1 © 2009 Lockheed Martin Aeronautics Company

0000.PPT 10/23/ © 2010 Lockheed Martin Aeronautics Company Kyung K. Kim, Ph.D. LM Tech Fellow Technical Leadership 2010 CIE LAMP, Arlington, TX (June 26, 2010)

3 © 2009 Lockheed Martin Aeronautics Company Acknowledgement Materials are from Various Presentations Made by Mr. Frank Cappuccio, EVP and GM – Skunk Works

4 © 2009 Lockheed Martin Aeronautics Company A Quote from Marcel Proust The Voyage of Discovery is Not in Seeking New Landscapes But in Having New Eyes.

5 © 2009 Lockheed Martin Aeronautics Company Influence the Customers’ Requirements & Satisfy Their Needs by: 1.Earning Customer Respect & Confidence 2.Leveraging Our Valued Employees 3.Delegating Authority & Holding Individuals Accountable 4.Creating a Secure Environment of Trust & Teamwork 5.Encouraging Initiative & Prudent Risk Taking 6.Fostering a Passion for Innovation & Pushing the Boundaries 7.Accepting the Risk for Pursuing Aggressive Goals 8.Introducing Discriminating Concepts & Technologies 9.Providing Affordable, Rapid, Prototyping Solutions 10.Maintaining a Bias for Profitable Performance & Closure Execute to a Governing Philosophy

6 © 2009 Lockheed Martin Aeronautics Company 1.Visionary … Looks Ahead, Forms Strategies & Shapes the Future 2.Conceptual Thinker … Deals With the Abstract & Yet Faces Reality 3.Good Balance … Leadership / Management Skills – Hands-on / Hands-off 4.Ownership … Always Focused on What’s Right for the Business & Can Move From Strategy to Tactics to Tasks 5.Strong People Orientation … Brings Out the Best in People … Selects Well … Deals With Non-Performers … Communicates Well 6.High Energy Level … Pro-Active… a Sense of Urgency and Closure 7.Strong Tech Marketing … Good Customer Skills & Comfortable in Using Them 8.Integrity … Good for His “Word” & Accountable for His “Actions” 9.Flexibility … Quick to Adapt to Change… Experiments… Innovates 10.Team Player … Recognizes That “People” Get the Job Done & Embraces What They Help to Create Desired Characteristics of Leaders

7 © 2009 Lockheed Martin Aeronautics Company Leadership Challenge LEADERSHIP MANAGEMENT Initiate Initiate Resource Definition Resource Definition Doing Right Things Doing Right Things People People Innovative Innovative Control Control Resource Utilization Resource Utilization Do Things Right Do Things Right Process Process Maintain Maintain Attitude Activity Achieve Balance Where Best Interest of Company And Individual Overlap

8 © 2009 Lockheed Martin Aeronautics Company Leadership Attributes of Profitable Companies (ref. Harvard Business Review, Aug. 2001) Preach What you Practice. It’s not enough to have the right values. You must clarify them and hammer them home to customers, employees, suppliers, and shareholders through your words and deeds. Preach What you Practice. It’s not enough to have the right values. You must clarify them and hammer them home to customers, employees, suppliers, and shareholders through your words and deeds. Play to Win-Win. If you are to build loyalty, not only must your competitors lose. Your partners must win. Play to Win-Win. If you are to build loyalty, not only must your competitors lose. Your partners must win. Be Picky At high loyalty companies, membership is a privilege. Clarify the difference between loyalty and tenure. Be Picky At high loyalty companies, membership is a privilege. Clarify the difference between loyalty and tenure.

9 © 2009 Lockheed Martin Aeronautics Company Keep it Simple. In a complex world, people need small teams to simplify responsibility and accountability. They also need simple rules to guide their decision making. Keep it Simple. In a complex world, people need small teams to simplify responsibility and accountability. They also need simple rules to guide their decision making. Reward the Right Results. Save your best deals for your most loyal customers, and save your best opportunities for your most loyal employees and partners. Reward the Right Results. Save your best deals for your most loyal customers, and save your best opportunities for your most loyal employees and partners. Listen Hard; Talk Straight Make it safe for employees to offer candid criticism. Only promise what you can deliver, and take conflict head-on in a professional manner. Listen Hard; Talk Straight Make it safe for employees to offer candid criticism. Only promise what you can deliver, and take conflict head-on in a professional manner. Leadership Attributes of Profitable Companies (ref. Harvard Business Review, Aug. 2001)

10 © 2009 Lockheed Martin Aeronautics Company 1.People Are Illogical, Unreasonable and Self-Centered Love and Trust Them Anyway 2.If You Do Good, People Will Accuse You of Being Selfish, Having Ulterior Motives, etc Do Good Anyway 3.If You Are Successful, You Win False Friends and True Enemies Succeed Anyway 4. The Good You Do Today Will Be Forgotten Tomorrow Do Good Anyway 5.Honesty and Frankness Make You Vulnerable Be Honest and Frank Anyway Coping With Paradox of Leadership

11 © 2009 Lockheed Martin Aeronautics Company 6.The Biggest People With the Biggest Ideas Can Be Shot Down by the Smallest People With the Smallest Minds Think Big Anyway 7.People Favor Underdogs but Follow the Top Dogs Fight for a Few Underdogs Anyway 8.What You Spend Years Building May Be Destroyed Overnight Build Anyway 9. People Really Need Help but Resent When You Do Help Them Help People Anyway 10. Give the World the Best You Have and You’ll Be Disappointed Give the World Your Best Anyway Coping With Paradox of Leadership (Continued)

12 © 2009 Lockheed Martin Aeronautics Company Innovative People Don’t Care What You Know Until They Know That You CareInnovative People Don’t Care What You Know Until They Know That You Care People Embrace What They Help to CreatePeople Embrace What They Help to Create Solving the Wrong Problem Never Produces a Correct ResultSolving the Wrong Problem Never Produces a Correct Result “Protecting the People” is an Obligation and a Privilege“Protecting the People” is an Obligation and a Privilege Final Thought