Organizational Collaboration - PowerPoint PPT Presentation

Loading...

PPT – Organizational Collaboration PowerPoint presentation | free to download - id: 3fc0bf-MTc5N



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Organizational Collaboration

Description:

Final Outbrief Academic Year 2010-2011 * * * * * * * * * * OCO-AAA123-20060627-JT-062706 * * * * * We never forget who we re working for – PowerPoint PPT presentation

Number of Views:479
Avg rating:3.0/5.0
Slides: 87
Provided by: JimSlife
Learn more at: http://dcmo.defense.gov
Category:

less

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

Title: Organizational Collaboration


1
Final Outbrief
Academic Year 2010-2011
1
2
Agenda
  • Program Overview
  • Industry trends recommendations for DoD
  • Further discussion / QA
  • Individual corporate experiences (appendix)

2
3
Agenda
  • Program Overview
  • Industry trends recommendations for DoD
  • Further discussion / QA
  • Individual corporate experiences (appendix)

3
3
4
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
4
5
SDCFP Background
  • DoD needs effective access to best executive
    level business practices applicable to operations
    support
  • Strategic Planning
  • Organization
  • Change Management
  • Human Resources
  • Information Technology
  • Supply Chain
  • Outsourcing
  • Infrastructure approximately 2/3 of Defense
    Budget
  • Reforms generate savings
  • Savings applicable to operational shortfalls

5
5
6
SDCFP Organization
  • Two or more 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
  • Nine - Twelve Months at Sponsoring Company
  • Permanent Staff
  • SDCFP Director, National Defense University (Ft.
    McNair)
  • Deputy Chief Management Officer for oversight
  • National Defense University for Admin support
  • www.ndu.edu/sdcfp/sdcfhom.html

6
6
7
SDCFP Sponsors
  • 10 - Prior
  • 3M, ABB, Accenture, Agilent Technologies,
    American Management Systems, Amgen, Apple,
    Boeing, Booz Allen, CACI, Caterpillar, Cisco,
    CNN, Deutsche Bank, DirecTV, DuPont, EADS, Enron,
    FedEx, General Dynamics, Hewlett-Packard,
    Honeywell, Human Genome Sciences, IBM, Insitu
    Group, iRobot, Johnson Johnson, Lockheed
    Martin, Loral, McKinsey Co., McDonnell Douglas,
    Merck, Microsoft, Mobil, Netscape, Oracle,
    Northrop Grumman, Pfizer, Pratt Whitney,
    PricewaterhouseCoopers, Raytheon, Sarnoff, Sears,
    Sikorsky, Southern Company, SRA International,
    Sun Microsystems, Symbol Technologies, Vertex
    Aerospace
  • 10-11
  • Amgen, ExxonMobil, Google, IBM, Insitu,
    Lockheed Martin, McKinsey, Merck, Microsoft,
    Pratt Whitney, SpaceX, SRA International
  • 11-12
  • 3M, Booz Allen, CACI, Cisco, FedEx,
    Honeywell, Johnson Johnson, Northrop Grumman,
    Oracle, Raytheon, Shell, Southern Company, SRI,
    Union Pacific

7
8
SDCFP 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
  • SecDef/DepSec, VCJCS, Service Secretaries
    Chiefs, 30 others
  • Business insights relevant to DoD
    culture/operations
  • Recommended process/organization changes

8
8
9
SDCFP Results
  • Program objectives fulfilled
  • Education
  • DoD, individual officers, Sponsors
  • More Sponsors than Fellows available
  • Intra-group experience sharing
  • Group visits with sponsor CEOs and senior
    leadership
  • Unique corporate experience
  • Strong corporate support
  • Executive/operational level duty mix
  • Mergers/restructuring
  • Unexpected challenges, valuable insights

9
9
10
  • 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
  • SecDef Remarks
  • National Defense University
  • 31 January 2002

10
10
11
2010 11 Sponsors and Fellows
Col Jim Gruny, USMC
COL T.A. MacMcKernan, USA
COL James Glackin, USA
Col Randy Kaufman, USAF
Col Gina Humble, USAF
CDR Frank Schenk, USN
LTC Carolyn Woosley, ARNG
Col Mike Guetlein, USAF
CDR Arthur delaCruz, USN
Lt Col Mark Valentine, ANG
Col (S) AJ Manuel, USMC
Col Kevin Fesler, USAF
11
12
Agenda
  • Program Overview
  • Industry trends recommendations for DoD
  • Further discussion / QA
  • Individual corporate experiences (appendix)

12
12
13
Areas of Focus
14
Federal Acquisition System Requires Change
Impact of Implementation
  • Concerns of Defense Contractor Executives
  • Spending enormous resources on non-value added
    reporting
  • Cumbersome reporting requirements
  • Massive investment of resources to chase
    potential RFPs
  • Difficult to understand government requirements
  • DoD customer/supplier relationship often
    contentious
  • Observed lack of PM authority in decision making
  • Barriers for DoD market entry by new players

14
15
Federal Acquisition System Requires Change
Impact of Implementation
  • Overwhelming and cost-inducing bureaucracy
  • Micro-management stifles development contractors
  • Often forced into sub-optimal solutions
  • Need to empower them
  • System does not tolerate failure
  • Current practices discourage new market entrants
  • Eliminates competition
  • Eliminates innovation
  • Stagnates industrial base

15
16
Federal Acquisition System Requires Change
Impact of Implementation
  • Continue implementing USD(ATL) Guidance
    Roadmap
  • More Acquisition Leadership Less Acquisition
    Reform
  • Reduce oversight and reporting
  • Make quicker decisions and take some risks
  • Partner with industry and lead them to success
  • Give Government PM authority to make decisions
  • Streamline/minimize bureaucracy report
    requirements

16
17
Federal Acquisition System Requires Change
Impact of Implementation
  • Increased capability, lower cost, faster delivery
  • Increased risk must allow some to fail
  • Reduced bureaucracy
  • Redirects critical resources towards value-added
    tasks
  • Reduced micro-management of development
    contractors
  • Allows them to better focus on building
    capability
  • Focus critical resources on value added
    developments
  • Speeds up delivery

17
18
Building Trust in Acquisition Relationships
Impact of Implementation
  • Division of labor coupled with comparative
    advantage
  • Businesses forced to rely on one another
  • Mutual benefits underpinned by contracts
    relationships
  • Relationships and contracts reinforce one another
  • Creates trust
  • Private industry RFPs generally short, simple,
    effective

18
19
Building Trust in Acquisition Relationships
Impact of Implementation
  • DoD reluctantly relies on industry
  • Affairs governed by contracts
  • Relationships limited by official ethics policies
    unofficial fear
  • Limited relationships create mistrust
  • Sole reliance on contracts
  • RFPs from government long, detailed, confusing
  • Industry often forgoes opportunities due to cost
    complexity
  • Increases DoD cost
  • Reduces DoD options

19
20
Building Trust in Acquisition Relationships
Impact of Implementation
  • Expand opportunities to build relationships,
    trust
  • SDCFP good start
  • Reciprocal Visiting Fellows Program for industry
  • Attend key portions of Defense Acquisition
    University
  • Observe JCIDS process from DoD perspective
  • Author recommendations and outbrief Defense
    Business Board
  • Forum of industry CEOs, etc. to create ownership
  • Help craft National Security Strategy
  • Streamline RFPs max use of commercial practices

20
21
Building Trust in Acquisition Relationships
Impact of Implementation
  • Industry representatives gain better
    understanding
  • DoD acquisition system associated limitations
  • DoD personnel gain broader insight into industry
  • Understand concerns and how DoD policies affect
    the system
  • Greater trust between parties, less reliance on
    contracts
  • Shorter, more effective, less complex RFPs
  • More industry participation in solutions
  • More options, reduced costs

21
22
Acquisition System Too Risk Averse
Impact of Implementation
  • Fail Early/Fail Often mentality reduces risk
  • Buys risk down early
  • Encourages innovation
  • Enormous spent chasing perfection on Govt
    Programs
  • Commercial buying practices maximized

22
23
Acquisition System Too Risk Averse
Impact of Implementation
  • Government has become too risk adverse
  • Failure not tolerated
  • Reduces innovation
  • Increases costs
  • Slows delivery
  • Reduces capability
  • Failure addressed by adding more checks and
    balances
  • Any failure results in a lengthy audit, delayed
    capability
  • Independent cells (like RCO) to circumvent
    bureaucracy

23
24
Acquisition System Too Risk Averse
Impact of Implementation
  • Continue implementing USD(ATL) Guidance
    Roadmap
  • Reduce non-value added contractual requirements
  • Program reporting and contractor oversight
  • Adopt policy of fail early and fail often
  • Maximize use of commercial buying practices
  • Less oversight and insight

24
25
Acquisition System Too Risk Averse
Impact of Implementation
  • Increased capability to the warfighter
  • Increased innovation
  • Reduced costs
  • Faster development
  • Less intrusive contractor oversight
  • Pursue USD(ATL) Should Cost approach
  • Value of the development vs. the actual cost
  • Less insight (reporting requirements) in order
    to ensure affordability
  • PMs must accept more risk

25
26
Innovation Recognized as a Competitive Advantage
Impact of Implementation
  • Search for innovators in the hiring process
  • Not just about formal metrics
  • Do not just accept, but celebrate failure
  • Without the willingness to fail the possibility
    of great success is eliminated.
  • Stretch goals
  • Foster an open and collaborative environment
  • Maintain flat and transparent organizations
  • Require team, not individual success
  • Data driven decisions

26
27
Innovation Recognized as a Competitive Advantage
Impact of Implementation
  • Military
  • Understands the need for innovators, but has
    difficulty identifying
  • Commanders guidance provides freedom to execute
    tactical innovation
  • Progress made in eliminating zero defect
    mentality
  • Civilian
  • Focus on detailed duty descriptions inhibits
    innovation
  • Defense Business Board Culture of Savings Task
    Group
  • Culture promoting risk taking recommended
  • NSPS a solid initiative w/ poor execution and
    commitment

27
28
Innovation Recognized as a Competitive Advantage
Impact of Implementation
  • Study common characteristics of innovators
  • Include in service qualification and promotion
    criteria
  • 360 degree reviews for support forms and
    evaluations
  • Require quantifiable stretch goals
  • Meeting all goals seen as not challenging
    yourself
  • Emphasize team building beyond organizational
    structure
  • Rate raters on their ability to make the hard
    decisions
  • LEADERSHIP
  • Must be an action verb
  • Requires significant communication

28
29
Innovation Recognized as a Competitive Advantage
Impact of Implementation
  • Identifies quantifiable characteristics of
    innovators
  • Ensures a deep bench
  • Members challenged beyond their perceived
    capabilities
  • Stretch Goals breed a new culture
  • Failure while trying is expected and perfection
    is not
  • Fosters a culture of change and innovation
  • No such thing as good enough

29
30
Managing Talent / Employee Development
Impact of Implementation
  • Rising stars are identified
  • Accelerated opportunity for advancement and
    responsibility
  • Expertise allowed
  • Individuals developed to serve in same capacity
    for longer terms
  • Performance is a requirement for retention
    tenure is not
  • Up or Out
  • Cannot remain for benefits w/ mediocre
    performance
  • Manager skills usually come first
  • Followed by development of leadership

30
31
Managing Talent / Employee Development
Impact of Implementation
  • Leadership inculcated from day one
  • Military specialization career paths penalized
  • Learning new process vice leveraging past
  • Jack of all trades, master of none syndrome
  • Ideal Flag career path imposed on everyone
  • Very few will ever become Flags
  • Up or out
  • Incentive is to stay in until retirement in an
    all or nothing system
  • Challenging to cull the mediocre performers

31
32
Managing Talent / Employee Development
Impact of Implementation
  • Revise the current mandates
  • Allow for more accelerated promotion of select
    individuals
  • Modify current retirement system
  • Enable earlier release with some level of
    benefits, 401k
  • Formalize and implement consultant training
  • Aid in problem solving / consensus
  • Enable military members to specialize without
    penalty
  • Comparable career milestones and promotion
    opportunities
  • Job changes every 2-3 yrs detrimental to
    expertise

32
33
Managing Talent / Employee Development
Impact of Implementation
  • More skilled and specialized workforce
  • Developed, retained, and rewarded for
    performance
  • Accelerated promotion of top performers
  • Mediocre performers not allowed to remain
  • DoD able to establish continuity in workforce
  • Especially valuable in long-term project
    management

33
34
Prioritize Configurable vs. Customized
Solutions
Impact of Implementation
  • New problems attacked with existing organizations
    resources
  • When new tools are required
  • Assess current inventory
  • Reconfigure existing tools
  • Limit customized solutions to integrating
    existing tools if possible
  • Field 80 solution quickly
  • Iterate based on configurable nature
  • Exemplar Microsoft Global Security Operations
    Center

34
35
Prioritize Configurable vs. Customized
Solutions
Impact of Implementation
  • Stand up new offices for emerging problems
  • Limited ability to assess current inventory (esp.
    in IT)
  • Limited knowledge of what DoD owns
  • Limited understanding of true capabilities
  • Rely on vendor provided, customized solutions
  • Increases costs and fielding time
  • Limits flexibility and iterative improvement
    capability

35
36
Prioritize Configurable vs. Customized
Solutions
Impact of Implementation
  • Identify products that DoD owns
  • Comprehend and fully utilize licensing agreement
  • Train users on existing capabilities
  • Often part of license agreement
  • Prioritize configurable solutions vs. customized
  • Focus on user needs
  • Maximize acquisition of services when possible
  • Allows for vendor to upgrade in a timely and
    efficient manner

36
37
Prioritize Configurable vs. Customized
Solutions
Impact of Implementation
  • More effective solutions at a reduced cost
  • More rapid fielding of solutions
  • Reduced training costs
  • Solutions are based on a familiar product
  • Greater ability to improve solutions through
    iteration

37
38
Cloud Computing
Impact of Implementation
  • Cloud Users
  • 80 of Fortune 1000 companies will use some form
    by 2012
  • 85 of universities considering cloud solutions
  • 20-35 savings in IT costs
  • 67 savings with electric, real estate, and
    personnel costs included
  • Leadership held accountable for transformation
  • Cloud Providers
  • Competition driving down cost
  • Focus on reliability and security
  • 2010 Investment in RD
  • Microsoft 8.7B
  • Google 3.8B

DISA 2010 Budget 1.3B
38
39
Cloud Computing
Impact of Implementation
  • NSA IA Director - Cloud the IT architecture of
    the future
  • Local servers maintained at installation level
  • Paying premium prices for underutilized services
  • Costly patching to minimize security risks
  • Service level and installation level email
    accounts
  • Some consolidation of Government data centers

39
40
Cloud Computing
Impact of Implementation
  • Pilot program
  • Move all Service Academies to the commercial
    cloud
  • Waive/modify existing requirements
    preventing/hindering adoption
  • Iterate services and tools to fine tune
    requirements and practices
  • Evaluate actually savings and impact on
    performance
  • Evaluate relative security risk
  • Data based expansion decisions
  • Collaborate with industry on the security of the
    cloud
  • Standardize across DoD
  • Adopt single e-mail account per user policy
  • Eliminate installation level acct

40
41
Cloud Computing
Impact of Implementation
  • 20-35 savings with decreased downtime
  • 7 min/mo vs. 3.8 hrs/mo
  • Financial penalties for downtime
  • Equivalent or increased security of data
  • Loss of data incidents minimized
  • Proof of concept for all services
  • Actual savings metrics used to drive scaling
    decisions
  • Allows DISA to focus on solutions only they can
    provide
  • Partners with industry to leverage their
    innovation

41
42
Shared Services and Enterprise Solutions
Impact of Implementation
  • Conscious decision about where to reside on
    spectrum
  • Functional Services (2-3 yrs)
  • Cross Functional Services (3-4 yrs)
  • Enterprise Services (4-5 yrs)
  • Global Business Services (5-7 yrs)
  • Path to success CEO driven
  • Consistent strong proven leaders
  • Willing to fight for change
  • Constant communication
  • Consolidate, Integrate, Optimize
  • Must prove innovation will be impeded to be
    granted an exception
  • Constant focus on staying linked to the company
  • Data must show cost savings
  • Replicate / reinforce success

42
43
Shared Services and Enterprise Solutions
Impact of Implementation
  • Fiscal constraints drive the search for
    efficiencies
  • We can read the books
  • We know we can do better
  • Often viewed as just another budget cut
  • Adoption hindered by constant changes in
    leadership
  • Search is always for the silver bullet
  • Tendency to contract a customized service
  • Varying degrees of success

43
44
Shared Services and Enterprise Solutions
Impact of Implementation
  • Leadership must decide where to reside on the
    spectrum
  • Appoint a proven leadership team
  • Let them see the task through to completion
  • Adopt Consolidate, Integrate, Optimize Business
    model
  • Accept risk and iterate on imperfect solutions
  • Communicate, celebrate, build on, and imitate
    success

44
45
Shared Services and Enterprise Solutions
Impact of Implementation
  • Provides a clear destination
  • Enabling the creation of a clear path to get
    there
  • Provides stable leadership
  • Eliminates the ability to wait out change

45
46
Agenda
  • Program Overview
  • Industry trends recommendations for DoD
  • Further discussion / QA
  • Individual corporate experiences (appendix)

46
46
47
Discussion and questions?
48
Agenda
  • Program Overview
  • Industry trends recommendations for DoD
  • Further discussion / QA
  • Individual corporate experiences (appendix)

48
48
49
Amgen
  • World's Largest Biotech Pharmaceutical Company
  • Corporate HQ Thousand Oaks, CA
  • Employees 17K (Market presence in 52 countries)
  • Revenue 15.1B in 2010
  • RD Investment 2.9B in 2010
  • Discover, develop, manufacture, deliver
    protein-based medicines
  • Unleash body's own powerful therapeutic responses
  • Corporate Goals
  • Deliver financially
  • Deliver the best pipeline
  • Aggressively pursue growth opportunities
  • Assignment Director, Business Performance
  • Projects
  • Supply Chain Strategy
  • Capital Investment Process Improvement
  • Acquisition and Integration Readiness
  • Leadership Development

49
49
50
Observations (Amgen)
  • Strong Science-Based Culture
  • Values-based organization patient focused
  • Facilitates recruiting, developing, and retaining
    the best and brightest
  • World leaders in biotech innovation, discovery,
    manufacturing
  • Victim of their own success
  • Strategic, operational, cross-functional planning
    not well developed
  • Striking commercial success and abundant revenue
    have produced
  • Execution-oriented atmosphere
  • Acceptance of immature business processes
  • Maturing company in a maturing industry
    recognized need to
  • Control expenses
  • Wisely utilize cash assets
  • Take advantage of established international and
    emerging markets
  • Aggressively pursue non-organic growth

50
50
51
Recommendations to DoD
  • Make trust an institutional imperative reduce
    burdensome oversight
  • Between Congress and DoD
  • Between OSD and the Services
  • Between DoD/Congress and Industry
  • Requires disciplined execution at the Service
    level
  • Evolve wisely
  • Retain and nurture unique cultures
  • Proactively and openly explore core missions
  • Man, Train, Equip to core missions
  • Change before you have to
  • Simplify and compress the resource allocation
    cycle
  • More responsive to rapidly changing environment
  • Reduced overhead
  • Capitalize on information revolution benefits
  • Will require significant Congressional engagement
    plan

51
51
52
ExxonMobil
  • Americas Largest Energy/International Oil
    Company (IOC)
  • Corporate HQ Irving TX
  • 2010 Results Revenue 383B Profit 31B 8
    Profit Margin
  • Employees 70K (market presence in 52 countries)
  • Taking on the worlds toughest energy challenges
  • Investing gt125B over the next 5 years on capital
    projects
  • Developing technologies to speed the adoption of
    hybrid vehicles
  • Testing new carbon capture technologies to reduce
    emissions
  • Corporate Goals
  • Flawless operations safety, controls,
    reliability
  • Generate highest general interest value on every
    molecule
  • World class efficiency eliminate supply chain
    waste
  • World class people, teams, work environment
  • Assignment Demurrage Analyst, Global Marine
    Transportation Optimization (GMTO), Refining
    Supply (Downstream)
  • Demurrage (Ship Late Fees) Reduction from 300M
    to 200M
  • Middle East/Iraq Socio-Economic Analysis, Policy
    Security Advisor
  • Maritime Security/Anti-Piracy

52
52
53
Observations/Recommendations
  • Too Little Cooperation/Synchronization between
    DoD Private Sector
  • USG/Military community unwilling to share
    information with US corporations
  • Failure to share Lessons Learned/TTPs will likely
    result in unnecessary incidents which further
    threaten security in places like Iraq
  • Security Cooperation State/Defense/Commercial
    triad military/USG leaders need to train and
    develop skills to make this happen
  • Private Sector Leads in Energy Reduction Efforts
  • More RD in private sector than governmental
    (worldwide)
  • DoD Energy Reduction Initiatives Destined to Fail
  • Focus on percent reduction vice viable/achievable
    solutions
  • Reluctance to implement COTS solutions (energy
    efficient buildings vice tents)
  • Lowest unit price versus best performance early
    wear-outs/higher maintenance
  • Interaction with Industry key to professional
    development
  • Need to overcome the Us versus Them mentality
  • Strong US Industry Strong US Economy Safe and
    Secure World
  • More Fellowships with Industry needed (i.e. 6
    months) by senior MAJ/junior LTC levels to
    capitalize on experience vice end of career
    Fellowships
  • Serious lack of Iraqi experience throughout
    entire US Energy Sector Opportunity for
    Transitioning Warriors

53
54
Google
  • Mission Organize the worlds information and
    make it universally accessible and useful.
  • Employees 23K (13K on Mountain View campus)
  • Revenue 2009 23.7B (6.5B net income)
  • Core business Search and Advertising
  • 97 of revenue from advertising
  • Core value Dont be evil
  • Assignments
  • GEO team imagery acquisition
  • VetNet increase Veteran employees, help service
    members and Vets
  • Google Ideas weak and failed states
  • Education tools and content for wiki-style
    textbook

54
55
Observations (Google)
  • Hire people smarter than me and get out of the
    way.
  • Rigorous hiring process
  • Eliminate distractions
  • Fluid organizational structure (minimal staff)
  • Innovation continuous - not perfect
  • 20 of employee work hours for individual
    self-interest projects
  • Collaboration
  • Celebrate failures
  • Autonomous Units to keep the start-up atmosphere
  • Transparency
  • Thank God Its Friday
  • Objectives and Key Results - quarterly
  • Making money is not everything

55
56
Recommendations to DoD
  • Army Knowledge Online (AKO) replacement
  • Industry has better solutions
  • Cloud computing is the future
  • Acquisition process
  • Must move at the speed of technology
  • Increase use of Commercial Off The Shelf
    Technology (COTS)
  • Create time for leaders to think
  • Promote continuous leader development
  • Consolidate/coordinate cyber defense
  • Assume our adversaries have imagery

56
57
IBM
  • One of Worlds Largest IT Companies
  • Capabilities Hardware, Software, Services,
    Research, Financing
  • Employees 400,000 in 170 Countries
  • 2010 Revenue 99.9B (57 from Global Services)
  • 2010 Earnings/Share 11.52 (10.01 in 2009)
  • Value-based Enterprise of Individuals
  • Create and apply technology to make the world
    better
  • Dedication to every clients success
  • Innovation that matters
  • Trust personal responsibility in all
    relationships
  • Assignment Federal Sector, Global Business
    Services
  • Defense Intelligence
  • DoD account immersion
  • Bid proposal process
  • Corporate capabilities, value propositions

57
58
Observations (IBM)
  • Transformation Still Ongoing
  • Enabling growth, productivity culture change
  • CEO sponsorship has been the key
  • Strategy development execution
  • Commitment, sense of urgency evident throughout
  • A Leader in Technology
  • Maintains worlds largest private-sector research
    arm (6B Annually)
  • U.S. Patent leader for 18 consecutive years
    (5,896 in 2010)
  • Acquired 100 companies in past seven years
  • Watson and the Jeopardy Challenge
  • Highly Dispersed Virtual Company
  • Large percentage of IBMers work from mobile
    locations
  • Employees issued laptops, various collaboration
    tools
  • IBM Mobility Centers with full service capability
    provide flexibility
  • IBMers Dedicated to Helping their Clients Succeed
  • Build strong, long-lasting relationships

58
59
Recommendations to DoD
  • Change/Reform DoD Acquisition Strategy
  • Streamline process to reduce acquisition cycle
    time
  • Increase collective will to unify, solve IT
    problems together
  • Clearly communicate requirements
  • Minimize change (e.g. requirements/deadlines)
  • Adopt Commercial Practices to Reduce Cost/
    Improve Performance
  • Consolidate, standardize IT infrastructure
  • Streamline supply chains
  • Move to shared services for mission-support
    activities
  • Consolidate field operations, increase
    self-service platforms
  • Embrace Smarter Installations
  • Implement energy conservation building
    management practices
  • Integrate system of sensors, meters, and
    instruments
  • Use advanced analytics for early
    detection/diagnosis

59
60
Insitu
  • Medium Sized, High Tech Unmanned Aircraft Systems
    Company
  • Designs Disruptive Technologies for Tier II Small
    Tactical Unmanned Aircraft Systems (STUAS)
  • Growing Rapidly Across Global Markets (Military
    Commercial)
  • Employees 780 ( Just 130 in 2005)
  • Revenue gt350M in 2010 (28M in 2005)
  • Independent Subsidiary of Boeing (since 2008)
  • Allows Insitu To Remain An Agile, Innovative
    Company In Pursuit of New Customers
  • First Program of Record contract (2010)
  • Took 4 Years Very Costly Process
  • 400,000 Combat Flight Hours (Scan Eagle
    Platform)
  • Company Strategy
  • Maintain Agile, Innovative Culture And Strong
    Customer Relations
  • Leverage Boeings resources and expertise to gain
    access to larger markets
  • Boeing Gains Access To Emerging Markets And
    Technologies
  • Fellowship Assignment Executive Staff to CEO,
    Special Projects

60
60
61
Observations (Insitu)
  • New CEO Mr. Steve Morrow (as of 27 April 2011)
  • Retired NFO US Navy Captain w/Program Management
    Experience
  • Replaces Dr. Steve Sliwa, PhD, AE and
    Entrepreneur Who Retired After 10 Years as
    President and CEO
  • Operations Becoming More Complex
  • Growth In Global Market Size And Operational
    Reach
  • Migrating From Engineers Working Out Of A
    Garage To Full Rate Production and Sustainment
  • Growing Pacific Rim Operations Out of Australia
    (Insitu Pacific)
  • Program Of Record Increased Growth Challenges,
    Operating Expenses
  • Full production, Inventory Sustainment, AS9100
    compliance, Significant Increase in Overhead and
    Consultant Fees To Meet DoD Compliance
    Requirements
  • A Market Leader in Small Tactical UAS Platforms
  • Strong USMC Flag level Advocacy For Scan Eagle
    And Services
  • Navy Expanding Opportunities For Surface
    Platforms MEU Operations
  • Used as ISR asset for JTF Commanders
  • Army Seriously Considering Contract for
    Integrator (Next Gen) Platform

61
61
62
Observations (Insitu)
  • Location, Outdoor Culture A Big Draw For
    Recruitment/Retention
  • Columbia River Gorge (60 Miles East of Portland,
    OR)
  • Top Wind/Kite Surfing Capital In CONUS
  • Hood River Area Population Small, Laid Back,
    Outdoor Friendly
  • Endless Outdoor Activities Opportunities
  • Scenic Mountains, Orchards, Wineries, Breweries,
    Mild Climate Conditions
  • Company Emphasize On Being Agile, Innovative,
    Laid Back, Yet Keenly Focused (Culture/Focus May
    Change A Bit w/New CEO)
  • Core Competency - Engineering Designs Customer
    Relations
  • Challenges - Meeting Government, Export,
    Compliance Issues
  • Immediate Feedback From Warfighter Customer
    Motivates Employees
  • 88,000 Employee Applicant Backlog
  • Revenue, Customer Base Continues To Grow
  • Military, Foreign Sales
  • Profitability Starting in CY 12

62
62
63
Recommendation
Conventional Paths to System of Record
ConceptualStudies
Prototypes
SDD
LRIP
System ofRecord
5 - 9 yrs
ACTD
Demo
Tech Dev
4 - 6 yrs
Disruptive Technology Insertion to System of
Record
Deployments
System ofRecord
Demos
Exercises
3 - 5 yrs
Leverage OIF/OEF demands to win warfighter
advocacy
Small Companies With Disruptive Technologies
Cannot Survive Long Enough Financially On Their
Own To Compete Under The Conventional Path to
System of Record
63
63
63
64
Lockheed Martin Aeronautics
  • Worlds Largest Defense Contractor
  • Four diversified business segments
  • Aeronautics 27 (12.2 billion)
  • Electronic Systems 27 (12.2 billion)
  • Information Systems Global Services 27
    (12.1 billion)
  • Space Systems 19 (8.7 billion)
  • Employees 136K worldwide
  • 2009 sales 45.2 billion
  • Aeronautics Segment
  • Research, design, development, manufacture,
    integration, sustainment, support, upgrades of
    advanced military aircraft
  • Combat Aircraft F-16, F-22, F-35 (72)
  • Air Mobility C-130, C-5 (15)
  • Other Skunk Works, Long Range Strike, ISR (13)
  • 28,509 employees
  • Assignment F-35 Sustainment Customer Alignment
  • Eight Partner Nations, 13 Services
  • Identify, communicate, align and deliver the
    Best Value JSF sustainment solution

64
64
65
Observations (Lockheed Martin)
  • Warfighter focused
  • Heavily represented by prior military
  • Deliver Best Value combat capability at an
    affordable cost
  • Very large organization
  • Multiple levels of hierarchy
  • Blurring of leadership and management
  • Continuous education effort
  • Significant efforts spent re-educating DoD
    leadership
  • Hampered by DoD two year leadership cycle
  • Dedicated to diversity
  • Well integrated diversity program unified
    throughout the company
  • Contributor to the Air Force Diversity Roadmap

65
65
66
Observations (Lockheed Martin)
  • We never forget who were working for
  • Continue to demonstrate commitment to combat
    capability
  • Ensure all engagement opportunities highlight
    customer focus
  • Turn Managers into Leaders
  • Identify and educate leaders early
  • Broaden experiences and expertise
  • Better communicate Best Value to the Warfighter
  • Develop consistent engagement theme supported
    with proven data
  • Develop methodology to compare apples to
    oranges
  • Continue to attract quality personnel
  • Focus on First who then what

66
66
67
McKinsey Company
  • Strategic level management consulting firm
  • Consultants 8,000 in 50 countries
  • Over 100 spoken languages, 120 citizenships
  • Limited Liability Partnership no public
    financials
  • Consistently a top desired employer by MBA
    graduates
  • Experts provide ability to serve broad spectrum
    of clients
  • Functional practice
  • Corporate finance, marketing, operations,
    organization, risk, strategy
  • Industry practices
  • Advanced industries, consumer, financial, global
    energy materials, healthcare, infrastructure,
    private equity, public sector, social sector,
    travel, transport logistics, tech, media
    telecom
  • Assignment Atlanta Practice
  • Client engagements hypermarkets, rail
    transportation, industrial manufacturing, public
    and private sector leadership development

68
Observations (McKinsey)
  • One Firm
  • World-wide standardization of problem-solving and
    communication
  • World-wide access to resources
  • Expertise experience and skill based
  • Access to individual experience and expertise
    throughout the Firm
  • Global evaluation and education process
  • People are the competitive advantage
  • Diversity heritage, academic background,
    experience
  • Early exposure to independent work streams
  • Responsibility to deliver impact
  • Team problem solving
  • Non-hierarchical meritocracy
  • Obligation to dissent
  • Team composition
  • Small, nimble and flat
  • Global participation and assignment

69
Recommendations to DoD
  • Leverage consulting firms expertise and
    objectivity outsourcing is a positive action
  • Expertise
  • Ability to leverage past engagements and provide
    impact
  • Constantly developing, refining and researching
    best practices across all industries
  • Objectivity
  • Able to provide the outside opinion
  • Not afraid to kill programs and ideas if they
    do not create value
  • Foster a climate of jointness early
  • Standardized communications across DoD personnel
  • Problem solving methodology
  • Templates and expectations
  • Increase opportunity for broadening
  • Fellowships / sabbaticals
  • Joint problem solving opportunities early in
    career
  • Identify and foster talent earlier provide
    accelerated opportunity

70
Merck
  • Worlds second-largest pharmaceutical company
  • Employees 93k in 140 countries
  • Revenue 46B
  • RD Investment 8.4B
  • Corporate Strategy
  • Research-based and Customer Focused
  • Eight year roadmap Launch, Accelerate,
    Breakthrough
  • Launch phase (2009-2011) ? Accelerate
    Phase in 2011
  • Become one company
  • Maintain business momentum
  • Prepare for the future
  • Products
  • Vaccines
  • Prescription products
  • Consumer products
  • Animal health
  • Assignment Global Security Group
  • Intelligence Investigations

70
71
Observations (Merck)
  • Just completed first year of merger with Schering
    Plough
  • 3B in savings promised to The Street in the
    first three years
  • Future growth focused through emerging markets
  • Primarily BRIC (Brazil, Russia, India, China)
    countries
  • Merck Sigma well established across the company
  • Annual awards process recognizes best projects
  • Delayering Concept Simplification
  • Global Data Center Consolidation Project underway
  • Global Center in U.S
  • Two smaller regional centers
  • EMEA (Europe, Middle East, Africa)
  • AP (Asia, Pacific)

71
72
Recommendations to DoD
  • DoD should look for more opportunities to realize
    savings and capture value of enterprise behavior
    by sharing services across the Services. We are
    one company (DoD) not independent subsidiaries
  • Significant savings will not be realized until
    the tough issues are tackled and top-down
    driven!!
  • Embrace a culture of savings and simplification
    throughout DoD. Needs to be top-down driven
    throughout all levels of the organization.
  • Additional workforce shaping tools required for
    both the military and civilian workforce.
    Working for DoD is not an Entitlement Program.
  • Formalize mentoring program for rising stars
    across the DoD.

72
73
Microsoft
  • Worlds largest software company
  • Divisions
  • Business, Server Tools, Windows Windows Live,
    MS Office
  • Interactive Entertainment, Mobile Communications,
    Online Svcs
  • Employees 91K (186,000 including vendors
    associated personnel)
  • Sales 62B in 2010 (19B profit)
  • Market capitalization 210B (36B in cash,
    short-term investments)
  •  
  • Mission Help people and businesses throughout
    the world realize their full potential
  •  
  • Assignments
  • US Public Sector Sales Marketing Business
    Strategy
  • Corporate HR, Microsoft Bench Leadership
    Development
  • US Federal Security Advisor Cyber

73
74
Observations (Microsoft)
  • Company on the brink of externally driven
    evolutionary change
  • Ubiquitous internet, mobile, "App Revolution",
    The Cloud
  • Tension between growing bureaucracy and
    innovation
  • Reduced strategic focus..."secessionist"
    pressures 
  • IT environment and competition prevent the
    comfort of certainty
  • Better to be first and fail than fail to be first
  • Requires tight OODA loop to minimize damage of
    failure
  • Precision Development (not developing everyone
    to be CEO)
  • World-class in-house leadership develop programs
    (MS Bench)
  • Highly developed performance feedback (direct
    360)
  • Global diversity and inclusion fundamental to
    bottom line 
  • Process and personnel efficiency
  • Global Security Operations Center
  • Live Meeting, Lync 
  • Passionate Personnel 
  • People believe in, and stand by their products
  • Incentives further drive excellent service
    delivery

74
75
Recommendations to DoD
  • Move to Cloud Computing (Benefits outweigh costs)
  • Save 35 of IT budget (not including elec, real
    estate personnel)
  • Security counter-arguments are overstated (can
    actually be safer)
  • Partial moves  similar costs, reduced benefits 
  •   
  • Solutions prioritize configurable over custom,
    focus on user
  • Must first determine what we ownthen what it can
    do
  • Solutions built on integrated backbone offer
  • Reduced costs
  • Faster fielding
  • Less training
  • Flexible improvement through iteration
  • Practice more Precision Development
  • Not everyone can be, or wants to be the Chief of
    Staff
  • Current practice dilutes limited resources over
    entire population
  • Base development decisions on ability and
    commitment include aspiration
  • Eliminate up or out system (or relax the
    strata)
  •  

75
76
Recommendations to DoD
  • Trust is the missing element in Acquisition
  • We dont trust therefore we legislate through
    voluminous RFPs
  • Industry cant understand them
  • When they do, we change the requirements (at
    significant costs)
  • Trust gained through interaction understanding
  • SDCFP good start
  • Create reciprocal Visiting Fellows Program for
    industry
  •   Nurture calculated risk taking (Operational
    Risk Management)
  • Orchestrated development opportunities
  • Question lack of failure on resumes
  • Use IT that weve already paid for
  • Desirable features remain unused - collaboration
    tools
  • Unused training resources - Office, Sharepoint,
    etc...
  • Off-the-shelf solutions to IT problems exist,
    available
  • Marginal cost due to existing enterprise
    agreements not pursued
  • Application virtualization 

76
77
Pratt Whitney
  • World Leader in Design, Manufacture, and Service
    of aircraft engines, industrial gas turbines, and
    space propulsion
  • PW Statistics
  • 12.94B in revenue with 1.99B in operating
    profit
  • 36,000 employees supporting 195 countries
  • Commercial and Military Engine Divisions
  • Major Products
  • Commercial Engines B747, 757, 767, 777, A300,
    310, 318, 330, 380
  • Military Engines F-15C/E, F-16, C-17, F-22, F-35
  • Space Propulsion Powers Space Shuttle, Atlas,
    Delta Rockets
  • Small Medium Engines Dassault and Mitsubishi
    commuter jets
  • Fellowship Placement F135 Program Management
    Office
  • Global Sustainment Strategy for JSF Propulsion
    System

77
78
Observations (Pratt Whitney)
  • Process Oriented and Methodical in Practice
  • Led by engineers with 25 years at the company
  • Executives, Directors, Product Team Leads
  • Outside hiring is uncommon for senior management
  • Employees replicate customer/DoD
  • High ethical standards/constantly mindful of
    customer
  • Employees take ownership of processes and
    failures
  • Accountable to produce results for customer
  • Reliable product delivered on time
  • Leadership versus Management
  • Leadership development started much later than
    military
  • Management substitutes for leadership at times

78
79
Recommendations to DoD
  • Utilization of Predictive Analytics within
    Propulsion Enterprise
  • Forecasting and Inventory Optimization Tools
  • Proactively engage maintenance trends to adjust
    forecast
  • Increased fill rate fleet availability, reduced
    inventory
  • Manage Excess and Obsolete with significant
    reductions
  • 2010 NDAA required SECDEF to submit inventory
    reduction plan to congress
  • DoD manages 4M inventory items valued at 91B
  • 11 designated as excess 17 exceeds approved
    acquisition objective
  • Corporate America has developed infrastructure of
    systems to tackle this issue
  • Leverage Industry Planning Optimization
    Software in existence
  • Meets DoD plan to implement ERP systems
  • Metrics are in-place, with defined procedures and
    processes

79
80
SpaceX
  • Emerging provider of affordable access to space
  • Highly reliable, low cost space transportation
    for cargo/payloads and crew
  • Employees 1,300 (almost 400 hired since
    August)
  • Projected revenue 2.5B (40 manifested flights
    through 2017)
  • Philosophy simplicity, low-cost, reliability
    go hand-in-hand
  • Reducing overall product production costs
  • Reduce cost/increase reliability of space access
    by factor of ten
  • Reduce costs while speeding decision making and
    delivery
  • Eliminate traditional internal layers of
    management
  • Simple, proven designs with a primary focus on
    reliability
  • Maintain a tighter control of quality
  • Ensure tight feedback loop between design
    manufacturing
  • Minimize use of sub-contractors
  • Maintain majority of in-house manufacturing
  • Control over costs, schedule, and performance
  • Assignment Vice President of Government Business

80
80
81
Observations (SpaceX)
  • Orders of magnitude cheaper than existing
    providers
  • Combo of people, technology, and lower overhead
  • Young workforce (average age 28)
  • Motivated to make a differencelong, but
    flexible, work schedules
  • Plugged in (laptops, iPhones, iPads, video
    meetings.)
  • Short build-test-build-fly cycle
  • Rapid capability to incorporate design changes
  • Rapid resolution of launch anomalies
  • National Security Space (NSS) hesitant to engage
    with SpaceX
  • Enormous wealth of untapped innovation
  • Barriers to entry into government business are
    high
  • Government is highly risk adverse (sometimes for
    good reason)
  • Budgets are fairly rigid
  • Corporate access to government senior leadership
  • Corporations have greater access than government
    counterparts
  • Government speaks from many voices
  • Can frustrate industry or create opportunities to
    propagate their agenda

81
81
82
Recommendations to DoD
  • Government needs to cultivate new market entrants
  • Strengthens industrial base and promotes
    competition
  • SpaceX alone could save upwards of a billion
    dollars a year in launch costs
  • Where possible, look for lower tech solutions
  • Sometimes multiple simpler/cheaper solutions
    beats a single complex solution
  • Acquisition system needs to better embrace
    commercial buying practices
  • Government needs to readdress the cost versus
    risk tolerance equation
  • Used to throwing money at the problem to reduce
    risk

82
82
83
SRA International
  • Innovative technology, strategic consulting
    services, solutions
  • Government organizations and commercial clients
  • National Security, Global Health and Civil
    Services, Intelligence, Space
  • Revenue 1.667B in 2010
  • 88 as prime contractor
  • Employees 7,200 worldwide and growing
  • Recently acquired by Providence Equity Partners
  • Deeply embedded culture
  • Focused on creating value for customers
  • Builds business by gaining trusted advisor
    status with customers
  • Corporate trademark Honesty and Service
  • Assignments
  • Special Assistant to the Vice President, HR
    Strategic Initiatives
  • Special Assistant to the Vice President,
    Enterprise Systems
  • Special Assistant to the Director, Touchstone
    Consulting

83
84
SRA Observations
  • Corporate and personal Integrity promoted and
    expected
  • Transparency encouraged
  • Bad news doesnt get better with age
  • Encourages seeking help from leadership from day
    one in the company
  • Flexible, virtual workplace
  • Growing organically through acquisition
  • Challenges to the corporate culture
  • Maturation of the federal IT market space
  • Dedicated to employee development retention
  • Fortune Magazine 100 Best Company to Work For
    2000-2009
  • Values output of employee engagement surveys to
    guide management initiatives
  • Developing succession planning process
  • Utilizes HR matrix organization and brass ring
    to manage internal mobility
  • Focus on adjustment to multi-generational
    workplace

84
85
Recommendations to DoD
  • Optimize Crowdsourcing
About PowerShow.com