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.

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“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 solutions. “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 Fabrication 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 (SIVAM) 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.

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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

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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 ed). 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  globalpositioning 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.

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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 them.

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 Company. 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 Introduction 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

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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 worldwide.’ • TI was a recognised leader in six sigma methodology (after Motorola, but redefined 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 Bword and to talk freely about Baldrige processes and systems in the larger Raytheon environment. 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 to.

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Topics 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 training.” “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 productivitydriven 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 careabouts. 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 achieve “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.”

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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 n tio Benchmarking (external) er a l Supplier management ce Ac Adopt Baldrige criteria Self-directed teams CFM/cycle time Published strategy document ation Experi ment ion dat TI’s Defence Business wins oun F 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

Rate of improvement - legacy RTIS 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.
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“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 2

1988  Endorsed Baldrige criteria; gained understanding and buy-in. 1989  Wrote and evaluated mini-applications. Developed improvement plans. 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 assessment 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 below.

SYSTEM
Process management

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

Information and analysis

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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 everimproving customer value and company performance. The basic aims of the system are the delivery of ever-improving value to customers and success in the marketplace. 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

Business excellence
Leadership system optimisation Business strategy alignment

Process focus
- customer processes
- market knowledge - shareholder value - process ownership - process optimisation

Communications and strategic deployment
- standardised presentations - trade shows - annual action plan

Enabling skills and tools
- performance and organisational enhancement - people development tech development resource management

Metrics and business results
- balanced measurement system - policy deployment/ goal alignment - organisational attainment

Assessment and feedback management
Business system assessment - organisational profile - assessment methodology - feedback and analysis Other assessments - ISO 9000 - SEI

Initiative champions
- Six sigma robust design - cycle time reduction - learning organisation - ISO 9000 - teaming and empowerment - change management - diversity - supply management

Business Excellence Council
Business Enterprise Star-points representing all business units and/or sites Danbury, CT … ...Waterloo, Ont. - Strategic benchmarking - best practice sharin - gap analysis

“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.’

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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.

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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, crossfunctional 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
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• •

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 problems • 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 process • 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. Includes: • 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.

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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 environments

People Strategy Processes

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

“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 collaboration.
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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 Define business excellence

ACLAS step 2 Assess your progress

ACLAS step 3 Identify improvement opportunities

ACLAS step 4 Establish and deploy an action plan

Business priorities

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.’

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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 SESwide assessment • Establish (resurrect) external education and communications Raytheon’s ACLAS model (next page) assumes four areas of primary strategic emphasis: • 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?’
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Leadership Vision Mission Values Expectations ACLAS Define business excellence for your business Assess your progress Identify improvement opportunities Establish and deploy an action plan

Strategic direction Customer Process People Shareholders

1 2 3 Profitable growth 4

Deployment and execution Superb execution Capability improvement Cultural change

Results Customer satisfaction Competitive advantage Winning team Shareholder value

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