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1 Knowledge Management from a Human Resources perspective APQC 2010 Members Meeting Tim Bridges Director of Knowledge Management THE BOEING COMPANY BOEING is a trademark of Boeing Management Company.

2 Agenda The Boeing Company, its history, products and workforce Importance of Knowledge transfer and product life cycles The issues creating a need for Knowledge Management The Knowledge Management initiative at Boeing Questions

3 The Boeing Company History Founded in 1916 in Seattle, Washington Became a leading producer of military and commercial aircraft Undertook a series of strategic mergers and acquisitions to become the world s largest, most diversified aerospace company North American Aviation McDonnell Douglas Rockwell International Hughes Space & Communications Jeppesen A heritage that mirrors the history of flight

4 Global Boeing Customers in more than 90 countries Total revenue in 2009: $68.3 billion 70 percent of commercial airplane revenue historically from customers outside the United States Manufacturing, service and technology partnerships with companies around the world Contracts with 22,000 suppliers and partners globally Research, design and technology-development centers and programs in multiple countries More than 157,000 Boeing employees in 49 states t and 70 countries Partnering worldwide for mutual growth and prosperity

5 Boeing Commercial Airplanes Headquartered in the Puget Sound region of Washington state 2009 revenues of $34.1 billion Approximately 60,000 employees Offering a family of airplanes and a broad portfolio of aviation services for passenger and cargo carriers worldwide Boeing airplanes represent three quarters of the world s fleet, with nearly 12,000 jetliners in service Approximately 70 percent of Boeing commercial airplane sales (by value) go to customers outside of the United States The industry's source for customer-focused solutions

6 Defense, Space & Security Headquartered in St. Louis, Mo., with global operations in 4 nations and 21 states Formed in 2002 integrating Boeing s defense, space, intelligence and communications capabilities Designing, building and supporting net- enabled platforms and systems for government and commercial customers Balanced backlog across all markets including a strong mix of development, production and support contracts 2009 revenues of $33.7 billion Approximately 68,000 employees Delivering the future

7 Boeing Capital Corporation Headquartered in the Puget Sound area of Washington state Financing subsidiary of The Boeing Company Focused on assets that are critical to the core operations of Boeing customers Arranging and/or providing financing for customers of Boeing products Year-end 2008 portfolio of $6.0 billion Providing financial services in support of Boeing sales

8 Engineering, g, Operations & Technology Formed in 2006 to establish technical and functional excellence for the enterprise by maximizing Boeing s R&D yield Ensuring technology readiness Providing efficient, effective, secure IT solutions Protecting, leveraging intellectual property Executing safe and efficient test operations Driving environment, health & safety performance Establishing common systems/processes for Engineering, Operations and Supplier Management Pursuing technical & functional excellence for the enterprise

9 Company Leadership

10 What We Do Today Design, assemble and support commercial jetliners Boeing 7-series family of airplanes lead the industry Commercial Aviation Services (CAS) offers broad range of services to passenger and freight carriers Design, assemble and support defense systems World s largest designer and manufacturer of military transports, tankers, fighters and helicopters Support Systems provides services to government customers worldwide Design and assemble satellites and launch vehicles World s largest provider of commercial and military satellites; largest NASA contractor Integrate large-scale systems; develop networking technology and networkcentric solutions Provide financing solutions focused on customer requirements Develop advanced d systems and technology to meet future customer needs Connect and protect people globally

11 Industry Challenges Aging workforce Skilled workforce Generational differences Effective application of lessons learned and best practices Across geographical sites Across products Across generations

12 Typical Aerospace Industry Cycles B-52 has 80+ years of service Awarded Entered service Estimated end of service Space Shuttle GPS Satellites 50+ years of service 36+ years of service 32+ years of service

13 Employee careers span many products Learning, Sharing, and Relearning for 30+ Years Typical employees will have more than 10 1 distinct jobs in their careers. Learning, unlearning, and relearning K 12 and higher education Functional assignment Special assignment Program B Program A Program E Staff assignment Program D Staff assignment Program C 0 10 years years years Typical aerospace career Boeing s dilemma with 50- to 80-year product life cycles: how do we ensure lifelong learning and product knowledge transfer? 1 - Source:

14 Aging Distribution of Aerospace Workforce Compared to Total U.S. Workforce Workforce, percentage U.S. workforce Aerospace workforce Can retire in the next 5 to 10 years Age How do we plan and manage the knowledge transfer? Source: AIAA Information Paper: Recruiting, Retraining, and Developing a World-Class Aerospace Workforce

15 Knowledge Management The Issues Many company sub-cultures Highly technical and aging workforce Exceptionally long product lifecycles A new generation of experts in social computing A strong need to support knowledge sharing /transfer for business value Global scope

16 Knowledge Management -- Strategic Objectives Leverage Boeing's diverse knowledge through h a collaborative one company environment to enhance business success Long term continuity of key knowledge

17 Knowledge Management Sponsored through Human Resources --- and Engineering g Shared Services Group Engineering Rick Stephens Vice President Human Resources and Administration John Tracy Vice President, Chief Technology Officer Dianne Easley Tim Bridges Human Resources Information Technology Boeing Commercial Airplanes Boeing Defense Space and Security Operations Supplier Management

18 Knowledge Management Benchmarking We ve started our journey by benchmarking the work of others APQC 2003 Report on Knowledge Management 2010 Conference on Knowledge Management Interview with C. Jackson Grayson Hearing the stories of other members... ConocoPhillips MAKE Award Winner Enhanced Business Performance through an integrated, collaborative culture

19 Knowledge Management --Enterprise Strategy Seek It Ask It / Find It Internally & Externally Share It Growth/Productivity Adopt It Document It / Communicate It Use It / Replicate It Peers, Functions and Business Units Extend Usage Advance It Improve It / Accelerate It Apply Lean+ Reduce the Roadblocks for Knowledge Sharing Broad access to knowledge Simple, understandable systems and processes Leverage industry and Boeing best-practices Foster a Culture of Knowledge Sharing Rewards and recognition Leadership reinforcement Communication of business value Facilitate the Transfer of Knowledge Capture and convey institutional knowledge Persistent user and Subject Matter Expert profiles Engagement across generations Institutionalize through a Knowledge Network KM tools and services readily available to drive business results Search that reaches the best of Boeing Share / Find knowledge and subject matter expertise Enhanced Business Performance through an integrated, collaborative culture Copyright 2010 Boeing. All rights reserved. KM Std Deck.ppt 19

20 Knowledge Management -- Performance = Previous / current Off plan; no recovery plan = Current / Out years Uncertainty in out year projections

21 Knowledge Management -- Journey Initiation Implementation Execution Improvement KM Std Deck.ppt 21

22 Knowledge Management -- Activities Balancing information protection and knowledge sharing Profiles for employees Leverage Boeing s Technical Fellowship Communities of Excellence strengthening existing communities and forming new ones KM Std Deck.ppt 22

23 Knowledge Sharing vs. Information Protection To successfully share a wide range of information: find a balance which protects your knowledge but which encourages sharing The Boeing Company holds many patents and trade secrets New trade secrets are generated by our normal business and technical activities There are many innovations that can shared and reused across many programs Different heritage cultures are rich in providing multiple ways to solve problems. KM Std Deck.ppt 23

24 Facilitate Sharing Enterprise Profile Pages Enterprise Search results includes employee profiles KM Std Deck.ppt 24

25 Technical Fellowship Formed in 1989 More than 2000 members in all disciplines Implements a purely technical career path recognizing technical excellence Represents a technical network that crosses Business Units, Products, Geographical Sites, and Heritage Companies Sponsors enterprise-wide Boeing Technical Excellence Conferences Contributes to all major programs and technical initiatives KM Std Deck.ppt 25

26 Communities of Excellence Enterprise-wide, one company representation Measurable business value Takes advantage of existing Communities within Boeing Standard Processes and Tools for selected Communities of Excellence Based on successful experiences of other companies Builds upon historical excellence of Boeing s functional organizations KM Std Deck.ppt 26

27 Knowledge Sharing: Unified by Common Career Interests t Boeing Jeppesen Hughes Space & Communications Professional Growth Recognition Functional Excellence Technical Fellowship Rockwell International McDonnell Douglas North American Aviation KM Std Deck.ppt 27

28 Accomplishments Unifying approach to Lessons Learned repositories Piloting a broad knowledge sharing network capability and an approach based on Communities of Excellence Partnership with Engineering g and other functions Engaged specific programs with knowledge transfer Partner with Intellectual Property Management Standardized success stories; developed rewards Aligning i messaging as one company KM Std Deck.ppt 28

29 Summary It s all about people p -- careers, learning, legacy, recognition Driving culture through a Business value message Working alignment across the company in response to a strong enterprise pull for KM Leveraging key outside sources (e.g., Conoco, APQC) Partnership with Business Units, Pathfinder Projects on Programs, Piloting Communities of Excellence

30 Questions and Answers Q&A

31 Resources Royal Statistical Society Bureau of Labor Statistics

32 Briefing Contributors Boeing Learning, Training and Development Team Boeing Knowledge Management Office Boeing Corporate Communications 32

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