Final Report of the 199596 SECDEF Fellows Program - PowerPoint PPT Presentation

Loading...

PPT – Final Report of the 199596 SECDEF Fellows Program PowerPoint presentation | free to view - id: 3c1f6-MDA3Z



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Final Report of the 199596 SECDEF Fellows Program

Description:

Leveraging Information Technology. Process Improvements. People. 12 ... SECDEF Corporate Fellows Program. Information Security ... – PowerPoint PPT presentation

Number of Views:71
Avg rating:3.0/5.0
Slides: 53
Provided by: ericb4
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Final Report of the 199596 SECDEF Fellows Program


1
Final Report of the Secretary of
Defense Corporate Fellows Program 2000 - 2001
2
Agenda
  • Background
  • Common Observations/Recommendations
  • Individual Experiences (time permitting)

3
SDCFP 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

4
SDCFP Organization
  • Two officers from each Service
  • - High flag/general officer potential- O-6 or
    O-5- Senior Service College credit
  • Eleven months at Sponsoring Company
  • Group Education
  • Permanent Staff- SDCFP Director, Admin Asst.
  • - Net Assessment for oversight- National
    Defense University for Admin support

5
SDCFP Sponsors
  • 99 - Prior
  • American Management Systems, Andersen Consulting,
    Boeing, CNN, Caterpillar, Citibank, Cisco
    Systems, DirecTV, FedEx, Hewlett-Packard,
    Lockheed Martin, Loral, McKinsey Co., McDonnell
    Douglas, Microsoft, Mobil, Netscape, Oracle,
    Northrop Grumman, PricewaterhouseCoopers,
    Raytheon Systems, Sarnoff, Sears, Southern
    Company, Sun Microsystems
  • 00 - 01
  • ABB, Accenture, Agilent Technologies,
    Caterpillar, Enron, Human Genome Sciences,
    Northrop Grumman
  • 01- 02
  • American Management Systems, Cisco, Merck,
    Oracle, United Technologies, 3M, Sears

6
SDCFP Results
  • Program objectives fulfilled- Education,
    education, education
  • - More Sponsors than Fellows available
  • - Intra-group experience sharing
  • Unique corporate experiences- Strong corporate
    support - Executive/operational level mix-
    Mergers/restructuring

7
SDCFP Products
  • Report and Briefings directly to SecDef, others
  • Business insights relevant to DoD
    culture/operations
  • Recommended process/organization changes
  • 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

8
2000 - 01 Fellows
  • Col Dan Brush Caterpillar, Inc.
  • Peoria, IL
  • LTC Dallas Edwards ABB Group
  • Raleigh, NC
  • Col Terry Feehan Accenture
  • Northbrook, IL
  • CAPT Linda Lewandowski Human Genome Sciences,
    Inc
  • Rockville, MD
  • LTC(P) Jane Maliszewski Agilent Technologies
  • Santa Clara, CA
  • CAPT(S) Mike Moran Enron Corporation
  • Houston, TX
  • Col (sel) Larry Thompson Northrop Grumman ES3
  • Linthicum, MD

9
Agenda
  • Background
  • Common Observations/Recommendations
  • Individual Experiences (time permitting)

10
DoD Transformation
  • Integrated systems approach
  • Continuous assessment and real-time adjustments
  • Seamless integration between all components of
    enterprise from business to warfighter
  • Decision-making frameworks
  • Information/Knowledge Management backbone
  • Adjustment to organizations and management
    methods
  • Core Underpinnings
  • Knowledge Management
  • E-enable all aspects of enterprise
  • Competitive edge knowledge to value
  • Human Capital
  • Personal management
  • Culture of Innovation

11
Recommendations for DoD Transformation
  • Adaptive Organization
  • Leveraging Information Technology
  • Process Improvements
  • People

12
Adaptive Organizations
  • Transformation is the journey, not the
    destination
  • Essential characteristics
  • Relentless pressure from senior leadership most
    important
  • Accountability, systems approach, disciplined
    focus/persistence, clear vision/values,
    communication, high technology, key controls,
    culture
  • DoD must
  • Champion and incentivize change measure results
  • Streamline processes more flexible, adaptable
  • Incorporate Change Management, RBA studies in
    leadership training
  • Increase outside exposure through mid/senior
    level internships
  • Make personnel management more flexible, aligned
    with objectives

13
Recommendations for DoD Transformation
  • Adaptive Organization
  • Leveraging Information Technology
  • Process Improvements
  • People

14
Leveraging Information Technology
  • Information Technology (IT) as a strategic
    advantage
  • Security implications in a computer enabled world
  • Knowledge Management (KM) improves support
  • Enterprise Resource Planning (ERP)

15
Information Technology
  • Information Technology (IT) is a strategic
    advantage
  • No longer just a service provider
  • CIO a full business partner becoming e-knowledge
    advisor
  • Disciplined architecture optimizes effectiveness
    efficiency
  • IT identifies exploitation opportunities
  • DoD must
  • Elevate CIO responsibility, authority, and
    accountability
  • Impose architecture discipline and governance
    adaptability
  • Force equal partnership between operations and
    technology
  • Incorporate IT exploitation in all professional
    training

16
Information Security
  • Security implications in a computer enabled world
  • Increased reliance on vulnerable, web-based
    systems
  • Dangers in outsourcing and insufficient security
    skills
  • DoD must
  • Establish priorities
  • Insufficient attention to security in current
    programs
  • Jointly develop international/industrial
    solutions
  • Lack of international laws to track and punish
    hackers
  • Lack of security skills in todays computer
    programmers

17
Knowledge Management (KM)
  • Knowledge Management (KM) improves support
  • Increased importance in global operations
  • DoD should
  • Develop an integrated KM approach
  • Establish an empowered joint KM program office
  • Field DoD-wide system
  • Manage strategy, processes, personnel, technology

18
Enterprise Resource Planning (ERP)
Andersen Consulting Observations/Recommendations
SECDEF Corporate Fellows Program
  • Enterprise Resource Planning (ERP)
  • IT used to standardize management processes
  • Opportunities for efficiencies and cost reduction
  • DoD implementation
  • DLA just starting - Accenture providing
    consulting services
  • Other possible candidates Depots, Defense
    Agencies
  • DoD Challenges
  • Enormous commitment of time, resources,
    training
  • Technically complex - major changes culture
    organization
  • Time money to replace functional stovepipe
    systems

19
Recommendations for DoD Transformation
  • Adaptive Organization
  • Leveraging Information Technology
  • Process Improvements
  • People

20
Process Improvements
  • Development and transition of technology in DoD
  • Globalized sourcing of equipment services
  • Outsourcing
  • Six Sigma

21
Transitioning New Technology
Andersen Consulting Observations/Recommendations
SECDEF Corporate Fellows Program
  • Improvements possible through greater user
    involvement
  • DoD should
  • Publish a long range capabilities strategy
  • Attain user pull and stable funding commitment
  • Partner with industry where it makes sense
  • Develop independently if necessary
  • Secure Congressional trust to execute
  • Two-year budget

22
Globalized Sourcing
Andersen Consulting Observations/Recommendations
SECDEF Corporate Fellows Program
  • Efficiencies through Global purchases, rentals,
    and maintenance
  • DoD should
  • Utilize worldwide COTS rental vice buy one for
    one
  • Cheaper initial cost, reduced OM for a smaller
    force structure
  • Less transportation demand when acquired on site
  • Maintains technology edge
  • Use contract services
  • DLA overhead reduced
  • Support local allies

23
Outsourcing
  • Corporate America insights
  • Difficulty is identifying core from non-core
    functions
  • Should be capability not resource driven
  • Current focus on more integrative solutions
  • DoD must
  • Clearly articulate requirements, metrics, scope
    of service
  • Accurately benchmark actual cost of service
  • Define penalties for non-compliance
  • Be flexible to allow for advances in technology

24
Utility Outsourcing (DRID No. 49)
  • DoD utilities privatization in trouble
  • Services drove away most efficient solution
    providers
  • Difficulties/frustration of non-traditional
    defense contractors
  • Contract award timeliness, restrictive guidance,
    no best business practices
  • Beneficial - but DoD could do much better
  • Total value proposition vs utility only
  • Greater potential for additional In the box
    savings

25
Six Sigma
  • Six Sigma
  • More than just the latest Quality fad
  • Applicability across all aspects of organization
  • Previously implemented world class quality
    programs
  • Partial Six Sigma in some processes
  • Readiness business, Velocity Management, Quality
    of Life, etc.
  • DoD must
  • Dedicate required resources to transform quality
    to the next level
  • Increase Six Sigma use top down
    emphasis/attention required
  • Partner with industry to establish benchmarks
  • Provide Six Sigma training in schools

26
Recommendations for DoD Transformation
  • Adaptive Organization
  • Leveraging Information Technology
  • Process Improvements
  • People

27
People - The Strategic Resource
  • War for Talent
  • Change in landscape/expectations
  • Asymmetric fight is a necessity
  • Focus Manage develop talent to optimize value
    creation
  • Common themes
  • Great place to work
  • Opportunities to add value
  • Value of the individual
  • Value of the culture environment
  • Leadership-commitment, visibility, accountability
  • Common values
  • Trust
  • Communication

28
People - The Strategic ResourceRecommendations
  • Recruiting
  • Everyone a recruiter
  • Shared vested interest, use incentives
  • Community mentoring tutoring, sports, community
    service
  • Retention
  • Great place to work culture and emphasis
  • Roots in strong mentoring program
  • Commonly misunderstood
  • Great knowledge transfer
  • Fix small problems before they grow
  • Create cross-organizational mentoring programs
  • 360-Degree evals

29
People - The Strategic ResourceRecommendations
  • Retention (cont.)
  • Visibility into personnel systems assignments,
    promotions
  • Unknowns breed contempt
  • Distributed networks design anywhere, build
    anywhere
  • Centralize support, reduce tooth to tail
  • Build personal worth
  • Avoid professional atrophy
  • Education / training should not create
    indentured servants
  • Dual tracks for professionals
  • Personal not Personnel management

30
The Bottom LineIts the Culture
  • Importance of innovation in the knowledge based
    economy
  • Intellectual assets have surpassed physical
    knowledge is the most important competitive
    advantage
  • Key innovation elements
  • Empowerment, communication, risk tolerance,
    cross business learning
  • DoD must
  • Reevaluate how talent is managed
  • Improve the way information is managed
  • Develop new communication channels (both
    vertically horizontally)
  • Support key innovation elements from the top
    (recognition reward)

31
Agenda
  • Background
  • Common Observations/Recommendations
  • Individual Experiences

32
2000 - 01 Corporations
  • Col Dan Brush
  • LTC Dallas Edwards
  • Col Terry Feehan
  • CAPT Linda Lewandowski
  • LTC(P) Jane Maliszewski
  • CAPT(S) Mike Moran
  • Col (sel) Larry Thompson
  • Caterpillar, Inc.
  • ABB Group
  • Accenture
  • Human Genome Sciences
  • Agilent Technologies
  • Enron Corporation
  • Northrop Grumman ES3

33
Caterpillar
SECDEF Corporate Fellows Program
  • World leading manufacturer of construction and
    mining equipment, on highway/marine engines,
    natural gas/diesel power generation sets
  • Employees 68,500 (45 US)
  • Revenues 20.2B (50 US)
  • Manufacturing gt93 Plants (44 US)
  • Dealers gt207 worldwide (gt1800 service
    locations)
  • Patents gt2500 last 5 years
  • Fortunes Most Admired Industrial/Farm Equip
    Manufacturer
  • Assignment Machine Systems RD, Technical
    Services
  • 6 Sigma deployment
  • 20 year vision of commercial construction
    equipment
  • Prognostics

34
Caterpillar Observations
Caterpillar Inc. Observations
SECDEF Corporate Fellows Program
  • Well positioned (market share) in traditional
    industries
  • Mining, earthmoving, truck/marine engines,
    Ag/forestry, logistics, financial, power
    generation equipment
  • And non-traditional industries
  • CAT World Trading Corp., CAT Redistribution
    Services
  • Rental Market 643 stores worldwide
  • e-Commerce - contract with i2 Technologies Inc
  • Strategic vision- two generations (5 years) out
  • Business strategy
  • Focus on customer
  • Grow 50 by 2006, Reduce costs 10 by 2003
  • 6 Sigma deployment
  • Continue to be a global leader
  • Continue product diversity through acquisition/
    joint ventures


35
Recommendations
Caterpillar Inc. Recommendations
SECDEF Corporate Fellows Program
  • Leverage industry rental and service markets
  • Reduce re-capitalization costs
  • Stay on top of the evolutionary technology wave
  • Gain strategic advantage from Service for
    Profit
  • Enhance technology development
  • Provide 10-20 year vision
  • Drive revolutionary change
  • Teaming/Strategic Alliances/Partnerships
  • Promote autonomous equipment requirements
  • Prognostics (Machine Heal Thy Self)
  • Operations (Horizontal Construction, Mine Counter
    Measures, Material Movement)

36
ABB
SECDEF Corporate Fellows Program
  • Global Technology Group
  • 100 countries 1000 Companies 160,000
    employees
  • 23.0B 2000 annual revenue Down from 1999 - 25B
  • Initial Public Offering on NYSE 6 Apr 01
  • Mission (ABB The Value Creator)
  • Making customers more competitive in a networked
    world
  • Achieving returns that meet/exceed expectations
    of shareholders
  • Living our commitment to sustainability
  • Corporate culture vs. Military culture
  • Similar Interesting work, ability to learn new
    things, global opportunities, personal growth,
    respect for employees
  • Different Non-hierarchical, flat organization
    personal value creation based motivation
    (competitive with market)


37
Observations/Recommendations
SECDEF Corporate Fellows Program
  • ABB Corporate Transformation
  • Changing world situation makes change necessary
  • End result a new capability to tackle a new
    environment
  • A more responsive, agile, versatile and
    sustainable organization
  • Organized around customer relationships
    (partnerships/alliances)
  • Speed of change important due to cost
  • People are a key ingredient open communications
    and buy in
  • Transformation transparent to customers
  • Develop IT to support new structure (Over 300
    ERPs, 40 SAP)
  • Recommendations for DoD
  • Develop a corporate integrated business strategy
  • Business processes Quadrennial Defense Review
    (QDR)
  • Possible new structures
  • IT structure that allows seamless real time
    coordination
  • Local teams allow operators to maintain current
    operations

38
Observations/Recommendations
SECDEF Corporate Fellows Program
  • DoD Utilities Privatization
  • Complex, Service unique proposal processes
  • Incomplete requirements, cost criteria withheld
  • Site visits - inadequate time to assess utility
    systems
  • Single installations not commercially appealing
  • Bundling installations better
  • Continue to require SB goals be met
  • Recommendations
  • Use the Internet for posting
  • RFPs, amendments, list of interested parties
  • e-mail for all correspondence
  • Equal access for base site visits
  • Avoid protracted bidding timeframes
  • State performance service reliability goals
  • Reasonable, measurable, achievable

39
Accentureformerly Andersen Consulting
SECDEF Corporate Fellows Program
  • World leader in management and technology
    consulting
  • Employees 70,000
  • Revenues 9.75B
  • 54 Americas
  • 38 Europe, Middle East, Africa, India
  • 8 Asia
  • Locations Six continents, 46 countries
  • Clients Over 4,000 worldwide
  • 84 of Fortunes Global 100
  • Over half of Fortunes Global 500
  • IPO filing in April 2001
  • Assignment Center for Strategic Technology and
    Research
  • Develop and implement innovation concept to
    product process
  • Accentures DLA supply chain contract
  • Research knowledge management, enterprise
    architecture, and Internet security

40
AccentureObservations/Recommendations
  • Thousands of bright young recruits for high
    travel/stress jobs
  • Competitive pay, flexible working conditions, top
    equipment, knowledge exchange
  • Desire to be part of a winning team
  • Like DoD, Accentures personnel deploy around the
    world
  • Enabled by Knowledge Management system and web
    connectivity
  • Tremendous delegation of authority and
    accountability
  • Operating locations and challenges continuously
    change
  • Success through holistic approach to change
    architecture
  • Risk security in a web-enabled working
    environment
  • Engaging with government, industry and academia
  • Identify issues outsourcing, software quality,
    education
  • Leverage relationships/expertise for solutions

41
Human Genome Sciences
  • A pioneer in the use of genomics (study of all
    human genes)
  • Founded in 1992
  • 1.9B total cash and asset
  • 750 employees
  • Worlds leading patented gene sequence database
  • Approximately 97 of all medically significant
    genes and proteins
  • Five pipeline products in clinical trials
  • Leader in moving genomics-based drugs into
    patient-based clinical trials for development of
    new pharmaceutical products
  • Goal - become a global biopharmaceutical company
  • Discover, develop, manufacture, sell its own
    genomics-based drugs

42
Human Genome Sciences
  • Sponsor Assignment Director, Strategic Planning
  • Reporting to both CEO and Chief Business Officer
  • Projects
  • Strategy formulation for commercialization phase
    and beyond
  • Forging a partnership with DoD
  • Contributing to DoD Biotech Strategy development
    and Strategic Review
  • Monitoring Regenerative Medicine
  • New area of medicine with broad DoD applications
  • Exploiting DoD value from biotech sector

43
Human Genome Sciences Observations
  • CEOs powerful vision and personal leadership
  • The driving forces behind success
  • Main leadership challenges
  • Rapid company growth
  • Integration of science with business
  • Development of solid leaders in key positions
  • Intellectual property is a core asset
  • Human Capital/Knowledge Management are critical
  • Strategy on the fly
  • Not a continuous, structured process

44
Recommendations
  • DoD Biotech applications
  • Biomedical countermeasures
  • Highly fragmented effort across government/civil
    sector
  • National Homeland Defense Czar responsibility
  • Cabinet level position
  • DoD Anti-Bio Warfare
  • Primary focus on sensors, detectors, vaccines
  • Focus and pool resources at national level
  • Biopharmaceutical industry an untapped resource

45
Agilent Technologies
  • Diversified technology company focusing on high
    growth markets in communications, electronics,
    and life sciences
  • Split from HP in Nov 1999--the HP Way is
    pervasive
  • 11B revenues in FY 2000, Forbes Platinum 400
  • 47,000 employees based in 40 countries
  • Customer markets in 120 countries
  • 46 on Fortunes Top 100 Best Places To Work
  • Significant investment in advanced RD (10-12 of
    revenue)
  • Vision
  • Revolutionize the way people live and work,
    through technology
  • Assignment Chief Information Officer/Information
    Technology staff
  • IT strategic planning--Balanced Scorecard
  • Performance measurement--IT Customer-Facing
    Metrics

46
Agilent TechnologiesObservations
  • IT as a full business partner powerful CIO role
  • Customer Focus is a new core competency-- Easy To
    Do Business With
  • Requires change in the operating model
  • IT provides the customer experience--new role
  • Transformation--continued commitment in economic
    downturn
  • Massive culture change necessary
  • Relentless top level support--measuring,
    resourcing, rewarding
  • Integration and synchronization of decisions at
    enterprise level
  • Discipline, focus, speed, accountability
  • Holistic approach to decision implications no
    more stovepipes
  • Continuous growth environment
  • Emphasizes both organizational growth and
    personal development
  • Cultivates an adaptive mindset
  • Innovation and improvement benchmark forums

47
Recommendations
  • Elevate position of CIO to Undersecretary of
    Defense
  • Real authority for interoperability,
    standardization, spending
  • Make DoD Easy To Do Business With -- internal
    and external
  • Priority on systems that provide responsiveness
    and flexibility
  • Transformation and adaptive culture becomes DoD
    priority
  • Tie measures, accountability, and incentives to
    it
  • Demand integration and visibility between all
    systems/processes
  • Seamless, interoperable supply/information chain
    from sustaining base to foxhole, sensor to
    shooter
  • Create streamlined business/organizational
    framework
  • Flexible outsourcing methodology skills in
    Vendor Management
  • Can quickly adopt benchmark techniques
  • Empower employees Involve participants

48
Enron
  • Worlds largest Energy company
  • Top wholesaler of energy - 1 natural gas
    buyer/seller
  • Forbes Platinum 400 CY 2000 revenues 100 B
  • Fortunes Globally Most Admired Energy Provider
  • Americas Most Innovative Company 1996-2001
  • Fortunes Globally Most Innovative, Top 25 Best
    Places to Work
  • Business Week s Top 25 Management
  • Reputation for transforming markets
  • Risk management, outsourcing, e-Commerce,
    broadband
  • 80 of revenues from businesses new in last five
    years
  • Assignments
  • Blockbuster Team entertainment on demand
    streaming video
  • Federal Solutions DoD energy outsourcing

49
Enron Observations
  • Innovation - driving force for success
  • Strategic vision - simple straight forward
  • Tied to core values
  • Corporate culture - Entrepreneurial
  • Intellectual Capital
  • People are the most important asset
  • Fortunes Global Top Two Getting/Keeping Talent
  • Extensive use of knowledge management tools
  • Education, training, mentoring
  • Well versed in handling change
  • Organization - flat fast
  • First Mover Advantage
  • Decentralized decision making

50
Recommendations
  • Internet Transformation
  • e-Commerce growth requires smart broadband
    networks
  • Applications for DoD
  • Quality of Life education
  • DoD a very difficult utility outsourcing business
    partner
  • Enron withdrew from energy outsourcing program
  • RFP to contract award time (18-24 months) is too
    long
  • Local roadblocks bar efficient, large-scale
    solution providers
  • Standardized RFP process needed (consistency
    across Services)
  • DoD should rethink approach to utility
    outsourcing
  • Total value proposition vs segmenting the energy
    chain
  • Missed opportunities for concurrent TELCOM
    infrastructure upgrades
  • Beta tests for selected bases (one per Service)

51
Northrop Grumman
SECDEF Corporate Fellows Program
  • Number Two in Defense Electronics with 5.1B
    Litton acquisition
  • Forbes Platinum 400, Fortune Most Admired
    Aerospace Top 8
  • Three sectors (five w/ Litton), 15B revenue
    forecast
  • SecDef Fellow in MD at Electronic Sensors
    Systems (ES3)
  • ES3 Fastest growing sector 1/3 of corporate
    sales (3B)
  • Manufacturing in eight states, Puerto Rico,
    Canada, Europe
  • Globally aggressive w/ active acquisitions,
    partnerships, teaming
  • 1B UAE F-16 radar EW suite Australian
    Wedgetail AEW
  • Focus is on core competencies in military and
    commercial areas
  • Radar, sensors, weapons, countermeasures,
    microchips, marine propulsion, communications,
    postal automation

52
Northrop Grumman ES3 Observations /
Recommendations
SECDEF Corporate Fellows Program
  • Maintain quality workforce using a culture of
    confidence, security
  • Great places to work / use of professional and
    leadership tracks
  • Training, education w/ no strings builds
    professional personal worth
  • Everyone a recruiter, everyone a mentor
  • Personal not Personnel management
  • Change Management is deliberate and critical in
    successes today
  • Change is unavoidable and sought after
  • Change Management requires serious study of
    concepts techniques
  • Acquisition and Contracting in the Defense
    Industry
  • Unpredictable business fraught with
    misunderstandings
  • Defense Science Board Industrial Base Study
    lessons must not be lost
  • More Industry knowledge experience needs to be
    infused into DoD
  • Cultivate more cooperative relationships,
    programs (SDCFP, EWI)
About PowerShow.com