EADS The step beyond Intercultural Competences in HighTech Industries-Aeronautics, Space & Defence, Thorsten Möllmann, Vice President HR-Marketing, 18/11/06 Overview I. EADS at a glance II. Intercultural Competencies EADS at a glance The Company Foundation partners Foundation companies Aerospatiale Matra SA CASA (Construcciones Aeronaúticas SA) DaimlerChrysler Aerospace AG EADS Date of foundation: July 10, 2000 EADS is today the second-largest group in the global aerospace and defence industry, with a unique range of products and services. EADS Management Structure The Company EADS Date of foundation: July 10, 2000 Tom Enders Louis Gallois EADS Chief Executive Officers EADS Management Structure Finance Marketing, Strategy & Chief Technical Global Development Officer Hans Peter Ring Jean-Paul Gut Jean J. Botti EADS North America Human Resources Ralph D. Crosby Jr. Jussi Itävuori Manfred Bischoff - Arnaud Lagardère Chairmen of the Board of Directors Tom Enders - Louis Gallois Chief Executive Officers Airbus Military Transport Aircraft Louis Gallois Fabrice Brégier Francisco Fernández-Sáinz Eurocopter Space Defence & Security Systems Lutz Bertling François Auque Stefan Zoller EADS Competitors Competitive Position Revenues 2005 in bn € Boeing 44.1 EADS 34.2 No. 1 in Europe Lockheed Martin 29.9 Northrop Grumman 24.7 BAE Systems 22.5 Raytheon 17.6 General Dynamics 17.1 Thales 10.3 Finmeccanica* 9.8 L3 Communications Saab * A&D activities only. Eliminations not considered No. 2 worldwide 7.6 2.1 Based on 2005 average exchange rates: € /$ = 1.245; € /£ = 0.684; €/SEK=9.269 Competitive Position Orderbook 2005 in bn € EADS* No.1 worldwide 253.2 Boeing* 164.7 BAE Systems 87.4 Lockheed Martin 60.1 Northrop Grumman 45.2 General Dynamics 34.1 Raytheon 27.6 Finmeccanica** 26.2 Thales * Aerospace and defence activities L3 Communications 20.2 5.6 ** Commercial aviation based on catalogue prices for EADS, contractual prices for Boeing Saab 4.6 * Commercial aviation based on catalogue prices for EADS, contractual prices for Boeing For US players, the backlog presented above is the total backlog (Funded backlog for L3) ** Aerospace and defence activities only / AgustaWestland 100% consolidated. Eliminations not considered Based on 2005 average exchange rates: € /$ = 1.245; € /£ = 0.684; € /SEK = 9.269 EADS Sites in Europe EADS International A network of offices worldwide Berlin Munich Warsaw Moscow Brussels Paris London Beijing Ankara Madrid Seoul Ottawa Washington Rome Tripoli Hanoi Cairo Athens Tokyo Bangkok Taipei Muscat Abu Dhabi Mexico Riyadh New Delhi Kuala Lumpur Jakarta Singapore São Paulo Pretoria Santiago Sydney Canberra A Global Leader Commercial Aircraft No. 1 Helicopters No. 1 Commercial Launch Vehicles No. 1 Missile Systems No. 1 Satellites No. 3 Military Transport Aircraft No. 3 Military Aircraft No. 4 Strategic Goals and Priorities Strategic Goals & Priorities 1. Maintain the long term commercial parity with Boeing 2. Develop strong growth drivers in non-Airbus portfolio - Focus on Defence & Security 3. Become a truly global industrial group 4. Optimize profitability Means to achieve these goals: EADS ‘Triple I’ Internationalisation Innovation Improvement EADS Employees Structure EADS Employees by Divisions as of December 31, 2005 7,536 (6.7%) Headquarters & Others Defence & Security Systems 23,237 (20.5%) 54,721 (48.3%) Airbus Space 10,985 (9.7%) Eurocopter 12,755 (11.3%) 3,976 (3.5%) Military Transport Aircraft Total number of employees: 113,210 EADS Employees by Country as of December 31, 2005 France Germany Spain United Kingdom Other Countries 43,286 (38.2%) 41,438 (36.6%) 8,710 (7.7%) 14,297 (12.6%) USA 1,877 (1.7%) Rest of world 3,602 (3.2%) Total number of employees: 113,210 Overview I. Get to know EADS… II. Intercultural competenicies What EADS expects…. ? - - The highest degree of professional excellence / technical and functional qualifications Team-working / networking skills Management and leadership skills Creativity and initiatives: entrepreneurship Mobility – Continuous individual development ► Functional ► Cross-divisional ► Geographical Intercultural awareness and adaptation …in exchange EADS will provide you with exceptional opportunities Human Aspect of Internationalisation - Importance of international mindset ► Openness ► Sensitivity ► Flexibility ► Trust - Importance of maintaining your own roots ► National heritage and identity ► Values, behaviours… ...enhance cultural awareness and adaptability, while respecting your own heritage and identity Competencies for International Managers Introduction - Globalization of the business world continues the trend of organizations utilizing managers for expatriate assignments or to work internationally on a day-to-day basis in transversal multi-national teams. - One of the key contributors to success in today’s global organizations is the cross-cultural adaptability of leaders to various environments, people, situations, and different working styles - Being successful in working internationally in today’s global business environment requires – A different kind of competencies of managers and leaders – A different set of knowledge, skills, abilities and other characteristics - The following depicts some of the key areas needed to be successful internationally What is the knowledge of cross-culturally adaptable leaders? A must for international managers/leaders is: extensive past travel & moving experiences within their own country and internationally high technical competence in their respective area of expertise superior knowledge of global business and geopolitics indepth knowledge of various countries, its culture, history, people, systems, etc. excellent knowledge in organizational positioning / political savyness What type of personality do cross-culturally adaptable leaders have? Cross-cultural adaptable leaders usually have a personality described as: highly extroverted very open to new experiences highly conscientious very agreeable highly emotionally stable very humble, modest and respectful authentic Empathetic inclusive and encouraging towards others What are the skills and abilities of cross-culturally adaptable leaders? A comprehensive study of international managers has shown that cross-culturally adaptable managers/leaders have: a sophisticated ability to develop and maintain relationships and networks a strong willingness and ability to communicate effectively with anybody anywhere outstanding conflict resolution and perspective taking skills a high tolerance for stress and excellent stress management skills the ability to substitute reinforcement, meaning a repertoire of leisure time activities/favorites to choose from independent from which country they are in…they find « fun things to do ») Developing today‘s and tomorrow‘s leaders for sustained business success EADS HR Organization Group HR AIRBUS Talent&Executive Management Leadership Development& Learning Developing future leaders AERONAUTICS SPACE EUROCOPTER Compensations and Benefits HR Policy & Planning DEFENCE & SECURITY SYSTEMS MTA European Work Council – EWC Corporate Core HR Divisions Target Population Management Levels Responsibility „Owner“ L0 L1 Corporate HR L2 L3 L4 L5 Div/BU HR Leadership Development Strategy Strengthen global competitive position Focus on global leadership Exploit crossDiv/BU synergies Develop system solutions Triple “I“ Strategy International Mobility • Develop, retain • Recruit and deploy • Recruit and deploy Top Talents diverse workforce diverse workforce through • Develop • Develop international INTERNATIONAL assignmentsINTERNATIONAL management and and (EU/RoW) management global leadership global leadership • Plan succession Cross-Div/BU mobility Cross-functional mobility • Increase group-wide exchange • Enhance integration • Support INNOVATION • Develop a management able to think in broad systems • Reinforce continuous IMPROVEMENT and entrepreneurial spirit EADS’ Future Leaders: Key Management Competencies International mindset, cultural awareness Managing complexy and uncertainty People and diversity management Team spirit and commitment Transparency and openness Creativity and innovation Entrepreneurial spirit – result driven High level of technical / professional skills and Leaders competencies Good Experts / Managers Management Development: to ensure that we have the right leaders … in the right places at the right time … delivering business results Career tools Management Development on-the-job: • Job Rotation • Mobility • Transversal Projects • Special Assignments /Exchange programmes • Mentoring Programme Compensation and benefits • Variable pay • Stock options… off-the-job: • Management & Leadership Programmes • Executive Education • Strategic Platforms • Action Learning Expeditions LD&L Portfolio T.E.C. CREATING & SHARING COMMON STRATEGIC VISIONS IN EADS L2 • SHARE COMMON LEADERSHIP & MANAGERIAL CULTURE, • SECURING THE SUCCESSION PLANNING T.E.T. Executive Forums Action Learning Exped. ACHIEVE Summer academy Hot Topics Development Center FROM MANAGEMENT TO LEADERSHIP L3 EXPAND L4 FAST TRAINEE PROGRAM DEVELOPMENT OF MANAGERIAL COMPETENCIES Thank you for your attention