Category 5 Human Resources Performance Excellence - ASQasq.org/public/conferences/quest-for-excellence-2013/con-sess/MFC... · Category 5 Human Resources Performance Excellence Missiles

MFC Cat 5 HR - 1

Approved for Public Release DAL201302012© 2013 Lockheed Martin Corporation. www.lockheedmartin.com/mfc

Gary McPhersonVice President, Human Resources

Category 5Human Resources

Performance Excellence

Missiles and Fire Control


MFC Cat 5 HR - 2


Ensuring the right people with the right knowledge and skills are in the right job at the right time

MFC’s People


MFC Cat 5 HR - 3



• End-to-End Planning & Execution: Years Days

• Quarterly Strategy Reviews

• Monthly ELC Meetings

• Highly Instrumented:

– Strategic and Operational Metrics

• Continuous Process Learning and Improvement

• Process Enables Flow-down of Employee Commitments to Align and Engage People

Aligning Business and Human CapitalStrategies Delivers Results

Strategic Planning & Execution System


MFC Cat 5 HR - 4



Strategic Plan

HR STRATEGIC THEMES• Acquire Talent

– Building a Next Gen Leadership Factory

– Sustainable Talent Pipelines– Deepening and Widening the Bench

• Differentiate, Develop and Engage Talent

• Retain Talent and Knowledge• Evolve our Culture

– Preserve our Brand– Enable Agility, Innovation and

Affordability– World Class Processes & Results– Driven by Metrics and Analytics

People Strategy

Performance Excellence is our objective …talent provides the means!


MFC Cat 5 HR - 5


• Acquire Talent• Develop & Engage Employees

• Retain Employees & Knowledge

• Evolve Culture & Business Model

HR Process Framework

Missiles & Fire Control Mission

Employee Capabilities

Values, Competencies Knowledge, Skills, Abilities Behaviors

StrategicTalent

Enablers

Inclusion& EEO

BusinessPartneringTotal Rewards Union

Relations

Acquire TalentDevelop &

Engage Employees

Retain Talent &

Knowledge

Enablers

Business Performance

Training and Org. Capability

Workforce Strategy and Analytics


MFC Cat 5 HR - 6



Service Deliverables

• Development of workforce plans for selected talent segments

• Gap mitigation strategies to achieve workforce plan (Buy, Build, Bind, Borrow, Balance)

• Workforce characterization and analysis• Labor market and competitive research

Analytics Approach

• Evidence based, data driven, open to challenge

• Use technology and analytics to forecast targeted future states

• Identify surpluses, gaps, trades from the strategic plan

Risks & Value Trades

Demand Supply

Model workforce needs based on business scenarios

Current and projected supply of selected talent, identification of talent pools

Understand Business Strategy

Assess Current

WorkforceCapability

Model Future

Workforce

Analyze & Validate

Talent Gap

Build Strategic

Workforce Plan

Monitor & Adjust

Workforce Planning

• Business Strategy• Talent Segments• Environmental Scan

Workforce Re-engineering

Entry Level Pipeline Yielding Desired Results!

Key Workforce Planning Elements


MFC Cat 5 HR - 7


Identify Key Workforce Drivers and Inflection Points

Example Output Growth & Atrophy AnalysisDevelopment Engineering Atrophy Risk AssessmentDevelopment Engineering Atrophy Risk Assessment


MFC Cat 5 HR - 8


Talent Acquisition Solutions

Solutions are Both Tactical and Strategic

College & Intern Conversion Pipeline

Interns

•Meet Early; Take off Street ahead of Competition

•Assess over Multiple Terms; Cull for Mutual Fit; Convert to Full‐time College Hires

College

•Drive High Mix of Entry‐Level Professional Hiring

% of Level1 & 2 CollegeHires

64.72%

64.81%66.27%

66.67%71.73%

2007 2008 2009 2010 2011

Entry Level Professional to Experienced Professional Hires

Lvl 1 & 2 Lvl 3 & Up

73 40 36

51

45

0

10

20

30

40

50

60

70

80

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

2007 2008 2009 2010 2011

Intern Conversion %

% Goal


MFC Cat 5 HR - 9


• Acquire Talent

• Develop & Engage Employees• Retain Employees & Knowledge




StrategicTalent

Enablers

Inclusion& EEO


Relations

Acquire TalentDevelop & Engage

Employees

Retain Talent &

Knowledge

Enablers







MFC Cat 5 HR - 10


The hours MFC devotes to training and professional development per employee is more than double that of respected national benchmarks.

Participation in MFC’s early career leadership

development program is on the rise.

Full Spectrum Leadership training grooms MFC’s senior leaders of tomorrow.

P28

1-01

14

Nu

mb

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of

Pa

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0

50

100

2007 2008 2009 2010 2011

Finance HR/Comm Engineering Operations

202007 2008 2009 2010 2011

Total Training & Developmentper Employee Average

ASTD Benchmark Hours

APQCBenchmark

60

100

Le

arn

ing

Ho

urs

Over 100% Better than APQC and ASTD BenchmarksOver 100% Better than APQC and ASTD Benchmarks

We offer professional growth opportunities at all levels of the enterprise

Employee Development


MFC Cat 5 HR - 11


Lead through vision and values Establish direction Drive innovation Lead change

Develop enduring relationships Foster horizontal integration Demonstrate social acumen

Build organizational talent Align performance for success Communicate with positive impact Create an inclusive environment

Deliver customer value Drive execution Exercise business acumen

Lead with integrity Demonstrate a learning orientation Be accountable

Deliver Results

Build Effective Relationships

Energize the Team

Shape the Future

Model Personal Excellence, Integrity and Accountability

Full Spectrum Leadership

“We’d credit the Leadership Development Process within the company as without a peer in our universe.” – Morgan Stanley


MFC Cat 5 HR - 12


MFC All Industry Comparison

40

60

80

2007 2009 2011

Su

rve

y P

art

icip

ati

on

(%

)

Our employees make their voices heard,and they translate their creative ideas to reality

Engagement & CommitmentOur employee patent rate exceeds that of our competitors.

Our employee patent rate exceeds that of our competitors.

Our workforce far surpasses the industry norm in responding to surveys.

Our workforce far surpasses the industry norm in responding to surveys.


MFC Cat 5 HR - 13


• Acquire Talent

• Develop & Engage Employees

• Retain Employees & Knowledge• Evolve Culture & Business Model




StrategicTalent

Enablers

Inclusion& EEO


Relations


Employees

Retain Talent &

Knowledge

Enablers






MFC Cat 5 HR - 14


Employee Recognition

Highest-achieving employees recognized in an annual Evening of Excellence.

Employee Recognition is an embedded practice

within our culture

The Evening of Excellence is a gala

affair, fitting for honorees from a world-

class workforce.

We convey upon our finest engineers the coveted title

of “Fellow.”

Our comprehensive total rewards programs recognize excellence throughout the workforce. Financial awards and

celebratory events associated with several recognition programs totaled $19 million over the past 5 years.

0.0

2.0

4.0

2007 2008 2009 2010 2011

($M

)

SRA PMT IRA VIP LM Fellows Total

• 19 million dollars over 5 years• 64% of employees receive an award each year

SRA = Special Recognition AwardPMT = Performance Management Team

IRA = Individual Recognition AwardVIP = Variable Incentive Plan

We recognize, reward and celebrate success


MFC Cat 5 HR - 15


P28

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13

Re

ten

tio

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%)

80

88

96

2007 2008 2009 2010 2011

MFC Actual

Bureau of National Affairs - Top Quartile

Bureau of National Affairs - Average

1.0

2.0

3.0

4.0

2007 2008 2009 2010 2011

21% Improvement in Lost Time

12% Better than the Bureau of National Affairs (BNA) Benchmark

Pe

rce

nta

ge

of

Lo

st

Tim

e

MFC Lost Time BNA Benchmark

Low absenteeism and high retention equals workforce stability and performance

Retention

Our employees minimize lost time

Our employees choose to stay with us


MFC Cat 5 HR - 16


We systematically collect, manage, exchange and share knowledge

Knowledge Management


MFC Cat 5 HR - 17


• Acquire Talent

• Develop & Engage Employees

• Retain Employees & Knowledge





StrategicTalent

Enablers

Inclusion& EEO


Relations


Employees

Retain Talent &

Knowledge

Enablers






MFC Cat 5 HR - 18



Organization Health Index: 74.802011= 72.71 Increase= 2.09

Leadership Excellence

74.17(+1.49)

Ethics and Integrity

80.30(+2.61)

Diversity and Inclusion

72.03(+2.54)

Employee Experience

72.84(+1.80)

MFC

Number Invited 10,380

Number Completed 8,782

Completion Rate 85%

2011 Completion Rate 82%

Highest Ranked Index Ethics & Integrity

2012 LM Voice Commitments

1. Participation Rate > 68% Exceeded

2. OHI > 72.01 Exceeded

3. Increase Overall FSL Exceeded

4. Increase 3 of 5 FSL Exceeded

5. Employee Experience > 68.9 Exceeded

6. Performance Mgmt > 56.7 Exceeded

Consistently Exceeding Mayflower Benchmark Questions

Organizational Health


MFC Cat 5 HR - 19


Culture Evolution & Optimization

Evolving Behaviors and Processes in a Successful Organization Requires Systematic Discipline at All Levels


MFC Cat 5 HR - 20



Data

Information

Knowledge

Action

Data - The raw numbers

Information - What are the numbers indicating? (Trends, Goal Attainment, Benchmarks)

Knowledge - How are other variables affecting the information and how are they managed?

Approach - Data driven approach to improving organizational effectiveness

Turning data into segmented & targeted approach is the next evolution in HR at MFC

HR Analytics Approach


MFC Cat 5 HR - 21


Our Analytics Journey

Increasing analytics efforts to meet the evolving needs of the business


MFC Cat 5 HR - 22


HR Integrated with Enterprise Metrics

Turning Data into Action


MFC Cat 5 HR - 23



Exit Interviews

Example of Correlative Analytics

Trends/WatchAreas

LM VoiceCorrelation Analysis

Specific Functional Actions(Focus Groups, Stay Interview,

Special Comp, etc.)

Monitor Attrition, Post Response and Adjust as Appropriate

ELC MetricsKey Demographic

Analysis

BoD Metrics


MFC Cat 5 HR - 24


Identified Potential Root Cause of Attrition Reason – Developing into Proactive Practices


MFC Cat 5 HR - 25



Enterprise Health Score

Talent Index Measures Employee Impact on Organizational Performance


MFC Cat 5 HR - 26



0-5 Attrition

Talent Management

(30%)

Engagement

(50%)

Retention

(20%)

Workforce Planning

Talent Acquisition

Talent Planning

0-5 Technical Attrition

Strategic Talent

EngagementQuality of Hire – In Process

Quality of Hire – In Process

Critical SME – In ProcessCritical SME – In Process

STP Attrition

Critical Skills

In Development

Talent Readiness Index Structure

Data Tracked is Focused on Areas that have highest Impact on Performance and Results


MFC Cat 5 HR - 27


Our employees know mistakes here can mean casualties in combat.

There can be no mistakes.

Our return on human capital has a compound annual growth rate of 8%.

Sales per employee over the past 11 years exceeds the national industry benchmark by 38%.

Sales per employee have grown 28% in 5 years and exceeds those of 3 key competitors.

0%

25%

50%

2001 2003 2005 2007 2009 2011

Return on Human Capital

CAGR = 8%CAGR = 8%

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140

180

2001 2003 2005 2007 2009 2011

MFC

MFC CAGR: 5.4%Benchmark CAGR: 3.9%MFC CAGR: 5.4%Benchmark CAGR: 3.9%

S&P 500 Capital Goods Mfg Index

Sa

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pe

r E

mp

loy

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In

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x (

%)

80

100

120

140

2007 2008 2009 2010 2011

Sa

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In

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%)

MFC Comp 1 Comp 2 Comp 3

28% Growth Over a 5-Year Period28% Growth Over a 5-Year Period

Our engaged workforce is a productive workforce,and it leads the industry

Employee Performance


MFC Cat 5 HR - 28



#1 First Choice Employer –Engineering Majors

#9 Best Places to Launch a Career

#2 Among Largest Employers

#1 Employer

Lowest Attrition#16 Top 20 Companies for Leaders

CHIEF EXECUTIVE Magazine &

#1 Among Defense Companies (20th Overall)

#13 Top Companiesfor Leaders

Employer of Choice …

Documents

Category 5 Human Resources Performance Excellence - ASQasq.org/public/conferences/quest-for-excellence-2013/con-sess/MFC... · Category 5 Human Resources Performance Excellence Missiles