1. Strategic Sourcing at Lockheed Martin Corporation
Prepared for: Corporate Sourcing Leadership Exchange June 2008 Meeting

2. Lockheed Martin Corporation
Contents
Lockheed Martin Overview
LM Recruiting Model
LM Strategic Sourcing Model
Evolution
Pipelines
What Works
What Needs Work
Metrics & Reporting
Related Best Practices
June 2008
Lockheed Martin Corporation - CSLE

3. Lockheed Martin Overview
1,000 facilities in 500 cities and 46 states in the U.S.
Business locations in 75 nations and territories internationally
Operations
Primarily the U.S. Department of Defense and the U.S. federal government agencies
Lockheed Martin is largest provider of IT services, systems integration, and training to the U.S. Government
Other business comprised of international government and some commercial sales of our products, services and platforms
Customer Base
Premier systems integrator, principally engaged in the research, design, development, manufacture and integration of advanced technology systems, products and services
Business
$41.9 billion
Sales (2007)
140,000 worldwide
Employees
June 2008
Lockheed Martin Corporation - CSLE

4. Lockheed Martin Overview
Locations
LM Locations with over 200 employees
June 2008
Lockheed Martin Corporation - CSLE

5. Lockheed Martin Overview
Market Focus - Programs
Focus on profitability and growth in the following markets:
Defense/Intelligence
Homeland Security
Gov’t. Info. Technology
• Net-Centric Operations
• Information Superiority
• Force Application
• Focused Logistics
• Missile Defense
• Protection
• Battlespace Awareness
• Border and Transportation Security
• Threat Information Sharing, Alerting and Protection
• Critical Infrastructure Protection
• Emergency Management and Response
• e-Government
• Enterprise Architecture
• Information Security
• Database Infrastructure and Management
• Information Assurance
Phoenix Mars Lander
Also working with NASA to support America’s
reinvigorated commitment to space exploration
Over 3,000 programs in the U.S. and worldwide
about 19 percent of global defense exports, and
about 40 percent of all U.S. defense exports
June 2008
Lockheed Martin Corporation - CSLE

6. Lockheed Martin Overview
Business Areas
Aeronautics
Tactical Aircraft, Airlift, and Aeronautical Research and Development lines of business
Space
Space Launch, Commercial Satellites, Government Satellites, Strategic Missiles lines of business
Information Systems & Global Services
Mission Solutions: R&D and Engineering for Intelligence, Defense and Civil Agencies
Information Systems: IT Infra-structure, Process Outsourcing, COTS Integration, Level of Service Solutions
Global Services: Support of Mission Services, Nation Building, Stability Operations, Facility Services
Electronic Systems
Missiles and Fire Control, Naval Systems, Platform Integration, Simulation and Training Systems
June 2008
Lockheed Martin Corporation - CSLE

7. Lockheed Martin Corporation - CSLE
LM Recruiting Model
Background
Mid-90s: Many legacy company units, each with own staffing
Many empty seats - Slow time to fill
1997: HR VP opens Washington Post, sees 6 LM recruitment ads….
“Has to be a better way!”
1998: LM Regional Recruiting Center (RRC) concept born
June 2008
Lockheed Martin Corporation - CSLE

8. Lockheed Martin Corporation - CSLE
LM Recruiting Model
Regional Recruiting Centers (RRCs)
Objectives:
1. Improve recruitment service and hiring performance
2. Develop a system that introduces significant cost savings
3. Create a transferable concept
Cost per Hire
Candidate Experience
Cycle Time
Eliminate duplication: ads, job fairs, sourcing efforts
Interview once, but be seen by many BUs (one stop shopping)
24-hour offers
June 2008
Lockheed Martin Corporation - CSLE

9. Process successful: LM Recruiting Model RRC Process Washington Metro
Tyson’s corner satellite
Delaware Valley
Two centers: NJ and PA
Third satellite in Owego, NY
Orlando
Silicon Valley
Plus Rocky Mountain satellite near Denver
Aeronautics – Ft. Worth
Today, LM hires 10-12,000 people per year
Over 80% hired through RRC process
Improve recruitment service and hiring performance
Develop a system that introduces significant cost savings
Create a transferable concept
June 2008
Lockheed Martin Corporation - CSLE

10. LM Recruiting Model Structure Snapshot Corporate Staffing Director
Delaware Valley NJ-PA-NY
Rocky Mountain CO
Orlando FL
Wash. Metro No. VA
Silicon Valley CA
Aeronautics TX
Talent Sourcing Programs
University Relations
Strategic Sourcing & Military Relations
All Business Units
Regional Recruiting Centers
Customer Supported:
Regional Recruiting Centers (RRCs)
Business Units
University Relations & Talent Sourcing
RRCs
Strategic Sourcing
RRCs
Each staffing entity has budget responsibility
All costs consolidated and billed back to the Business Units
June 2008
Lockheed Martin Corporation - CSLE

11. LM Strategic Sourcing Model
SSG – Evolution
Beginnings
In WMA RRC, initially identified need to proactively address increasing shortage of ‘cleared’ candidates (TS/SCI w/Polygraph)
Included study of state of clearances & potential candidate population
Small separate group formed within Staffing - Strategic Sourcing Group - to research, identify, ‘tag’ and source for these and other ‘critical skills’
Critical skills defined as those skill sets that are:
Needed for maintaining & expanding LM’s core businesses
Needed in significant quantities across multiple LM Business Units
Always difficult to find and hire
2003
June 2008
Lockheed Martin Corporation - CSLE

12. LM Strategic Sourcing Model
SSG – Evolution
Beginnings (cont.)
Developed critical skill list – hard work!
Set up initial ‘central repository’ of sourcing knowledge (Strategic Sourcing SharePoint)
Developed specialized research on critical skills
Began development of critical skill pipelines, with limited staff
June 2008
Lockheed Martin Corporation - CSLE

13. LM Strategic Sourcing Model
SSG – Evolution
Business case to expand team to accommodate more pipelines
Based on existing research, focused LM’s need to tap into broader labor market (‘passive’ candidates)
Highlighted other companies’ best practices re: passive candidates
Gap analysis: present state vs. desired state
Showed considerable groundwork already established !
Role of RRCs vs. SSG re: pipelining candidates – tactical vs. strategic: different approach, different tools
Benefits of dedicated work on pipelines
Resources needed to close the gaps
Gained buy-in from RRC stakeholders
Early 2007
June 2008
Lockheed Martin Corporation - CSLE

14. LM Strategic Sourcing Model
SSG – Evolution
Current State
5 strategic sourcers
9 major skill pipelines in progress (since 3Q07) and producing viable, critical skill candidates
Established Service Level Agreement, early 2008
Contributing on hard-to-find sourcing assignments
Completing research requests
Establishing credibility as we go
June 2008
Lockheed Martin Corporation - CSLE

15. LM Strategic Sourcing Model
Why ‘Expro’ Pipelines?
Industry research: > 50% of Labor Market is ‘passive’
For LM critical skills, considerably higher
A focus purely on active candidates ignores over half the talent market
Build predictable talent pipelines in advance of need, given tightening market of critical talent
Enhance positioning relative to our competitors; attract more than our share of critical skill talent
Gain talent advantage by maintaining relationships with top talent over time, to convert the best candidates quickly
Break ahead of ‘business as usual’ to improve key recruiting outcomes
June 2008
Lockheed Martin Corporation - CSLE

16. LM Strategic Sourcing Model
Filling the Pipelines
Mine/Research LM Candidate Database
Internal
Pipeline
External
‘Soft-Sell’ Advertising/Outreach
Mine Web: Any/Every Way
Strategic Sourcer
Engage ‘Silver Medalists’
Employ Social Networking Tools
Contacts the Prospect ( or phone)
Begins the dialogue
Obtains basic profile or resume
Sets framework for follow-up w/prospect
Completes CRM form
Enters info/resume as Pipeline prospect/candidate
Continues to update prospect record over time
Research,
Research…
LM Proprietary Web Tools
June 2008
Lockheed Martin Corporation - CSLE

17. LM Strategic Sourcing Model
From Pipelines to Applicants
Passives to Actives
When the prospect’s timing is right
When we have a particular opportunity that we market to them and they’re interested
Strategic Sourcer refers the candidate
To the appropriate recruiter (if actual requisition is known)
To RRC manager if just area of fit is known
Candidate type changed: ‘passive’ to ‘external’
Smooth transition is important!
Candidate shouldn’t feel like they’re starting over
Still working this process
Leads
Contacts
Hires
Candidates
Strategic Sourcing
RRCs
June 2008
Lockheed Martin Corporation - CSLE

18. LM Strategic Sourcing Model
SSG – Services Provided
Primary Services
Critical skill pipeline development, sourcing support
Special Research Requests
New Market Research, Acquisition Support, other research
Additional Activity/Output
Update/maintenance of critical skill list, sharepoint, industry conferences, etc.
All services defined in Service Level Agreement
June 2008
Lockheed Martin Corporation - CSLE

19. LM Strategic Sourcing Model
What Works
All-Sourcers List
Soft-sell advertising
Focused use of specialized tools
Elevator Pitches – for campaigns
Varied backgrounds of sourcers
Building relationships over time
June 2008
Lockheed Martin Corporation - CSLE

20. LM Strategic Sourcing Model
What Needs Work
Transitioning passives to RRC recruiters
Soft-sell advertising
More automated data capture
Identifying skill pools in the corporation
Integrating understanding of SSG into dynamic staff changes at RRCs
Verifying ‘real’ needs
June 2008
Lockheed Martin Corporation - CSLE

21. LM Strategic Sourcing Model
Metrics & Reporting
Monthly Pipeline Reports – internal to team
Monthly Reports – highlights to staffing/staffing management
Quarterly Reports – staffing/staffing management
Pipeline stats, sourcing projects for RRCs, specific sourcing assistance, special activities to build pipelines, resulting hires, etc.,
June 2008
Lockheed Martin Corporation - CSLE

22. Related Best Practices
Partnership with Talent Sourcing Team
Alumni network
Strategic Focus on Transitioning Military
Chat sessions by skill focus
Consistent LM recruitment branding
Close partnering with LMCareers team (applicant/hiring database)
June 2008
Lockheed Martin Corporation - CSLE

23. Questions/Discussion Lockheed Martin Corporation - CSLE
June 2008
Lockheed Martin Corporation - CSLE