Management Perspectives

Steve TrieberGMUApril 22, 2004

Organizational Rules•. I will be accountable for my own actions and performance.

• I will evaluate the impact my decisions and actions have on others before moving ahead..

• I will honor my commitments by doing what I said I would do, when I said I would do it, and if I cannot comply, I will notify as soon as possible.

• I will be courteous and respectful of others, be prepared, and on time.

• I will resolve differences directly and quickly.

• I will continue to learn and share my knowledge with others.

• I will support group and team decisions even if they are different than my own position.

• It is okay to agree to disagree.

Always Have FunTreat Others Well Stand-up for your Team

Create Opportunity

My Background• 18 Yrs of Experience, 10 years

management– Avionics, Missile, Satellite, SE&I and New

Business Development– Hughes (LA), LMC (NJ, VA) Northrop Grumman

(CA, VA)

• Education: BE, MSEE/SE, MBA• Married for 18 Years - 3 kids, wife a

teacher.

NGIT, TASC Corporate Background

Headquarters: Los Angles, California 120,000 Worldwide Employees Leading Defense Enterprise $25+ Billion 2003 Estimated Revenue Leading Provider of Federal IT Services

Merging of Logicon, PRC, TASC, TRW, etc.

One of the Top Three Space Developers

NG Corporation

• Airborne Radars

• C4ISR

• Electronic Warfare

• Navigation & Guidance

• Military Space

• Homeland Security

• Tactical Aircraft

• Long Range

• Unmanned

• Airborne Early Warning & Surveillance

• Air-to-Ground Surveillance

• Airborne Jamming

• Naval Systems Integrator

• Aircraft Carriers

• Attack Submarines

• Surface Combatants

• Amphibious Assault Ships

• Auxiliary Ships

• Command, Control and Intelligence

• Digitized Battlefield

• ICBM Sys. Mgmt.

• Missile Defense BMC3

• Defense/Civil Software Application Dev.

• Information Warfare

• Homeland Security

• Intelligence, Surveillance, Reconnaissance

• Laser Weapons

• Military SATCOM

• Scientific Satellites

• Military Avionics

• Cutting-edge Micro-electronics

~$6.1B ~$4.7B ~$3.7B ~$5.2B ~$3.9B ~$2.5B 2003ERevenue2003E

Revenue

Integrated Systems

Integrated Systems

InformationTechnologyInformationTechnology

Ship Systems /Newport NewsShip Systems /Newport News

ElectronicSystems

ElectronicSystems

MissionSystemsMissionSystems

SpaceTechnology

SpaceTechnology

• C4ISR

• Government IT Infrastructure

• Science & Technology

• Information Security/ Assurance

• Enterprise Solutions

• Homeland Security

NGIT, TASC Corporate Background•

– 37+ years supporting sensitive programs– More than 3,800 employees

• >55 % with Advanced Degrees– On-Site MS Programs: GW, George Mason, Old Dominion

University• >65 % with Active Top Secret Security Clearances.

– Headquartered in Chantilly, VA– 2003:

• $770 M Revenue• $1700 M Backlog• 18% Growth

– SE&I & SETA Support to:• NRO, CIA, NIMA, NSA, DOD

TASC

Seamless Communication System:IP based Private Intranet

Space based Optical backboneHAIPE based Security Architecture

Black core Red edgeEvery sensor, solider and weapon on-line

• Customer Base:– DOD INTEL Organizations

• SE&I• Operations• Special Communications• Modeling and Simulation

– DISA/WHCA– Air Force/TCM

• Specialization: Satellite Comm, Modeling and Simulation, Radio/Wireless Comm., Network Architecture, SE&I

Secure Mission Comms

15 Eng$2-3M

2001 60 Eng$15M

2004 100 Eng$30M

2005/6

• Retain your engineering staff• Maintain current customer base• Get outstanding award fees• Grow future leaders• Get training for your staff• ID 3-5 NEW customers• Pursue 2-3 NEW opportunities and WIN• Sell our IRAD Investment

Secure Mission Comms - Mgmt Goals

Agenda - Open Discussion• Decision Making process

– How it relates to your project

• Real example– Background– How would you pursue the

opportunity and get buy-in?– Outcome.

Sr. Mgmt Seeking (services org.)• High returns• High Win Rate• Destruction of Competition in category

– Own 75% of Market– Low Investment Costs (proposals)

• Capability to enter new markets - low cost to entry

• Outstanding Reputation• Low turn-over employee rate• Customers that pay their bills.

What answers you must have.. Before an investment or project will be started

• Who ?• What ?• Why ?• How

Much ?

ENGINEERING MARKETING

Know your business - Growth-shareWhere you stand in the Company

OutstandingPerformer

PotentialStars

Cash CowPoor

Performer

HighGrowth

Slow Growth

High Share Low Share

TASC

Competition and Strategy

• Strategy - Roadmap• What is your environment - map it

out– Understand your boundaries

• Competitive Environment• Anticipate Competitive and

Cooperative Dynamics• Build and Sustain Success.

Know who you are presenting to(Customer or Manager).• What do they like:

– Lots of pictures– Text– Lots of Charts– 3-5 Charts– Figures, Plots

• Willingness to gamble• History - military, commercial, education• Family• Who they like• Do they have money, are they the decision maker?

Decision Makers

OPERATIONAL-LEVEL EMPLOYEES

MIDDLE-LEVELMANAGERS

TOP-LEVEL

MANAGERS

Abi

lity

to o

verr

ide

cont

rols

Control M

echanisms

Management Strategic FrameworkEnvironment& Trends•Economic•Technical•Political•Community•Physical

Opportunities& Risks•ID•Inquiry•Assessment of Risk

DistinctiveCompetence•Capabilities:

• Financial• Management• Line organiz.

• Reputation•History

Corp. Resources•Strengths•Weaknesses•IR&D•Capability

ConsiderOpportunities

Evaluation ofopportunity and

resources necessary

Strengths, Weaknesses, Opportunities, Threats….Business, engineering, decision making

Strengths Weaknesses          

Opportunities Threats               

     

        

INTERNAL

EXTERNAL

Marketing Strategy Planning ProcessMarketing Strategy Planning Process

CustomCustom

ersers

CompanyCompanyS.S.W.W.O.O.T.T.

External Market EnvironmentExternal Market Environment External Market EnvironmentExternal Market Environment

Narrowing down to a focused marketing strategy

Positioning &Positioning &

DifferentiationDifferentiationPositioning &Positioning &

DifferentiationDifferentiation

Targeting &Targeting &SegmentationSegmentationTargeting &Targeting &SegmentationSegmentation

CompetitorsCompetitors

TargetMarketTargetMarket

ProductProduct ProductProduct PricePricePricePrice

PlacePlacePlacePlacePromotionPromotionPromotionPromotion

Perfo

rman

ce Metrics

Perfo

rman

ce Metrics

Perfo

rman

ce Metrics

Perfo

rman

ce Metrics

Five Industry ForcesSuppliers•Differentiation•Supplier concentration•Substitutes•Importance•Volume•Costs•Threat of Forward/ backward Integration

Substitutes•Price•Performance•Switching Costs•Buyer???

New Entrants•Brand Identity•Capital Requirements•Proprietary Products•Switching Costs•Assess to Distribution•learning Curve•Access to Technology•Lower-cost or higher quality Product design•Gov’t policies•Retaliation

Industry Competitors•Fixed Costs•Product Differences•Brand Identity•Switching Costs•Information Complexity•Corporate Stakes•Exit barriers

Buyers•Buyer volume•Switching Costs•Information•Buyer Benefits•Price-sensitivity•Product Differences•Brand ID•Quality•Incentives

Factors to Consider

Value Net

Customers

Firm

Suppliers

Competitors Complementors

A player is your complementor with respect to customers if customers value your product more when they have the other player’s product as well

A player is your competitor with respect to customers if customers value your product less when they have the other player’s product as well

A player is your complementor with respect to suppliers if it is more attractive for a supplier to provide resources to you when it is also supplying the other player

A player is your competitor with respect to suppliers if it is less attractive for a supplier to provide resources to you when it is also supplying the other player

Source: Adam Brandenburger and Barry Nalebuff, Co-opetition (New York: Currency Doubleday, 1996)

The value net extends five forces to include more complicated supplier / competitor / customer relationships. It should also be quantified.

Threat of New Entry

Rivalry Among Existing Competitors

Bargaining Powerof Customers

Threat of Substitutes

Bargaining Powerof Suppliers

Availability of Complements

Expanded Industry Analysis

Government and Standards

Politics

Mission/Product Technology Matrix

Market Penetration

Product Development

MarketDevelopment

Diversification

PresentMission

New Mission

Present Product New Product

Case Example• You are a manager of a small department.• You have an excellent staff and growing at 15% a

year.• You have been asked to start a new office in LA.

– Your company has already spent over $2M and have no new customers and no engineers in Southern Cal.

• You worked in LA about 5-years ago as a manager.• LA AFB has 2 new projects starting:

– Space-base Radar– Next version of MILSATCOM

• You lost your last proposal effort – Spending over $150K.

Where do you start,and WHAT ???

Class Project

1994 1997 2000 2003 2006

10

8

6

4

2

0

Network Growth

MUX’s/Phone Switches

Circuits

Nodes

Bandwidth