60 likes | 171 Views
Scoping the Leadership Challenge. John H. Young, Jr. President and CEO EADS North America Defense Company April 10, 2006 . R&D Programs Continue to Increase Share of Total Defense Outlays. RDT&E Outlays as a Percentage of Total RDT&E and Procurement.
E N D
Scoping the Leadership Challenge John H. Young, Jr. President and CEO EADS North America Defense Company April 10, 2006 NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management
R&D Programs Continue to Increase Share of Total Defense Outlays RDT&E Outlays as a Percentage of Total RDT&E and Procurement • The number of RDT&E contracts have increased dramatically • Greatest challenges and performance risks faced in the development phase • Production contracts less likely to materialize • Our ability to manage increased risk has been affected • Diminishing leadership workforce • Aging workforce predicament affecting both the Aerospace/Defense industryand DoD’s acquisition community NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management
Significant decrease in the 30-45 Age Group since 2000 2005 NCMA Membership Survey Survey Mean Age = 48.9 years Company X Mean Age in 2005= 46.4 years Avg. Age by 2010 = 50+ years Company X Mean Age in 2000 = 42.7 NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management
Mean = 16.6 years Median = 17.0 years Company X 43% >20 years Company X 32% <10 years Company X 25% 10-20 years (Future Leadership Pool) 2005 NCMA Membership Survey NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management
Challenges • Between 40 percent and 60 percent of the workforce will be eligible to retire in the next three to five years • Creates a leadership shortage that has not been seen before • Capturing intellectual capital and past experience • Jeopardy of losing “corporate” knowledge • Developing the next leadership cadre • Broad experience, training and personal development • Attracting and retaining a workforce with the appropriate skills and experience level • Competing with commercial market • Enticing young professionals NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management