Strategic Sourcing at Lockheed Martin Corporation Prepared for: Corporate Sourcing Leadership...

Strategic Sourcing atStrategic Sourcing at

Lockheed Martin CorporationLockheed Martin Corporation

Prepared for:

Corporate Sourcing Leadership ExchangeJune 2008 Meeting

June 2008 Lockheed Martin Corporation - CSLE 2

Contents• Lockheed Martin Overview

• LM Recruiting Model

• LM Strategic Sourcing Model– Evolution– Pipelines– What Works– What Needs Work– Metrics & Reporting

• Related Best Practices

Lockheed Martin CorporationLockheed Martin Corporation


1,000 facilities in 500 cities and 46 states in the U.S.

Business locations in 75 nations and territories internationally

Operations

Primarily the U.S. Department of Defense and the U.S. federal government agencies

– Lockheed Martin is largest provider of IT services, systems integration, and training to the U.S. Government– Other business comprised of international government and some commercial sales of our products, services and platforms

Customer Base

Premier systems integrator, principally engaged in the research, design, development, manufacture and integration of advanced technology systems, products and services

Business

$41.9 billionSales (2007)

140,000 worldwideEmployees

Lockheed Martin OverviewLockheed Martin Overview


LM Locations with over 200 employees

LocationsLocationsLockheed Martin OverviewLockheed Martin Overview


Focus on profitability and growth in the following markets:

Phoenix Mars Lander

Also working with NASA to support America’s reinvigorated commitment to space exploration

Defense/Intelligence Homeland Security Gov’t. Info. Technology• Net-Centric Operations

• Information Superiority

• Force Application

• Focused Logistics

• Missile Defense

• Protection

• Battlespace Awareness

• Border and Transportation Security

• Threat Information Sharing, Alerting and Protection

• Critical Infrastructure Protection

• Emergency Management and Response

• e-Government

• Enterprise Architecture

• Information Security

• Database Infrastructure and Management

• Information Assurance

Over 3,000 programs in the U.S. and worldwide• about 19 percent of global defense exports, and • about 40 percent of all U.S. defense exports

Market Focus - ProgramsMarket Focus - ProgramsLockheed Martin OverviewLockheed Martin Overview


AeronauticsTactical Aircraft, Airlift, and Aeronautical Research and Development lines of business

SpaceSpace Launch, Commercial Satellites, Government Satellites, Strategic Missiles lines of business

Electronic SystemsMissiles and Fire Control, Naval Systems, Platform Integration,

Simulation and Training Systems

Information Systems & Global ServicesMission Solutions: R&D and Engineering for Intelligence, Defense and Civil Agencies

Information Systems: IT Infra-structure, Process Outsourcing, COTS Integration, Level of Service Solutions

Global Services: Support of Mission Services, Nation Building, Stability Operations, Facility Services

Lockheed Martin OverviewLockheed Martin OverviewBusiness AreasBusiness Areas


Mid-90s: Many legacy company units, each with own staffing

Many empty seats - Slow time to fill

1997: HR VP opens Washington Post, sees 6 LM recruitment ads….

–“Has to be a better way!”

1998: LM Regional Recruiting Center (RRC) concept born

LM Recruiting ModelLM Recruiting ModelBackgroundBackground


Cost per Hire

Candidate Experience

Cycle Time

• Eliminate duplication:ads, job fairs, sourcing efforts

• Interview once, but be seen by many BUs (one stop shopping)

• 24-hour offers

1. Improve recruitment service and hiring performance2. Develop a system that introduces significant cost savings 3. Create a transferable concept

Objectives:

Regional Recruiting Centers (RRCs)Regional Recruiting Centers (RRCs)LM Recruiting ModelLM Recruiting Model


Process successful:• Washington Metro

– Tyson’s corner satellite

• Delaware Valley– Two centers: NJ and PA– Third satellite in Owego, NY

• Orlando• Silicon Valley

– Plus Rocky Mountain satellite near Denver

• Aeronautics – Ft. Worth

RRC ProcessRRC Process

Today, LM hires10-12,000 people

per year

Over 80% hired through RRC

process

Improve recruitment service and hiring performance

Develop a system that introduces significant cost savings

Create a transferable concept

LM Recruiting ModelLM Recruiting Model


Regional Recruiting Centers (RRCs)

University Relations & Talent Sourcing

Strategic Sourcing RRCs

RRCs

Business Units

Corporate Staffing Director

Delaware ValleyNJ-PA-NY

Rocky MountainCO

OrlandoFL

Wash. MetroNo. VA

Silicon ValleyCA

AeronauticsTX

Talent Sourcing Programs

University Relations

Strategic Sourcing &

Military Relations

All Business Units

Regional Recruiting Centers

Customer Supported:

Each staffing entity has budget responsibilityAll costs consolidated and billed back to the Business Units

LM Recruiting ModelLM Recruiting ModelStructure SnapshotStructure Snapshot


LM Strategic Sourcing ModelLM Strategic Sourcing ModelSSG – EvolutionSSG – Evolution

Beginnings• In WMA RRC, initially identified need to proactively

address increasing shortage of ‘cleared’ candidates (TS/SCI w/Polygraph)– Included study of state of clearances & potential candidate

population

• Small separate group formed within Staffing - Strategic Sourcing Group - to research, identify, ‘tag’ and source for these and other ‘critical skills’

• Critical skills defined as those skill sets that are:– Needed for maintaining & expanding LM’s

core businesses– Needed in significant quantities across multiple

LM Business Units– Always difficult to find and hire

2003



Beginnings (cont.)

• Developed critical skill list – hard work!

• Set up initial ‘central repository’ of sourcing knowledge (Strategic Sourcing SharePoint)

• Developed specialized research on critical skills

• Began development of critical skill pipelines, with limited staff

2004-2006



Business case to expand team to accommodate more pipelines

• Based on existing research, focused LM’s need to tap into broader labor market (‘passive’ candidates)

• Highlighted other companies’ best practices re: passive candidates

• Gap analysis: present state vs. desired state – Showed considerable groundwork already established !

• Role of RRCs vs. SSG re: pipelining candidates – tactical vs. strategic: different approach, different tools

• Benefits of dedicated work on pipelines• Resources needed to close the gaps• Gained buy-in from RRC stakeholders

Early 2007



Current State• 5 strategic sourcers

• 9 major skill pipelines in progress (since 3Q07) and producing viable, critical skill candidates

• Established Service Level Agreement, early 2008

• Contributing on hard-to-find sourcing assignments

• Completing research requests

• Establishing credibility as we go


• Industry research: > 50% of Labor Market is ‘passive’» For LM critical skills, considerably higher

A focus purely on active candidates ignores over half the talent market

Why ‘Expro’ Pipelines?Why ‘Expro’ Pipelines?

• Build predictable talent pipelines in advance of need, given tightening market of critical talent

• Enhance positioning relative to our competitors; attract more than our share of critical skill talent

• Gain talent advantage by maintaining relationships with top talent over time, to convert the best candidates quickly

• Break ahead of ‘business as usual’ to improve key recruiting outcomes

LM Strategic Sourcing ModelLM Strategic Sourcing Model


Mine/Research LM Candidate Database

Engage ‘Silver Medalists’

Mine Web: Any/Every Way

Employ Social Networking Tools

‘Soft-Sell’ Advertising/Outreach

LM Proprietary Web Tools

Research, Research, Research…

Contacts the Prospect(email or phone)

Begins the dialogue

Obtains basic profileor resume

Sets framework for follow-up w/prospect

Completes CRM form

Enters info/resume as Pipeline

prospect/candidate

Continues to update prospect record

over time

Internal

Pipeline

External

Filling the PipelinesFilling the PipelinesLM Strategic Sourcing ModelLM Strategic Sourcing Model


Strategic Sourcing

RRCs

Leads

Contacts

Hires

Candidates

• Passives to Actives– When the prospect’s timing is right

– When we have a particular opportunity that we market to them and they’re interested

• Strategic Sourcer refers the candidate – To the appropriate recruiter (if actual requisition

is known)

– To RRC manager if just area of fit is known

– Candidate type changed: ‘passive’ to ‘external’

• Smooth transition is important!– Candidate shouldn’t feel like they’re starting over

– Still working this process

From Pipelines to ApplicantsFrom Pipelines to ApplicantsLM Strategic Sourcing ModelLM Strategic Sourcing Model


• Primary Services– Critical skill pipeline development, sourcing support

• Special Research Requests– New Market Research, Acquisition Support, other

research

• Additional Activity/Output– Update/maintenance of critical skill list, sharepoint,

industry conferences, etc.

LM Strategic Sourcing ModelLM Strategic Sourcing ModelSSG – Services ProvidedSSG – Services Provided

All services defined in Service Level Agreement


What WorksWhat Works

• All-Sourcers List• Soft-sell advertising• Focused use of specialized tools• Elevator Pitches – for campaigns• Varied backgrounds of sourcers• Building relationships over time

LM Strategic Sourcing ModelLM Strategic Sourcing Model


• Transitioning passives to RRC recruiters • Soft-sell advertising• More automated data capture• Identifying skill pools in the corporation• Integrating understanding of SSG into

dynamic staff changes at RRCs• Verifying ‘real’ needs

What Needs WorkWhat Needs WorkLM Strategic Sourcing ModelLM Strategic Sourcing Model


• Monthly Pipeline Reports – internal to team

• Monthly Reports – highlights to staffing/staffing management

• Quarterly Reports – staffing/staffing managementPipeline stats, sourcing projects for RRCs, specific sourcing assistance, special activities to build pipelines, resulting hires, etc.,

Metrics & ReportingMetrics & ReportingLM Strategic Sourcing ModelLM Strategic Sourcing Model


• Partnership with Talent Sourcing Team– Alumni network– Strategic Focus on Transitioning Military– Chat sessions by skill focus– Consistent LM recruitment branding

• Close partnering with LMCareers team (applicant/hiring database)

Related Best PracticesRelated Best Practices


Questions/DiscussionQuestions/DiscussionQuestions/DiscussionQuestions/Discussion

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