ITT Defense Electronics & Services

Management magic┬áITT Defense Electronics & Services has developed a comprehensive business management model that provides a sustainable and efficient framework within which the business can operate and grow, as Vince Thomas explains to Gay Sutton.  ITT Defense Electronics & Services, a division of global engineering and manufacturing giant ITT Corporation, provides sophisticated communications, sensing and surveillance equipment, and advanced engineering and integrated services to both government and commercial customers in the defense sector.  It also produces a wide range of systems and services for the space industry, as well as providing the Federal Aviation AdministrationÔÇÖs next generation air traffic management system. Over a decade ago, ITT Corporation set out on a path to develop an integrated business management system that today acts as a framework within which all elements of the business can function efficiently. This in turn has created greater efficiencies within each of the operating units and has made the decision-making and execution processes more robust, reliable and repeatable. ÔÇ£The best way to describe the ITT Management System (IMS) is to begin with our companyÔÇÖs vision. Our vision is the fundamental building block that permeates all aspects of our business model,ÔÇØ explains VP operations Vince Thomas. As he describes it, the vision for the corporation has five basic elements. ÔÇ£Doing essential things in extraordinary ways; using our values as our compass as we strive to do the right thing always; making our customers central to everything we do; creating an environment where our people are inspired to make the world a better place; and knowing that our work is critical.ÔÇØ This foundational IMS is integral and consistent across all of ITT Defense. The company aims to ensure that its products are highly engineered and reliable, and that by helping customers achieve new levels of success, the company achieves its own higher level of success. The last two elements of ITTÔÇÖs vision are also linked to each other and relate to the essential role that the companyÔÇÖs products and services play in national security and public safety. ÔÇ£All members of our team understand that they are involved in providing goods and services that safeguard the lives of those who are protecting the freedoms we enjoy. This creates teamwork, collaboration, and an environment of collective desire to make a difference in the world,ÔÇØ Thomas says. ÔÇ£WeÔÇÖre always aware that when a soldier or a public safety officer activates the on-off button on one of our devices that their personal safety and maybe their life is depending on our commitment to products and services that are ÔÇÿEngineered for LifeÔÇÖ.ÔÇØWhen defining the values by which the company wishes to operate, many have been considered over the years. ÔÇ£But we have now come back to just three: respect, responsibility and integrity. If your personal value system doesnÔÇÖt resonate with these values, then youÔÇÖre probably better off finding someplace else to work,ÔÇØ he comments.With an overarching aspiration to be a premier multi-industry company, the companyÔÇÖs strategy can be summarized very simply: achieve profitable growth, optimize the use of resources, achieve operational excellence, and excel in leadership and learning. Many companies develop a vision and strategy along these lines. But at ITT, itÔÇÖs a set of key processes that support and underpin these strategies that ensure best practices permeate every area of the business to produce reliable, repeatable, profit-generating results.The company uses an analytical tool known as value-based management (VBM) that enables ITT to weigh and evaluate competing business opportunities selecting those that will create the greatest value per unit of invested of capital. Business decisions are then made on a sound factual basis. ÔÇ£This is the fact based structure around which we develop our annual strategy for each of our business units. Unit plans are aggregated by group and ultimately comprise the final ITT corporate strategy.ÔÇØThe next analytical tool is called value-based product development (VBPD) which governs the product development process. Beginning with a process for capturing the customersÔÇÖ needs, the process encourages alternative value-based solutions to be considered. Then, through a systematic stage gated decision process, the company decides at milestone reviews whether to continue the design effort to the next stage of development or take them offline.Having identified business opportunities and product development strategies, the next tool ITT deploys ensures appropriate resource allocation across the company to support the strategic plan. ÔÇ£This is our Premier Resource Management (PRM) process,ÔÇØ Thomas says. ÔÇ£It aligns the value conversion processes of our factories with our business strategy. Through the process, we develop manufacturing, footprint, working capital and staffing strategies. Once these operational strategies have been developed and aligned with the overarching business strategy, then Best Value Sourcing Plans are developed to enable effective execution. Underpinning the strategy of operational excellence is the ITTÔÇÖs Value Based Lean Six Sigma (VBLSS) process. Formally kicked off in 2001, lean & six sigma serve to enhance productivity throughout the organization. Thomas notes that ÔÇ£this has become the systematic process embedded in our culture that continuously prioritizes improvement opportunities and assigns black belt and lean teams to deliver performance improvement objectives. Each business unit has an integrated infrastructure of VBLSS champions, black belts, master black belts, lean masters and green belts to effect positive change across our organization.ÔÇØThe most recent addition to the portfolio of tools ITT uses to deliver its business strategy is called value-based goal deployment (VBGD). ÔÇ£VBGD forms the backbone of our monthly governance model and serves as our execution control process,ÔÇØ Thomas explains. It considers short term and long term business objectives, process enablers and metrics, and then assigns individuals and teams to the selected metrics and process improvement objectives.Finally, the company invests considerably in learning and development. ÔÇ£We take a very broad view of leadership,ÔÇØ Thomas says. ÔÇ£Through our value-based leadership development (VBLD) process we are always working to expand the capabilities of our leaders to ensure they are equipped with the tools required to achieve our business objectives.ÔÇØTying all these tools and processes together is ITTÔÇÖs annual calendar. The annual planning calendar ensures that ITT executes its business strategies in a systematic and coordinated fashion. Each aspect of the business cycle is considered, planned for and underpinned by robust processes. Businesses canÔÇÖt run for long in an ad-hoc fashion and ITTÔÇÖs management system ensures that they wonÔÇÖt. ÔÇ£Great companies have great strategies and great execution and the IMS is our way of ensuring that we cultivate both disciplines.ÔÇØ concludes Thomas.The final benefit of this business management model is a human one. ÔÇ£From an employeeÔÇÖs perspective, ITTÔÇÖs a great company to work for. YouÔÇÖre part of a great team, delivering results and getting recognized for it. And no matter how long your working day goes, you can always go home at night and not worry about the decisions youÔÇÖve made, because theyÔÇÖre within a framework to which everyone is committed,ÔÇØ Thomas concludes. ÔÇ£This is the glue that sticks us all together.ÔÇØ ÔÇô Editorial research by Tim Conlon