Lockheed Martin Women Accelerating Tomorrow 2014 Catalyst Award Winner The aerospace and defense industry has historically attracted more men than women. Because of the technical nature of the jobs, this gender gap is linked to the underrepresentation of women in the science, technology, engineering, and mathematics (STEM) fields. In 2009, women held just 27% of computer and math-related jobs and that reflects a drop of 3% since 2000. 1 Overall, women s share of STEM jobs has remained flat. In 2012, women s representation in high-tech occupations in the United States ranged between 9% among electrical engineers and 27% among computer and information systems managers. In the 2010-2011 academic year, women in the United States received only 19% of Bachelor s degrees in Engineering, and 22% of Engineering Master s and Doctoral degrees. However, recent statistics show that women are enrolling in these fields in increasing numbers, which provides leading companies with opportunities to leverage this talent. 2 Lockheed Martin Corporation s U.S.-based initiative Women Accelerating Tomorrow leverages some of the unique aspects of the company s culture and organization to promote the advancement of women and create a culture of inclusion. Its workforce includes 60,000 engineers, scientists and technologists, who tend to focus on problem-solving and solution-building with measurable results and data-driven decisions. That same analytic eye has shaped the initiative building on diversity strategies and components found to be most effective. Lockheed Martin recognized diversity and inclusion as a competitive advantage in the early 2000s, when then-ceo Vance Coffman noticed that the demographics of the workforce were shifting and becoming more diverse. Knowing that the company needed to leverage the talent and resources of every employee in order to continue providing best-in-class solutions and services to its customers, he wrote a memo to all employees stating that Lockheed Martin s long-term success depended on its commitment to diversity as a business imperative. This set the company on a deliberate journey to creating a sustainable workforce for the future by making diversity and inclusion an integral part of the business strategy. Diversity and inclusion are now woven into the fabric of expected leadership behaviors and actions. Dr. Coffman established the Executive Diversity Council (EDC) and the Business Area Diversity Councils, which drive the company s diversity and inclusion strategy by aligning business areas with the strategic priorities and by supporting employees within the various businesses and regions. He also Catalyst 2012 1
introduced talent-management tools that stress measuring progress through employee and leadership engagement and talent development. As part of this strategic shift, in 2004 Lockheed Martin rolled out Full-Spectrum Leadership (FSL), a leadership competency framework that holds employees and leaders accountable not only for the what (i.e., results), but also for the how (i.e., behaviors) of their performance, with a strong emphasis on ethics, integrity, and transparency. Organization s Strategy Women Accelerating Tomorrow comprises a variety of programs, processes, and tools to support women s advancement as part of a broad strategic effort to attract, develop, and retain diverse talent in a highly technical industry. Specifically, Lockheed Martin took a systematic approach to promoting diversity and inclusion, integrating diversity strategies, programs, and practices into a holistic framework comprising different dimensions of diversity, including diversity of perspectives, opinions, and ideas. This framework is incorporated into the company s business strategy. At the core of this strategy, the FSL model supports a culture of inclusion by setting specific expectations for leaders that are closely tied to diversity and inclusion, and then providing employees and leaders with important tools to integrate the company s LM Values into their day-to-day work. LM Values and ethical principles are: 1) Do what s right; 2) Respect others; and 3) Perform with excellence. FSL is a competency model that defines the attributes of successful first-level, middle-level, and executive-level leaders with five imperatives: 1) Shape the future; 2) Build effective relationships; 3) Deliver results; 4) Energize the team; and 5) Model personal excellence, integrity, and accountability. This model sets the expectation that leaders will engage and foster inclusive teams with the understanding that diversity can lead to business success. With FSL at its core, Women Accelerating Tomorrow includes both internal and external components, and is guided by five strategies: 1. Building a diverse and sustainable STEM pipeline through a variety of educational and recruiting efforts. Women Accelerating Tomorrow seeks to build a diverse and sustainable STEM pipeline through a variety of programs, ranging from K-12 and college-level outreach programs to recruiting and professional development events. In addition to university and college recruiting efforts, many of these programs are externally focused and philanthropic in nature, intended to expand access to STEM education and job opportunities to women and other underrepresented groups (e.g., low-income students). Lockheed Martin actively supports and sponsors hundreds of STEM-focused groups and activities, and partners with nonprofit and educational institutions to assist underserved populations. Key partnerships include Great Minds in STEM, the National Action Council for Minorities in Engineering, Girls, Inc., Project Lead the Way, and events such as the Annual Girls Exploring Science, Technology, Engineering and Math program. Catalyst 2012 2
Company employees and leaders participate in STEM community efforts through volunteering opportunities, classroom partnerships, and mentoring programs. The company connects employees with students from kindergarten through college so that they can serve as role models and mentors who inspire children to consider a career in a STEM field. Lockheed Martin s Engineers in the Classroom program provides employees with the opportunity to serve as school advisors, mentors, and career role models for students in their communities. Lockheed Martin currently helps more than 60 schools across the United States offer pre-engineering courses through Project Lead the Way. The company also partners with organizations such as 4H and FIRST Robotics, and employees mentor students in after-school Robotics Clubs. Lockheed Martin s community involvement website is a one-stop shop for employees who want to get involved with their local communities. Through this website, employees can search for volunteer activities and register their volunteer time. Employees are encouraged to log time spent volunteering, and those who put in over 100 hours per year qualify for the President s Volunteer Service Awards. Employees who volunteer are also spotlighted on many internal channels, including business area intranet sites and LM News, the companywide news site. 2. Engaging leaders through inclusion workshops and training. Engaging male leaders is critical for the career advancement and professional development of women and for creating and sustaining a diverse and inclusive workplace. In 2007, Lockheed Martin launched a pilot program called Effective Leadership of Inclusive Teams (ELOIT), in partnership with White Men as Full Diversity Partners, to enlist the help of white male leaders in advancing diversity and inclusion. In 2009, the program became mandatory for all vice presidents and above. ELOIT includes two learning labs: White Men s Caucus: Eliminating Racism, Sexism, & Homophobia in Organizations is a three-day offsite learning laboratory for white men designed to create a safe environment to explore D&I questions, challenges, and aspirations. White Men & Allies: Deepening the Partnership engages women and diverse men in dialogue with White Men s Caucus alumni, with the goal of building partnerships across dimensions of diversity. Given ELOIT s success, in 2012 the company launched four pilot Summits that provide early- and mid-career first-line leaders access to the program. Since then, Summits have been held in multiple locations around the United States and are championed by ELOIT executive alumni. One important strength of the ELOIT workshops is that they provide leaders with tools to effectively manage diverse teams and engage them in difficult conversations. Program participants are encouraged to share what they learned from these conversations and create action plans based on these insights. ELOIT s purpose and lessons learned are also communicated throughout the company through memos to employees, panel discussions featuring senior leaders, and articles highlighting interviews with participants. ELOIT supports other diversity programs and activities by encouraging open dialogue about diversity issues and helping employees understand how to bring the values of inclusion and fairness to their day-to-day work. Catalyst 2012 3
3. Establishing strong talent management systems and processes and promoting employee engagement through initiatives such as the Women s Leadership Forum, regional forums, and Leadership Development Programs. Lockheed Martin uses a variety of talent-management and professionaldevelopment processes to develop and retain women and diverse employees. The corporation also engages high-potential employees through programs and activities that facilitate exposure to senior leaders and provide experiences that prepare them for leadership roles. Key components include: Leadership Forums, including the Women s Leadership Forum, were established beginning in 2002 when four forums were launched to promote professional development and retention: the African American Leadership Forum, the Hispanic Leadership Council, the Council of Asian American Leaders, and the Women s Leadership Forum (WLF). More recently, in 2012 the company launched the Military and Veterans, People with Disabilities, and Lesbian, Gay, Bisexual, Transgender forums. Each forum is chaired by senior executives and provides tools for networking and leadership development. The leadership forums hold a national conference once a year as well as large regional events that are open to all employees. Employee Resource Groups (ERGs) and Employee Networks (ENs) are open to all employees. ERGs are established based on dimensions of diversity such as race, ethnicity, gender, disability status, and sexual identity/orientation. They support professional development and help advance the company s business objectives. ENs are based on common interests within a business function, such as campus recruiting or environmental stewardship. The Office of Diversity and Inclusion provides an ERG/EN website that offers internal and external resources, discussion forums, and templates for forming ERGs and ENs. Leadership Development Programs (LDPs) are designed to develop a pipeline of future technical and business leaders and early-career talent. LDPs offer an accelerated opportunity for both functional area training and leadership development. Participants progress through a series of challenging rotational assignments and complete a related development curriculum based on their disciplines (e.g., communications, engineering, finance, security). Leadership Development Conferences are an integral component of the program, providing opportunities for networking and developing new skills. LDPs actively recruit individuals with diverse cultural, educational, and experiential backgrounds. Advanced Technical Leadership Program (ATLP) identifies individuals with demonstrated technical excellence and accelerates their leadership development. LM Fellows Program is a three-year program that recognizes and encourages the highest levels of accomplishment in the individual technical contributor fields, with a mission to connect the best technical talent in the corporation to its most difficult technical challenges. Corporate Engineering & Technology (CE&T) Development Program supports the pipeline for the Chief Technology Officer position by providing selected employees, most of whom are women and minorities, with the opportunity to pursue a PhD on a full-time basis while receiving compensation from the company. Catalyst 2012 4
LM Talent is a talent management process that includes biannual talent reviews during which the executive leadership team discusses succession plans for key positions and identifies top talent for future leadership roles, highlighting high-performing and high-potential women and diverse employees. Mentoring is a vital element in promoting employee engagement. Lockheed Martin uses a three-pronged approach: strategic (match high-potential employees with a mentor to assist with specific development needs); targeted (provide custom mentoring efforts to specific groups or departments); and self-directed (encourage individual employees to manage their own informal mentoring relationships). 4. Promoting supplier diversity through programs that enable small, disadvantaged, women- and veteran-owned businesses to become Lockheed Martin s vendors. With 60% of revenue returned to supplier businesses, Lockheed Martin has established a proactive supplier diversity program designed to enable small, disadvantaged, women- and veteran-owned businesses to become Lockheed Martin s suppliers. The supplier diversity program also promotes diversity in the supply chain through national memberships with organizations such as the National Minority Supplier Development Council and the Women s Business Enterprise National Council. 5. Establishing feedback mechanisms to track and inform diversity strategies, impact, and transparency, with tools such as the LM Voice employee survey. Lockheed Martin uses a systems approach to track employee feedback and measure impact. LM Commit: The performance management process starts with the CEO s commitments, which are cascaded down to her leadership team and visible to employees across the enterprise. Performance evaluations of leaders are based 70% on performance to commitments, which often include diversity and inclusion goals and initiatives. The other 30% is based on performance to behaviors, and behavior expectations include a focus on diversity and inclusion. LM Grow: An integrated, enterprise-wide model for standardized career discussions, LM Grow, now in its second year, adds a formalized career discussion to employees mid-year performance check-ins, and provides a standard career-discussion worksheet created to inform development plans. LM Grow was designed on the principle that while employees are responsible for their own careers, the organization should support them. This tool provides resources for employees to explore career options and plan how to reach their career goals. LM Voice: A comprehensive employee opinion survey introduced in 2011, LM Voice combines previously discrete measures (e.g., business unit selfassessment, employee survey) into one holistic organizational evaluation, the Organizational Health Index (OHI). OHI is based on four components: employee experience, ethics and integrity, diversity and inclusion, and leadership excellence. Feedback from LM Voice is used to inform the company s diversity agenda and strategic focus. Leaders must create action plans to respond to employee feedback. Catalyst 2012 5
Catalyst Award Criteria: Change Drivers Lockheed Martin s efforts exceed the following criteria, by which Catalyst evaluates efforts to develop and advance women in business. 1. Integrate the Initiative With the Business Strategy. The success of Women Accelerating Tomorrow stems from its strong ties to Lockheed Martin s business strategy, which is focused on achieving disciplined growth and creating a sustainable workforce for the future. Diversity and inclusion are essential to enabling better ideas, heightening creativity and innovation, and improving the recruitment and retention of the best talent in the industry. The company s programs and talent-management processes ensure that senior leaders across the organization understand their role in leading diversity and inclusion and have the tools to communicate the business rationale for the company s focus on D&I. 2. Demonstrate the Commitment of Senior-Level Leadership. Lockheed Martin s CEO commitment and support has been a driving force for diversity and inclusion efforts since Vance Coffman s leadership, continuing with Bob Stevens, and now with CEO Marillyn Hewson, a founding member of the Women s Leadership Forum, a chair of the Executive Diversity Council, and an executive sponsor of the Women s Leadership Forum. Ms. Hewson remains very active in the initiative, visibly supporting the development, advancement, and retention of diverse talent at Lockheed Martin. Senior leaders also demonstrate their commitment through mentorship, sponsorship of programs such as Leadership Forums, and by role modeling and sharing what they learn through participation in ELOIT and other events. 3. Effectively Communicate the Strategy. For Lockheed Martin, effective communication requires tailored messages, multiple mediums, and a constant line of dialogue to reach staff across many locations, including remote client sites. Communication begins at the top, with the CEO continuously reaffirming the company s commitment to the initiative and educating employees and stakeholders about its purpose and importance. The CEO and other senior executives consistently discuss issues related to diversity and inclusion through a variety of means such as internal news websites, executive memos, publications, and presentations (e.g., Women s Leadership Forum). Leadership Forums and Leadership Development Programs also facilitate communication by providing employees access to mentors, champions, and role models, and the opportunity to network and share important information about career paths. Other organization-wide communication opportunities include regional and company-wide events, internal news articles, and email communications. For example, business areas feature stories about their local inclusion initiatives such as the Space Systems business area s Come Together campaign or the Information Systems and Global Solutions business area s Every One, Every Day campaign. In addition, every year all employees must participate in Ethics and Diversity Training, and the ELOIT learning labs are mandatory for all vice presidents and above. Catalyst 2012 6
4. Create Accountability Systems. Every employee at Lockheed Martin is expected to contribute to creating a more inclusive work environment. Performance management systems look at results as well as behaviors, and managers with more than five direct reports receive feedback from employees through the LM Voice employee survey, which is then used to build action plans for improvement. Diversity and inclusion is also woven into the fabric of leadership expectations and the LM Commitments, with CEO Marillyn Hewson cascading her commitments to her team. Every leader is accountable for both results (70%), which often include D&I performance measures, and behaviors (30%), which should fully align with diversity goals. Additionally, on at least an annual basis, the CEO briefs the Board of Directors on Lockheed Martin s talent management strategy. Each business area and region has an established Ethics Steering Committee to oversee its ethics and business conduct program. These committees are chaired by the senior executive of the business area or region and senior leaders from various functions. They review a variety of metrics, including employee survey results. To provide better strategic oversight aligned with long-term business goals, the Executive Diversity Council transitioned into a broader organization, the Corporate Sustainability Council (CSC) at the end of 2012. The CSC members include the Vice President of Ethics and Sustainability (Chair), the Senior Vice President of Human Resources, the Chief Technology Officer, and the Chief Legal Counsel, as well as representatives from each business area. In early 2013, the company launched a Diversity & Inclusion Task Force to ensure that diversity remains a key focus within broader sustainability efforts and to strengthen the business imperative. 5. Create Tools to Measure Progress. Lockheed Martin tracks employee feedback and impact measures both internally and externally. LM Voice and the Organizational Health Index are key to measuring internal progress, incorporating multiple components of employee experience, ethics and integrity, diversity and inclusion, and leadership excellence. In addition, the company participates in multiple industry benchmarking efforts as well as internal and external recognition programs that allow them to track results and leverage best practices. The Impact of the Initiative Lockheed Martin s efforts have accelerated progress for women at all levels and across businesses. Despite a decrease in Lockheed Martin s overall workforce between 2004 and 2013, women s representation in the exempt population increased during that period from 19.8% to 23.6%. Among senior executives, women s representation grew from 16.7% to 21.7%, and for director-level employees it increased from 16.0% to 19.5%. Additionally, women s representation on Lockheed Martin s Board of Directors has surged from 13.0% to 33.0%. Catalyst 2012 7
At Lockheed Martin, our customers come to us for breakthrough performance, game-changing innovations and an unwavering sense of purpose. As the world s leading global security and aerospace company and the #1 information technology provider to the U.S. government Lockheed Martin is a $47.2 billion, 115,000 person-strong team working to support the U.S. and its allies in the research, design, development, manufacture, integration and sustainment of advanced technology systems and services. Our proven specialties include: Aeronautics, Information Technology, Space Systems, National Defense Products, Advanced Technology, Energy Systems and Cyber Security. 1 Women in STEM: A Gender Gap to Innovation, Executive Summary, U.S. Department of Commerce, ESA Issue Brief #04-11; August 2011. 2 Catalyst. Catalyst Quick Take: Women in High Tech, Globally. New York: Catalyst, 2012. Catalyst 2012 8