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Raytheon Systems Company

Sensors and Electronic Systems

2501 South Highway 121
Lewisville TX, 75067-8122, USA

Raytheon: A short history

For more than 75 years the Raytheon Company has been a leader in developing
defense technologies and in converting those technologies for use in commercial
markets. From its early days as a maker of radio tubes, its adaptation of World War II
radar technology to invent microwave cooking, and its development of the first
guided missiles, Raytheon has successfully built on its pioneering tradition to become
a global technology leader. Through strategic acquisitions and mergers, Raytheon has
acquired the resources of companies with equally distinguished records of innovation.
Breakthroughs include the laser, the Surveyor lunar lander, high resolution satellite
imaging of earth resources and magnetic anomaly detection services.
Today, Raytheon is focused on three core business segments: defense and
commercial electronics; business aviation and special mission aircraft; and
engineering and construction. Raytheon is a top-tier player in each of these segments.
Each provides the company with the capabilities it needs to build on its strength as an
innovator and to prosper in a highly competitive global economy.

Raytheon's $9.5 billion merger with Hughes defense operations in 1997 and the
creation of Raytheon Systems Company mark an important milestone in the
company's history. Built on the combined forces of Raytheon Electronic Systems,
Raytheon E-Systems, and Hughes and Texas Instruments' defense operations,
Raytheon Systems Company is now fully equipped to meet the needs of its customers
and employees  well into the 21st century.
For more Raytheon history, click here.
Source – Raytheon

Raytheon Systems Company

“Raytheon Systems Company (RSC) is a global leader in defence electronics and
complex integrated information systems. Applying technology to project realities, we
deliver electronics solutions. In defence missions, we give our fighting men and
women the tools they need to succeed. In federal and commercial projects, we help
our customers use technology to address complex issues like air traffic control and
environmental management.

“Raytheon Systems Company is made up of five segments: Defence Systems; Sensors
and Electronic Systems; Command, Control, Communication and Information
Systems; Aircraft Integration Systems; and Training and Services. We provide an
array of services in the design, update, integration, and delivery of electronics

“An historic name, Raytheon is associated with some of this century's great leaps
forward in technology. Our 75-year history includes achievements like secure
wireless communications, shipboard radar, and guided missile systems. Continuing in
our tradition of excellence, RSC works from a core set of values  values of integrity,
respect, citizenship, innovation, and teamwork that establish our high standard of
performance and dependability.

“With unparalleled resources and a dedication to customer needs, RSC is a

leader in our continued innovation and systems-based solutions. Please contact us to
discuss how our people and our technology can help your organisation perform
throughout the world.

Raytheon at a glance
• One of the largest defense contractors in the world
• The third largest US military contractor
• A pioneer in the conversion of defense technologies for commercial markets

• Defense Systems  Missile Systems; Strike Systems; Air/Missile Defense

Systems; Naval and Maritime Systems; Centres of Excellence for Printed
Wiring Board Fabrication, Circuit Card Assembly, Microelectronics and Metal

• Sensors and Electronic Systems  Surveillance and Reconnaissance

Systems; Surface Radar; Tactical Systems; Air Combat and Strike Systems;
Centres of Excellence for Electro-Optical Components/Coolers and Optics

• Command, Control, Communication and Information Systems  Integrated

Systems: Air Traffic Control, Command & Control, Flight Simulators and
Simulation Modelling Systems. Communication Systems: Satellite
Communications and Tactical Communications/Data. Imagery and Geospatial
Systems; Strategic Systems; and System for the Vigilance of the Amazon

• Aircraft Integration Systems Tactical Reconnaissance; Maritime Patrol

Aircraft; Government Systems; Commercial/ Executive Aircraft; and Joint
Operations Group

• Training and Services  Depot and Engineering Support; Scientific and

Technical Services; Range Systems; Data Systems; Training Systems; and
Integrated Logistics Support.

Sensors and Electronic Systems
“Sensors and Electronic Systems (SES) is a leading developer of advanced
technology systems. SES programs include radar, electronic warfare, infrared, laser,
and GPS technologies. Our systems  found on land, sea, air, and space  are used
for purposes including surveillance, reconnaissance, targeting, navigation, and
scientific research.

“Providing solutions to US Forces and Allies world-wide, we equip combat

vehicles like the M1 Abrams tank and the Bradley Fighting Vehicle, in addition to a
host of light armoured vehicles. SES technology is deployed in aircraft including the
F-14, F-15, F-16 and F/A-18 fighters, the B-2 stealth bomber, F-117 stealth fighter, and
U-2 reconnaissance aircraft, to name a few. We also put state-of-the-art technology
in the hands of the infantry.

“Our sensors and electronic systems are used for federal and commercial purposes
as well. Programs like law enforcement, security, oil spill response, and search and
rescue use our technology. In space, SES programs range from the Optical Telescope
Assembly and Fine Guidance Sensors for the Hubble Space Telescope to the
Moderate Resolution Imaging Spectroradiometer, the keystone instrument for NASA's
Earth Observing System that will open a new era of Earth remote sensing, providing a
detailed understanding of the environment.

“An established force in electronics systems, SES posts more than $3 billion in annual
sales. We are headquartered in El Segundo, CA, and have locations in the US and
overseas. Please contact us at the number below to discuss our work and the needs of
your organisation.
January 14, 1999 Raytheon Company

Raytheon gets streamlined
From an article by Edward Robinson in FORTUNE June 7th 1999
Raytheon CEO Dan Burnham runs a $20b company that makes some of the most
complex devices in the world, including the Tomahawk missiles recently used in the
Balkans. Since taking the helm at Raytheon in late 1998, Burnham has watched his
company's stock climb 28%, hitting a high of $72 in April. Defense stocks 
moribund during a decade of consolidation  aren't supposed to act that way. But
with the Navy burning through its Tomahawk inventory, and with the White House
looking for $400m to update older Tomahawks, it seems inevitable that Raytheon will
reap the dividends of the wartime economy.

Still, the company's rising share price reflects more than the cold calculations of an
amoral market. It is also a function of skilled cost cutting. The DOD's procurement
czars have assured lawmakers that the profligacy of the 1980s is over, a promise
they're delivering on partly by allowing contractors to integrate mass-produced,
commercial components into their weapons systems, as opposed to purpose-built
military technologies that were often no better, just more expensive.

That is where Burnham comes in. The 52-year-old executive built a strong record as a
cost cutter at AlliedSignal, reviving the firm's floundering aerospace division in the
early 1990s. At Raytheon he has already brought in Six Sigma quality controls and is
installing Toyota-style lean manufacturing methods on the missile assembly line (my
emphasis – ed). His commitment to eliminating waste and boosting productivity has
drawn the attention of Wall Street analysts, who tend to be far more interested in
long-term management programs than in short-term war profits (my emphasis again -

Indeed, the stocks of Lockheed Martin and Northrop Grumman, which also have
billions of dollars' worth of hardware at work in the Balkans, have remained flat
during the campaign there. The fact is, investors have more confidence in Burnham. ‘I
deeply believe in this stuff,’ he says. ‘I can get like a Baptist preacher and drive
people to tears.’ (And on the subject of conviction, and the strategic value of
performance excellence methodologies, here’s some comments by GE chief
executive Jack Welch, from a January 1999 interview in FORTUNE: “There was only
one guy in the whole country who hated quality more than me. I always believed
quality would come from just operating well and fast, and all these slogans were
nonsense. The guy who hated quality more was Larry Bossidy. He hated quality
totally. Then he left GE and went to Allied Signal. In order to resurrect Allied Signal,
Larry went out, saw Motorola, and did some stuff on Six Sigma. And he called me one
day and he said, “Jack, this ain't b.s.  this is real stuff, this is really great stuff”).

Much of Burnham's long-term success will depend on how quickly he adapts to

the Pentagon's new mandate by incorporating off-the-shelf technologies  global-
positioning systems and advanced radar, for example  into his products. Raytheon's
1997 purchase of Hughes Electronics' and Texas Instruments' defense businesses
helped to lock in the supply of many of those components and took the company from
being a second-tier $12 billion firm to a top-tier contractor on the scale of Lockheed
Martin and Boeing.

Raytheon already makes a host of defense electronics systems and weapons on this
high-tech, low-cost model, such as the new Joint Standoff Weapon, a GPS-guided
engineless missile that's released from an airplane and glides up to 40 miles to its
target. The company plans to deliver the JSOW for just $150,000 to $350,000 per
copy, a bargain by today's standards. And it figures it can supply the next-generation
Tomahawk in 2003 for $569,000 each − about 24% below the current price. Those
are savings no bean counter can ignore.

As for the Pentagon, its own commitment to fiscal responsibility will be tested in the
next few years, as spending on new programs like the Joint Strike Fighter and a
revived Star Wars missile-defense program gets under way. The Pentagon budget was
already climbing fast before the war in Yugoslavia began; now, for the first time in
years, many members of Congress are willing to agree publicly with the Joint Chiefs
that even those budget hikes aren't enough. The Defense Department is forecasting a
53% rise in its procurement budget − to $75 billion annually − between now and
2005. Money like that may prompt some companies to slide back into bad habits. But
as long as Dan Burnham's around, Wall Street is betting Raytheon won't be one of

Visit notes
By Malcolm Macpherson
I was a member of a New Zealand tour party which visited Raytheon’s ‘Strike
Weapons Systems’ headquarters in March 1999. The team was hosted by Karen L
Hollingsworth, director of business excellence for Raytheon TI Systems, with
contributions by Bill Baker, benchmarking/best practice champion, Raytheon Systems

For best-practice Raytheon material on Metrics and Benchmarking and best practice
sharing, see the two exhibits. The sources for this material are:
(1) A management guide for the development and deployment of strategic metrics
a Raytheon publication, 1998
(2) Benchmarking and Best Practice sharing
a Raytheon publication, 1998

Some of the things that are interesting about Raytheon SES, from a Baldrige
enthusiast’s perspective, are hinted at in the FORTUNE article above. Briefly, there’s:
• A new CEO who’s keen on systematic approaches to improving performance
(Six Sigma, ‘quality’), and who ‘gets it.’
• A legacy environment where one of the newly acquired units (TI’s defence
business) is a Baldrige winner
• Some evidence that Raytheon’s culture is resistant to outside ideas (there’s
even a ‘not invented here but we did it anyway’ prize)
• Anecdotal evidence that, for whatever reason, ‘Baldrige’ is not politically
correct in the higher realms of RSC (although TI’s Baldrige award and
narrative material did seem to have a high profile in Strike Weapons Systems’
very extensive trophy cabinet when I visited the Lewisville campus in March
1999. This contrasts with IBM’s approach, where ‘Baldrige’ is also not PC, and
the trophy sits in an anonymous cabinet in the entrance lobby at Rochester).
• SES’s senior manager, Christine Davis, is from TI and a ‘Baldrige’ background

Here’s some of the background:
• Strictly speaking, of course, Raytheon is not a Baldrige winner, and neither is
SES. It was Texas Instruments’ (TI) defence business which won a Baldrige
award in 1992, the first defence contractor to do so.
• The new Raytheon Systems Company consists of Raytheon Electronic
Systems, Raytheon E-Systems, and Hughes and Texas Instruments' defense
operations (taking the company from ‘a second-tier $12b firm to a top-tier
contractor on the scale of Lockheed Martin and Boeing’).
• It’s the TI ‘legacy’ company that’s the ‘Baldrige’ operation within SES and the
larger RSC (legacy is the term used in Raytheon, and elsewhere, for merged or
acquired business units that are now part of a new and larger combined
business  or, in a Silicon Valley context, ‘legacy’ is a derogatory term for
‘yesterday’s rusty technology’).
• TI’s post-Baldrige approach to performance excellence, variously packaged
and labelled (TI-BEST, ACLAS, Six Sigma, see below), maps closely to the
Baldrige system. The performance excellence/business excellence model that
SES is championing within the larger Raytheon is ‘Baldrige’ in all but name.
• Raytheon comprises about 100,000 people world-wide, with about $20b of
aggregate revenues. SES has about 16,000 people, and about a $3-5b of
business, with 4 facilities in Southern California, about 25 facilities altogether
across the US. SES is taking it’s post-Baldrige approach to performance
excellence to leadership teams across all 25 sites, ‘then on to Raytheon world-
• TI was a recognised leader in six sigma methodology (after Motorola, but re-
defined for TI’s use). Raytheon’s six sigma is a mix of tools; cycle time
reduction, teams, etc … ‘delivering customer value and energising people in
achieving that. In SES six sigma is a code for Baldrige …’

The use of Baldrige in the new Raytheon?

Because Baldrige comes out of a ‘legacy’ environment (was used and championed at
TI) the “not invented here” problem has arisen and that makes it difficult to use the B-
word and to talk freely about Baldrige processes and systems in the larger Raytheon

During my visit to Raytheon’s Lewisville facility in March 1999 (with a New Zealand
study team), Karen Hollingsworth and Bill Baker used the time we had available to
present us with a snapshot of performance excellence initiatives currently underway
at SES, and across the larger Raytheon. The run-through below is my summary of that
material. It’s my impression that to some extent, at the time of the visit, this whole
subject was a ‘work in progress.’ There was a ‘pioneering’ smell in the air, and the
impression that the Baldrige enthusiasts, ‘six sigma’ and ACLAS code words in hand,
were rapidly occupying the new territory.

Raytheon’s 1998 Annual Report noted that “After the merger and acquisition activity
[TI, Hughes, etc] was completed, Raytheon immediately began to consolidate all of
its defense organizations into one defense electronics business, Raytheon Systems
Company (RSC). This decision to consolidate immediately was unique in the industry.
The objective was to meet quickly and fully the customer's evolving needs for low
cost and high performance  keys to competitive success and increased shareholder
value.” In my view, that’s the opportunity that the TI legacy people were responding

Stretch goals
“We want the capability to develop innovative, affordable, six sigma quality products
in an average 12 months, and the capability to build any product in production in less
than 6 months …:
• this requires revolutionary not evolutionary improvements
• ‘Six sigma’ means 3.4 defects per million opportunities, and ‘Four Sigma’
means 6,210 defects per million opportunities
• Six sigma and cycle time efforts target these types of processes:
- Product development
- Production
- Administration

“A major element of improving our business through quality involves setting

aggressive stretch goals. To know if our goals were aggressive enough, we had to
look outside our business,” read the notes on an SES view graph.

“We benchmarked Motorola's approach to defect reduction; liked it; and licensed

“We set an aggressive cycle-time goal after looking at many companies and meeting
with consultants. We believe that focusing on achieving six sigma quality levels and
reducing cycle time will lead to increased productivity. We live in a productivity-
driven economy today. Productivity gains are not coming from corporate and
government downsizing alone, but from a more fundamental reengineering of
business processes. Reducing defects and cycle times are important customer care-
abouts. It is also a great way to lower costs and working capital. Customers/suppliers
are showing they appreciate our results on these fronts as evidenced by the many
quality awards given to TI in the last 3 years.

“Significant DSEG awards, other than Baldrige:

• Blue Star Supplier Award, given by Naval Aviation Supply Office
• F-22 Most-Valuable Player Award, given by Lockheed
• Product of the Year (Paveway III), given by FORTUNE Magazine.

“Improved productivity has translated into increased cash flow, which has allowed us
to support higher investments in emerging new market opportunities. Willingness to
embrace change has been and will continue to be fundamental to what we can

“We don't have all the answers to what it takes to achieve our goals, but we do know
this ... THE OLD WAY WON'T WORK. Five or ten-percent annual improvements
won’t work.”

Why ‘business excellence’?
“We need to ask ourselves, in just about everything we do, ‘will it give us a
competitive advantage?’ To answer that question, we need a filter to help us sort the
wheat from the chaff, to identify the critical things that are worth spending our
resources on - that filter is business excellence.”

“What does ‘achieving business excellence’ mean?

‘Achieving’ - the continuous pursuit of … continuous progress towards …
‘Business excellence’ - highly satisfied stakeholders, benchmark performance
(measure of success to be defined), recognition as an industry leader, nodal influence.

“Basically it means performing to the expectations of our customers, stockholders and

Raytheon headquarters. How do we achieve that kind of performance? We do it in
three ways  achieving customer satisfaction, having the best processes, and having
the best people.”
Christine Davis, from Inside SES newsletter, June 1998

The history of performance improvement and quality initiatives at TI/Raytheon

Acquisition reform
Defence commercial convergence
Drive for cost leadership
Design of experiments
Best Practice sharing
Business process strategy
TI-BEST Process for TI
Concurrent engineering
Change management workshops
Established 5 group level metrics
Annual customer survey
Six Sigma
Weekly LT meetings
Rate of improvement - legacy RTIS

Benchmarking (external) er atio
Supplier management ce
Adopt Baldrige criteria
Self-directed teams
CFM/cycle time
atio n Published strategy document
n Experi ment
n datio
Fou TI’s Defence Business wins
Just in time mfg Baldrige Award
Ethics awareness seminar
Management by fact, data analysis (SPC, Krensky)
Improvement teams formed
Foundation of excellence philosophy (Crosby, Juran Deming ...)
Cell teams

80 85 90 95 2000

In the early 80s Texas Instruments’ Defence Systems and Electronics Group leaders
identified the need to improve the organisation’s quality effort. More than 300 key
managers were trained at Philip Crosby's Quality College, and that was followed up
with training in Dr Joseph Juran's theories, for a broader population of the workforce.

This initiated a culture change, and good progress was achieved for some time, but
then the rate of improvement levelled off.

“We saw some real strengths in the Baldrige award criteria that we felt would
energize us on the total quality track,” view graph notes say, “SG incorporated the
Baldrige criteria as an ongoing, integral part of our Total Quality strategy, and our rate
of improvement dramatically increased.”

Business Excellence Journey (Legacy RTIS)

1 1988  Endorsed Baldrige criteria; gained understanding and buy-in.
2 1989  Wrote and evaluated mini-applications. Developed improvement
3 1990  Submitted first Baldrige application. Advanced to second stage: no
site visit. Identified five improvement thrusts.
4 1991  Active management quality improvement team(s). Received first
Baldrige site visit.
5 1992  Baldrige winner. First defence contractor.
6 1993  Continued to use the Baldrige criteria with an annual Quality
Improvement Plan (QIP) and accompanying self-assessment guide.
7 1994  Led development of the annual assessment and improvement process
for TI-BEST and self-assessed against the QIP published in 1993.
8 1995  TI-BEST assessment using the Baldrige criteria.
9 1995  Leadership Team self-assessment coupled with TI-BEST formal
10 1997  Create a streamlined version of TI-BEST assessment (now called the
annual closed-loop assessment system (ACLAS).

This history indicates a long-term commitment to achieving business excellence.

“We will continue our quality journey by participating in the TI-BEST process
annually, using the Baldrige criteria to ensure we are measuring ourselves against a
world class standard. This year, we will perform our TI-BEST assessments and
aggregate our feedback consistent with the SO Management Model shown on page 4
of this section.” A framework for business excellence  the TI-Best version of the
Baldrige categories (from an earlier version of the Baldrige system)  is shown



Human resource Customer and market
DRIVER focus focus
Senior executive
planning Business results

and analysis

This framework depicts the seven Baldrige (TI-Best) categories and shows the
interrelationships among the categories. Senior executive leadership sets the
directions, creates values, goals and systems and guides the pursuit of customer value
and company performance improvement.

The system comprises the set of well-defined and well-designed processes for
meeting the company’s customer and performance requirements. Measures of
progress provide a results-oriented basis for channelling actions to delivering ever-
improving customer value and company performance. The basic aims of the system
are the delivery of ever-improving value to customers and success in the

In 1993/94 DSEG published a ‘post-Baldrige’ Quality Improvement Plan and a Self

Assessment Guide which together formed the organisation’s ‘tactical implementation
plan,’ to be used for internal verification of process maturity and deployment, and as a
commitment to continue the improvement process.

Raytheon’s business excellence infrastructure

Leadership Business
system optimisation strategy alignment

Process Communications Enabling Metrics and

focus and strategic skills business
and tools results
- customer processes - process ownership - performance and - balanced
- market knowledge - process optimisation organisational measurement system
- standardised presentations
- shareholder value enhancement - policy deployment/
- trade shows
- people development goal alignment
- annual action plan
tech development - organisational
resource attainment

Assessment Business
and Initiative
feedback champions Excellence
management Council
Business system assessment - Six sigma robust design Business Enterprise - Strategic benchmarking
- organisational profile - cycle time reduction Star-points representing all - best practice sharin
- assessment methodology - learning organisation business units and/or sites - gap analysis
- feedback and analysis - ISO 9000 Danbury, CT …
- teaming and empowerment ...Waterloo, Ont.
Other assessments - change management
- ISO 9000 - diversity
- SEI - supply management

“Today we are a new organisation because we have expanded beyond the traditional
roles of quality. We have added process engineering and environment, health and
safety …” This is Raytheon’s balanced business model, ‘based on a Baldrige model.’

The roles of Raytheon’s benchmarking and best practices administration:
• Assists customers with inquiries to define their needs and meet them in the
most efficient manner. Maintains the inquiry tracking database to keep
information current. Recommends tools and techniques that are available (the
90-day fast track benchmarking model, counselling with a core team member,
and so on).
• Administers the pre-benchmarking questionnaire and follow-up inquiries to
capture status and results. Liaison to other companies as required to clarify
inquiries and follow-up our contact with them.
• Manages benchmarking library including scanning articles, logging in key
magazines and books, inputs table of contents to seminars, conferences,
workshops and trip reports. Maintains library vitality, screening for anything
over three years old for data currency and value.
• Solicits and collects Best Practices.
• Communicates the NIHBWDIA [not invented here but we did it anyway]
criteria and promotes participation across the company.

Assessment and feedback management

• Design and lead an assessment methodology to satisfy an enterprise-level,
world-class business system assessment. Develop plan for process options to
include both full-narrative approach and streamlined assessment techniques
• Work with organizational leaders to understand the value of the business
system assessment process
• Coordinate/administer business system assessment training
• Compile and assess feedback from the business system assessment process
and prepare reports for the leadership team.

Enabling skills and tools

• Champion, develop, and deploy enterprise-level process to increase the
effectiveness people
• Work/consult with organizations to use performance enhancing approaches in
areas of innovation and breakthrough-thinking; effective thinking skills; and
work prioritization
• Improve organizational performance by helping business leaders to use
performance enhancement tools and techniques to reduce process output
waste and overall costs; foster team-based work environment, assess and
measure team effectiveness; and effectively leverage diversity
• Facilitate methodology for placement of tooled and trained people to the right
place at the right time (for example, champion a center for excellence
approach, which focuses on people development, technical development, and
resource management)
• Assist the organization in the recognition and application of risk management
tools and approaches
• Collaborate with Organizational Development specialists, Raytheon Learning
Institute and others, in using, modifying, developing or procuring people and
work effectiveness products, as well as the interventions to apply the products.

Business excellence  benchmarking and knowledge management
• Serve as the champion and process owner for Benchmarking (external) and
Knowledge Management (internal) knowledge transfer processes. Facilitate
understanding within Raytheon, of the Benchmarking and Knowledge
Management arena processes. Represent the company internally as the focal
point and subject matter expert for Benchmarking/Best Practice sharing
• Set up and maintain an effective, efficient world class bench marking and
knowledge management process
• Create an infrastructure of trained bench marking and Knowledge
Management starpoints to deploy process expertise to all sites and functions
• Work with the Leadership Team to identify priorities, gaps and strategic
organizational needs
• Proactively search and capture best practices from internal and external
organizations and deploy them to internal process owners
• Work and coordinate with other Raytheon business segments to build a total
company Benchmarking and Knowledge Management capability.

Strategic deployment of business excellence approaches

• Mobilize and focus the organization toward business excellence
• Build on total quality knowledge and application to provide improved
execution of business strategies
• Provide a common, world-wide language for business excellence
• Leverage best practices for collective impact
• Optimize business processes to react to rapid change
• Responsible for planning, designing, and executing strategic internal and
external processes to facilitate and maximize deployment of Business
Excellence initiatives.
Primary responsibilities include:
- communications/education development activity
- exhibit/trade show coordination
- executive support, message creation and delivery methodology
- speech writing and speaker preparation
- expertise in change management techniques, teaming/empowerment,
facilitation, and consulting.

Business excellence process focus

Manage the activities required to develop, deploy, and operate an enterprise process
management system incorporating industry best practices. Includes:
• Promoting the horizontal integration and alignment of the organization with
RSC and SES strategic objectives (emphasis on customer-focused, cross-
functional processes).
• Working with the leadership team to define enterprise-level processes
(focusing attention on developing and deploying the critical processes that SES
has to excel at to achieve its strategic objectives.)
• Facilitating identification of process owners
• Champion horizontal process flow and process optimization
• Developing SES process strategy and investment recommendations
• Facilitating process SES and RSC process integration: work with RSC Quality
and Operations leadership, ensure horizontal and vertical alignment of SES
processes with RSC initiatives, goals and objectives
• Leading and directing IPTs (Integrated Product/Process teams) towards process
integration and improvement efforts
• Improving SES's process capability with a focus on what is required to provide
our customers with competitive advantage, and also with providing SES with
competitive advantage
• Assessing our process maturity, capability, and improvement progress.

There are basically three types of RSC processes.

Governing processes  Processes that set values, expectations, and strategic
direction. They direct core and enabling processes
Core processes  Cross functional processes that create value for external
customers. What we are in business to do
Enabling and support processes  Processes required to enable continuous
improvement, support core processes, and keep the doors open.

We also recognize the existence of customer, corporate, and supplier processes, and
ensure we are able to integrate with them as seamlessly as possible.

Business excellence customer and market focus

• Champion/develop/facilitate definition and deployment of enterprise-level
customer processes, for both internal and external customers, with priority
emphasis on identifying and reporting trends in customer concerns, issues and
• Focus and work with customers on improvement initiatives towards reduced
government oversight
• Facilitate and lead joint process improvement activities
• Partner with appropriate contacts to manage the customer satisfaction survey
• Working with organizations and customers to ensure customer process
integration and alignment
• Design and develop processes to maximize shareholder value.

Business excellence metrics and business results

Manage the activities required to develop, deploy, and operate an Enterprise
(Performance) Management System (EMS) incorporating industry best practices.
• Promoting the integration and alignment of all aspects of the organization with
RSC and SES strategic objectives
• Focusing attention on the key drivers of financial performance
• Improving SES's performance management capability, and the quality and
timeliness of its management information
• Analyzing internal and external capability trends, identifying improvement
opportunities, and helping SES achieve breakthrough performance for
sustained competitive advantage.

1998 1999 2000
Baseline SES ‘critical few’ metrics - defined and collected
- align with strategy to drive priorities
- assign metric champions
- create collection and analysis process
- set stage for business excellence model and balanced scorecard approach

Align reinforcing system

Leverage competitive advantage across RSC
- identify major process gaps
- feed 1999 funding cycle for process gaps
- deploy best practices

Define RSC strategic plan and 99/00 priorities

Create balanced scorecard

Business system assessment

Written improvement plan

Framework for developing a winning team

RTIS People Strategy
Competitive advantage through people -
Empowered TI-ers focussed on winning

Framework for developing a winning team

Create attractive work
Design optimal work systems
People Empowered Innovation and
Optimise people
individuals, risk taking
Strategy resource levels Agility and efficiency
teams and
Share information leaders collaboration
Develop capability
Align reward and
recognition systems

“In this graphic,” says the view graph’s notes, “our overall People Strategy
framework is interconnected to reach its target. It takes each piece, linking to the
others in the process, to result in our winning team. The SG process map includes a
key process identified as Creating Competitive Advantage Through People.
Subprocesses of this key SO process are:
• creating an attractive work environment
• designing optimal work systems
• optimizing people resource levels
• sharing information
• developing capability
• aligning reward and recognition systems.
“The effectiveness of these processes is integral to unleashing the potential of
empowered individuals, teams, and leaders. The target of our people strategy and our
support of process improvements is the creation of a winning team that has
exceptional agility and efficiency, innovation and risk-taking, and disciplined

Total Customer Satisfaction
Is my customer satisfied? What is needed to meet my customer's requirements?

Customer satisfaction is the result of ensuring that we listen to and understand what
the customer says, making sure that they find value in what we do, and helping them
see that we are providing solutions to their needs. And by customers, I do not only
mean external customers. There is a subset of our coworkers who directly interact
with our external customers, but most of us support that subset in some way, and those
whom we support are our customers.

So we need to ask ourselves the right questions to know whether or not we are
actually satisfying our customers. Do you know who your customers are? Do you
know how they feel about you? Who uses what you do? Are they happy with your
performance on their behalf? Or are you performing for the benefit of your supervisor?
If you don't have answers to those questions, you can't be sure that you are positively
contributing to customer satisfaction.

Best practice sharing - the Raytheon model

ACLAS step 1 ACLAS step 2 ACLAS step 3 ACLAS step 4

Define Assess Identify Establish and

business your improvement deploy an
excellence progress opportunities action plan

Business Strengths Gaps Adapt practices


Match strengths to gaps Matches

Identify best practice Best practices

We evolved from a ‘not invented here’ mentality to a organization which embraces

reusable solutions. Our culture prior to the early '90's has been to solve our own
problems. If we asked for help or depended on anyone else, it was a sign of
weakness. As we have progressed over the past years, there has been significant
progress as people and teams reuse solutions and best practices in other groups, to
solve problems much easier and quicker. Best practice sharing and knowledge
sharing are key processes and concepts whose time has come. We need to
accelerate this sharing across the entire company so we can achieve our vision of
sharing reusable solutions. It is by this rapid learning and sharing with others that we
will create a sustained, competitive advantage.

We think of best practice sharing in terms of supply and demand. Our best practices
facilitators and the office of best practices ‘own’ the supply side of the process. They
put the network and knowledgebase in place to communicate and provide the
process for sharing along with the supply of documented ‘best practices.’

The ‘demand’ side of the process is ‘owned’ by the business units. Through a thorough
understanding of their business processes and the TI-BEST four step process, they
identify key strengths and gaps for the facilitators and the office of best practices to
address in the sharing process. The business units also encourage sharing.

Promoting an environment for excellence

The Business Excellence Team will enable the organization's focus to shift from
purely assurance and compliance issues to achieving an environment where primary
business processes are enabled to achieve sustained competitive advantage This
change will occur through:
• Integrating Business Excellence elements into the business strategy
- Connected to Business Strategy Team
• Creating a process infrastructure that assures successful deployment
Accelerating and measuring deployment
- Identification of SES Key Metrics and Processes
• Pioneering new quality initiatives
• Identifying and providing appropriate enablers and tools
- Integration with Raytheon Six Sigma Design Teams
• Sustaining competitive advantage through the closed-loop annual planning
(four-step business excellence process)

1999 Priorities
• Business Excellence strategic message deployment
- Leadership education
• Communicating our skills/expertise to SES
• Integration of Business Excellence Initiatives with SES Six Sigma Rollout
- Hard wire Business Excellence into Raytheon Six Sigma process (by
Benchmarking/Best Practice Sharing, Gap Analysis, organizational
assessment, for example)
• Validation/recognition of Business Excellence initiatives/efforts in producing
cost reductions/productivity gains
• Performance Management
- Successful Metrics/Catchball deployment
• Fund and implement new collection and analysis process
• Define Business System Assessment process and plan Target date for SES-
wide assessment
• Establish (resurrect) external education and communications

Raytheon’s ACLAS model (next page) assumes four areas of primary strategic
• Customer: What is our market, customer, and product strategy for Winning?
The strategy must answer the question, ‘To achieve customer satisfaction how
should we appear to our customers?’
• Process: What is our operational strategy for winning? The strategy must
answer the question, ‘To achieve and sustain competitive advantage, what
business processes must we excel at?’
• People: What is our people strategy for winning? The strategy must answer the
question, ‘To have a winning team, what competencies and behaviours must
we excel at?’
• Shareholder: What is our strategy for increasing shareholder value? The
strategy must answer the question, ‘To increase shareholder value, how
should we appear to our shareholders?’
Vision Mission Values Expectations

Strategic direction
1 Define business
excellence for your
Customer Process People Shareholders
2 Assess your progress
Deployment and execution 3 Identify improvement
Superb Capability Cultural Profitable
execution improvement change growth 4 Establish and deploy
an action plan

Customer Competitive Winning Shareholder
satisfaction advantage team value