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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Final Report of the
Secretary of DefenseCorporate Fellows
Program2003 - 2004
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
AgendaAgenda
Background
Common Findings/Recommendations
Individual Experiences (time permitting)
3
Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
SDCFP BackgroundSDCFP Background
SECDEF concerns for future Service leaders– Open to organizational and operational change– Recognize opportunities made possible by info tech– Appreciate resulting revolutionary changes underway
Affecting society and business now Affecting culture and operations of DoD in future
Businesses outside DoD successful in:– Adapting to changing global environment– Exploiting information revolution– Structural reshaping/reorganizing– Developing innovative processes
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
SDCFP OrganizationSDCFP Organization Two officers from each Service
– High flag/general officer potential– O-6 or O-5– Senior Service College credit
Group Education– Current political/military issues;leading edge technologies – Meetings with senior DoD officials, business executives,
Members of Congress, the press, former sponsors, alumni– Graduate business school executive education
Eleven months at Sponsoring Company Permanent Staff
– SDCFP Director, Admin Assistant– Net Assessment for oversight– National Defense University for Admin support
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
SDCFP SponsorsSDCFP Sponsors 03 - Prior
– ABB, Accenture, Agilent Technologies, American Management Systems, Boeing, Cisco, DirecTV, Enron, FedEx, Hewlett-Packard, Human Genome Sciences, IBM, Lockheed Martin, Loral, McKinsey & Co., McDonnell Douglas, Merck, Microsoft, Mobil, Netscape, Oracle, Northrop Grumman, Pfizer, PricewaterhouseCoopers, Raytheon, Sarnoff, Sears, Southern Company, Sun Microsystems, 3M, United Technologies
03 - 04– Amgen, DuPont, General Dynamics, McKinsey,
Microsoft, Northrop Grumman, Oracle, Sarnoff 04 – 05
– 3M, Caterpillar, Cisco, Hewlett-Packard, Honeywell, Merck, Lockheed Martin, SRA International
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
SDCFP ResultsSDCFP Results
Program objectives fulfilled– Education3
DoD, Individual officers, Sponsors– More Sponsors than Fellows available– Intra-group experience sharing
Unique corporate experience– Strong corporate support – Executive/operational level mix– Mergers/restructuring
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
SDCFP ProductsSDCFP Products
Build a cadre of future leaders who:– Understand more than the profession of arms – Understand adaptive and innovative business culture– Recognize organizational and operational opportunities– Understand skills required to implement change– Will motivate innovative changes throughout career
Report and Briefings directly to SecDef, others– Business insights relevant to DoD culture/operations– Recommended process/organization changes
Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
“And we must transform not only our own forces, but also the department that serves them by encouraging a culture of creativity and intelligent risk taking. We need to promote a more entrepreneurial approach to developing military capabilities, one that encourages people--all people--to be more proactive and not reactive, to behave somewhat less like bureaucrats and more like venture capitalists… “
Secretary of Defense Donald RumsfeldRemarks to The National Defense
University31 January 2002
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
2003 - 2004 Fellows2003 - 2004 Fellows COL Pete Blaber Amgen, Inc.
Thousand Oaks, CA CAPT Nancy Deitch Sarnoff Corporation
Princeton, NJ COL Tony Glenn Northrop Grumman Electronic Systems
Linthicum, MD LTC/P Tom Hopkins Oracle Corporation
Reston, VA LtCol Chet Jolley McKinsey & Company
Cleveland, OH Col (sel) Jerry Martinez E. I. DuPont de Nemours & Co.
Wilmington, DE CDR Doug Swanson Microsoft Corporation
Redmond, WA Col Tom Tinsley General Dynamics
Scottsdale, AZ
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
AgendaAgenda
Background
Common Findings/Recommendations
Individual Experiences (time permitting)
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Framework
People
TechnologyTechnologyProcess
Enterprise
Architecture
Improving DoD in 2004 and Beyond
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
TopicsTopics
Performance Management DoD Acquisition
ApplicationsInfrastructureTechnology
Process
Leadership Workplace Trends Safety
People
Enterprise Architecture
EA
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
LeadershipLeadership Processes to grow leaders unique by company….
– Leadership development considered important by all companies Development programs varied greatly by organization Corporate path to success not always defined Management verses leadership not always understood
– DoD viewed as benchmark of leader development
Transformation is tough
– People do not like change– Job loss creates panic, with corresponding impact on results– Vision not always understood– Communication is critical to the process– Essential to long-term survival
People
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Relevance to DoDRelevance to DoD Continue leader development at every level
– Strategic thinking, core values, risk management– Leadership development for DoD civilian personnel
Make transformation every leader’s job– Communicate the strategic vision throughout the
organization– Enforce accountability and responsibility
People
Maintain DoD as the leadership Center of Excellence
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Workplace Trends – HR ImplicationsWorkplace Trends – HR Implications Increased competition for technical talent
– Recruiting – hiring – diversity – retention
Aging workforce – retirement “bubble”– Knowledge retention & transfer – hiring
Generational perspective (Boomers v. Gen-X’ers v. Millenials)– Organization structure – work expectations – leadership
Acceleration of information & technology exposure– Training & development – knowledge management
Increased need for talent mobility– Compensation & benefits – relocation – flexibility
Transformational change in the workplace
People
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Remove barriers to government service – Create programs to attract/keep the right talent – Predictability in assignments, promotions, terminations– Link pay, rewards and incentives to performance
Pay attention to generational perspectives– Organization structure, work expectations, leadership– Value people, ensure early training & development– Top down focus on work life balance
Structure HR system to support changing workforce– Create anytime-anywhere workspace networks– Telecommuting, flex-place work, self managed teams – Rotational assignments, succession planning, mentoring
Relevance to DoDRelevance to DoD People
Transformational change in the workplace
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
SafetySafety Safety essential to all businesses
– Most incidents are preventable– Lost employee time produces significant financial impact
At DuPont – Working safely a condition of employment– Immediate attention to and resolution of deficiencies
Management audits a must– Extends off the job and into the home
People
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Relevance to DoDRelevance to DoD
Consider outside review of safety programs
Safety continues to be a leadership responsibility– Set expectations – Demonstrate business value – Reward and recognize – Maintain accountability
People
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Performance ManagementPerformance Management Transformational process improvement
philosophies for UK Ministry of Defense and leading private sector companies – Lean - Designed to eliminate waste in a system– Six Sigma - Statistically based, improves quality by minimizing
process variability
Each philosophy at its core strives to improve– Operating system– Management Infrastructure– Mindsets and behavior
Dramatic results from Lean & Six Sigma observed– Increased productivity 20-40% – Quality improvements 50-75%– Lead-time reductions 60-95%
Process
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Relevance to DoDRelevance to DoD Initiate an end-to-end performance management study across
DoD logistics processes– Review results of UK MoD end to end study; apply best practice – Include supplier and supply chain practices – Apply appropriate resources and training – Develop requirements, key performance indicators and
incentives
Partner with leading change management professionals to ensure success
Export to other functional areas across DoD
Process
Decision by Fact
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
DoD AcquisitionDoD Acquisition Processes and structure do not support warfighter requirements
– Gaps between industry, acquisition community, warfighter– Technical/financial/procedural gaps between research and
productization– Innovation responsibility shift from DoD to commercial sector– Self imposed constraints hinder best product
Emphasis on COTS comes at a price– Exacerbates configuration control challenges– Introduces potential security risks
Out-sourcing/Off-shoring – Industry trying to simultaneously reduce cost, return value to the
shareholder– International Traffic in Arms Regulations (ITAR)
Challenges in industry drives cost
Process
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Relevance to DoDRelevance to DoD Align, plan and resource to achieve jointness
Identify and fund basic research areas where DoD lead is critical– Fix the DoD laboratories (workforce, infrastructure, mission)– Reevaluate ITAR language– Address Intellectual Property ownership and classification– Facilitate multi year funding
Facilitate agility through innovative industry/govt partnerships– Federally Funded Venture Capital
Process
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
ApplicationsApplications
Significant efficiencies gained through Self Service Applications– Oracle SSA reduced HR staff by 50%, increased employee satisfaction– Online access to pay, benefits, healthcare, expense reports, business metrics
Suite of Applications saves integration spending
– Adapt business process to Enterprise Resource Plan (ERP) What you need… not what you want
– Best of breed drives multiple instances of data, reducing accuracy – Strong corporate leadership enabled transformation to e-business
Welch at GE, Ellison at Oracle
Technology
Technology won’t change culture or fix a broken process
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
InfrastructureInfrastructure Consolidation & Simplification of infrastructure yields significant
savings– Oracle Worldwide Network consolidation:
e-mail servers: 97 2 e-mail databases: 120 4 ERP databases: 70 5
– Overhead converted into revenue generators >70% reduction in IT Staff >80% reduction in number of applications >55% reduction in IT spending
– “Single Global Instance” Increases accuracy, availability and efficiency
Technology
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Relevance to DoDRelevance to DoD Accelerate & broaden use of DIMHRS-like Self Service Apps:
– Global customer service centers with expert staff
Authority to solve problems
– Broaden functionality to include finance, healthcare, travel etc.
Reduce integration spending through common applications– Curtail proliferation of apps, establish migration plan within functional areas– Network Centric/Sense and Respond Ops highlight need for commonality
Navy/USMC logistics integration could be a model for DoD
Accelerate consolidation of DoD’s IT infrastructure– Increase accuracy and integrity of data– Outsourcing allows for reduced reliance on hard to retain MOS’s
SSA and Consolidation key to improving tooth-to-tail Ratios
Technology
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Enterprise Architecture EA is…
– Required by Clinger-Cohen Act – A holistic view of the business enterprise– Strategic plan, organization, people, process, technology integrator
Business architecture determines success. – Reflects strategy and core competencies – Centralize and matrix common support services
Application & Data Architecture – Provide information to support the mission and business
Infrastructure Architecture provides access to information
Security architecture must be part of all
EA
EA not a common finding in industry
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Relevance to DoDRelevance to DoD
Architecture development within DoD more deliberate, slower than industry
– Business Enterprise Architecture (BEA)– Business Management Modernization Program (BMMP)
Development and implementation of transformation initiatives– Leadership role decisive– Authority and accountability for success– Incentives and rewards
Have an architecture, but …– Don’t get lost in the analysis– Do build security in from the ground up– Do make sure the IT architecture supports the mission
EA
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
People
Transformation requires relentless leadership
Process
DoD not unique, must be viewed as an enterprise
Adopt industry best practices
Technology
Do more … spend less … consolidate…
Patriotism for troops runs high
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
AgendaAgenda
Background
Common Findings/Recommendations
Individual Experiences (time permitting)
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Amgen, Inc.
World's largest biotechnology company
Goal: Unleash body's own powerful therapeutic responses
Methodology: – Utilize cellular/molecular biology and medicinal chemistry – Discover, develop, commercialize naturally occurring agents
Proteins, antibodies, small molecules
Assignment: Office of Program Change Management
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Amgen Observations
OPCM – Empower Amgen to achieve enhanced performance
– Deploy a proactive change capability
– Utilize a common set of tools Facilitation, problem-solving, change management
Internal capability for continuous improvement essential – Sustains Amgen competitive advantage
– Ongoing Change Program provides Consistent and effective approach
Issue identification, problem-solving, change management
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Recommendations
Pursue an ongoing Change Program – Common language and methodologies for problem solving– Institutionalize focus on continuous organizational
improvement– Focus on increasing efficiency and effectiveness in everything– Sustain U.S. Military competitive advantage
Stay ahead of global threat environment
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
A science company for more than 200 years– Employees: 79 K in 75 countries– Revenue: $23 B for 2003 – Five company Platforms
– Agriculture & Nutrition– Coatings & Colors,– Electronic and Communication Tech– Performance Material– Safety and Protection
– Solving problems to make people’s lives better, safer, and easier. Corporate Strategy
– Launch “The New DuPont” - Transformation to a sustainable growth company– Reinforce Core Values
– Safety, Environmental Stewardship, Respect for People, Ethical Values– Grow revenue at more than $1 Billion annually
Assignment: Safety and Protection Group; all business aspects
E. I. Dupont de Nemours & Co. E. I. Dupont de Nemours & Co.
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Dupont Observations Employees dedicated, hard working, honest, and loyal
Incredibly bold transformation to ensure aggressive sustainable growth– Selling textile business (Invista); approx 1/4 of company worth $7B– Aligning innovation pipeline with market and customer requirements – Rebalancing resources toward high growth markets and regions– Standardizing systems and processes, leveraging scope of “One DuPont”
Safety program unlike any; almost “extreme” or “cult like”– Benchmark for Industry; consultants for numerous fellow corporations– 18,000 injuries and 50 deaths avoided over last three years– 10-point safety philosophy understood by all; employees “fear” getting injured– “Goal is Zero” placards everywhere!
Building relationships critical to winning in business– Money extremely important….but willing to invest it in relationships
Business world craves leadership– Large investment in training and education; roadmap to success not clear
Communication from top part of norm
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Recommendations
Invest in larger “outside” perspective on safety– Invest in safety overhaul through consultant expertise– Develop a leadership track for safety professionals– Hold leaders to greater accountability
Provide greater top down communication directly to troops– Goals, objectives, updates, expected outcomes, actual outcomes– Safety incidents, DUI accountability, integrity violations, UCMJ– Holiday messages and “pats on the back”
Emphasize Partnering within DoD– Build culture highlighting importance of counterpart relationships– Weigh financial cost verses mission effectiveness– Encourage face to face discussion when applicable or needed
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Fifth largest U.S. defense contractor – Employees: 67 K worldwide– Sales: $23 B for 2003 ( 20 % increase over 02)– Main business segments
– Aerospace - Leading builder of large-cabin and mid-size business jets– Combat Systems– Information Systems and Technology– Marine Systems
Corporate Strategy– “Strength on your side”– Increase market share for sophisticated defense systems to US/Allies
Assignment: C4 Systems (formally Decision Systems) – 3.5 K employees; 2003 revenues of $1 B +– Battle management, C4ISR, INFOSEC, space and homeland security – Working in all three divisions at all levels
General Dynamics General Dynamics
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
General Dynamics C4SGeneral Dynamics C4SObservationsObservations
Corporate employees are dedicated members in our nations defense
Merging two Information Systems & Technology segment companies into one– Previously competing GD business units – Organization size doubled (3.5K to 7K); $2.2 B in ‘04– Challenges merging organizations with different financial and business models
Highly integrated IT support and targeted software to streamline processes– Specialized and integrated software to automate end-to-end travel functions– Leasing/outsourcing IT services to ensure cost efficiency and continued modernization
Building competitive teams that benefit business and DoD– Joint Tactical Radio System (JTRS) Cluster 5 teaming approach and strategy
Ensures best technology while enabling competition in manufacturing final product
Frustration with DoD Acquisition Process– Overall Services road map and vision lacking– Doesn’t allow businesses to plan for investment and opportunities– Program instability forces tailoring of both R&D and future program investment – Warfighter’s needs and expectations lost in the overall process
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Recommendations
Invest in Joint integrated IT support and applications– Develop DOD-wide standardized IT solutions/modernization
plan – Invest in common travel and pay support technology – Outsource IT support for common administrative functions
Change cultural mindset for future acquisitions– Develop Joint and Service specific road maps
Detailed and realistic expectations; follow budgeted plan– Better educate contractors on roles and missions
Before RFPs are written on specific systems– Contractor access (with acquisition oversight) to “end user”
Provide contractor with Concept of Operations, test plans Ensure warfighters get what they need
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
McKinsey & CompanyMcKinsey & Company World’s leading management consulting firm
– Over seventy five years old– 1,000-plus clients; 100 of the top 150 global companies – Serving, touching every major industry.– Partners/employees from more than 100 nationalities– Alumni constitute a dynamic professional network
Strategy: Improve client strategies, organizations and operations. – Help leading/potential leading companies– Provide counsel to senior management– Help achieve substantial, lasting improvements in performance
Values based consultancy – High professional standards, outstanding character, sharp
analytical minds – Ability to work effectively with people at all levels in an
organization
ASSIGNMENT: Operations, Strategy & Effectiveness Practice (OS&E)
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
McKinsey ObservationsMcKinsey Observations Professional service firms bring expertise, analysis, problem solving
– External change agents critical in the transformational process
– ‘One Firm’ concept ensures client receives benefit of all firm’s resources Regardless of geography or industry Extensive networking tools and knowledge management
– Companies attempting to remain or become competitive
Manufacturing practice is fastest growing area– Applying Lean Manufacturing principles to industry transformation– Lean Manufacturing, Six Sigma dominant transformational philosophies
Lean as an ‘End To End’ transformation process Six Sigma a lever complementing the Lean process
– Some firms, companies center transformations on Six Sigma alone
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
RecommendationsRecommendations Closely review Lean Transformation efforts of the UK Ministry of Defense
– Apply best practices to DoD
Begin diagnostic for an End-to-End review of DoD logistics & maintenance– Determine potential savings and possible increased performance
Consider applying Six Sigma to aviation/ground safety programs – Eliminate mishap causal factors variability
Maintenance, human error, etc.
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Microsoft CorporationMicrosoft Corporation The corporation – “Your potential, our passion”
– 53 K employees world-wide; 26 K in Puget Sound area– $9.993 B net Income in 2003– Subsidiaries in over 75 countries; 27% of revenue international– Matrixed organization evolving - Seven supported Profit & Loss centers
Assignment: Chief Information Officer
– IT operations processes, Six Sigma, Globalization
Microsoft IT – 7 K servers, 150K PC’s, 400 applications. 4.5 M internal e-mails daily– Strategic Focus
“First and Best Customer” Model Enterprise/IT Showcase Embody Trustworthy Computing Enterprise Computing Scenarios ??? Build Agility
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Culture– Entrepreneurial spirit; accepting change– Heroes, Darwinistic, does not promote organizational learning
People – selection, development, retention– Recruit the best and retain them.
– Better no one than anyone– Getting rid off non-performers hard– Employee orientation spans several months
– Continue to instill values, identify and develop future leaders.– Diverse experience is a strength; frequent job changes a plus– People can work in a matrixed organization
Microsoft ObservationsMicrosoft Observations
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Leadership– Change begins at the top– Clear, consistent, message gets through, random messages don’t– “Thought Leadership” – elevate good ideas– Business case < 3yr payback– Outsourcing non-core is a viable way to reduce cost
Process– Repeatable processes are important (lacking at MS)– Fledgling Six Sigma program– Change is hard, sometimes need change by decree– Culture can impede or enable change
Microsoft ObservationsMicrosoft Observations
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Continue clear, consistent message on transformation
Continue to support, embrace, institutionalize process change tools methods– Six Sigma, Lean, etc.– Hire outside experts to develop core competency– Leads to “decision by fact” and efficient, effective organizations
Leadership Development is key
Continue to evolve culture towards one that embraces change,
– Change by decree is still valid
Do look to outsourcing more as a means to transform
Don’t always assume industry knows best!
RecommendationsRecommendations
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Leading supplier of warships, bombers, and military electronics – Employees: 120,000 in all 50 states & 25 countries– Revenue: $25-26 B (est.) for 2003 – Customers: DoD 86%, International 8%, Commercial 6% – Premier aircraft, space and missile defense company– Premier airborne radar & electronic warfare systems provider– Largest federal IT provider
Corporate Strategy– Build portfolio of technologies essential to system-of-systems
– Across all platforms and services– Aggressively pursue emerging opportunities– Apply advanced technologies and human capital across the company– Constantly improve program and financial performance
Assignment: VP, Strategic Plans and Analysis, NG Electronic Systems
Northrop Grumman Northrop Grumman
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Northrop Grumman Northrop Grumman Observations
Highly successful transformation to first-tier global defense company– Systems integrator, principal subcontractor, teammate, preferred supplier– Leveraging transformation to provide discriminating technology– Sound management practices in place
Corporate/sector integration key to customer focus and future growth – Strong management team mitigates some acquisition risk– Acquisitions bring large-scale system integrator capability under one roof– Internal organizational alignment a major challenge
Effective process improvement programs– Enterprise Resource Planning (ERP), e.g., SAP, Lean, Six Sigma– Improving cash flow, inventory management, cycle times– Moving people to work, consolidating functions, closing facilities– Leveraging tools to reduce costs, eliminate waste, improve efficiency
Focused on recruitment, retention, leader development, incentives
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Recommendations
Improve DoD human resource strategy– Build a leader development strategy for civilian employees– Tailor follow-on assignments to individual needs– Incentivized pay and rewards for high performance
Ensure metrics and measures at OSD and Service level– Focus strategic planning on desired outcomes– Greater emphasis needed on execution and accountability– Goals, objectives, action plans at all echelons
Implement Lean & Six Sigma principles to improve efficiency– Eliminate duplicative organizational structures– Ensure commonality across the Department– Partner with industry on best practices
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
World’s largest enterprise software company – Employees: 42K + in 147 Countries– Revenue: ~$10B – Customers: DoD largest single customer, ~$150M
Americas 59%, Asia/Pac 13%, Europe/Middle East/Africa 28%
– Leading provider of Database Technology, e-Business Suite, Application Server, Outsourcing, and Consulting Services
Tailored solutions for DoD in HR, Financials, Net Centric Warfare
Corporate Strategy– Gain business applications market share– “Do more, pay less” through enterprise grid computing– Offer efficiencies to government and private sector through outsourcing– Grow DoD relationship from “vender of choice” to “trusted strategic partner”
Assignment: Senior Vice President, Oracle Federal Sales
Oracle CorporationOracle Corporation
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Significant efficiencies/personnel reductions via World-wide Support– Web based Self Service applications handle majority of HR and payroll issues– Turned support staff into revenue generators (tooth to tail)
Applications Suite saves integration spending– Optimizes vertical performance at expense of enterprise wide BI and
integration– Drives multiple instances of data, reducing accuracy of information– Strong corporate leadership enabled transformation to e-business
Changing technology was the easy part, convincing people to change was hard Directed change to business processes vice customized software
– Tens of thousands of systems in DoD No clear migration plan within functional areas (Logistics, med, personnel etc..)
Global IT initiative resulted in significant savings– 97 e-mail systems down to 1 - savings in hardware, software and personnel– $30M annual savings on infrastructure that supports 40K employees
Oracle ObservationsOracle Observations
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Centralize HR functions– Consolidated global “customer service” center
Manned by experts with authority to solve problems– Improve “tooth to tail” by reducing HR staff in troop units
Accelerate outsourcing of IT infrastructure– Reduced reliance on hard skill, hard to retain MOSs – Improved tooth to tail– Increased reliability from industry’s experts
Centralize financial operations– Consolidated global “customer service” center
Manned with experts with authority to solve problems– Natural evolution: Class A Officer, Direct Deposit, Global Support – Reduced financial staff in troop units
Consolidate e-mail infrastructure– Regional versus organizational
RecommendationsRecommendations
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Sarnoff CorporationSarnoff Corporation Founded in 1942 as the RCA research lab For-profit subsidiary of SRI International since 1987 Innovative electronics-based research organization
– 500+ employees – $100M revenue – 19 spin-offs; first IPO in May 00 – Expansion into life sciences
New CEO – mid CY 02– Reinventing the company
Producing value for the client Transitioning the Valley of Death between investment and profit
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Secretary of Defense Corporate Fellows Secretary of Defense Corporate Fellows
Sarnoff AssignmentSarnoff Assignment Office of the Chief Technology Officer
– Globalization and the establishment of Sarnoff India Right sourcing, right sizing Overseas incorporation Security/export compliance Extended program management Communication, internal and external
– Venture development and execution Vital Signs Monitoring
– Programmatic support Combat Zones That See Generalized Emulation of Microcircuits