Category 2 Strategic Planning

Transcription

1 Cat 2 Strat ning- 1 Category 2 Strategic ning Rick Hall Vice President, Strategic ning Tier I Process Mission To Provide Superior Systems and Advanced Technologies that Protect Our Warfighters Fundamental Principle Our is Not Objective it is Result. Performance is Our Objective Contract Award Strategic Management Framework Cat 2 Strat ning- 2 (SPES) End-to-End ning & Execution: Years Days Quarterly Monthly Enterprise Leadership Council (ELC) Meetings Highly Instrumented: 20 Strategic Metrics 87 Operational Metrics Process Enables Flow-down of Employee Commitments Continuous Process Learning and Improvement Closed-Loop System to and Deliver Results Cat 2 Strat ning- 3

2 Cat 2 Strat ning- 4 SPES Organizational Implementation Enterprise-level & ning Top-down Strategic Guidance Resource Allocation Portfolio Shaping / Management LOB / ning Bottom-up Line / ning Resource Program Execution LOB P&L Lines of (LOB) AMD FC TM/CMS TS LMUK Functions & Technical Ops Operations Quality Finance Human Resources Legal & BD Lead Strategic Long Range Resource Allocation Capture Process Each Function Develops Functional Strategies & s s Program Execution Prepare Company Strategic >10-year Horizon Develop Long Range 3-Year Horizon & Allocate Resources Annual Program Award Design Capture Annual Acquire Material Months/Weeks/Days Fabricate Award Quality Facilities Finance Human Resources Contract Cat 2 Strat ning- 5 Prepare Company Strategic Develop Long Range & Allocate Resources Perform Situational Assessment Develop Strategic Assess and Forecast Financials Identify Risks and Opportunities Long Range R&D / Capital Costs Tech Expenses s Provide Improvements and Spirals Contract Performance Program Cost Manpower Performance Measures Market & Opportunity Qualification Capture Pursuit Qualification Pre Closed Loop Iterative Processes Design Acquire Material Fabricate Design Verification & Validation Solicit & Evaluate Bids Manage Supply Chain Manufacturing Technologies & Processes Build Post s System Deliver Provide Operational Quality Facilities Finance Human Resources Contract Cat 2 Strat ning- 6

3 Cat 2 Strat ning- 7 Prepare Company Strategic Market Penetration Analysis Perform Situational Assessment Develop Strategic Market Dynamics Customer Analyses Market & Competitor Research Market Forecasts & Analysis Posture Analyses Indices Market Risk Factors Indices Backlog Health Engineering Base Indices Market-derived Guidelines Line Life Cycle Implications Firm Backlog Composition Prepare Company Strategic Perform Develop Situational Strategic Assessment Strategic Environmental Assessment Market Forecast and Position Enterprise LOB Strategies Risk Analysis 10-Year / Roadmaps Functional Segments Technical Operational Talent Communications Strategic Funds ELC Program Operating s LRP Technology Strategic Cat 2 Strat ning- 8 Three-Year Orders, Sales, EBIT, Cash, ROIC Affordability Discreet Objectives Set Risks & Opportunities Base Forecast By Segment By Line of Domestic vs. International Sole Source vs. Follow-on ion vs. Assess and Forecast Financials Develop Long Range Identify Risks and Opportunities Long Range Health Metrics Current Year Assessment Current Year Performance Financials Company Objectives Path to Closure Cat 2 Strat ning- 9

4 Cat 2 Strat ning- 10 & Allocate Resources Strategic Funds Independent R&D Bid & s CAPEX Direct Linkage to Strategic s & Roadmaps IRAD Evaluation Tool s Prioritization 18 Weighted Factors & Allocate Resources Costs R&D / Capital Tech Expenses Qualitative Model for IRAD Strategic Value Systematically Quantify Value of IRADs to Customer Value Probability of Success Value Customer Gap Urgency Customer Relationship Tech n ical R each Market Reach Intellectual Property Customer Priority Customer Utility Technology Competitiveness Cost Comptetiveness Customer Pull for / Application End /Application Relevance to Strategic ROI Dependent Orders Near Term ROI Dependent Orders Far Term ROI Benefiting Orders Near Term ROI Benefiting Orders Far Term Customer Analysis Competitive Analysis Initial Case Position to Win / Price to Win Analysis Competitive Independent Pricing IAW Strat Guidance Win-Loss and Lessons Learned Market & Opportunity Qualification Capture Pursuit Qualification Pre Post s New Pipeline Management IT-Based Tracking System Monthly review of metrics Opportunities by phase, by value Movement through pipeline Win-Loss Report Orders Campaign Management Ties to Strategic Health Metrics of Enterprise Cat 2 Strat ning- 11 Cycles of Learning & Improvement Example 1: Atrophy Index Situational Assessment identified negative forecast trend in engineering base Served Market Conditions Portfolio Life Cycle Shift to ion Strategic Response Created new index for Engineering Base Developed Strategies / Actions to Accelerate of new development engineering base Results Expanded Customer Base for New R&D Pursued and Captured New in Adjacent Markets Engineering Atrophy Risk Assessment Cat 2 Strat ning- 12

5 Cat 2 Strat ning- 13 Cycles of Learning & Improvement Example 2: Limited in Core Situational Assessment of Market and Posture Strategic Response Core Competencies Assessment Adjacent Markets Identified G-S-P Bias Shift to Strategic s / Resourcing Results Market Aperture Doubled Successful Entry in New Markets and International Expansion Trajectory Continues Market Forecast Strategic Value Paradigm Trends ~1997 ~ ROI Cash EBIT Orders Sales Margin Better Management Framework Delivers Excellent Results Cat 2 Strat ning- 14 Summary Tightly integrated, continuous process involving senior leadership, line of business management and functional department management Analytical, metrics-driven strategy development and implementation integrally coupled to operational planning, resource allocation, new business capture and program execution Cat 2 Strat ning- 15