Strategic Sourcing at Strategic Sourcing at Lockheed Martin Corporation Lockheed Martin Corporation Prepared for: Corporate Sourcing Leadership Exchange June 2008 Meeting
Mar 26, 2015
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
June 2008 Lockheed Martin Corporation - CSLE 3
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
June 2008 Lockheed Martin Corporation - CSLE 4
LM Locations with over 200 employees
LocationsLocationsLockheed Martin OverviewLockheed Martin Overview
June 2008 Lockheed Martin Corporation - CSLE 5
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
June 2008 Lockheed Martin Corporation - CSLE 6
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
June 2008 Lockheed Martin Corporation - CSLE 7
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
June 2008 Lockheed Martin Corporation - CSLE 8
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
June 2008 Lockheed Martin Corporation - CSLE 9
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
June 2008 Lockheed Martin Corporation - CSLE 10
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
June 2008 Lockheed Martin Corporation - CSLE 11
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
June 2008 Lockheed Martin Corporation - CSLE 12
LM Strategic Sourcing ModelLM Strategic Sourcing ModelSSG – EvolutionSSG – Evolution
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
June 2008 Lockheed Martin Corporation - CSLE 13
LM Strategic Sourcing ModelLM Strategic Sourcing ModelSSG – EvolutionSSG – Evolution
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
June 2008 Lockheed Martin Corporation - CSLE 14
LM Strategic Sourcing ModelLM Strategic Sourcing ModelSSG – EvolutionSSG – Evolution
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
June 2008 Lockheed Martin Corporation - CSLE 15
• 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
June 2008 Lockheed Martin Corporation - CSLE 16
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
June 2008 Lockheed Martin Corporation - CSLE 17
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
June 2008 Lockheed Martin Corporation - CSLE 18
• 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
June 2008 Lockheed Martin Corporation - CSLE 19
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
June 2008 Lockheed Martin Corporation - CSLE 20
• 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
June 2008 Lockheed Martin Corporation - CSLE 21
• 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
June 2008 Lockheed Martin Corporation - CSLE 22
• 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
June 2008 Lockheed Martin Corporation - CSLE 23
Questions/DiscussionQuestions/DiscussionQuestions/DiscussionQuestions/Discussion