What the A&D Industry is learning from Automotive Different - PDF document

What the A&D Industry is learning from Automotive Different ways of thinking Ryan Blanchette October 6 th , 2016 Overview Different Ways of Thinking Topics Topic Traditional Mindset Different Mindset Talent Hire for Experience Hire for Talent • Ensure strong FAR/DFAR • Develop Individuals knowledge • Establish diverse thinking Quality “Keep it under 6 digit PPM” What is our barrier to zero PPM? Cost Fair and Reasonable Prices Responding to “unreasonable” material cost targets Presentation contains Supply Chain focused examples, but the themes are universal 2

Talent Mindsets Experience vs. Talent Traditional Mindset Different Mindset Experience Is Key : Hire individuals with defense Talent is Key : Hire individuals with talent critical industry procurement experience for their role Experience is Important: teach critical activities, provide development for team Balance company and industry insiders and outsiders Company culture and fit are key Internal Supply Chain team members will be Individuals with key Supply Chain talents will be developed to be future Supply Chain leaders developed to be future Supply Chain leaders Compliance is key: Compliant bids are primary Cost is key: Compliant bids are important but consideration; price needs to be justified “30% savings is the target” Filling open roles is key – BTNs are better than Hiring is the most important thing we do – and we nothing set the bar high. 3 “OK, let's see what kind of hand I've been dealt” - G. Hackman, Hoosiers Current State: Future State: Homogenous and underperforming Diversity of thought, correct “bus riders” World World Class Class Critical Org. Structure areas � Balance insiders and outsiders - � Key functional gaps Company, Industry – E.g. Material costing, – 6-7 carry overs Commodity Mgmt. – 1-2 company outsiders – 1-2 industry outsiders � Waste � Waste “Funds Change” � “Unbalanced Org. Structure” – Functional gaps, salaries – E.g. Senior Cost Analysts 4 – Strategic vs. Tactical work

Talent vs. Skills & Experience Definition of Talent “a recurring pattern of thought, feeling, or behavior that can be productively applied” Characteristics of Talent � You can’t teach talent – you need to select for it � Skill and Experience are situational: “faced with unanticipated scenario, they lose much of their power. � Excellent performance requires fit between talent and role Examples of Talent � Empathy – An ability to identify the feelings and perspectives of others � Performance Orientation – A need to be objective and measure performance � Gestalt – A need to see order and accuracy � Arranger – Ability to orchestrate � Developer – A need to invest in others and derive satisfaction in so doing � Activator – An impatience to move others to action 5 Talent in one Organization Buyer Talents: Sample Interview Questions: Tell me about a time when you challenged � Ethics (responsible for co. money) � someone’s authority, because you felt � Performance Orientation (metrics) his/her action was not in the best interest of the company or customer � Strategic thinking (holistic spend) � Our team negotiates everyday. Tell me � Competition (negotiation) about the last negotiation you had. � Responsibility (self accountability) Potential follow-up: Who won? � As a CM, you will be responsible for conducting sourcing initiatives requiring input from many different functions; tell me a time when you prioritized the elements of a complicated project Commodity Manager Talents: � Tell me about a time where you were held accountable by your customer (external or � Strategic thinking (Cmdty Strats) internal) for something that was the � Interpersonal (Nego.) responsibility of another person or group. What was your initial response, what did � Arranger (Sourcing initiatives) you do, and what was the end result? � Performance Orientation (metrics) Align your organization on key talents. Test questions out on your top performers 6

Culture and Fit Separate Interview Questions / Activity What talents are important for all roles in your company? � Competitive vs. Collaborative, Self-Directed vs. Structured/Hierarchical � Make sure questions relating to these talents are asked � Open ended questions can be indication of talents / Cultures preferred – What is the best environment in which you have ever worked? What made it so? – What aspects of work do you find most exciting? – What are you most proud of? Meet the team and understand the role � Example: Manager role spends time with direct reports – understands “day in the life of a Buyer”, key question for directs: “What kind of questions did candidate ask?” Good, Bad and Ugly talk: Scare away “excellent failures” � Example: “World Class”, “Open layout”, “Victims don’t live long here”, “Constantly pushing to get better – frustrating to some”, “Servant Leadership” � Here is what a bad day looks like…. … still interested? Talented hires that “don’t fit” will set you back longer than “bad hires” 7 Balance your organization Strategic vs. Tactical Eisenhower Matrix: Urgent will always trump important Structure: Organization/ R&R � Commodity Manager vs. Buyer Next Period Objectives Weekly/Periodic Cadences reflection Professional Achievement Goals � How much time did we spend on the 1 Complete 9-Box w ork for San Diego and Tijuana 2 Finalize CCA Consignment Material Handling processes important? 3 Establish Standard Work or continuous improvement for a majority of "manual planning" situations 4 Establish aligned and realistic 2017 OP plan Personal Growth Goals 1 Read 1 Book / 2 mo. and all Economist, WSJ 2 Spend 1:1 time w ith each family member every day, Read 2x/w eek, pray w ith kids 3 Spend 1/2hr./day in SAP/Material signals Relationship Building 1 Continue to Drive Morale w ork and conduct Skip Levels 2 Continue 1:1's w ith PM VPs 3 Continue 1:1's w ith Operations Peers Are you organized to spend enough time on the Important but not Urgent work? 8

Internal Talent Can I “hire” internally? Key questions to ask when a position opens � Which jobs have similar talent requirements? – Sales Representative & Buyer � Which key talents are found in other functions? – Problem Solving (Planning): Quality, Finance, Manufacturing Eng. – Strategic Thinking (Buyer): Business Development, Program Management � Which junior members of your team have key managerial talents & how can you see them demonstrate them? – Talents: Coaching, Development, Strategic Thinking – Potential ways to assess (put in annual objectives): • Training they lead (Class, Supplier coaching, etc.) • Contributions to strategic work (Commodity Strategy contributions) • Who is the “go to” person who trains their peers? Natural tendency is to look within Function and then Externally – don’t overlook the talent in the rest of your organization 9 Quality Mindset Experience vs. Talent Traditional Mindset Different Mindset Low Volume = Low volume rules Low volume “Rules” can lead to rejecting valuable (high volume) tools 100,000 PPM is “Pretty Good” <100 PPM is when we start talking Component Inspection Engineers Supplier Development Engineers Meet AS9100 requirements & respond to Engage in Advanced Product Quality Planning customer audits (APQP) 10

Change Paradigms – Changing mindsets through Large External Influences AMDR F-35 11 Change Paradigms - Focusing energy “Everyone else is going too slow” “and getting in my way” “A body in motion tends to stay in motion” - I. Newton Engage in “Dynamic Continuous Improvement” – APQP was one example Influence Model Transition Curves Focus on “redirecting misguided energy” instead of initiating activities from “scratch” 12