Lockheed martin's story of developing a new culture by integrating all the cultures within the organisation through a series of processes

1. THE EMPLOYER OF CHOICE MISSION
1

2. 2

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 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

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 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

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 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

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
• 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

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 FROM TALENT
MANAGEMENT PERSPECTIVE
• The importance of financial, operational and cultural
integration
• Cost competitiveness
• Importance of organisational culture

22. 22

23. RANJAN . E . RAJAN