecommunications
- 6. 6 VISION ANDVALUE 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
- 7. 7 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
- 8. 8 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
- 9. 9 CHANGES INDEFENSE 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
- 10. 10 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
- 11. 11 EMPLOYER OFCHOICE 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
- 12. 12 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 )
- 13. 13 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
- 14. 14 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
- 15. 15 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
- 16. 16 CULTURAL INTEGRATION • Confusion about heritages within the company • Integration into one common culture • Building a support network
- 17. 17 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
- 18. 18 • Discoveringand 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
- 19. 19 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)
- 20. 20 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
- 21. 21 LEARNINGS FROMTALENT MANAGEMENT PERSPECTIVE • The importance of financial, operational and cultural integration • Cost competitiveness • Importance of organisational culture
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- 23. RANJAN . E. RAJAN
Editor's Notes
- #4 Five core business areas