Original Date: 08/07/1995
Revision Date: 01/18/2007
Best Practice : Goal Deployment
Lockheed Martin Tactical Aircraft Systems (LMTAS) uses an effective means to communicate company goals. These company goals and objectives are defined yearly, documented, displayed throughout the facility, and translated into individual employee objectives. Each employee is aware of what is individually required to ensure company goals are met.
Employee performance ratings and rewards reflect how well employees are meeting the objectives, and no quotas exist on any level of performance rating. Within each performance rating level and job type, employees are ranked and rewarded based on that ranking. Metrics are established for monitoring the progress toward meeting the goals and objectives. Rewards can be either financial or progress on a career path.
Rewards are designed to motivate employees and to recognize outstanding performance that improves LMTAS’ effectiveness. Financial rewards include merit compensation, special recognition awards, and instant recognition awards. Non-financial rewards include the spotlight award. Career path rewards can be increasing responsibilities, special assignments, or promotions. Increased responsibility results from an employee exceeding assigned goals/objectives and can be as reassignment to a task that adds responsibilities. The increased responsibility can involve expanded difficulty of tasks, coordination with higher levels of management, or a leadership role. Special assignments involve placement of an employee in a special role as a reward for excellent performance. Although financial rewards are part of promotions, the expanded responsibilities and the opportunity to move upward in the organization enhance an individual’s career path. Promotions are the result of an employee consistently exceeding performance standards and the goals and objectives they are assigned.
Significant improvement in metrics have occurred from 1991 to 1994. The requests-for-engineering-actions backlog decreased from 950 items with a 12-day turnaround to 53 items with a 2-day turnaround. The on-time scheduled events’ rate has improved from 60% to 96.8%. The manufacturing support has decreased by a 32% reduction. These improvements are the result of goals and objectives being clearly defined and communicated to all employees.
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