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Final Report of the 199596 SECDEF Fellows Program


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Title: Final Report of the 199596 SECDEF Fellows Program

Final Report Secretary of Defense Corporate
Fellowship Program 2007 - 2008
2007-2008 Fellows
  • COL Willie Melendez, USA Lockheed Martin
  • Orlando, FL
  • COL Joe Moore, USA SRA International, Inc.
  • Fairfax, VA
  • CDR Bill Brougham, USN Oracle, Corporation
  • Reston, VA
  • CDR Brent George, USN CACI International, Inc.
  • Arlington, VA
  • Col Murf Clark, USAF Cisco Systems, Inc.
  • San Jose, CA
  • Col Alan Lake, USAF Amgen, Inc.
  • Thousand Oaks, CA
  • Col (S) Roger Witek, USAF The Boeing
    Company St. Charles, MO

  • Background
  • Common Findings/Recommendations
  • Discussion / QA
  • Individual Experiences (FYI)

SDCFP Background
  • SECDEF concerns for future Service leaders
  • Open to organizational and operational change
  • Recognize opportunities made possible by info
  • Appreciate resulting revolutionary changes
  • Affecting society and business now
  • Affecting culture and operations of DoD in future
  • Businesses outside DoD successful in
  • Adapting to changing global environment
  • Exploiting information revolution
  • Structural reshaping/reorganizing
  • Developing innovative processes

SDCFP Background
  • DoD needs effective access to best executive
    level business practices applicable to operations
  • Strategic Planning
  • Organization
  • Change Management
  • Human Resources
  • Information Technology
  • Supply Chain
  • Outsourcing
  • Infrastructure approximately 2/3 of Defense
  • Reforms generate savings
  • Savings applicable to operational shortfalls

SDCFP Organization
  • Two or more officers from each Service
  • High flag/general officer potential
  • O- 6 or O- 5
  • Senior Service College credit
  • Group Education
  • Current political/military issues leading edge
  • Meetings with senior DoD officials, business
    executives, Members of Congress, the press,
    former sponsors, alumni
  • Graduate business school executive education
  • Eleven months at Sponsoring Company
  • Permanent Staff
  • SDCFP Director
  • Net Assessment for oversight
  • National Defense University for Admin support

SDCFP Sponsors
  • 07 - Prior
  • 3M, ABB, Accenture, Agilent Technologies,
    American Management Systems, Amgen, Boeing,
    Caterpillar, Cisco, CNN, Deutsche Bank DirecTV,
    DuPont, Enron, FedEx, General Dynamics,
    Hewlett-Packard, Honeywell, Human Genome
    Sciences, IBM, Insitu Group, Johnson Johnson,
    Lockheed Martin, Loral, McKinsey Co., McDonnell
    Douglas, Merck, Microsoft, Mobil, Netscape,
    Oracle, Northrop Grumman, Pfizer, Pratt
    Whitney, PricewaterhouseCoopers, Raytheon,
    Sarnoff, Sears, Sikorsky, Southern Company, SRA
    International, Sun Microsystems, Symbol
    Technologies, Vertex Aerospace
  • 07-08
  • 3M, CACI International, Amgen, Boeing, Cisco,
    Time Warner, Lockheed Martin, Oracle, SRA
  • 08-09
  • Booz Allen, FedEx, Johnson Johnson, Northrop
    Grumman, Raytheon, Sarnoff, Southern Company, Sun
    Microsystems, United Technologies

SDCFP Results
  • Program objectives fulfilled
  • Education
  • DoD, individual officers, Sponsors
  • More Sponsors than Fellows available
  • Intra-group experience sharing
  • Group visits with sponsor CEOs and senior
  • Unique corporate experience
  • Strong corporate support
  • Executive/operational level duty mix
  • Mergers/restructuring
  • Unexpected challenges, valuable insights

SDCFP Products
  • Build a cadre of future leaders who
  • Understand more than the profession of arms
  • Understand adaptive and innovative business
  • Recognize organizational and operational
  • Understand skills required to implement change
  • Will motivate innovative changes throughout
  • Report and Briefings directly
  • SecDef/DepSec, VCJCS, Service Secretaries
    Chiefs, 30 others
  • Business insights relevant to DoD
  • Recommended process/organization changes

  • And we must transform not only our own forces,
    but also the department that serves them by
    encouraging a culture of creativity and
    intelligent risk taking. We need to promote a
    more entrepreneurial approach to developing
    military capabilities, one that encourages
    people--all people--to be more proactive and not
    reactive, to behave somewhat less like
    bureaucrats and more like venture capitalists
  • SecDef Remarks
  • National Defense University
  • 31 January 2002

  • Background
  • Common Findings/Recommendations
  • Discussion / QA
  • Individual Experiences (FYI)

Common Findings/Recommendations
  • Imminent Talent Drought
  • Lead System Integrator (LSI)
  • Lean Six Sigma
  • Continual Process Improvement (CPI)
  • DoD Consolidation Integration
  • Leveraging Enterprise Architecture (EA)
  • Web-Based Collaboration
  • Rise of Social Computing
  • Globalization and Strategic Messaging

Imminent Talent Drought
  • Issue
  • Industry and DOD facing a watershed talent
    pipeline drying up
  • Discussion
  • Dearth of critical skills
  • Market and environmental factors
  • Aging workforce
  • Foreign nationals
  • Recommendations
  • Develop and stay disciplined in core competencies
  • Fashion agreement for skill-sets to mobilize
    industry and nation
  • Build partnerships and forge alliances
  • Expand opportunities for leaders
  • Model industrys succession planning
  • Invest early in people and technology

Lead System Integrator (LSI)
  • Issue
  • Legislation to halt LSI starting Oct 2010?
  • Congress wants DoD to take control management
  • What are the thresholds? Whos grand-fathered?
  • Can DoD acquisition core be rebuilt to go it
  • Discussion
  • The good, the bad, and the ugly
  • Deepwater, Future Combat Systems, Ground-based
    Midcourse Defense, DD(X)
  • Compelling arguments for Lead, Large, Mission, or
    Prime SI
  • Business Ecosystem and Integrative Program
  • Recommendations
  • Learn from mistakes and partner Its not Us or
  • Analyze/testify/lobby for DoDs true in-house LSI
  • Defense Acquisition University teaches
    Enterprise integration at basic level
  • Understand essential elements of Prime SI
    Value Proposition
  • Open system standards, risk reduction, secure
    info management, better system performance,
    program velocity, tech-insertions, non-std
    business models

Lean Six Sigma
  • Issue
  • How to drive Lean Six Sigma (LSS) across DoD
  • Discussion
  • LSS has a Proven Track Record
  • Path to Success with LSS
  • Deploy ? Integrate ? Sustain ? Institutionalize
  • Recommendations
  • Good start in DoD need to increase deployment
  • Sustain the momentum
  • Use every opportunity to train and educate
    members on LSS
  • Create full time positions
  • Exploit/publicize/reward success
  • Vast opportunities for DoD in the transactional
  • Top leadership support and active involvement is

Continual Process Improvement (CPI)
  • Issue
  • Recognize Corporate America and DoD have CPI
  • Discussion
  • DoD following Corporate Americas CPI effort
  • All services vested and motivated to save money
  • Need to watch out and learn from corporate
  • Corporate bumps in the road
  • Not just about training numbers of Green/Black
  • More about selecting change agents
  • CPI is the mission LSS a tool in the CPI
  • Other tools Accelerated Change, Catalyst,
    Business Process Reengineering
  • Many companies utilizing all tools in CPI effort
  • Problematic to name CPI effort after a CPI tool
  • When new tools show up, could cause TQM
  • Some companies backing down on 100 LSS use
    thwarts innovation
  • DoD and Corporate America still split on CPI
  • Recommendations

DoD Consolidation Integration
  • Issue
  • DoD Consolidation / Integration / Facility
  • Discussion
  • Service / Agency
  • Typically an internal focus
  • Minimal partnering outside borders
  • Assets
  • Consolidation or disposal?
  • Need for cost effective timely disposal /
  • BRAC Consolidation Cycle continuity
  • Offices pop-up then disappear
  • Who maintains knowledge of best methods?
  • Corporate Knowledge / Tribal Knowledge loss
  • People are key asset
  • Attrition
  • How to capture Knowledge?
  • Integrating Acquisitions
  • Core industry competency

Consolidation Integration (cont)
  • Recommendations
  • Develop core competency in consolidation /
  • Build partnerships / forge alliances with
    industry consolidators
  • Model leading industrys acquisition models
  • Make Service / Agency independent
  • Address culture / identity issues
  • Create Knowledge Management repository / processes

Leveraging Enterprise Architecture (EA)
  • Issue
  • How to use better use Information Technology (IT)
    to execute a more efficient Joint Battlespace
    and DoD Back Office
  • Discussion
  • Opportunities for DoD and Private Sector
  • Enabling a DoD voice in focusing Private Sector
  • 2B/yr RD for Oracle alone
  • Leveraging best practices
  • Partnership Success Stories and Insight
  • Inefficient licensed solutions across DoD
  • Utilization of actionable metrics not just a DoD

Leveraging EA (cont)
  • Recommendations
  • Implement good enough ideas across Services
    more rapidly
  • Avoid delays and increased costs by not trying to
    be perfect for all
  • Pick an acceptable Best/Proven Practice first
  • Then rapidly roll successes across
  • Then continue to roll out planned enhancements
  • Align budget authority with policy decisions
  • Good ideas left on the table and often delayed
  • Individual programs execute short term needs with
    poor ROI downstream
  • Huge and GROWING cost for unused licensed
  • Exposure to improperly used unlicensed software
  • Netcentric licensing
  • Better leverage private sector business cycle
  • Service/agency independent, mutually beneficial,
  • Be smarter buyers
  • Embrace enduring partnerships with industry
  • More return on DoD investments and more industry
    interest in DoD

Web-Based Collaboration
  • Issue
  • How to better leverage intellectual capital of
    the force?
  • Discussion
  • Web-based social networking for collaboration
  • Mechanism for unleashing the flow of valuable
  • I want knowledge
  • I want it now
  • I want to communicate with people possessing that
  • I want to share my knowledge
  • I can help you avoid the same mistakes I made
  • I might be an expert and not even know it
  • He needs to know what I know, but he doesnt know
    I exist

Web-Based Collaboration (cont)
  • Discussion
  • The field no longer over there
  • Its here (its everywhere), with everyone else
    on the network
  • Collaboration provides broad, informal peer
    review for ideas
  • Blogs can proliferate inside firewalls
  • Diggers, taggers create a dynamic information
  • Challenges exposed earlier overcome sooner
  • Information seeks you not the other way around
  • Tagging/widgets
  • Shared content
  • Information, decisions developed w/ simultaneous
    input and review
  • Family members, family groups share the best
  • Use of video
  • The field consumes information on demand
  • Recommendation
  • Deploy a joint or interagency web-based platform
    for collaboration
  • Emulate industry leaders

Rise of Social Computing
  • Issue
  • Utility of Web 2.0 and Social Computing for DoD
  • Discussion
  • Digital communication
  • Creates new channels and medium for content
  • Social Media
  • Reaches the mainstream
  • Communication forms are naturally collaborative
  • Interactive platforms focused on sharing
  • Collective intelligence
  • Transforms communications into content
  • Technology-powered communications accelerate
    information velocity
  • Recommendations
  • Continue to integrate/leverage social media
    tools, interfaces, strategies
  • Across both operational and business domains
  • Workforce increasingly comfortable with
    technologies and expect them
  • Early implementation inside firewalls to address

Globalization Strategic Messaging
  • Issue
  • Influence of Globalization the Information Age
  • Strategic Messaging how DoD presents itself
  • International dialog
  • Discussion
  • Demographic shifts and new modes of communication
  • Balkanized American society/culture
  • Individualized info-age experiences dilute the
    common experience
  • Information ubiquity allows/requires choice and
  • International corporations losing national
  • IT and transportation defy borders
  • Unrestricted high-speed Info exchange enables
    off-shore recruiting
  • Ubiquitous Information
  • Voice, Video, Data - all on-demand mobile

Globalization Strategic Messaging (cont)
  • Audience for Strategic Messaging changing
  • Social Networking on a global scale - corporate
    and personal (Generation Y)
  • Allegiance to non-national entities growing
  • Balkanization Identification with transnational
    groups diluted nationalism
  • Divided global interests (corporate, economic,
    environmental, cultural, personal)
  • Less change in nations with relatively low
    literacy rates internet penetration
  • Greater change in most developed nations creating
    an imbalance
  • Vow to be dominant seen as naivety/hubris
  • Hegemonic rhetoric less appealing at best
    unrealistic, at worst self-defeating
  • Reinforces negative perception of U.S. as global
  • Recruiting campaign for insurgents
  • Counterproductive Internally - Generation Y wants
    to serve U.S. and the World
  • Widespread belief in cooperation/collaboration
  • Appeals to Purely National Goals Patriotism
    Less Effective

Globalization Strategic Messaging (cont)
  • Corporate Examples and Lessons Learned
  • Corporate Communications (Internal External)
    on message
  • Strategic Partnering effective
  • Global Outreach to world community
  • Borrowing interests/allegiances/perspectives
  • Compete in private cooperate in public
    collaborate for advantage
  • Recommendations
  • Leverage audiences multiple allegiances and
    global concerns
  • Engage and form partnerships with
  • On the train, not under it
  • Uncouple rhetoric of Dominance from notion of
    National Security
  • Think dominant, be dominant, but speak
    cooperation, collaboration, partnering
  • Biggest, loudest dog not always the most secure
  • TR - Speak softly, but carry a big stick

  • Background
  • Common Findings/Recommendations
  • Discussion / QA
  • Individual Experiences (FYI)

  • Background
  • Common Findings/Recommendations
  • Discussion / QA
  • Individual Experiences (FYI)

The Boeing Company
  • Worlds largest manufacturer of
    commercial/military aircraft, satellites, and
    networked systems
  • 2007 Financials
  • Revenue 66.4B
  • Earnings 4.1B
  • Backlog 327B
  • 37 international
  • 1 U.S. exporter to 90 countries
  • Employees 154K employees in 49 states, 70
  • Suppliers Over 22K worldwide
  • Business Units
  • Commercial Airplanes
  • Integrated Defense Systems (IDS)
  • Phantom Works
  • Boeing Capital Corporation
  • Assignment
  • Weapons Division of IDS in St Charles, MO
  • Small Diameter Bomb (SDB) and Focused Lethality
    Munitions (FLM)
  • Outstanding support, internal/external access,

Boeing Observations
  • Arrogant reputation not experienced
  • Values Ethics
  • Cost Estimation
  • Export Licenses Tech Asst Agreements
  • Four Corporate Initiatives key to Growth and
  • LEAN
  • Front office continuous process improvement
    waste elimination
  • Developing Process Excellence
  • ID and repeat best practices Boeing Production
  • Global Sourcing to leverage purchasing power of
    big Boeing
  • Drives commonality of stock parts amongst many
  • Internal Services Productivity to reduce IT,
    finance, legal redundancy
  • Matrix-ing engineering functionalities
  • Knowledge Sharing/TransferInitiative Database
  • Strategic to Tactical AlignmentVision Support
    Plan Visibility
  • Management Model vs. Lists

Boeing Observations/Recommendations
  • Program Management Best Practices
  • Communication
  • Customer is 1
  • Not always right may not be user
  • Organization
  • Empower Authority, Responsibility, Accountability
  • Business Offer and Plan
  • Expectation vs contractual words
  • Execution Control
  • Manage by Weekly Earned Value Management (EVM)
  • Risk, Issue, Opportunity Management
  • Desired mitigation costs more
  • Independent Reviews
  • Takes leadership courage to ask for help

Boeing Observations/Recommendations
  • Acquisition little-a
  • Operational Need Champion - Remember the
  • Cost/Schedule//Performance - Disciplined Systems
  • Competition and Help Teams - Source Selection
    schemes matter
  • Commercial Suppliers - Helping subcontractors to
  • Incentives Dis-incentives Dont abuse
    Management Reserves
  • Leadership Credibility - Need good military
    contractor PMs
  • Choose wisely!
  • Acquisition Big-A
  • Lead Systems Integrators gone by 2010?
  • Control abdicated a long time ago
  • Disciplined best practices vs. personnel
    rotational development
  • Protests are services issues
  • Source Selections will never be perfect

Lockheed Martin Corporation
  • Global Defense and Aerospace Contractor
  • Revenue 40B in 2007
  • Employees 140K
  • 70K scientists and engineers 25K IT
  • Main Business Segments
  • Aeronautics
  • Electronic Systems
  • Space Systems
  • Integrated Systems and Solutions
  • Information Technology Services
  • Corporate Strategy Grow Top Line
  • Operational Performance and Customer Satisfaction
    Top Priorities
  • Protect Core Competencies
  • Increase International Sales
  • Pursue Adjacent Markets and White Space
  • Assignment Missiles and Fire Control Business
  • Business Strategy and Development Human Resources

Lockheed Martin Observations
  • Level 5 Leadership - Lincoln and Socrates vs.
    Patton or Caesar
  • First WhoThen What
  • Track, Develop, Retain World-class Workforce
  • Intern, Development, Exchange Interchange
  • Confront brutal facts
  • Strategy for Success - Growth, Reputation,
    Innovation People
  • Hedgehog Concept - Best in the World at.
  • Enterprise Leadership Council
  • Matrixed Organization -- Lean, Flexible, and
  • Culture of Discipline
  • Disciplined / Rigorous Processes
    Metrics--Performance/Values Based
  • Technology Accelerators
  • Innovation vs. Technology Vis-à-vis
  • Investment Commensurate with a Technology Leader
    and Integrator

Lockheed Martin Recommendations
  • Stay disciplined in core competencies
  • Innovation vs. technology
  • Evolutions vs. revolutions
  • Fashion agreement for skill-sets
  • Mobilize industry
  • Expand business opportunities for leaders
  • Permanent / Rotational SECDEF Fellows
  • Mentorship Program
  • Model industrys succession planning
  • A company that is Built to Last
  • Choosing tomorrows leaders
  • Invest early in people and technology

3M Company
  • Innovative Diversified Technology Company
  • Revenue in 2007 24.5B (63 international)
  • Employees 73K (55 international)
  • Operations in 60 countries sales in 200
  • Six Businesses 35 units
  • Industrial Transportation - 7.3
  • Health Care - 4.0B
  • Display and Graphics 3.9B
  • Consumer and Office - 3.4B
  • Safety, Security, and Protection Services - 3.1B
  • Electro and Communications - 2.8B
  • Corporate Strategy
  • Grow Current Core Business
  • Complimentary Acquisitions
  • Build New Businesses
  • International Growth
  • Assignment Lean Six Sigma Operations

3M Observations
  • Not just Post-it Notes and Scotch Tape
  • Abrasives, Adhesives, Films
  • Dental and Health Care products and solutions
  • Business results are the defining measure
  • Entitlement Thinking
  • How good can you be?
  • Government contracting hard when not core

3M Recommendations
  • Lean Six Sigma Delivers Proven Results
  • Top-down push initially
  • Not a fad
  • Full time job for employees with belts
  • Opportunities for DoD in the transactional
  • Decisions are Data Driven
  • Must be able to pull the data
  • Robust data systems
  • Performance Based Evaluations
  • Annual goals and periodic reviews
  • 360 feedback
  • Merit based compensation
  • Dont forget the commercial marketplace

SRA International, Inc.
  • Global provider of technology products,
    solutions, services
  • Revenue 1.2B in 2007
  • 90 as prime contractor
  • Employees 6,200 worldwide and growing
  • Business units
  • Defense
  • Civil
  • Global Health
  • C3I
  • Deeply embedded culture
  • Focused on creating value for customers
  • Corporate trademark Honesty and Service
  • Undergoing significant leadership changes
  • Assignment Special Asst to the Civil Sector
    Director and VP

SRA Observations
  • Committed to innovation
  • The best idea wins
  • Open communication promoted up down
  • Environment of wide range participation created
  • Disciplined and lean business capture process
  • 2012 Targets
  • 5B revenue 10 Return on Sales (ROI) growth
  • Dedicated to employee development retention
  • Fortune Magazine 100 Best Company to Work For
  • Growing organically through acquisition
  • Challenges to the corporate culture
  • Maturation of the federal IT market space
  • Business Week Hot Growth Company
  • Customer valued
  • Hires are strategic

SRA Recommendations
  • Be open to jettison the tried and true
  • If a better solution emerges
  • Focus on the message rather than the messenger
  • Currency versus experience
  • The voice of the customer
  • Broaden Merit-based compensation
  • Clear expectations trust
  • The value of at risk compensation
  • Capture and publicize great ideas
  • Knowledge management requires cultural change
  • Train and expand the workforce for contracting

Athena - CACI
  • U.S. based, national security solutions
    professional services firm
  • Privately held equity investment
  • Veritas Capital
  • Revenues 110M in 2007
  • Employees 550
  • 200 subject matter experts
  • 95 TS/SCI clearances or higher
  • Core competencies
  • Human intelligence
  • Counterintelligence
  • Counterterrorism
  • All-source analysis
  • Strategic policy development
  • Bought by CACI in November 2007
  • National Solutions Group
  • Worldwide, information technology (IT) solutions
    enterprise services provider
  • Computer simulation technology
  • Publicly traded
  • Revenues 1.9B in 2007
  • Employees 11,000
  • 65 Secret clearances or higher
  • Core competencies
  • Homeland security
  • Information assurance
  • Systems integration
  • Network services
  • Intelligence solutions
  • Knowledge management
  • Modeling and simulation
  • Engineering and logistics
  • Business transformation/management

CACI Observations
  • Focused on strategic growth
  • 2012 Goal 5B company
  • Acquire high margin businesses
  • Win re-competes
  • Growing systems integrator role
  • Moving into non-IT professional services arenas
  • Continuing strategic accretive acquisitions
  • Acquired 39 companies in 15 years
  • Focused on lessons learned to improve integration
    of acquisitions
  • Increase speed of integrations to minimize time
    until return on investment
  • Customer focused
  • Account Management across business groups
  • Quality of service surveys through independent
    Excellence program
  • Best Value
  • Employee Focused
  • Education Portal
  • Competitive benefits
  • Bonuses

CACI Observations/ Recommendations
  • People are a companys core strength
  • Reputation integrity is paramount in
    professional services arena
  • Best source of business intelligence
  • Keep the employees satisfied
  • Education training opportunities
  • Benefits
  • Merit goals-based bonuses
  • Grow business base core competencies
  • Leverage acquisitions
  • Understand their competencies and how they fit
  • Maintain entrepreneurial spirit
  • Agile responsive business development cycle
  • Lean out the Bid Proposal (solicitation
    response) process
  • Flatten out the decision chain
  • Remain customer focused
  • Open communication
  • Best solution to customer
  • Account focused, not business group

Cisco Systems
  • Worldwide Leader in Networking and Services for
    the Internet
  • Revenue 34.9B in 2007 (Net Income 7.3B)
  • Employees 63,000 in 78 countries
  • Growth through Acquisitions (125 four in last
    five months)
  • Globalization, Growth, Talent, and Innovation
  • India China investments
  • Vision Changing the way we work , live, play,
    and learn
  • Consumer Computing Needs are Infinite
  • With miniscule incremental cost
  • Assignment
  • ITAcquisition Integration
  • ITUnified Communications
  • Global Defense Group

Cisco Observations
  • Optimism about Globalization and Emerging Markets
  • Wholly Positive View of Geopolitical Trends
  • Expanding Competitive Areas to include Unified
  • Focus on Quad Play (data, voice, and video
  • Connected Everywhere Regardless of Device
  • Interaction versus Transaction Economies
  • Collaboration replacing Command Leadership
  • DoD compares favorably
  • Collaboration has limits
  • Innovation Build, Buy, Partner, Collaborate
  • Growth brings Challenges
  • Core Business Thriving

Cisco Recommendations
  • Globalization view balanced between security
  • Borderless corporations
  • Opportunities and challenges
  • Pure competitors may not survive
  • Partnering and collaboration enhance stability
  • Leverage the Net for more than Net-Centric
  • Top Talent needed in high tech future
  • Where to find it?
  • How to Compete for it?
  • IT is worth the investment, but
  • Business case is not always easy to make
  • NEVER for technologys sake alone (no technology
  • Cyber Warriors can work from anywhereand should
  • New, more dynamic views of Training and Education
  • COTS and acquisition reform

Amgen, Inc.
  • World's Largest Bio-pharma Company
  • Revenue 14.3B in 2007
  • Employees 18K in 52 countries
  • RD Investment 3.2B in 2007
  • Discover, develop, manufacture protein-based
  • Drugs that unleash body's own powerful
    therapeutic responses
  • Corporate Goals
  • Deliver financially
  • Deliver the best pipeline
  • Compete successfully
  • Ensure supply and better manage risk
  • Develop people
  • Assignment
  • Ongoing Change Program
  • Continuous improvement at 80 cost savings
  • Assisting RD Outsourcing Strategy for

Amgen Observations
  • Work culture
  • Great people culture
  • Fortune Magazine 100 best companies to work for
  • Extremely long hours Tues Thurs short hours on
    Mon Fri
  • All employees have a laptop and work at home at
  • Teams work in silos
  • Formalities slow speed of progress
  • New members announced
  • Phone calls scheduled
  • Cross-matrix creates large unavailability chunks
  • Global country alignment out of date
  • Growth too fast 75 of positions already
  • Global Medical Director alignment different than
    business management side
  • A company in trouble
  • Stock Tumble 75 to 46 in 12 months
  • Need to take drastic measures
  • 1,800 jobs (13) eliminated across the board
    (except in science area)
  • Operating expenses and expenditures cut

Amgen Observation/Recommendations
  • Business World Craves DoD-style Leadership
  • Create an Ongoing Change Program Equivalent in
  • Common language and methodologies for problem
  • Institutionalize focus on continuous improvement
  • Focus on increasing efficiency and effectiveness
    in everything
  • Sustain U.S. Military competitive advantage
  • Stay ahead of global threat environment
  • More than just an office for Six Sigma or Lean

Oracle Corporation
  • Executing a rapid transformation
  • Employees 74K in 145 Countries
  • Revenue 18B in FY07
  • 47 Americas 35 Europe, Middle East Africa
    18 Asia Pacific
  • Used by 90 of Fortune 100 companies
  • Becoming an end-to-end enterprise solution
  • No longer just a database company
  • 39 acquisitions in 37 months
  • Oracle's business is information - how to
    manage, use, share, protect it
  • Simplify Speed information delivery with
    integrated systems and a single database
  • Standardize Reduce cost/maintenance with open,
    easily available components
  • Automate Improve operational efficiency with
    technology and best practices
  • Assignment
  • Public Sector License Sales/Business Development
  • North America (Federal, Civil, State Local
    governments, Healthcare)

Oracle Observations
  • Continual top-down strategic positioning
  • If an opportunity exists, then develop or buy a
  • Aligned behavior amid churn
  • Quarter-by-quarter growth
  • Open standards seen as a business enabler
  • Uncertainty Where is Oracle going next?
  • Customer base is uncertain about acquisition
  • What is Fusion Middleware?
  • No definitive answer
  • Opportunities for DoD and Private Sector
  • Enable a DoD voice in focusing 2B/yr RD
  • Leverage Partner Success Stories and Insight
  • Many individually licensed solutions across DoD

Oracle Recommendations
  • Continue
  • Executing national security mission as the
    unifying action driver
  • Developing personnel skills tactical/strategic,
  • Explore new ways to
  • Execute many Big Bang strategic initiatives
  • Dont Boil the Ocean
  • Rapidly roll successes across DoD and government
  • Decouple requirements definition from the real
    pace of technology
  • Often out of phase
  • Embrace enduring partnerships with industry
  • More return on DoD investments more industry
    interest in DoD
  • Utilize actionable metrics
  • Consistent data sources

Time Warner
  • Leading media entertainment company
  • Employees 96,000
  • Revenue 44B (7.3B net income)
  • Seven business units
  • Digital products reinforce brands
  • Competitive advantage through collaboration and
    Joint Ventures
  • a collaboration between two business
  • Turner Broadcasting (CNN) and Time, Inc
    (Fortune/Money/Fortune magazines)
  • Delivers premium destination for business and
    personal finance information
  • 1 business and financial information portal
  • Highest unique visitors, page views and total
    use minutes
  • Breaking news and in-depth original content to
    decision makers and influencers
  • Suite of interactive tools
  • Assignment
  • CNNMoney with rotation through Time Warner units
    in NYC
  • Turner Broadcasting (broadcast digital media)
  • Time, Inc (print digital media)
  • AOL (web services)

55 Observations
  • Users customize their online experience thanks to
    Web 2.0
  • Transition websites from silos to interlinked
    computing platforms
  • Tools such as blogs, social networking, wikis,
    web interface
  • Participatory elements provided over read-only
  • Allows users to do more than just retrieve
  • Ordinary users publishers, movie producers,
    song writers, story tellers
  • Social media is a profound and pervasive internet
  • Sharing what users know and feel online build
  • Content packaged/delivered based on user demand,
    device, delivery
  • Customer responsiveness the killer app of the
  • The Attention Economy
  • Due to information explosion, users no longer
    read - they skim
  • Rapid growth of information causes scarcity of
  • Winners will use data aggregation and
    personalization to deliver value
  • Web widgets, Real Simple Syndication, Mashups,
    iGoogle, myYahoo

56 Observations
  • Online Video Surge
  • Adoption of broadband
  • Push by content producers to promote
  • Viewers contribute to viral and social nature of
    online videos
  • 57 share video links
  • 75 receive and play video links
  • Mobile Webthe next big thing
  • Big in Asia and Europe but slow boil in the U.S.
  • Issue is usability
  • iPhones revolutionary user interface paves the
  • Explosion of location aware services,
    information/commercial portals

57 Recommendations
  • Explosion of data in battlefield combat systems
  • Web 2.0 tools/gadgets are ubiquitous parts of
    everyday life
  • Ready made solutions for DoD C2 and combat
  • Aggregate and streamline data to increase
    relevance and context
  • DoDs video management and distribution needs
  • Emerging online video technologies can be COTS
  • Data compression, embedded players, encoding
  • Quest for consumer attention a moving target
  • Web companies must continually innovate,
    reposition, partner
  • Improved data capture, analytics, and knowledge
  • Better informed business decisions
  • Digital ecosystem with other firms shared
    costs, greater value
  • People matter
  • Relevant, timely, and meaningful content
  • Recruiting and retaining editorial and management
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