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Knowledge Management from a Human Resources Perspective

APQC 2010 Members Meeting

Tim Bridges
Director of Knowledge Management THE BOEING COMPANY
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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

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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 worlds largest, most diversified aerospace company

North American Aviation McDonnell Douglas Rockwell International Hughes Space & Communications Jeppesen

A heritage that mirrors the history of flight


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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 and 70 countries

Partnering worldwide for mutual growth and prosperity


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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 worlds 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


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Defense, Space & Security


Headquartered in St. Louis, Mo., with global operations in 4 nations and 21 states Formed in 2002 integrating Boeings defense, space, intelligence and communications capabilities Designing, building and supporting netenabled 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


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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


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Engineering, Operations & Technology


Formed in 2006 to establish technical and functional excellence for the enterprise by maximizing Boeings 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


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Company Leadership

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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


Worlds 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


Worlds 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 systems and technology to meet future customer needs

Connect and protect people globally


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

B-52 has 80+ years of service


Awarded 1948 Entered service 1955 Estimated end of service 2040

747 Space Shuttle GPS Satellites


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50+ years of service 36+ years of service 32+ years of service

Employee careers span many products


Learning, Sharing, and Relearning for 30+ Years
Typical employees will have more than 101 distinct jobs in their careers.
Learning, unlearning, and relearning
Program E Staff assignment Program D Staff assignment Program C Functional assignment Special assignment Program B Program A

K12 and higher education

010 years

1120 years

2130 years

Typical aerospace career

Boeings dilemma with 50- to 80-year product life cycles: how do we ensure lifelong learning and product knowledge transfer?
1

- Source: http://www.clearmgmt.com/careers.htm

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Aging Distribution of Aerospace Workforce Compared to Total U.S. Workforce


25
Can retire in the next 5 to 10 years Aerospace workforce

20

Workforce, percentage

15
U.S. workforce

10

0
20 25 30 35 40 45 50 55 60 65 70+

Age

How do we plan and manage the knowledge transfer?


Source: AIAA Information Paper: Recruiting, Retraining, and Developing a World-Class Aerospace Workforce
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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
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Knowledge Management -- Strategic Objectives

Leverage Boeing's diverse knowledge through a collaborative one company environment to enhance business success

Long term continuity of key knowledge


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Knowledge Management Sponsored through Human Resources --- and Engineering


Shared Services Group Engineering Boeing Commercial Airplanes
Dianne Easley Tim Bridges Human Resources

Rick Stephens Vice President Human Resources and Administration

Boeing Defense Space and Security Operations Supplier Management

John Tracy Vice President, Chief Technology Officer

Information Technology

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Knowledge Management Benchmarking


Weve 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


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Knowledge Management --Enterprise Strategy


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
Seek It
Ask It / Find It Internally & Externally

Institutionalize through a Knowledge Network


Adopt It
Use It / Replicate It Extend Usage

Share It

Growth/Productivity

Document It / Communicate It Peers, Functions and Business Units

Advance It
Improve It / Accelerate It Apply Lean+

KM tools and services readily available to drive business results Search that reaches the best of Boeing Share / Find knowledge and subject matter expertise
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Enhanced Business Performance through an integrated, collaborative culture


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Knowledge Management -- Performance

= Previous / current = Current / Out years


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Off plan; no recovery plan Uncertainty in out year projections

Knowledge Management -- Journey


Initiation Implementation Execution Improvement

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Knowledge Management -- Activities


Balancing information protection and knowledge sharing Profiles for employees Leverage Boeings Technical Fellowship Communities of Excellence strengthening existing communities and forming new ones

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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.
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Facilitate Sharing
Enterprise Profile Pages

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Enterprise Search results includes employee profiles


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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
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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 Boeings functional organizations
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Knowledge Sharing: Unified by Common Career Interests


Hughes
Space & Communications

Boeing

Professional Growth Recognition Functional Excellence Technical Fellowship

McDonnell Douglas

Jeppesen Rockwell International


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North American Aviation

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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 and other functions Engaged specific programs with knowledge transfer Partner with Intellectual Property Management Standardized success stories; developed rewards Aligning messaging as one company
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Summary
Its all about people -- 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
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Questions and Answers

Q&A
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Resources
Royal Statistical Society http://www.rss.org.uk/main.asp?page=1052 Bureau of Labor Statistics http://www.bls.gov/nls/nlsfaqs.htm

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

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