This document provides an overview of organizational changes at Lockheed Martin based on the experience of an employee. It describes the company's history and structure. It then discusses two major changes observed: a business unit restructuring that eventually led to office closures and downsizing despite initial reassurances, and a downsizing implemented with varying communication to employees that decreased morale. The conclusion is that Lockheed Martin did not plan or communicate the changes well based on the negative impacts observed in the author's business unit.

1. Organization
Profile
EDUC - 6105 – 4 Organizations,
Innovation, and Change
Walden University
Gerard Apanewicz
August 3, 2015
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2. Contents
• Lockheed Martin history, structure, and culture of the organization
• Observed Organizational Change Processes
• Actions undertaken by leadership throughout the process, including
planning, implementing, and strategies for overcoming resistance and
sustaining the change
• An evaluation of the overall effectiveness of the change process, including
what was done well and what might be done differently
• A reflection on what conclusions you can draw from this profile about how
this organization responds to innovation and change
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3. Lockheed Martin: History, Structure &
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4. Lockheed Martin: History, Structure &
Organizational Culture
• Overview
• Lockheed Martin is an Aerospace and Defense contracting firm. The company’s
purpose is to develop aerospace and defense products for US Government
agencies. The company’s goal is to engineer a better tomorrow while following
three specific actions, Do What's Right, Respect Others and Perform With
Excellence. Additionally, the company plans to become a leading force in
reducing Green House Gas (GHGs).
• The Workforce consists of:(2)
• 120,000 Employees
• 60,000 Scientists, Engineers and IT Professionals
• 500+ Facilities Across the US
• Operating in 70 Countries Click Here for
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5. Lockheed Martin: History, Structure &
Organizational Culture
• History
• Started over 100 years ago as the Lockheed Corporation (1)
• Merged with The Martin Marietta Corporation to form Lockheed Martin in 1994(1)
• Employed Clarence “Kelly” Johnson known as the architect of the air
• Kelly designed the P-38 Bomber which help the US and Allied Forces defeat
Germany in WWII (1)
• https://www.youtube.com/embed/pzZGvypreXQ?rel=0&autoplay=1 (1)
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6. Structure
The company is structured into five
business areas that cover its broad
range of capabilities. These five areas
include; Aeronautics, Information
Systems & Global Solutions (IS&GS),
Missiles and Fire Control, Mission
Systems and Training and Space
Systems.
Space
Systems
Aeronautics
Information
Systems &
Global
Solutions
Missiles &
Fire Control
Mission
Systems &
Training
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7. Lockheed Martin: History, Structure &
Organizational Culture
• Culture
• The company’s goal is to engineer a better tomorrow while following three
specific actions, Do What's Right, Respect Others and Perform with Excellence.
Additionally, the company plans to become a leading force in reducing Green
House Gas (GHGs) (3).
• The culture I observed focused on supporting the customer at all times and
staying within the confines of the contract. Additionally, being a large corporation
I observed many subculture amongst the various ranks of employees.
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8. Observed Organizational Changes
• Business Unit Restructuring
• I worked at Lockheed Martin for approximately 5 years. During this time, I was
involved in several business unite restructuring. Originally my official job title
was a training and support specialist 4. Falling under the Mission and Fire
control business unit. However by the middle of my second year, my job title was
now Acquisitions Logistics and Training Support Specialist 4, and fell under the
Information Systems & Global Solutions (IS&GS) business unit. Aside from being
required to use a different charge number for my time card, and new time
keeping application the move did not affect me. The structure change was
conducted via official email. We had a couple of meetings with our Project
Manager each resulting in reassurance that the structure change would not
affect us.
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9. Observed Organizational Changes
• Business Unit Restructuring Observed Change Process
• As myself and my co-workers were unaffected by the change the process
appeared to go over smoothly. However, being aligned with the IS&GS Business
Unit placed a minimum profit threshold of consulting contract bidding our team
could pursue. At the time, I am unsure if my Project Manager was fully aware of
the restrictions.
• Eventually this profit threshold led to a large downsizing. The local office I
worked at was eventually shut down long after I was laid off.
101326071
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10. Observed Organizational Changes
• Downsizing
• During week four, I interviewed my former team lead Mr. Mike Moses who
observed the downsizing first hand. Some key points I took away from the
interview were:
• The downsizing :
• Increased workload
• Decreased morale
• Added manufacturing and support cost to struggling businesses units
• When asked what Mr. Moses would have done differently some key points were
• Better communication. The managers would have different opinions and justifications of
which employees would remain employed. Some provided Mr. Moses reassurances he
had nothing to worry about, others suggest he look for new employment.
• Better planning. Currently, and at the time of downsizing government spending was being
cut. Managers could have created a small business unit that could compete with smaller
companies. Government contracting strategy had shifted to a lowest price, technically
acceptable methodology.
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11. Actions Taken By Leaders
• Business Unit Restructuring
• Meetings
• Throughout the change process we met with our Team Lead and Project Manager to
discuss any new processes the team would need to implement
• Email
• A large amount of the change process was communicated through email.
• Downsizing
• Meetings
• From what Mr. Moses stated, the Project Manager met with each team member to
discuss how they were affected by the downsizing.
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12. Conclusion
• Based on this week’s and previous weeks learning resources I would argue
that Lockheed Martin (LM) did not plan their changes well. Being a large
company I cannot say as a whole whether LM handles change an
innovation well. I can only comment on what I observed in my business
unit. The initial business unit restructure eventually led to a downsizing. If
that was LM’s goal than it was successful. However I assume the company
did not plan the restructure well as it caused a once profitable business to
be unable to compete on consulting work in the area. As previously stated,
this led to a downsizing, which eventually led to LM no longer having a local
office.
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13. References
1. http://www.lockheedmartin.com/us/100years.htmlStarted over 100
years ago as the Lockheed Corporation
2. Raheb, S. (2014, September 8). Lockheed Martin Supplier Diversity.
Retrieved August 8, 2016, from
www.lockheedmartin.com/.../lockheed/.../LM-opening-doors-to-vete...
3. Neilson, D. (2016, February 1). Lockheed Martin and Duke Energy Sign
17-Year Renewable Energy Pact. Retrieved July 19, 2016, from
http://www.lockheedmartin.com/us/news/press-
releases/2016/january/020116-lm-duke-energy-renewable-energy-
pact.html
4.