Customer Success Is Our Mission 1 Ed Franklin Raytheon Company Evaluation Team March 23, 2005 The RCET: What is it? and What have we seen?

2 What is the RCET? The Raytheon Company Evaluation Team or RCET is a small corporate group reporting directly to the Chairman and CEO. The purpose of the team is to: Increase competitive edge by utilizing a high profile team to provide independent evaluations across the company on a wide variety of topics and issues –Provide independent assessment for senior management of the company (governance “gut check”) Accelerate closure on initiatives and issues –Provide early warning to allow course correction Raise the level of performance of all businesses by performing meaningful comparisons across businesses and facilitating the dissemination of best practices (both internal and external) and lessons learned –Collect, utilize, disseminate and initiate action based on benchmarking data from consulting firms

3 What the RCET Is and Is Not The RCET is: –A company resource focused on improving the company RCET is not: –A Red Team –A Functional Review Team –A policing organization or an attempt to “catch” people doing something wrong

4 Typical Process for an RCET Project Topic requested by CEO or Business Leader & approved by CEO Project team identified Clear, specific project charter developed by project team & approved by RCET Leader and CEO –Problem and impact statement –Schedule/scope of effort Senior RCET member takes team into business & is responsible for project team activity Business provides space, admin support, and liaison –Liaison assists in data collection and also ensures single point in Business is aware of all team requests/activities Project team provides out-brief to Site Leader & Business Leader –Problem, Impact, Root Cause, Corrective Action, Closure Plan Project team provides out-brief to CEO (Business participates) –More detail to Site Leader, less to Business Leader, Exec Summary to CEO Follow-up, as required, to ensure closure

5 Program Risk Assessment Structure

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Customer Success Is Our Mission 8 And what it looks like in real life………

9 Top Ten Things Heard at RCET Reviews 10.“This program will be done in a month – there’s no need to review it in detail” 9.“Functional management is engaged in every program, except for the programs that don’t want help” 8.“Of course we use EVMS – we report it every week!” 7.“We all knew when we won the program it would take much longer and cost more than we bid” 6.“We think our past performance will be judged as really excellent” 5.“The Risks and Opportunities are just slightly out of balance” 4.“We don’t really think there’s much risk left in the program…” 3.‘Well, we never really had a documented quality management plan” 2.“The customer has really treated us badly here…” 1.“If we document all those risks, then we’ll have to spend our time managing them!”

Customer Success Is Our Mission 10 Backup

11 Sample of RCET Activities Development and Implementation of a Program Risk Assessment Structure Monthly reviews of NCS high risk programs Reviews of geographically separate sites Operating Review and Earned Value Measurement analysis Program Independent Assessments: ACCS, ASTOR, ATFLIR, DCCAT, EXTRACT, SM-3, STSS, VIIRS Support to Key Capture Efforts: ABS, AFSS, LCS, MUOS, TMOS Special Projects at Flight Options, Raytheon Airlines Aviation Services Participation in key Corporate Reviews: –Monthly Operating Reviews for all Businesses –Strategic Gate 3 and Gate 4 Reviews –Strategic Dialog

12 Example of an RCET Project Geographically Separated Sites RCET reviewed 12 geographically separate sites The objective of each site review was to answer the following: –How is the site organized and how does it tie to a Business? –How does the Business ensure the site is performing to plan? –How does the site get the requisite support, and the full benefit of functional talent and experience, from the Business and the Company? –Are the core Raytheon business processes followed? –How is program execution, financial performance, and functional execution measured and managed? –What is the customer base and who serves as the primary customer interface? –Does the site increase or decrease the risk to the Business and Company of meeting their goals? –Are there best practices or superior processes that can benefit other sites?