Category 1 Leadership

Transcription

1 MFC Cat 1 Leadership - 1 Category 1 Leadership We Never Forget Who We re Working For Bart Davis Vice President & General Counsel Abbreviated History 1990 s Intense Aerospace Consolidation 1995 Lockheed & Martin Marietta Merger 1996 LM Acquires Loral 1999 LM Consolidated Two Traditional Competitors into LM Missiles & Fire Control Vought (Dallas) Martin Marietta (Orlando) Dynamic Market => Continuous Evolution Success: MFC Change >> Environmental Change Refined Business Processes for Business Profile Institutionalized by Enterprise Excellence System (EES) MFC Cat 1 Leadership - 2 Organizational Profile Aerospace/Defense Contractor Missiles & sensor systems Ground vehicles & commercial nuclear 15 Facilities, in excess of 10,000 employees Heavily-regulated, monopsonistic industry Predominant customer U.S. DoD Intensely integrated customer relationship Total transparency Embedded personnel Mission Oriented MFC Cat 1 Leadership - 3

2 MFC Cat 1 Leadership - 4 Customer Requirements Dictate Business Priorities Performance Superiority Essential to Warfighter Often Requires Leading Edge Technology Extended Product Life Cycle Extreme Environments Life or Death Reliability Quality/Performance are paramount MFC Mission & Business Principles Aligned to Customer Requirements Mission & Business Principles To Protect Our Warfighters and Ensure Their Safety By Providing Superior Weapon Systems and Sensors Business is Not the Objective It is the Result. Performance is the Objective Do What s Right Respect Others Perform With Excellence Universal Accountability MFC Cat 1 Leadership - 5 Sustainable Organization Financial Results year CAGRs ROI = 23% Cash = 16% EBIT = 14% Orders = 9% Sales = 8% Margin = 6% As MFC Has Focused on Operational Results, Growth and Financial Performance Have Flourished MFC Cat 1 Leadership - 6

3 MFC Cat 1 Leadership - 7 Enterprise Excellence System Integrates over 500 processes and metrics Constantly evolving & improving Legal & Ethical Behavior Mission-essential in highly-regulated industry Extreme complexity FAR, DFARS, CAS, ITAR, EAR, NRC, Anti-boycott, FCPA, etc Small universe of repeat customers Annual compliance training requirements are tailored to employee/other responsibilities Annual, top-down Ethics program moves beyond legal floor to aspirational behavior An educated and empowered workforce is our best compliance mechanism MFC Cat 1 Leadership - 8 Ethics Organization Evolution Established Annual training coordinators Rotational Ethics Officer positions created Initiated Ethics In Action Award Implemented COMET database & on-line metrics Voicing our Values approach to ethics training Produced first EthicsToon Code of Conduct updated and acknowledged by all employees Supplier Mentor program pilot MFC Cat 1 Leadership - 9

4 MFC Cat 1 Leadership - 10 Promoting Ethical Behavior Results A Very Large Percentage of Employees Believe that MFC Promotes a Highly Ethical Environment Percentage Favorable MFC Camden Dallas Ocala Orlando All Others Survey Responses Indicate That MFC Employee Believe They are Prepared to Handle Situations that Might Violate Our Ethical Business Conduct Standards Percentage Favorable MFC Aero Space DIB Sustainable Organization Adaptation to changing environments is essential to organizational sustainability MFC Cat 1 Leadership - 11 Governance & Societal Responsibilities MFC Governance System MFC Cat 1 Leadership - 12

5 MFC Cat 1 Leadership - 13 MFC Has Reduced Our Environmental Footprint 80% 60% 40% 20% 0% Program Start Go Green Reductions from 2007 Baseline (Normalized per Total Deliveries) 31% 19% 11% 34% 27% 16% 2007 Baseline Projected 53% 42% 32% 75% 67% 60% 84% 68% 73% CUMULATIVE REDUCTIONS > 4,760,000 pounds of waste > 85,750,000 gallons of water > 5,400 metric tons of CO 2 Waste to Landfill Water Usage Carbon Emissions Chart depicts our Go Green goals for Waste To Landfill, Water Usage and Carbon Emissions normalized to our deliveries. Lockheed Martin Go Green goals are not normalized and are a straight percentage goal regardless of production increases. Universal Accountability Performance Measurement Comprehensive performance metrics Personal evaluation/compensation tied to achievement of individual objectives Top-down visibility of goals Financial, programmatic, behavioral Senior leadership has more compensation at risk Performance feedback facilitates mid-course corrections MFC Cat 1 Leadership - 14 Support of Key Communities Key Communities Communities near our facilities Military (members & families) Programs Internships & co-ops K-12, STEM, Teach-in, Career Days, Junior Achievement and Read2Succeed Support for women/minorities Charitable support to community organizations Go Green environmental initiatives MFC Cat 1 Leadership - 15

6 MFC Cat 1 Leadership - 16 Community Contributions MFC is Generous to Our Communities 80 Executives Serve on Many Community Boards Number of Boards Served Orlando Dallas Other Sites Supporting the Warfighter We Never Forget Who We re Working For MFC Cat 1 Leadership - 17 Discussion Panel Rick Hall - VP, Strategic Planning Bart Davis - VP, General Counsel MFC Cat 1 Leadership - 18