No. 1: Lockheed stays big, agile

Realignment under Gooden results in full pipeline

Lockheed Martin Corp.

Top 100 revenue: $13.4 billion

2007 revenue: $41.9 billion

2007 net earnings: $3 billion

2006 revenue: $39.6 billion

2006 net earnings: $2.5 billion

Employees: 140,000

http://www.lockheedmartin.com

For 14 years, Lockheed Martin Corp. has held
the No. 1 spot on Washington Technology's
Top 100 ranking of the largest government
contractors.

And the company, which gained $13.4 billion
in prime contracts in 2007, shows little inclination
to rest on its laurels. If anything, Lockheed
Martin is more focused than ever on being the
go-to contractor for its federal customers.

In February 2007, the company created the
Information Systems and Global Services business
sector, which combined two existing units
? Integrated Systems and Solutions and
Information Technology and Global Services ?
into one business headed by Linda Gooden,
executive vice president.

The idea, Gooden said, was for Lockheed
Martin to respond more
quickly to customer
demands and bring more
unified solutions and systems
to the market.

"If you look at some of our
recent contract wins, you
can see the positive results of
our strategy," Gooden said.

Marquee wins include the
FBI's Next Generation
Identification system, a 10-year, $1 billion
upgrade to the Integrated Automated
Fingerprint Identification System, which
Lockheed Martin holds.

Other contracts Gooden used as examples
include a $766 million Defense Department
contract that is part of the Joint Tactical Radio
system. The system will bring networked, tactical
communications to the battlefield.

"We also have a very full pipeline of
opportunities in the near term," Gooden
said.

The company is chasing a major outsourcing
contract at the Energy
Department and a NASA software development
support contract for human spaceflight
operations. Lockheed Martin also is
preparing to recompete its Transportation
Security Administration security training
contract.

With these wins and upcoming opportunities
as a backdrop, Gooden and her team
have spend much of the past 15 months
pulling the new unit together and building
a common culture, she said. "From an
operational perspective, we found that it
was a lot different than we expected."

Gooden has spent a lot of time talking to
customers to understand
their short- and long-term
challenges and understand
their expectations of
Lockheed Martin. She also
divided the business into
three groups ? mission
solutions, information systems
and global services ?
to create what she called
agile aggregation.

"Each group has unique market behaviors,
business models and different technology investments,"
she said. "But each can reach back to the
others to add value or innovation or define a
perfect price point for a customer."

A third priority was communications with the
52,000 employees in her sector. She needed to
set expectations, explain her strategy and make
sure employees understood their role in it.

Another goal of the communication strategy was
to foster a feeling of entrepreneurship.

"Each person in the group needs to feel
empowered to bring new ideas forward," she
said. "Each individual has to feel they are making
a difference for the customer and for the
corporation."

Gooden sees the challenges that face
Lockheed Martin's customers falling into four
areas ? cybersecurity, war on terrorism, interoperability
and workforce.

"We and our customers are facing a growing
number of significant challenges," Gooden said.
"But I would also say the federal government
market is a vibrant and mature market that has
weathered significant change over the last 20
years, and I think we have all grown because of
this. With these challenges, we also have opportunities,
particularly when we focus on delivering
new and innovative solutions."

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