Creating an Engaged Workforce
at Bombardier Aerospace
June 14, 10:50
Lise St-Arnaud
Director, Internal Communications
Bombardier Aerospace
1
Table of content
 Bombardier Overview
 Early 2000’s Business Environment
 Communicating for change
 Initial steps to engage employees
 Evolving into a journey to transform the organization
2
Overview: fields of activity
*As of january 31, 2007
Aerospace
Transportation
Annual revenues: $8.2 billion
56% of total revenues
Backlog: $13.2 billion*
Employees: 27,130*
Annual revenues: $6.6 billion
44% of total revenues
Backlog: $27.5 billion*
Employees: 29,100*
3
A history of innovation continues
1942-73



Company
start-up
Invention of
passenger
snowmobile
(1942)
Creation of
personal
snowmobile
(1959)

Vertical
integration

Energy crisis
provoked
market
collapse
(1973)
1974-85



Diversification
into mass
transit market
Learning of
new industry
1986-93


1982 New York
metro contract
secured strong
position in
American
market
1993-2001
Entry into
aerospace
through Canadair
acquisition

Consolidation of
N. American mass
transit position
and reinforcement
of presence in
Europe




2001-2007
CRJ Series
Global Express
Challenger 300
Tilting train
AGC (Autorail
Grande
Capacité)





Restructuring the
balance sheet
Sale of legacy
Recreational
products business
unit
CRJ1000
ORBITA
SEKURFLO
Strategic acquisitions to build
market leadership

Aerospace: Short Brothers (U.K.), Learjet (U.S.),
de Havilland (Canada)

Transportation: BN (Belgium), ANF (France),
Deutsche Waggonbau (Germany), Concarril
(Mexico), Talbot (Germany), Adtranz (Germany)

Recreational products: Evinrude and Johnson
marine engines (U.S.)
CRJ, Global Express, Challenger 300, CRJ1000, ORBITA, and SEKURFLO
are trademarks of Bombardier Inc. or its subsidiaries.
4
Bombardier’s business aircraft
LEARJET
FAMILY
Learjet 40 XR
Learjet 45 XR
Learjet 60 XR
Challenger 300
Challenger 605
Challenger 850
CHALLENGER
FAMILY
GLOBAL
FAMILY
Bombardier Global 5000
Global Express XRS
Learjet, Learjet 40 XR, Learjet 45 XR, Learjet 60 XR, Challenger, Challenger 300, Challenger 605, Challenger 850,
Global, Bombardier Global 5000, and Global Express XRS are trademarks of Bombardier Inc. or its subsidiaries.
5
Bombardier regional aircraft
Q100/200
CRJ200
Q300
CRJ700
Q400
CRJ900/705
CRJ, CRJ200, CRJ700, CRJ705, CRJ900, CRJ1000, Q100/200, Q300 and Q400 are trademarks
of Bombardier Inc. or its subsidiaries.
CRJ1000
6
Table of content
 Bombardier Overview
 Early 2000’s Business Environment
 Communicating for change
 Initial steps to engage employees
 Evolving into a journey to transform the organization
7
The early 2000’s bring changes to the political and
social environment…
8
… and changes in the economic environment
Dow Jones: August 2001- July 2002
Bombardier: January 2001- July 2002
9
The aerospace industry faces unprecedented challenges
10
The challenges faced by the aerospace industry had an
impact on Bombardier sales
BOMBARDOER REGIONAL JET ORDERS
BOMBARDOER BUSINESS AIRCRAFT DELIVERIES
Net RJ orders (Calendar Years 2001 – 2004)
Units Delivered (Calendar Years 2001 – 2004)
80%
drop
61%
drop
230
179
129
129
130
101
70
46
2001
2002
2003
2004
2001
2002
2003
11
2004
What could we control and influence in this
challenging environment?
 Declining financial results lead to sharp decline in
stock value and credit downgrading
 Employees were shocked by layoffs… and moral
plummeted
In this context,
 We couldn’t really control our external environment…
 But we could certainly do something about our internal
environment
12
Table of content
 Bombardier Overview
 Early 2000’s Business Environment
 Communicating for change
 Initial steps to engage employees
 Evolving into a journey to transform the organization
13
To move forward we needed to engage employees
 Building intellectual engagement through
knowledge
• Building business acumen
• Introducing new formal communications tools and
processes
 Maintaining emotional engagement through
organizational culture
• Building trusting and respectful relationships
• Creating a positive environment where specific
behaviours are encouraged
14
… communications needed to respect phases people
go through in a change process
 Bombardier Aerospace communications model has
been adapted to address employees’ requirements as
they progress through six key steps leading to change.
 This model allows us to monitor progress and guide
our next steps.
15
Communicating for Change: Data Collection
What?
Hey! Listen!
Something is happening!
1. Awareness
CHOICES
(WHAT?)
We need to change.
Where are we going?
16
Communicating for Change: Data Collection
Why are we doing this?
What is the rationale
behind the change?
1. Awareness
CHOICES
(WHAT?)
What is the plan?
What will happen if
we do not change?
2. Understanding
(WHY?)
17
Communicating for Change: Personal Decisions
Will this help us meet our
business objectives?
What are the expected
benefits for Bombardier
Aerospace?
Why do you want me
to embrace this change?
1. Awareness
CHOICES
(WHAT?)
2. Understanding
(WHY?)
Should I trust you?
3. Acceptance
(INTELLECTUAL
ENGAGEMENT)
PERSONAL DECISIONS
18
Communicating for Change: Personal Decisions
What is the impact on me
and my job?
Why should I change?
(Positive consequences of
changing vs negative
consequences)
–
+
1. Awareness
CHOICES
(WHAT?)
2. Understanding
(WHY?)
What’s in it for me?
4. Commitment 3. Acceptance
(INTELLECTUAL
(EMOTIONAL
ENGAGEMENT) ENGAGEMENT)
PERSONAL DECISIONS
19
Communicating for Change: Towards New Behaviours
O.K. Now that I am convinced
this change is good for me…
How will we make this
happen? (Training on new
CHOICES
ACTION
1. Awareness
techniques, new tools, adopting
new management model, etc.)
Are all the systems
in place to allow me
to adopt these new
behaviours? (Can I move
from “emotional engagement”
to “actionable engagement”)
Is my performance
improving?
(WHAT?)
5. Develop
New Habits
2. Understanding
(WHY?)
(HOW?)
4. Commitment 3. Acceptance
(EMOTIONAL
ENGAGEMENT)
(INTELLECTUAL
ENGAGEMENT)
Does anyone care?
PERSONAL DECISIONS
20
Communicating for Change: Reaching Set Goals
What are our
successes?
(Small and Big)
CHOICES
ACTION
Are we recognizing
our people and our
achievements?
Are we maintaining the
desired behaviours
over time?
Are we reaching
our goals?
6. Reach
Goals
5. Develop
New Habits
1. Awareness
(WHAT?)
2. Understanding
(WHY?)
(HOW?)
4. Commitment 3. Acceptance
(INTELLECTUAL
(EMOTIONAL
ENGAGEMENT) ENGAGEMENT)
PERSONAL DECISIONS
21
Our Communication Model for Change
ACTION
6. Reach
Goals
5. Develop
New Habits
(HOW?)
1. Awareness
CHOICES
(WHAT?)
2. Understanding
(WHY?)
4. Commitment 3. Acceptance
(EMOTIONAL
(INTELLECTUAL
ENGAGEMENT) ENGAGEMENT)
PERSONAL DECISIONS
22
Table of content
 Bombardier Overview
 Early 2000’s Business Environment
 Communicating for change
 Initial steps to engage employees
 Evolving into a journey to transform the organization
23
We started by addressing the issue of business acumen
Weekly electronic
bulletin
Quarterly publication
Employee portal
24
We also recognized the importance of opening up
lines of communications across the organization
 A Communications strategy was developed clarifying:
• management’s responsibility in building employees’
business acumen
• and key messages around our business priorities
 Quarterly videoconferences to review business results,
achievements and challenges
• first involving vice-presidents, they where opened up to
include directors and then managers
 Managers were provided with tools to support them in
their communications with employees concerning:
• our business performance and challenges
• difficult decisions made and the context in which they
were made
25
At the same time, we wanted to build stronger
emotional engagement
 Strengthening relationships between employees and
their manager
 Building credibility by providing consistent and
coherent messages across the organization
 Treating people with respect, which meant namely to
share information and news with employees before they
would hear or read it in the mass media
 It’s all about putting people first – Putting yourself in
the shoes of the different stakeholders and finding out
how best to meet their needs and requirements
26
We were progressing, but how much? What steps
should we take next?
 In 2004, we conducted three surveys with employees
• Employee Communications survey – March
• Bureaucracy (in-house) electronic survey – July
• Cultural survey – August
 Since June 2005, we have been conducting a combined
Annual Communications and Culture Survey
27
The 2004 Communications survey results revealed…
 We had established good communications in the upper
levels of management (directors and up)
 Frontline communications still lacked in consistency
and credibility
 And importantly, employees who participated in
meetings with their management were:
• more aware of our business priorities, and
• better understood how their business unit contributed
• and better understood what they could do to influence
business outcomes
28
However, some 2004 results were surprising…
 At Bombardier Aerospace, employees said they
preferred getting news first from senior management
and second from their immediate supervisor
 While most external studies identify the « immediate
supervisor » as the first person employees want to hear
news from, followed by senior managers and union
representatives
 This suggested that in times of great change
employees look at senior management for clear
direction
 It also told us we had to help managers and supervisors
build their credibility as reliable information providers
29
Some members of management weren’t clear about
their role in employee communications
 When asked if they had communicated with employees
about our business priorities, our quarterly results, our
key achievements and issues
• 47 % of management said they had
 Those who answered they hadn’t communicated on
these subjects said:
• I didn’t know I had to (29%)
• I didn’t have the necessary information (28%)
• I don’t consider it my role (13%)
30
Interestingly, the Communications survey itself
triggered management to reflect about their role
 When management members who hadn’t
communicated our business priorities with their
employees were asked if they planned to so in the
future:
• 73% answered yes
31
The 2004 cultural survey results were also
enlightening…
 Bombardier Aerospace distinguished itself by its
powerful foundation
• People who are ready to exert extraordinary effort when
needed and a drive for results
• Solid base of institutional capabilities, expertise,
knowledge and technologies
• Exciting products that our clients want to buy
• Conviction of the need to deliver profitability, efficiency
and customer satisfaction
• Residual emotional engagement and strong desire to
regain pride
32
Table of content
 Bombardier Overview
 Early 2000’s Business Environment
 Communicating for change
 Initial steps to engage employees
 Evolving into a journey to transform the organization
33
It became clear that we had to address key cultural
dimensions
 In the fall of 2004, Bombardier Aerospace launched an
important transformation initiative
• The initiative sponsored by the President and Chief
Operating Officer is coordinated by a team that includes
members from Strategic Planning, Human Resources,
Communications and the Business Units
 A key objective of this initiative is to address cultural
dimensions perceived as essential to the overall health
of the organization:
• Leadership alignment and development
• Employee engagement
• Customer centric
34
To transform our culture we needed to provide a clear
context for change
 After restructuring the organization into a business unit
model, the President and COO set the context for
change by:
• sharing his vision,
• re-establishing our business priorities
• and outlining the key behaviours that should distinguish
our organizational culture
35
36
around the world, through innovation, pride and
setting the highest standard for excellence
focusing on…
Three Priorities
1. Creating a safe and
rewarding workplace
2. Providing an amazing
customer experience
3. Eliminating waste in
everything we do
and
Leadership Attributes
We put people first
and
We work together
and
We have a passion for winning
and
We have a drive for results
37
Our behaviour… What a reporter would say about Bombardier
Aerospace after listening to our stories and observing our people
We put People first
and
We work in teams
and value teamwork
•
•
•
•
•
•
We get to know the person and the employees
We celebrate successes… we acknowledge people
We tackle problems… not the person
A good idea has no rank
We inspire confidence in our employees
We deal with everyone with simplicity and openness
• Everyone is on the playing field… on the ice
• We communicate… we set the context before focusing
on tasks
• We engage each other with passion and trust… we
have fun!
and
We have a drive for
performance
•
•
•
•
We seek clarity… and take action
We focus… we share common goals
We always drive for improvements and quality
We take ownership for something bigger than our
individual responsibilities
and
We have a winning
attitude
• We have a “find a way” attitude
• We focus on opportunity… not problems
• We play to win
38
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The Bombardier Aerospace transformation was to
start with its leaders
 All members of senior management participated in twoday workshops, an opportunity to reflect on:
• their leadership style and practices…
• and the need for them to change some of their mindsets
and behaviours
 Leadership engagement is essential to foster broader
employee engagement
 These Leadership Engagement Forums later involved
participation of all managers and supervisors as well as
a number of professionals
40
Members of management are reminded regularly to
embrace our Leadership Attributes
41
Information on our cultural transformation is readily
available on our employee portal
42
And we are aligning our systems, processes and
programs
 As part of the transformation initiative, all business
units and functions are engaged in an effort to align
systems, policies, processes and practices. Some
examples include:
• Performance management process
• People practices (to better engage, develop and
recognize employees)
• Decision rights and governance structure
• Key performance indicators
• Bureaucracy reduction
• « Cultural catalysts » to eliminate cultural bottlenecks
that hinder teamwork
43
All employees have an opportunity to contribute
 Achieving Excellence (launched late 2005)
• An engaging initiative that provides a continuous
improvement road map to deliver business results
through the definition and the integration of world-class
best practices
• Aligned with our three priorities Achieving Excellence
guides employees within their work unit through specific
accomplishments defined under targeted best practices
attributes
• On May 1, 2007, 19,728 employees received BRONZE
certification (or higher)
(78% of our 25,423 active employees)
44
As we progress in our transformation it is important
to share key achievements and success stories
 Key achievements and success stories are captured
and shared:
• to recognize people and the behaviours we want to
foster
• and to provide models to emulate
 Success stories are shared in many ways:
• In the President and COO quarterly business reviews
- Video and « story telling »
• In our formal communications tools
- Bfocus, Bclick!, Bnet
• In special publications
- Of Planes and People
45
In 2006 we introduced our recognition program to
« celebrate people who make a difference »
 Informal recognition
 Health and Safety Awards
 Achiiving Excellence
 Annual Accomplishment Award (2007)
47
Health and Safety Awards
Sites keeps the trophy for
one year
Each site receives a
commemorative plate
The trophy, designed by our Engineers
48
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Annual Accomplishment Awards
In 2007
 23 teams received an Honourable Mention certificate
 3 teams were presented with a medal of Merit
 1 team received the Annual Accomplishment Award
50
Our Communication Model for Change
ACTION
6. Reach
Goals
5. Develop
New Habits
(HOW?)
1. Awareness
CHOICES
(WHAT?)
2. Understanding
(WHY?)
4. Commitment 3. Acceptance
(EMOTIONAL
(INTELLECTUAL
ENGAGEMENT) ENGAGEMENT)
PERSONAL DECISIONS
51
And the journey continues…
 In the months to come, we will be focusing on:
• Developing the next three-year employee
communications strategy
• Building a development plan and process to support
supervisors in their communication role with employees
• Evolving the Communications and Culture survey to an
Employee Engagement Survey with benchmark against
external references
52
Thank you for your attention!
Questions?
Comments?
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Creating an Engaged Workforce
at Bombardier Aerospace
June 14, 10:50
Lise St-Arnaud
Director, Internal Communications
54