Knowledge Management

1. Knowledge Management Southern California SPIN Meeting November 5, 2010 Northrop Grumman Space Park Redondo Beach, Ca Bob Payne Mark Britton Knowledge Management Aerospace Systems Sector Northrop Grumman Corporation Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

2. KM for SPIN • Northrop Grumman Aerospace Systems Sector • Video & Overview Chart with pictures • Journey of “OneNG” • What is Knowledge Management • Our Knowledge Management (KM) at NGAS • The KM Package • People • Process • Technology Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

3. Northrop Grumman Today • $32 billion sales in 2009 • $69 billion total backlog • 120,000 people, 50 states, 25 countries • Second largest U.S. defense contractor • Leading capabilities • Systems integration • C4ISR and battle management • Information technology and networks • Defense electronics • Naval shipbuilding • Space systems • Missile defense Approved for Public Release, Distribution Unlimited: Northrop Grumman Aerospace Systems Case 10-1197

4. Five Operating Sectors Aerospace Systems Electronic Systems Information Systems Shipbuilding Technical Services Large Scale Systems Integration C4ISR Unmanned Systems Airborne Ground Surveillance / C2 Naval BMC2 Global / Theater Strike Systems Electronic Combat Operations ISR Satellite Systems Missile Defense Satellite Systems MILSATCOM Systems Environmental & Space Science Satellite Systems Directed Energy Systems Strategic Space Systems Radar Sensors & Systems RF/IR Countermeasures EO/IR Targeting & Surveillance Navigation & Positioning Systems Space Sensors C4ISR Networked Systems Laser Systems Communications Systems Marine & Undersea Systems Propulsion & Power Generation Air Defense Systems Postal Automation Biodefense Command & Control Systems Network Communications Intelligence, Surveillance & Reconnaissance Systems Enterprise Systemsand Security IT/Network Outsourcing Intelligence Federal, State/Local & Commercial Homeland Security & Health Naval Systems Integrator Surface Combatants Expeditionary Warfare Ships Auxiliary Ships Marine Composite Technology Coast Guard Cutters Commercial Ships Nuclear Aircraft Carriers Nuclear Submarines Fleet Maintenance Aircraft CarrierOverhaul & Refueling Systems Support Base and Infrastructure Support Range Operations Maintenance Support Training and Simulations Technical andOperational Support Live, Virtual and Constructive Domains Life Cycle Optimization Performance Based Logistics Modifications, Repairand Overhaul (MRO) Supply Chain Management Lead SupportIntegrator (LSI) Approved for Public Release, Distribution Unlimited: Northrop Grumman Aerospace Systems Case 10-1197

5. Northrop Grumman Aerospace Systems • $10B Business • 23,000 Employees • Prime contractor/major partner on large platform programs • Manned & unmanned aircraft • Space & Missile systems • Differentiated by technology leadership • Large development programs • Long production cycles & substantial cash returns • Significant large new competitive opportunities • World-class workforce Leveraging the Power of Air / Space Integration Approved for Public Release, Distribution Unlimited: Northrop Grumman Aerospace Systems Case 10-1197

6. Aerospace Systems Global Hawk Space Systems Division STSS Restricted Strike and Surveillance Systems Division Fire Scout MissileSystems F-35 JWST B-2 MP-RTIP Trinidad F/A-18 Targets AEHF NPOESS Restricted Battle Management and Engagement SystemsDivision LCROSS Advanced Programs and Technology Division Broad Area Maritime Surveillance (BAMS) E-2 Tanker EA-6B Restricted ABL UCAS EA-18G E-8C JSTARS Maritime Laser Demo Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10 Restricted

7. Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

8. KM for SPIN Video: The Q Is In You 2010 Aerospace Systems (AS) Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

9. Electronic Components & Materials Electronic Sensors & Systems Div (ESSD) (Divested) Electronic Sensors & Systems Div. (ESS) Electronic Systems (ES) Electronic Systems (ES) Electronics & Systems Integration Div (ESID) Mission Systems (MS) Mission Systems (MS) Integrated Systems (IS) Integrated Systems (IS) Military Aircraft Systems Div (MASD) Integrated Systems & Aerostructures Div. (ISA) Space Technology (ST) Space Technology (ST) Commercial Aircraft Div (CAD) Ship Systems Ship Systems (SS) Newport News Newport News (NN) Data Systems & Services Div (DSSD) Logicon, Inc. InformationTechnology (IT) InformationTechnology (IT) Technical Services (TS) Technical Services (TS) Logicon Building the Company Aerojet 10/01 Litton 4/01 Northrop Newport News 11/01 CommercialAerostructures7/00 NorthropGrumman Component Tech. 10/02 (*) Computers Displays 9/02 Electron Devices 9/02 5/94 Logicon 5/97 Grumman 8/94 VoughtAircraft INRI 9/98 Xontech 7/03 TRW12/02 Fibersense 12/02 FDC 10/00 Sterling Software 10/00 Cal Mic 4/99 DPC 6/99 Comptek 6/00 WestinghouseDefense Electronics3/96 Ryan 7/99 Navia 4/00 1993 1994 1995 1996 1997 1998 1999 2000 2001 2003 2004 2005 2006 2007 2002 Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10 (*) Announced as discontinued operation Corp / IS Overview 120406 Rev A

10. Number of Employees TRW12/02 Aerojet 10/01 FDC10/00 Fibersense12/02 Cal Mic4/99 Litton4/01 Comptek6/00 Vought Aircraft8/94 DPC6/99 Sterling Software10/00 Newport News11/01 INRI9/98 Westinghouse Defense Electronics3/96 Navia4/00 Xontech7/03 Grumman5/94 Logicon5/97 Ryan7/99 Journey to “OneNG” 1994 1998 2000 2002 Today ChangeDrivers Technology Market Demands Integration Demographics Consolidation Corp. KMSummit I SummitVII Corp. KM Council KM Object Inventory Find NG KMInitiatives TalentPool 1 NG PMO Corp. KM Strategy 1st NG KMGroup Formed 1st Livelink PeopleNet APQC Award 1st CoP How do I ShareCenter Other Initiatives CEFormed CASH Quality Circles FSC SEAG LEAN ACE TQM Air ForceKnowledgeNow (formal KM Program) Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

11. Knowledge Management Retain, Create, and Leverage Knowledge to Renew and Innovate “Our intent is to understand and codify knowledge into explicit forms if we can and to understand knowledge in it’s tacit form and enable it’s flow from person to person.” –Mark Britton, NGAS PM KM Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

12. Process-based KM After Action Reviews Lessons Learned Project Milestone Reviews Enabling Knowledge Flow • Facilitated sharing/transfer • Internal benchmarking Tacit Facilitated Best Practice Transfer Peer Assists Tools and Systems that allow users to self-serve knowledge or find experts Network-Based KM CoP’s Team Meetings Virtual Collaboration Knowledge Transfer • - Groups that share, learn • Held together by common interest in topic • Trade tools, templates, b.p.’s • Solve business problems Self-Service + Websites Repositories CRM Systems Email/Discussion Boards Systematic tools to gather process-specific knowledge and reapply to relevant situations Expertise Locator Systems Taxonomy/Classification Systems Explicit Search Engines Human Interaction Lower Higher Source: APQC Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

13. Leadership & Strategy Use Create Adapt Culture Management Value L e v e Identify Share r g a g n Capture i Organize i n k g Technology n i KM Process KM Enablers L L e a g r n i n Knowledge Management Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

14. Changing Mental Models To • During work • Learning before, during & after • Process imbedded solutions • Learning • Knowledge objects • Just in time, just enough • Proactive knowledge retention • Capability, capacity and continuity • Knowledge flow • Crossing boundaries via communities of practice • Sharing work • Collaborative systems • Collaborative offices From • After the fact • Lessons learned • Knowledge capture events • Training • Courses & classrooms • Just in case • Passive knowledge retention • Fingers crossed • From knowledge capture • Driven by events (retirements, moves) • Heads down work • Command and control • Don’t waste time talking Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

15. Knowledge Management at NGAS HOW WHERE WHEN WHY KM Connects Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

16. Effective learning Timely, trusted, highly relevant knowledge Context Conversations Content Communities of Practice Community noun (pl. communities) • A group of people living together in one place. • The community, the people of an area or country considered collectively; society. • A group of people with a common religion, race, or profession: the scientific community. • The holding of certain attitudes and interests in common. • A group of interdependent plants or animals growing or living together or occupying a specified habitat.  -WEBSTERS There are over 200 communities across the company, such as Systems Engineering New Managers Connect1NG (new hires) Property Management Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

17. Attract and Retain thru Sharing in a Cop “To Leverage Knowledge, Don’t Focus on the Knowledge Itself. Focus on the Communities That Own it and the People That Use it.” Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

18. Connect1NG Connect1NG membership includes 7,800 members across the Enterprise Geographically reaches 70% of the employee population and is the largest Enterprise wide program The Connect1NG Vision: “Connect1NG creates professional and social networking opportunities for employees, connecting them across Northrop Grumman to foster assimilation, knowledge sharing, and retention.” The Connect1NG Mission: “The Connect1NG program not only provides NGC with a unique offering for employees, but also energizes the employee population. By communicating to targeted audiences within the employee population, employees will feel more connected to Northrop Grumman, therefore becoming more energized and motivated. “ Community Benefit Knowledge Transfer Develop/ Mentor Cross Sector Sharing Assimilation • Connect1NG Growth • 4500 members at generation of Connect1NG • Currently 7300+ Leadership Retention Recruiting Engagement Relationship Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10 Improved Employer

19. Community Habitat for Humanity Tutoring Networking Socials VP Mixer Cross Sector Collaboration People Friendships Teamwork Growth Professional Development Mentoring Knowledge Sharing Career Growth Retention New Hire Assimilation Relationship Building Educational Development Classes Lunch & Learns Recruitment Networks Membership Connect1NG today • Opportunities to Engage • Networking Events • Beach Volleyball • BBQ • Beach Day Bonfire • Summer Games Industry Mixer • Habitat for Humanity • USO Fundraisers • Lunch and Learns • General Body Meetings • Cross NGR Mixer • New Grad Acclimation Program for New Hires • VP Mixer Networking Event • Panels • Tours • LA Area Launch (5 different C1NG chapters involved) • Mentor Program • VP Mixer Leadership Skills Community Outreach Networking Opportunities Professional Growth Development 1st Chapter started with 13 in 2001 Membership Growth in 2009 January – September El Segundo 500 to 1000+ Connect1NG Officer Positions President Vice President Communications Treasurer Social Chair Community Service Chair Education and Skills Development Chair Membership Chair “The chat session…was a great way for the Connect1NG membership to reach out and ask tough questions to leadership. Leadership forums such as these are a great way to spread the companies plan forward and have employees give their feedback.” -El Segundo Connect1NG Board President 2009 Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

20. Knowledge Sharing Awards Promotes asking and sharing Nominations by peers via a website Presentations made quarterly by senior leadership Followed by news articles Knowledge Sharing News Knowledge News Network Published quarterly Target audience: leadership and those involved with KM solution implementations Rewards & Recognition Integrator article on knowledge sharing awards Our success comes from 10 years of continuous support and dedication It is about people, their networks, their conversations and how leaders of organizations can reduce the barriers to asking and sharing Our focus today is on people and our knowledge asking, sharing and reuse culture Collaboration solutions for teams and communities Search solutions to find people and documents Content management solutions and practices Learning solutions and facilitation Knowledge sharing leadership Communities of practice Rewards & recognition Knowledge sharing newsletter Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

21. Managing Our Talent Discipline Management • Process to rapidly tap and assign the best Engineering, Logistics and Technology talent • Provides strategic management of talent across the sector Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

22. Manager’s Cubicle File File Highly Collaborative Teaming Area Informal Meeting Space Personal Space Promoting Collaboration in the Office Collaborative Physical Workspaces Increased... • Collaboration • Knowledge Sharing • Network Connectivity • Mobility, Flexibility & Adaptability • Workflow • Morale Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

23. Tacit Knowledge* is ”Know-how” contained in peoples’ minds typically passed person-to-person Challenge: recognize, capture, and share it *Often quoted distinction between explicit and tacit knowledge attributed to Michael Polanyi, “The Tacit Dimension” Tacit Knowledge Continuity • Applied Example – Production • Production line mechanics retiring creating risk of knowledge loss • Utilized knowledge capture and transfer solutions resulted in the program maintaining production • Transfer of knowledge to supplier resulted in resolution of a significant quality problem Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

24. Knowledge & Value Stream Mapping Approach Integration of; Value Stream Mapping, Knowledge Mapping, & Process Automation • Value Stream Mapping identifies and eliminates unnecessary steps along a process path to improve throughput • Knowledge mapping ensures that all necessary knowledge/information is identified, included, and made available to minimize SPF • Automation delivers closed-loop streamlined processes which gather performance metrics, include business rules, and virtualizes all steps within the stream. Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

25. Learning Tools Business Task/Process PA Learn Before AR AR AR AR AR Plan Execute RS Analysis Learn During AR RS Learn After PA Members participate as peers 1 2 Relevant Community Learning through Lessons Learned Lessons Learned & Applied • Enables continuous learning • Peer Assists (PA) • Enables tapping company experience - quickly • Effective for team to team knowledge transfer • Action Reviews (AR) • Simple, end-of-day (action) reviews • Retrospects (RS) • Most effective when the team will be repeating a similar process Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

26. Web 2.0 Technology • Web 2.0 - what’s the hype? • Networking capabilities • Virtual, mobile • User-generation of content • Many to Many communications • Dynamic and Collaborative • Knowledge sharing • Innovation Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

27. ourForum • ourForum  Online platform for threaded discussion over categorized topics • Currently 5,324 registered members and 21,023 posts in 2,361 threads Forum Structure  Our World  Our Strategy  Our Employee Life  Our Social Life Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

28. The Chat Session on ourForum • Chat Stats • 63 Total Posts • ~3680 Current Views • 197* Members on at live • time *RECORD SET • 397 additional registered • during event promotion • timeframe (204 on Chat • day alone) “Good opportunity to communicate with those you don’t have access to on a daily basis.” Why? “To remain in touch with employees, helps morale” “Feel connected” “Communication prevents rumors” “It inspires low level employees to share ideas and feel more connected to high level management” “The forum allows immediate two-way access between the execs and non-managers in the sector. Messages are often filtered in other ways, but this is safe exposure to ideas from both groups.” YES 97% Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

29. Providing Fast Answers How do I? • Provides knowledge about common business process • Sites for employees and managers • Created by new employees and new managers • Technology: Simple HTML website Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

30. KM 10 years Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10

31. KM Creating Lasting Change Approved for Public Release, Distribution Unlimited: NGAS Case 10-0140 Dated 2/10/10