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| The Warthog World of Potential https://warthogterritory.net/forum/viewtopic.php?f=3&t=7601 |
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| Author: | a10stress [ 09 Nov 2004, 08:45 ] |
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LOCKHEED CEO SEES A WORLD OF POTENTIAL: The A-10 Thunderbolt II, an aging fighter jet with a bubble-shaped nose, sits on the tarmac at Lockheed Martin's site in rural Owego. The plane has a bandage of green tape on one side and a loose panel near the front. "Six-ninety-nine," says Robert J. Stevens, Lockheed's CEO, pointing at a number on the nose. "I built that! Tell me that isn't a beautiful plane." Stevens has come a long way from Fairchild Republic, where he helped build A-10s, nicknamed Warthogs for their ungainly appearance, more than 30 years ago. Named Lockheed's top executive in August, Stevens now presides over the biggest defense contractor in the world at a time of shifting military priorities and precarious defense budgets. For Stevens, 52, the Warthog's evolution symbolizes Lockheed's shift from its role as just a maker of aircraft to a diversified company developing the IT needed to wage modern warfare. The aircraft, which was to be retired a decade ago, is less important than the high-tech electronics it carries, he says. Now the Warthog is having a second life that could last an additional 20 years. <b>"People said at the time the A-10 was a waste of money.</b> Now it does all kinds of things it was not intended to do," Stevens said. "There is no greater sense of security [for a soldier] than having an A-10 coming over the horizon." Stevens faces the task of continuing Lockheed's push into high-tech defense projects, a strategy industry analysts say some competitors have been quicker to adopt, and smoothly integrating the company's disparate operations. Over the next few years he also will face the likelihood of cuts in defense spending that could slow development of large-scale programs. Stevens's management philosophy has roots in his early experiences at Fairchild. Stevens had worked his way up over many years from a second-shift floor supervisor to program manager. When the firm faced financial difficulties, he was forced to fire hundreds of employees. "That is an important thing for a young manager not to loose sight of," he said. "It's a defining experience." It's an experience that helps explain Stevens's strategy at Lockheed. "The work that you do here is . . . regarded as a national resource," he recently told nearly at 1,000 employees packed onto a production floor in Syracuse. "In the same breath, and at the same time, Lockheed Martin is also appropriately regarded as an economic enterprise. And frankly our future is going to be determined by how well we keep these two concepts alive and balanced." One of Stevens's chief challenges will be protecting the company's marquee programs from budget cuts. The Pentagon's budget has grown substantially since the Sept. 11, 2001, terrorist attacks, but the wars in Afghanistan and Iraq are eventually expected to start sapping money from expensive long-term projects, like Lockheed's F/A-22 Raptor and F-35 JSF. "We believe the defense budget is likely to come under increasing pressure due to Iraq and the budget deficit," David Strauss, defense analyst with UBS Investment Research, said. Stevens seems unfazed by the predictions. The average F-15 and F-16 are 30 years old and have been used more rigorously since the Sept. 11 attacks, including patrolling the skies domestically, he said. "These fleets are aging and need to be replaced," Stevens said. "We think there will be sustained demand for the technology we have in the F/A-22 and F-35." But the questions about the F/A-22, which is scheduled to replace the F-15, are more complicated. Some critics wonder whether the F/A-22, which will cost more than $130M each, is needed given the low-tech conflicts the military is currently fighting. "There is nothing wrong with the word 'overmatch,' " Stevens said. Stevens has taken the helm as Lockheed continues to battle chief rival Boeing in court. In the close-knit defense industry, where companies compete one day and then cooperate on billion-dollar programs the next, these types of scuffles are unusual. Lockheed has a "professional relationship with Boeing," Stevens said. "In our business we compete and we cooperate," he said before adding: "You don't see Ford and Chrysler competing on one day and cooperating on the other." Stevens is also mindful to keep Lockheed out of similar trouble. In speeches to employees, he stresses: "There is nothing that would take the operating momentum away from our company today, to distract us from doing all the things that we need to do, as sure as a violation of ethics and integrity and business conduct." Stevens follows two chief executives who are legends in the industry -- Vance D. Coffman and Norman R. Augustine. For his part, Stevens will concentrate on the nuts and bolts of management. He acknowledges that his rise to top executive "comes with a good amount of luck, good fortune on my part." "I wouldn't overestimate the value one person brings, notably me," he said. "It's all about the team." Stevens has developed a reputation as a straight shooter who imposed financial discipline when Lockheed most needed it. A former Marine, he has an intense but personable manner that includes a penchant for one-liners. At a recent meeting of employees at Lockheed's office in Syracuse, he was questioned about the strain on the staff since the firm won several new defense contracts. Stevens paused briefly, then quipped, "I think the bring-a-neighbor-to-work program probably wouldn't work." That style won him praise early in his career. As an executive at Loral Systems Manufacturing, he gained the loyalty of subordinates. "He could wring efficiency out of them because they liked him," said Bernard L. Schwartz, chairman and CEO of Loral Space & Communications. Stevens gained prominence at Lockheed in 1999 when as CFO he helped steer the defense giant out of trouble after nearly 20 acquisitions in less than 10 years had left it debt-ridden. He led an internal review that prompted a consolidation of operations, which resulted in 2,800 job cuts and a savings of $200M. His detailed and frank reports on the company's financial health to Wall Street gained praise among investors, who had abandoned the stock. "The company had lost sight of blocking and tackling. . . . We lost programs. We had rockets blow up," said former Lockheed chief and current board member Augustine. "The solution to those problems was one word, 'discipline,' and he brought the discipline the company really needed." Stevens says he has no drastic changes planned for Lockheed. He will focus on initiatives he began as CFO and as COO. "A company that has a production cycle measured in decades doesn't change direction on a dime. It's an evolutionary change," he said. He is chairman of a diversity council established three years ago that recommended that short lists for executive positions be required to include a minority candidate. The top priority, he says, is to successfully complete programs as well as attract talented employees. Soon after assuming the CEO position, Stevens began focusing on a new measurement tool for a program's success: return on investment capital. Soon executives' bonuses will be partly based on the measurement. Stevens's tenure is likely to be marked by a continued focus on building international partnerships with foreign firms. But those partnerships can be tricky given a reluctance among some members of Congress to share technology with overseas companies and concerns about domestic suppliers losing jobs. Lockheed will not back down from its strategy, Stevens said, adding that he wants Lockheed to be known as the American partner of choice to foreign defense firms. "We see the world as being connected -- connected by financial, trade and security interests," he said. "We think some level of int’l relationship stimulates those jobs" here. (Washington Post) THE RAMPTOR ENGINEERING TEAM <img src=icon_smile_big.gif border=0 align=middle> "Who cares if it works? Does it look good on the ramp?" |
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| Author: | Dice-man [ 10 Nov 2004, 05:11 ] |
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Damnit, I was there at the same time, maybe I could have talked him into some "swag" from one old A-10 maintainer to another!! Nice to know the head of LM has a soft spot for the Hawg! Ugly But Well Hung |
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| Author: | Thunderstruck [ 11 Nov 2004, 09:44 ] |
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<BLOCKQUOTE id=quote><font size=1 face="Verdana, Arial, Helvetica" id=quote>quote:<hr height=1 noshade id=quote> Damnit, I was there at the same time, maybe I could have talked him into some "swag" from one old A-10 maintainer to another!! Nice to know the head of LM has a soft spot for the Hawg! <hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Arial, Helvetica" size=2 id=quote> Maybe now they'll put the Hog in the company 'Code One' rag. ATTACK! |
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| Author: | Dice-man [ 12 Nov 2004, 07:12 ] |
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<BLOCKQUOTE id=quote><font size=1 face="Verdana, Arial, Helvetica" id=quote>quote:<hr height=1 noshade id=quote> Maybe now they'll put the Hog in the company 'Code One' rag. ATTACK! <hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Arial, Helvetica" size=2 id=quote> Would love to see that but will not hold my breath! <img src=newicons/pain10.gif border=0 align=middle> Ugly But Well Hung |
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