Essential reading for BAE Systems people // QuARTER 1 2013

InFocus

people powergiving life to our strategy

special reportworld of

opportunityinternational

business ramps up

science factthe world of 007’s gadgets

becomes reality

Dispatches

2 • upfront

BAE Systems In Focus

chief executive’s welcome>

Inside >

Disclaimer The publishers, authors and printers cannot accept liability for any errors or omissions. In Focus is produced by BAE Systems corporate and business unit internal communications teams. Editor, Louise Baverstock-Price, Head of Employee Engagement & Internal Communications. Please send any comments and feedback to Corporate.communications@baesystems.com or leave a message on +44 (0) 1252 384752. Articles or opinions expressed in this publication may not reflect company policy. All rights reserved. On no account may any part of this publication be reproduced in any form without the written permission of the copyright holder, application for which should be made to louise.baverstock-price@baesystems.com Designed and produced by Connect Communications Ltd. www.connectcommunications.co.uk© BAE Systems plc 2013.

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Briefings

05 HITTIng BACk AT HurrICAnE SAnDy

11 A wOrLD Of OPPOrTunITy

17 mArITImE COnTrACT InTErEST SurfACES

21 fOunDATIOnS fOr THE fuTurE

22 nEw COmmunITy ArISES On OLD SITE

23 SPrEADIng SmILES In InDIA

24 fIELD EngInEErS AT HEArT Of ACTIOn

Highlights

06 .On THE COvEr PEOPLE POwEr – gIvIng LIfE TO Our STrATEgy

14 gADgET fICTIOn BECOmES fACT

18 AwArDS SHOwCASE fOr Our vALuES

rEAD IAn kIng’S BLOg THrOugH THE HOmE PAgE On THE gLOBAL InTrAnET

People key to our success in 2013

we’re now a quarter of the way through 2013, and already we have started to see progress against our strategy – the recent announcement of our partnership

with vodafone is a prime example. Across the business, leaders

and managers have been engaging with employees on our strategy, highlighting what this means at a company, a local and an individual level.

we announced our 2012 full year financial results in february, and although 2012 was a demanding year and we continue to operate in a challenging business environment, I am convinced

we finished the year stronger than we started.

The challenges did not deflect us,

and we sustained our

focus on delivering the strategy, serving our customers and generating value for our shareholders.

In this issue of In Focus, kevin Taylor outlines the strategy, and we look at the opportunities we have on the global horizon.

In 2013, we have set a key objective to inspire and develop people to drive our success.

I firmly believe our people are key to the success of our company, and the articles in this issue highlight some of your contributions.

As I get around the business, I have the opportunity to meet colleagues who do fantastic work every day for our customers and in our communities across the globe. There are many more inspirational stories out there, and I encourage you to share them.

And finally, we celebrate our colleagues who were recognised in the recent Chairman’s Awards. It’s important that we take time to reflect on our successes, particularly in challenging economic times.

I look forward to working with you through 2013.

Robust and resilient Financial results

BAE Systems’ financial results for 2012 demonstrate that the company is continuing to deliver a robust performance with strong trading in a number of areas.

geographic diversity is providing resilience, and, in particular, the company has

made excellent progress in international markets.

Chief Executive Ian king said: “we’ve seen high-quality programme performance across the business, and have continued to demonstrate a highly disciplined approach to cost control. we are committed to implementing our strategy and will continue to be agile and adapt to the

changing environment.“Our strategic response in

this environment has been to target international markets outside the uS and uk. we have made excellent progress with order intake of £11.2bn in those markets, up from £4.8bn in 2011. we also generated a further £11bn of orders from the uS and uk.

“we remain committed to delivering to our customers and shareholders, and developing and inspiring our employees.”

upfront • 3

bit.ly/BAE-In-focus

i planned to do a design engineering degree at university. then i heard about the apprenticeship scheme at bae systems and thought it would be perfect for me – i was the kind of child that pulled my toys apart to see what they were made of – Jenny westworth, p21

inspire>

The uk’s decision to strengthen one of its most long-standing relationships with Australia has been formalised with a new defence treaty to provide a framework for the many strands of co-operation between the two countries.

The treaty, signed in January in Perth with the Australian Defence minister, Stephen Smith, will see the uk and Australia working together in areas such as cyber security, defence reform, personnel exchange, equipment, and science and technology.

The uk Defence Secretary, Philip Hammond, and the foreign Secretary, william Hague, were in Perth attending the annual Australia/uk ministerial summit.

During their trip, in one of the first examples of the closer relationship, mr Hammond visited the Australian naval Base and BAE Systems shipyard in Perth where they discussed a range of issues relating to the sustainment and development of Australia’s submarine programme and future shipbuilding.

with both Britain and Australia due to build new frigates in the coming years, mr Hammond agreed with his Australian counterpart, mr Smith, to explore the possibility of co-operation over mutual design work for the royal navy’s new Type 26 global Combat Ship – a design that could meet the needs of the royal Australian navy.

mr Hammond said: “This government has made a concerted effort to renew and strengthen our relationship with one of our oldest allies. This defence treaty will drive forward closer co-operation on a wide range of issues, making our forces more inter-operable and maximising our capabilities.”

World of opportunity – page 11

New defence treaty cements alliance between UK and Australia

LHD naming ceremony

The first of Australia’s two new Landing Helicopter Dock (LHD) ships has been officially named Canberra in a ceremony at BAE Systems’ Williamstown shipyard in Victoria.

The Australian Prime Minister, Julia Gillard, and the Minister for Defence, Stephen Smith, were joined by the Chief of the Australian Defence Force, General David Hurley, and the Chief of Navy, Rear Admiral Ray Griggs, for the special occasion.

Another VIP guest at the ceremony inside the massive hull, which was built in Spain, was the Spanish Minister for

Defence, Pedro Morenés Eulate.The new LHD was named

by Mrs Vickie Coates, wife of the late Rear Admiral Nigel Coates AM, RAN, who served a distinguished career in the Navy and sadly passed away in June 2010.

The naming of Canberra, the third Royal Australian Navy ship to bear the illustrious name, marked an important milestone in bringing the LHDs one step closer to service. Their air-land-sea amphibious capability will strengthen the Australian Navy’s delivery of sea power.

These new platforms will be able to land a force of

more than 2,000 personnel by helicopter and watercraft, along with their weapons, ammunition, vehicles and stores.

Canberra is due to be accepted into service in the first quarter of 2014. The second LHD is due to be named early next year for acceptance into service in 2015.

BAE Systems Australia Chief Executive David Allott told guests on board the LHD: “As you can see, we have come a long way towards delivering what will ultimately be a remarkable feat of engineering and international co-operation.

“Years of planning, design and construction, integration and testing have got us to where we are today.”

The hull was built at Navantia’s shipyard in Spain and then transported by the heavy lift ship to Australia. The masts were built at the BAE Systems shipyard in Henderson, Western Australia, and the superstructure was constructed and consolidated onto the hull at Williamstown.

Symbol of sea power

RIGHT: THE AuSTrALIAn PrImE mInISTEr, JuLIA gILLArD, AnD THE CHIEf Of nAvy, rEAr ADmIrAL rAy grIggS, LOOk On AS JIm PArkES, BAE SySTEmS SEnIOr EvEnTS mAnAgEr, ASSISTS mrS vICkIE COATES TO unvEIL THE CAnBErrA nAmE PLATE BELoW: THE CAnBErrA TAkIng SHAPE AT wILLIAmSTOwn

BAE Systems In Focus

4 • upfront

Dave HerrDave Herr has been appointed Executive vice President for the Service Sectors, BAE Systems, Inc. He succeeds Larry Prior, who has left the Company to pursue other opportunities.

Dave, who also joins the Executive Committee, will lead the development and implementation of integrated business strategies to support the Service Sectors in maintaining their current market leadership positions and pursuing new opportunities in the uS and internationally. He brings a wealth of defence industry

experience to his new assignment, most recently as President of the Support Solutions sector.

Erin MoseleyErin moseley has succeeded Dave Herr as President of Support Solutions. Since joining BAE Systems in 2011 as Senior vice President, government relations, Erin has demonstrated sound leadership in the Company’s relationships with members of the uS Congress, Department of Defense, intelligence community, executive branch and state government leaders.

Over the past year, BAE Systems has benefited from her tireless advocacy with Congress, military officials and other industry executives to address sequestration. Her influence and leadership on this and other industry issues were recognised recently when she was named in the 2013 “women worth watching” list by Profiles in Diversity Journal.

Nick Ruscionick ruscio is the new vice President of Internal Audit for BAE Systems, Inc. He succeeds michelle Lamberton, who joined the Intelligence & Security sector last november.

nick has been with BAE Systems for more than 16 years, most recently serving as Ethics Director for BAE Systems, Inc., a role he began in 2010. He previously was Ethics Director for the Land & Armaments sector and held a succession of finance roles within the Electronic Systems sector.

nick, a graduate of BAE Systems’ LEAD (Leadership Enhancement and Development) programme, began his career in the Company’s finance Leadership Development programme.

Movers & shakers

Company update01 Global Vodafone partnership

• BAE Systems has formed a strategic five-year partnership with vodafone to provide businesses with a range of advanced communications security products and services. The company also intends to select vodafone as its preferred supplier of mobile communications worldwide, excluding the uS.

The partnership will help global enterprises to use communications technologies in a secure manner to protect them against today’s threats and the advanced threats of the future.

The first commercial element of this partnership will be the launch of vodafone mobile Threat manager, a new cloud-based mobile data security system largely based on BAE Systems Detica technology.

The formation of the partnership is a significant achievement and demonstrates the company’s commitment to its strategic action to grow its cyber, intelligence and security business in exciting areas such as the communications technology market.

02 US Marine acquisition

•BAE Systems entered into a definitive agreement with American maritime Holdings, Inc. to acquire

marine Hydraulics International, Inc. (mHI), a privately held company that operates a shipyard, pier and waterfront facilities in norfolk, virginia.

The proposed acquisition would complement our support to our customers with enhanced readiness and sustainment maritime services. mHI is a marine repair, overhaul, and conversion company serving the uS navy, military Sealift Command, maritime Administration and commercial ship owners and operators worldwide. mHI, which employs approximately 400 people, would be integrated with the BAE Systems

Ship repair business.The proposed acquisition is conditional, among other

things, upon receiving certain regulatory approvals.

03 Global Life-cycle management

• To ensure that our Life-cycle management (LCm) framework

reflects and serves all BAE Systems’ businesses, products (both goods and

services) and customers, a consolidated series of nine mandates came into effect

on 1 January. The purpose of LCm is to add value to the

customer, to the company, and to the project team by providing an independent review framework which – when appropriately tailored, integrated, and thoughtfully applied – supports the effective management of projects, promotes the sharing of best practice through mentoring, and enables corporate governance.

for further information, please contact the Performance Excellence team at pebms.office@baesystems.com

Mobile mini hospital hits the road BAE Systems Chairman Dick Olver has flagged off a mobile mini hospital that will provide primary healthcare services to deprived communities in the Indian city of Bengaluru.

The mini hospital, called “Smile on wheels”, is part of the company’s Corporate responsibility programme in India through which it supports development projects in the areas of primary education and healthcare in rural and urban communities across seven states.

BAE Systems has partnered with Smile foundation, a national level development organisation with an outreach of more than 200,000 underprivileged children, young people and women across 25 Indian states.

The mobile hospital was rolled out at a ceremony when Chief Exercutive Ian king handed over the keys of the vehicle to Smile foundation’s Chief Operating Officer, vikram Singh verma.•read a full report of the event in the online edition of In Focus

Helping dreams come true – page 23

bit.ly/BAE-In-Focus

upfront • 5

Guy Griffiths, BAE Systems Group Managing Director, International, has been named “Honorary Australian of the Year” for 2013. Guy was presented with the award by His Excellency Mike Rann, the Australian High Commissioner, at an Australia Day gala dinner in London in January. The award acknowledges a non-Australian resident of the UK who displays “Australian characteristics” or has contributed significantly to Australia.

In Guy’s case, the award was in recognition of service and contribution to the Australia defence sector. Bill Muirhead, Director of the Australia Day Foundation, praised Guy as a worthy recipient of the award. “Guy Griffiths is an outstanding businessman and a genuine leader of

the global defence sector. Australia in particular has benefited from Guy’s involvement in some of its most complex and largest defence industry projects.”

Guy said: “This award recognises the contribution which BAE Systems has made, and continues to make, to the defence and security needs of the Australian nation.

“As such, the award is wholly attributable to the hard work and dedication of our BAE Systems Australia team, and to the contribution which other parts of the company have made in supporting our Australian activities. We should all share in this wonderful recognition.”

World of opportunity – page 11

Honorary Aussie Guy says award is for all

Hitting back at the hurricane

New programme for global giving following last year’s review of BAE Systems’ approach to corporate giving and employee community involvement, a new global Community Investment programme has been created to allow us to better align our resources and invest in our

communities. As part of the new programme, each home market has developed its own strategy model for employee fundraising and volunteering in recognition of local cultures and community needs. By the end of the year, a number of online

tools will become available, providing more opportunities for employees to engage in the programme and our community activities. further details will be communicated as these tools and activities within each home market become available.

In sheer size and numbers, it was a stunning event: Hurricane Sandy was the largest Atlantic hurricane on record, with winds spanning 1,100 miles. The estimated $75bn in property damage it caused was second only to Hurricane Katrina’s devastation of New Orleans and neighbouring areas in 2005.

Communities in metropolitan New York are still reeling from Sandy, the October storm that wreaked unprecedented havoc on a three-state area that is the most densely populated in the United States. More than 1,000 BAE Systems employees live in the New York area, employed at the Electronic Systems facilities in Greenlawn, New York, and Wayne, New Jersey — and several experienced storm damage at their homes.

BAE Systems, Inc. responded by activating its Employees Helping Employees Fund, created two years earlier to help employees whose homes sustained flood and fire damage in separate natural disasters. The fund

Employees respond in force to Sandy

ABoVE: OnE Of THE mAny nEw yOrk COmmunITIES THAT wErE DEvASTATED By THE HurrICAnE

helps employees with grants to fund home repairs, loss of personal items, temporary living costs, and other expenses.

Employees from across the US and from two sites in the UK responded in force, donating about $68,000 in the weeks following Sandy. BAE Systems matched those funds for a total of about $136,000, which is now being allocated as insurance settlements and other details slowly evolve.

“Time after time, whatever the situation, our employees are there for those less fortunate,” said Diane Parisi, Vice President of Community Investment for BAE Systems, Inc. “From international disasters to events that affect their colleagues here at home, they always respond with caring and generosity during times of need.”

BAE Systems In Focus

6 • intel

oUR pEopLE GIVE LIFE To oUR STRATEGy2012 was a challenging year, but sustained focus by BAE Systems employees yielded significant success in meeting the company’s strategic actions. As this year’s strategy aims to build on those achievements, In Focus looks at an important new phase in its evolution

BAE Systems’ strategy for 2013 is fundamentally the same as last year, but for one key

and significant addition – “Inspire and develop our people to drive our success”.

The Group Strategic Framework’s fresh emphasis on the role of our people underscores the recognition that we can only deliver our mission through all your performance.

It stresses: “We believe that if we engage with our people, we can inspire the will to succeed, and develop our skills to drive improvements in performance, enabling us to compete more effectively in an increasingly challenging environment.”

For Kevin Taylor, Group Strategy Director, it’s all about motivating our people – at all levels – to get behind the strategy, to understand how they contribute on a daily basis: “I want

them to focus on priorities, how they spend their time, and how different areas of the business can maximise their contribution to make sure BAE Systems is successful, not just in 2013, but beyond.

“The strategy is an essential communication device, and in 2013 we are really trying to make it a two-way communication so we can engage and inspire people, which is the key focus this year.

“In the strategy document, there are quotes from individual people

about how they contribute. I hold a mirror up to myself and ask what would my quote be? My challenge to all our employees would be ‘What’s your quote? How are you going to contribute to the strategy and implement it to help us all be successful in 2013?’”

Chief Executive Ian King further underscored the role of employees when discussing the strategy.

“The challenge for me in 2013 is the employee engagement. I want everybody to understand their part in delivering the strategy.

“We are all delivering inspired work in what is a rapidly changing environment. I want to make sure that everybody understands their contribution, that we applaud their contribution and we support their ability to contribute.

“We have tested this strategy. We

ABoVE: grOuP STrATEgy DIrECTOr kEvIn TAyLOr

BAE SySTEMS STRATEGy 2013

“we are trying to make the strategy a two-way communication so we can engage and inspire people”

bit.ly/BAE-In-Focus

intel • 7

oUR pEopLE GIVE LIFE To oUR STRATEGy

tested it robustly through 2012. “We all know what we have to do

to continue to deliver on our core programmes, which are absolutely key to delivery of the strategy.

“For 2013, we need to feed off the energy and achievement with which we ended 2012. It’s all about growing our international business. For the first time in a few years, we have actually grown our order book and our international business.

“We have come out stronger at

the end of the year than we started the year, and we need to feed off that enthusiasm and that great achievement as we strive for 2013 performance.”

He stressed: “Our international business is growing. It’s great testament to all the work and achievement in 2012, so from that strong base let’s all drive the strategy going forward.”

Summing up what the strategy meant for her, Linda Hudson, President and CEO, BAE Systems, Inc., said: “ I think everybody wants to know why they are doing what they are doing and where they are going, and that’s what strategy is all about.

“It’s taking a very complex and difficult set of circumstances and environments and distilling it down to something that everyone can understand, from the engineer in the office to the factory worker.

“They know why they are doing what they are doing, where they are heading and why it’s the right thing to do. That’s the essence of strategy.”

“we are all delivering inspired work in what is a rapidly changing environment. i want everybody to understand their contribution”

BAE SySTEMS STRATEGy 2013

oUR pEopLE SAy:

• I try to deduce what the world looks like, so that our leaders can determine our direction.

• I am developing important skills that will be needed to complete the required work in the future.

How will you support the strategy in 2013?

What would your quote be?

BAE Systems In Focus

8 • intel

our Vision what does “premier” mean? we want to be the best – outperform everyone else in these markets, which in turn will deliver value for our shareholders. It doesn’t mean being the biggest.

our Missionwhat do we mean by “shareholder value”? If our earnings increase, then our shareholders benefit from the increasing value of their shares (share price increase) and through improved dividends from the extra cash that is generated. we will deliver this through our approach to Total Performance.

• Customer Focus: Our priority to all our customers is to understand their evolving needs and expectations, and deliver on our commitments throughout the life of our products and services.

• programme execution: Our performance is dependent on the successful execution of projects. It is important we win and contract for high quality new programmes

and deliver on our projects within tight tolerances of quality, time and cost performance in a reliable, predictable and repeatable manner.

• Financial performance: we will set ourselves

challenging financial targets through

the Integrated Business Planning process, which will provide an

attractive basis for the financial

markets to invest in our company.• Responsible

Behaviour: The Code of Conduct applies to all employees and is a summary of the principles and standards of business conduct expected of all employees. Our responsible trading principles are used in conjunction with the Code of Conduct to underpin all of our business activities.

our vision is to be the premier global de fence, aerospace and security company

our Values are Trust ed, Innovative and Bold

our mission is to deliver sus tainable growth in shareholder value through our commit ment to Total performance

Customer focus Programme Execution

our Str ategy – Support our customers in safeguarding their vital interests

– Inspire and develop our people to drive our success – Drive shareholder value by improving financial performance and competitive positions across the business

Improve profit and cash

generation

Grow our Cyber,

Intelligence and Security

business

Gr ow Elect ronic Syst ems

Strategic Actions

Integrated Bu siness plans

Together we do work that makes a real difference in the world

“i am innovative. contributing new ideas from experience”

“i am training the next generation”

BAE SySTEMS STRATEGy 2013

“i help promote bae systems and help inspire the engineers and scientists of the future”

our ValuesOur values are the foundation of our culture. we want to be recognised as a company committed to developing a culture of Total Performance, focusing not just on what we do, but how we do it. By each of us living our values every day, we can continue to grow our business and support our customers in 2013 and beyond. we must continue to build on the good work of 2012, demonstrating examples of where and how we lived our values:

• Trusted – we continue to be trusted to deliver to our customers.

• Innovative – we have many examples of innovation across the company.

• Bold – we took a bold decision to enter into potential merger talks with EADS – we felt we had to explore it, and did.

Our company strategy comes to life not from words on a page, but in the passion and commitment of every person at BAE Systems. The story of our strategy is the story of our people

bit.ly/BAE-In-Focus

intel • 9

our vision is to be the premier global de fence, aerospace and security company

our Values are Trust ed, Innovative and Bold

our mission is to deliver sus tainable growth in shareholder value through our commit ment to Total performance

financial Performance responsible Behaviour

our Str ategy – Support our customers in safeguarding their vital interests

– Inspire and develop our people to drive our success – Drive shareholder value by improving financial performance and competitive positions across the business

Gr ow Elect ronic Syst ems

Drive value from our

platform and Services positions

Increase our international

business

Strategic Actions

Integrated Bu siness plans

Together we do work that makes a real difference in the world

“i’m trusted to make the right decisions when it counts”

“i protect the health and well-being of our employees to optimise total performance”

BAE SySTEMS STRATEGy 2013

our StrategyOur strategy defines the direction and shape of the group over the long term, and enables us to prioritise the deployment of our resources in what continues to be a challenging environment. for 2013, we have three key elements to our strategy:

Support our customers in safeguarding their vital interests – we must continue to get close to our customers, and understand the pressure on them so we can respond effectively.

Inspire and develop our people to drive success – new for 2013 – we can only effectively deliver our strategy through our people. you are vital to our success. we need you to understand and tell us how you contribute – share your stories with us.

Drive shareholder value by improving financial performance and competitive positions across the business – we continue to operate in a challenging environment, and therefore a continued focus on improving efficiency in our operations is key – this will make us more competitive to win future business.

Strategic ActionsThe group Strategic framework contains five strategic actions.

These directly flow from our vision, mission and strategy and are designed to shape our business portfolio and strengthen performance over the long term. These actions translate the group’s overarching strategy into operational plans that are delivered through our lines of business.

Improve profit and cash generation – Everyone has a role to play in this action: cost negotiations, driving cost down – this all inevitably contributes to the bottom line.

Grow our Cyber, Intelligence and Security business and Grow Electronic Systems – why are we focused on these areas? These two areas are particularly well positioned in growing markets and therefore an area where we can see ourselves growing.

Drive value from our platform

and Services positions – There are many opportunities to drive value through improving our processes and increasing our productivity.

Increase our international business – you only have to look at the success we have had in 2012 in this area to see why it continues to be important in 2013. There are many opportunities and game changers in this area.

Read more about opportunities to grow the business on pages 11-13

“i ensure the building blocks are in place to deliver a safe, effective and focused business plan”

BAE Systems In Focus

10 • intel

“Inspire and engage our people to drive our success.” What does it actually mean? And how will we achieve it? In Focus asked Executive Committee members Charlotte Lambkin and Lynn Minella

Our strategy is nothing without our people

Thought leadership

CHArLOTTE LAmBkIn (ABOvE) AnD Lynn mInELLA

“we want our people to see they are up there alongside our customers and investors and have just as much influence on our company’s future”

When companies talk about their strategic goals, they focus largely on customers

and investors — and rightly so. Without customers to buy its products and services and investors to fund its future, a business cannot survive.

But what about employees? Where, and how prominently, do they fit into the equation?

“Employees are at the centre of everything we do, but as obvious as that seems, we’ve not always acknowledged their importance,” said Lynn Minella, BAE Systems Group HR Director. “And our people are at their best when they feel engaged and inspired by their work.”

The role of employees in the success of an organisation “is one of those unwritten laws we’ve always accepted as fact,” said Charlotte Lambkin, Group Communications Director.

But in creating BAE Systems’ 2013 strategic framework, leaders decided it was time to formally acknowledge employees’ make-or-break role. So when you read the 2013 Company Strategy, you’ll find that, among the company’s nine key objectives for the year, the fourth reads as follows:

Engagement: Inspire and engage our people to deliver success.

“We want our people to see that they are up there alongside our customers and shareholders and have just as much influence on our company’s future,” Charlotte said. “Adding people to the strategy this

year might seem to suggest that we weren’t focusing on them before, which isn’t so. But the reality is that what’s written down and formalised gets priority attention and makes us all feel centre stage.”

“Employees who see how their efforts contribute to the overall success of the company — and in turn how the company contributes to the success of its customers — have a greater sense of purpose and fulfilment in their jobs,” Lynn said.

So leaders and managers throughout the organisation are meeting with employees to talk about the strategy — not just in a broad corporate and financial sense, but in terms of how it relates to their individual roles.

“We are taking the time to explain the strategy to our employees in a way that’s relevant and asking what it means to them,” Lynn said. “This sort of conversation builds understanding and confidence, engenders trust, and must become a natural part of our culture. Traditional one-way, top

down communication can’t give us the level and quality of engagement our company needs to navigate the very challenging days ahead.”

Leadership plays a big role. “Leaders and managers need to make themselves available to make this happen,” Charlotte said. “There is a place for leader-to-follower-type talks and presentations, but more and more, managers need to step up and really talk with employees — ask ‘how’s it going?’ and have a cup of tea or coffee and talk. It’s in our nature to respond better to personal, human dialogue than to a lecture.”

Of course, employees must actively engage to make the process effective. BAE Systems employs very smart, highly talented people, Lynn said — “people with great ideas and unique insights that are vital to our ability to compete in a tough business environment.”

People need to share ideas and challenge their colleagues, she said. “Never underestimate the power of ideas of small actions that can add up to big changes.”

Such conversations will generate questions and, sometimes, conflict. “That’s part of what makes this a rich and productive process,” Lynn said. “There aren’t always ready and easy answers, but ultimately we’ll all benefit from a freer exchange of opinions and ideas.” Managers can count on senior leadership to equip and support them in the process, she added.

As the discussion evolves, look for highlights in the pages of this magazine, other BAE Systems newsletters, and on the pages of company intranet sites.

BAE SySTEMS STRATEGy 2013

Delivering our strategy

If we all understand how we play a part in the strategy, and, as a result, the business as a whole, it lets us see the difference we make. It makes us feel valued.

bit.ly/BAE-In-focus

briefing • 11

When Guy Griffiths, Group Managing Director, International, was named

“Honorary Australian of the Year” for 2013 in recognition of service and contribution to the Australia defence sector, he was swift to attribute the award to the hard work and dedication of the BAE Systems Australia team, and to the contribution of other parts of the company.

Accepting the honour, Guy told the presentation ceremony in London in January: “We should all share in this wonderful recognition.”

The award was a fitting postscript to a successful 2012 for the International Operating Group, not only in Australia but also in India and the Kingdom of Saudi Arabia.

Guy told In Focus: “By investing and building capability in those countries, we become part of each nation’s infrastructure.

“We are not seen as a company from whom they simply import equipment and services, but rather as an indigenous supplier of critical defence and security capability. In a sense, it means being seen as a Saudi company

in the Kingdom of Saudi Arabia, Indian in India, and Australian in Australia.

“The Honorary Australian award signifies just this. The Australian government knows very well that I am Welsh!

“But it also recognises that its largest indigenous defence company – BAE Systems and the people who work for it, Australian or otherwise – is essential to the nation’s security.

“What this award confirms is the validity of our strategy to increase our international business through focused inward investment in these markets.”

That strategy bore fruit last year as the order intake from markets outside the US and the UK grew from £4.8bn in 2011 to £11.2bn in 2012. The challenge now is to sustain and grow that performance.

Guy said: “The pipeline of further international opportunities is strong. The success in 2012 was not a one-year fluke. It was the result of sustained business development effort and investment over several preceding years.

“As we enter 2013, some further campaigns are already very advanced

and offer promising prospects for growing our international order book further. To develop this, however, we need to continue to focus our resources and investment on these opportunities, we need to develop and attract people who can operate successfully in the international market environment with its particular challenges – and most importantly, we need to deliver on our existing contracts.

“It can take years to win business but we can lose it much more quickly through failure to perform.”

In Australia, Guy said, there are some important short-term opportunities which the team is targeting, but the medium/longer-term opportunities are heavily centred on the Maritime sector. The recent Australian/UK defence co-operation treaty, which committed the two nations to explore bilateral co-operation in the maritime area, gives the company a good platform for leveraging its UK maritime capability in support of the Australian customer’s operational needs.

Turning to India, Guy said: “I recently returned from the biennial Aero India show where we were exhibiting. When I attended the same event two years ago, I spent my whole time briefing government ministers, officials, military leaders, and local industrial companies on who BAE Systems was, what capabilities we had globally and what we could bring to India. They knew very little

CoNTINUES oVERLEAF>

for the International business, 2012 ended with flourish. A landmark contract in Oman put the seal on a hugely successful year. The challenge now is to sustain this momentum

ABoVE: guy grIffITHS gIvES A BrIEfIng AT THE AErO InDIA SHOw: “THEy ArE Hungry TO unDErSTAnD HOw THEy CAn BEnEfIT frOm Our mASSIvE rAngE Of PrODuCT AnD TECHnOLOgy OffErIngS”

World of opportunity is open for business

BAE Systems In Focus

12 • briefing

about us. This time it was different. The same people were like bees round a honey pot. They know exactly who we are now and they are hungry to understand how they can benefit from our massive range of product and technology offerings.”

In Saudi, Guy said, Typhoon has now established itself as an essential component of the force mix of the Royal Saudi Air Force, and this customer is now keen to work with BAE Systems, and the European partner nations, to develop its capability.

“This represents a new trend – this crucial international customer is

<FRoM pREVIoUS pAGE beginning to drive the development agenda for our products. Other international customers will do likewise. We need to think through the implications of this trend and consider how it impacts our product strategies, our business model, and, potentially, our organisational design.

“If you ask our customers, the strength of our position in the markets for which I am responsible is in large part due to the quality of our people in these countries, but is also down to our ability to ‘pull through’ capability for our global footprint.

“ If we are to continue to grow our international business, as I am confident we can, we need to play to both of these strengths.

“As far as the first is concerned, we need to build the cadre of people who can operate in the international environment.

“As far as ‘pull-through’ is concerned, when we ‘pull’ on the rest of the BAE Systems organisation it would be great if we could get a corresponding ‘push’. We need to condition our global business to recognise that the international markets are core to BAE Systems, not just a supplement to our US and UK businesses, crucial though they are.

“If we grasp this, and reflect it in our organisational culture, then we have every prospect of continuing our very impressive international growth trajectory.”

In the final days of 2012, BAE Systems was awarded a landmark contract to supply 12 Typhoon and eight Hawk Advanced Jet Trainer aircraft, along with in-service support, to the royal Air force of Oman (rAfO). with aircraft deliveries expected to begin in 2017, the contract marks a hugely significant new chapter in the company’s 40-year relationship with the Sultanate of Oman.

“In Oman, Typhoon has long been our big growth opportunity,” said guy griffiths, group managing Director, BAE Systems International. “we do plenty of other work with the government there and with the civil sector, but winning the contract for both Typhoon and the Hawk AJT is a great honour and really marks the start of a new era for us. It is excellent news for both BAE Systems and the Eurofighter Typhoon consortium.”

BAE Systems’ and its predecessor companies’ involvement in Oman stretches back to the 1970s. It is deeply embedded in the mOD, with about 60 per cent of all military assets currently in service originating from the company.

working in partnership is at the heart of the relationship between BAE Systems and Oman. Strategically,

this has been important to the company as the Sultanate has advanced the process of “Omanisation”, reducing dependence on foreign expertise and ensuring it retains its own capacity to run and maintain military assets.

Local industry would also like to partner with BAE Systems, as it sees the potential added value it can bring to our local services and to its own business. This strategy of working with local suppliers is something the company intends to expand.

The commitment to partnership work extends throughout our operations in Oman and contributes to the business’s social responsibility activities. The company has a policy of hiring Omanis wherever appropriate and actively contributing to Omani skills development, including through training provided under the Oman’s Partnership for Development (offset) programme.

much of this activity is about making smart use of the small team on the ground in Oman to cement BAE Systems’ position as a good citizen.

Looking forward, the future is shaping up to be an exciting time, with the delivery into service of khareef

New era dawns in Oman offshore patrol vessels which are currently under construction in the uk, initial mobilisation on the Typhoon and Hawk programmes and deliveries to rAfO of further f-16 aircraft in which BAE Systems, through the Inc. business, makes a significant contribution.

key opportunities include further land vehicle and ammunition sales. Promising successes during 2012, particularly through Detica, have identified security as an area of potential significant growth, including both the defence and civil sectors where there are live opportunities in cyber security, counter-fraud and training.

much of the company’s recent success in Oman is down to its being trusted, innovative and bold in all of our dealings. There is a strong drive to deliver on our commitments.

when our employees walk into a customer premises, they are now recognised as people who will do their utmost to deliver.

“winning the contractsis a great honour and really marks the start of a new era for us”

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briefing • 13

In 2012, BAE Systems increased its international business. Order intake outside the UK and US

increased to £11.2bn, with the company enjoying significant contract wins.

And that, declares Alan Garwood, Group Business Development Director, is the key to 2013.

“With the deficit reductions in the US and the flat budget situation in the UK, we have to look further afield to our international markets. Our main competitors – such as Lockheed Martin – have a far greater reliance on the US government and US military for sales than we do. BAE Systems is far more global in its outlook – we’re used to getting out there and trying to win business.”

That is because, over the past few years, the company has changed its business model from being largely UK and US-focused into an organisation that now has a far broader global reach.

“In Group Business Development (GBD) we now have managing directors in such key centres as Tokyo, Kuala Lumpur and Abu Dhabi, and another based at Farnborough who looks after Europe and Latin America for us,” explained Alan.

“Our people in the regions are adding value to our efforts through their knowledge of local politics and the local economy. They speak the language and really know our markets and our customers.

“We have some big orders to win in 2013. Potentially the largest is

in Malaysia, where we are hopeful of selling Typhoon aircraft to the government. This year, we will concentrate on winning down-selection in Typhoon’s favour so that we can get into the serious business of negotiating with the customer.”

Another down-select from 2012 is the F-16 upgrade for Korea that is worth about $1bn. There is still work to do to turn it into a firm offer, because competitors will be nibbling away until our down-selection is converted into a contract award, and Alan’s team, working with Support Solutions and Inc., is focusing its efforts on getting the contract with the Korean government signed and sealed.

Global business-winning efforts are greatly enhanced by the efforts that are being made by Detica in the supply of cyber security products, especially in the Far East and South-east Asia. Detica is planning to raise its profile in Malaysia, using Kuala Lumpur as one of its key sites for development.

Detica has also invested in Poland and is beginning to win some substantial overseas contracts. And its involvement in cyber security is giving BAE Systems entry to areas that it has not had before. Many of Detica’s software packages are used by the banking and insurance industries, a sector that is vital to any government.

“Detica and our other businesses are raising their presence in our offices throughout the world. It’s not just GBD people who are leading the charge now – there are MAI people in Kuala Lumpur, Detica people there and in the Middle East, and Maritime people in Rio de Janeiro.

“It’s really good to see the businesses going out to help win

international business and putting their own people on the ground.

“Our business model means we rely on our own people to manage our customer relationships ourselves, and not rely on third parties.

“Wherever we can, a BAE Systems executive will manage the relationship with the customer, from the cradle to the grave. It’s helped in Oman, Korea, Malaysia and Indonesia – where we won our first contract in ten years to support the Hawk – and in Brazil.

“When I was in Korea recently I spoke with the senior Korean officials involved with the selection of BAE Systems for the F-16 contract.

They used phrases like ‘We trust BAE Systems to deliver’ and that makes us feel proud that our relationship with them has persuaded them to break with established practice.

“It would have been easy for them to award the contract to our main competitor, but they liked our people and how we did business, they liked the technical proposals, and they liked the price. That convinced them to put their trust in a team they are getting to know.”

On the global horizonBAE Systems broadens its outlook as business winners target fresh opportunities in new markets

ABoVE: ALAn gArwOOD POInTS TO POTEnTIAL grOwTH ArEAS In nEw mArkETS SuCH AS mALAySIA, wHErE DETICA IS PLAnnIng TO rAISE ITS CyBEr SECurITy PrOfILE, uSIng kuALA LumPur (TOP) AS OnE Of ITS kEy SITES fOr DEvELOPmEnT

“our people in the regions are adding value to our efforts. they really know our markets and our customers”

BAE Systems In Focus

14 • innovation

When James Bond goes into the field, tradition dictates he carries the latest and greatest technology that Q Branch can offer. Yet in the latest film in the franchise, Skyfall, Daniel Craig’s usually unflappable hero looks a little perturbed to find his box of tricks consists of … a radio.

Yet fresh advances in venerable radio technology underpin many of the exciting and decidedly “Bond-esque” gadgets and solutions coming out of BAE Systems’ Advanced Technology Centre (ATC).

With bases in Bristol, Chelmsford and Northamptonshire in the UK, the ATC is as close as it gets to a real life Q Branch where scientists, engineers and mathematicians solve the most intractable science and engineering

problems faced by the company and its clients.

As well as working on applied research and technology for the UK businesses and its own in-house projects focused on what it sees as key technologies for the future, the ATC also acts as a high-tech troubleshooter.

Whether this is for another BAE Systems business or an external agency – including the UK MOD, the European Space Agency and UK security agencies – the ATC is the first port of call for anyone needing to achieve the supposedly impossible.

Activities range from complex long-term projects to rapid-turnaround fixes. Through the ATC’s “TechniCall” service, businesses are able to pose thorny questions, have them looked at

by a dedicated expert within a couple of days, and expect a solution in the shortest time possible.

It stands to reason that the applications for the ATC’s technologies are tremendously diverse. For example, its IFMS (Intermediate Frequency and Modem System) is currently being used in several high-profile space projects. An entirely software-defined radio system, IFMS is fully reconfigurable, allowing it to be upgraded as new technologies

Where the world of 007’s gadget fiction becomes factAdvanced Technology Centre

ABoVE: ATC DIrECTOr JAmES BAkEr: “wE mAkE SurE THE BEST AnD mOST APPrOPrIATE TECHnOLOgIES ArE AvAILABLE TO BAE SySTEmS nOw – AnD In THE fuTurE”

ATC’s technological marvelsAlthough much of the work under way at the ATC is highly classified, here are just a few of the exciting and potentially life-saving technologies with which it has recently been involved.

Look, no wires!while transmitting through six inches of solid steel is undoubtedly an impressive trick, it also has exciting applications where structural integrity is vital.

Each time a hole is drilled into the pressure hull of a submarine – to run data and power cables

between the boat’s various systems and equipment – it potentially compromises the hull integrity. Each new hole is also expensive, as it must be monitored constantly for signs of weakness and corrosion.

The ATC’s solution, which uses sound waves to transmit data and even power through solid steel, is so revolutionary that the early demonstrations were thought to have been faked. It was only when the team transmitted the same data (a high-definition movie) using the same technique through a

glass block that sceptics accepted no wires had been involved.

Auto autonomy Platform autonomy has been a major focus in recent years, with the aim of mitigating some of the risk of in-theatre transport. There are several autonomous platform technologies within BAE Systems, notably the HErTI and mantis unmanned air vehicles, in which ATC has played a role.

It has also developed its own autonomous land vehicle called the wildcat, described by the team as “a Land rover on steroids”. The wildcat bristles with sensors, cameras, lasers and radio

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innovation • 15

and modulation schemes emerge, without the need for hardware changes. It played a key role in guiding spacecraft to Venus and Mars and communicating telemetry data back to Earth. This technology and know-how develops advanced and discrete communications capability that can be utilised in the security sector.

From the furthest reaches of human exploration to extreme environments much closer to home, the ATC’s positioning and radio technology is

also being used to make life safer for soldiers in the field.

When the UK MOD put out a challenge via its “Centre for Defence Enterprise” portal, calling for technologies to mitigate the risks faced by convoy drivers in the field, the ATC was quickly on the case.

With high stress and difficult driving conditions, often involving poor visibility, convoy driving is a dangerous business. ATC’s solution allows each vehicle to automatically follow precisely the path taken by the preceding vehicle.

It uses no cameras, and therefore still works even if the leader can no longer be seen because of darkness, dust clouds or other obstructions. As it doesn’t rely on GPS, it is not susceptible to signal jamming.

James Baker, Director of the ATC, said: “We develop technologies that BAE Systems businesses, who are running some of the most technically challenging projects, depend on for success.

“By applying an open innovation model, whether working on projects for the company’s Central Technology Programme or investing in partnerships with academia and small and medium enterprises, we make sure the best and most appropriate technologies are available to BAE Systems now – and in the future.”

Over the past 27 years, 65 patents have been issued to the employees of the Protection Systems business, part of the BAE Systems, Inc. Support Solutions sector. These accomplishments helped pave the way to the development of advanced protective and life-saving equipment.

The range in technologies and products covered by the patents is impressive – from materials used for energy management to design concepts for seats, armour, parachutes, and inflatable restraints.

Seventeen employees have now been recognised for their achievements, and the team in Phoenix, Arizona, unveiled in their honour a wall dubbed “A Legacy of Innovation”. Stretching more than 22 feet, the wall is dressed with 65 etched acrylics, each highlighting the specific innovators and innovations.

“Innovation has been a key aspect of our heritage and is, by definition, a novel creation that produces and has a significant impact on society,” Don Dutton, Protection Systems vice President, said at a recent event honouring the patent recipients. “The individuals honoured at this celebration have contributed many great ideas to help save lives and advance Protection Systems’ product offerings.”

Steve untz, Director of Engineering for Protection Systems, said: “The celebration of the individuals and the inventions we have accumulated over the years is a strong part of BAE Systems and defines who we are.

“we need continual innovation to combat emerging threats and to stay ahead of the ever-increasing competition. without innovation, we will be unable to thrive and succeed as a business.”

Another bright idea on the wall

BELoW: THE AuTOnOmOuS wILDCAT – “A LAnD rOvEr On STErOIDS” FAR LEFT: BODy-wOrn ELECTrOnICS LIgHTEn THE LOAD fOr SOLIDErS In THE fIELD

ABoVE: THE wALL Of InnOvATIOn IS unvEILED

technologies – not to mention a great deal of computing power – which together allow it to operate as an independent platform, able to navigate from place to place and avoid obstacles.

The wildcat is a good example of how the ATC can work with other institutions to develop its innovations. under an innovative arrangement, Oxford university

has been given access to a wildcat for research, while the ATC gains access to the algorithms developed at the university.

Body-worn electronicsDeveloped by the ATC, this technology could lighten the load for soldiers in the field by integrating power, antennas and connections between devices into the fabric of their clothes. for example, the team has developed an ordinary-looking T-shirt, which incorporates a very high bandwidth antenna, perfect for covert work.

multiple batteries could also soon be a thing of past. with one battery carried at the small of the back, conductive fibres sewn into clothing could carry current to connectors all over the body, from a gPS device on the wrist to a camera on the helmet.

BAE Systems In Focus

16 • customer focus

Tracked technology

Military technology could be the answer for more efficient and environmentally friendly logging operations.

For decades, wheeled “forwarders” have been used to transport felled logs to a place where they can be picked up by a truck.

However, the wheels leave huge scars on the ground, especially in soft soil and during wet seasons, and the vehicles can get stuck.

The forestry industry is experiencing increasing pressure from authorities, forest owners and the general public to reduce the damage caused by the forwarders and is keen to solve the productivity, availability and environmental challenges they pose.

Enter BAE Systems. Last year, 11 Swedish forestry companies contracted L&A Vehicle Systems at Örnsköldsvik to carry out a unique study to establish whether the tracked technology used for its military all-terrain vehicles could overcome these forestry terrain transport challenges.

“We have the expertise in building vehicles to meet demanding mobility requirements for tough terrain, where CV90 and BvS10 mobility is considered state-of-the-art,” said Carl-Gustav Löf, who led the study.

“What we came up with is the Hybrid Forestry Truck (HFT), a forwarder with our tracked technology and electric drive, which clearly exceeds the customer requirements.”

Magnus Bergman is Chief Technical Officer at SCA Skog, Europe’s largest private forest owner, and he agreed: “In our business, there are technological leaps, and I would say that this is one of them, as we can see that this would streamline the forestry industry.”

HFT employs the rubber-tracked vehicle technology used in BAE Systems’ all-terrain BvS10 vehicle. The unique tracked forwarder also uses BAE Systems’ electric drive technology, which is already being spun off for heavy mining vehicles.

“We are not a supplier of forest machines and I don’t foresee that we will be one in the future either,” said Carl-Gustav.

“What I do see is that our tracked and electric drive technologies will be

Hybrid Forestry Truck benefits

•unlike wheeled forwarders (right) which leave huge scars on the landscape, the HfT rubber track marks in many cases are invisible to the naked eye

•Lower impact means less maintenance of forest tracks

•HfT can run at twice the speed of a wheeled forwarder (up to 40kph), increasing

productivity by up to 20 per cent•Dimensioned for 15 tons

payload, the gross vehicle weight is 10-12 tons (25-30 per cent ) lighter than a wheeled forwarder

•It provides a much more comfortable workplace for the driver

•fuel consumption is lower because of the electric drive, lighter weight and the lower rolling resistance

•more reliable year-round operation will allow just-in-time production and a reduction in plant investment.

ABoVE: THE HyBrID fOrESTry TruCk wILL rEDuCE THE EnvIrOnmEnTAL ImPACT Of LOggIng OPErATIOnS COmPArED wITH CurrEnT wHEELED vEHICLES (BELOw) AnD BOOST PrOfITABILITy fOr OPErATOrS

L&A makes tracks for the forestry industry ... softly

incorporated in a platform that can be purchased by forwarder manufacturers who in turn can integrate the cabins, cranes, cargo carriers and so on.

“For BAE Systems, it will be a combination of licencing and supplying tracks and parts of the drive line.”

So far, HFT exists only virtually as a 3D-model successfully tested in simulated terrain. A prototype will be built this year, ready for real-world testing in early 2014.

“Our customers all say that they will require forwarders like HFT, should it become a product available for the market. We also see applications for HFT in other industries, such as construction, mining, and oil and gas exploration,” concluded Carl-Gustav.

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customer focus • 17

Maritime Collaborative Enterprise

within weeks of the Submarines and naval Ships businesses of BAE Systems maritime being awarded a £32m contract to lead research exploring the next generation of uk maritime capability, dozens of potential partners had registered their interest.

The maritime team will deliver research in the “sense to decide” (S2D) capability – the ability to gather and process information about the environment to aid battlespace command and control, both above and below the water.

known as the maritime Collaborative Enterprise (marCE), the contract brings together the maritime combat systems specialists with other companies, small and medium-sized enterprises (SmEs)and academia to provide the ministry of Defence with expertise and innovation above and under water.

The uk Defence minister Philip Dunne said: “Encouraging technological innovation to flourish is vital to our national security and our prosperity. The contract is designed to maximise the reach of our science and technology

funding, led by a team from BAE Systems, with numerous participants in the research, from large companies, to academia, to SmEs.”

The collaborative enterprise is being created and managed by the maritime team to deliver a research programme under the management of the Defence Science and Technology Laboratory which is part of the mOD.

It will involve new players, including those without a background in defence, in order to stimulate fresh thinking and innovation.

Helping to make the best decisions COrDA, the decision support unit of Shared Services, is helping BAE Systems Saudi Arabia to make better informed business decisions.

Over the past three years, the COrDA team has been making regular visits to the kingdom,

with two already this year, to assist the business with technical consultancy, including facilitation, business modelling and operations simulation.

The COrDA team is armed with an array of world-class tools, methods and skills that have been used to provide decision support services to the uk ministry of Defence and wider industry for more than 25 years, supporting teams in all areas from capability planning to operational performance.

using this capability, COrDA helps BAE Systems’ businesses to better understand, evaluate and deliver their business. To date, they have supported the BAE Systems Saudi Arabia team with key bids, including future Support Solutions (fSS) and Salam. Suzanne Harrison, Head of Service Delivery at COrDA, explained: “COrDA has worked closely with the team in Saudi Arabia to provide robust outputs that give them more confidence in their ability to deliver services to

the agreed level of performance and cost. As well as this, we also develop clear communication tools that can be used internally and with our customers.

“for example, COrDA has worked with the fSS team who are looking to deliver training through an output-driven contract, based on the quality and quantity of trained students. COrDA was asked to help identify the requisite training system resource and asset capacity required to deliver the training numbers.”

THE SAmPSOn rADAr uSED On

TyPE 45 TO gATHEr InfOrmATIOn frOm

ABOvE THE wATEr

An innovative contract to explore future maritime capability above and under water is generating significant interest New partners

begin to surface

BAE Systems In Focus

18 • inspire

CHAIRMAN’S AWARDS 2012

Success stories about how BAE Systems’ talented, committed people around

the world have gone the extra mile to create something unique and innovative – a new product, service, relationship, or a previously unthought-of way to generate more value – were celebrated at the 2012 Chairman’s Awards Gold ceremony in December.

The setting was the Ronald Reagan Building and International Trade Center in Washington, D.C. The largest building in the US capital, it is the first and only Federal-owned building dedicated to both government and business use, mandated by Congress to create a national public/private forum for the advancement of international trade.

A fitting place therefore for the annual company awards showpiece to acknowledge and reward excellence and high performance. “At BAE Systems, international trade is our lifeblood. And few awards events are more international than the one we’re holding here tonight,” said the BAE Systems Chairman, Dick Olver.

Welcoming guests from across the globe, Dick told the stars of the show, the members of the 16 Gold-nominated teams: “You’re all here because you’ve achieved great things for our great company, by living our values of being trusted, innovative and bold, demonstrating how these really do benefit our customers, our shareholders, our suppliers, our

colleagues, and our communities.“As we hear your stories, we’ll

celebrate the fantastic outcomes that your efforts have delivered.”

Cataloguing the company’s successes in 2012, the Chairman said the business achievements demonstrated everything that makes BAE System a great company. “Above all, this means our outstanding people, who achieve extraordinary things. People like you, whose accomplishments we’re here to showcase.

“That’s what makes us proud that we are BAE Systems, and makes me proud to be here with you this evening. And my pride is all the greater when I see achievements as outstanding as those that have brought you here today.

“And what achievements they are. Every year, the sheer brilliance of the nominations for the Chairman’s Awards never ceases to amaze me.

“I invariably find that every single nomination has something valuable to teach us about how we can do things better, which underlines why these awards are such a powerful mechanism for capturing the best

practices, insights and knowledge that we create every day, and then for sharing these between our people worldwide.

“This is all the more important in today’s challenging environment, as Government customers face up to severe financial constraints.

“I’ve already highlighted our robust performance this year against that tough background. And I’m utterly confident of our ability to thrive and keep moving forward, whatever the challenges.

“Why am I so confident? Because of the quality, commitment and innovative power of our people, everywhere we do business. That’s why you’re the real stars of tonight’s event.”

A SHoWCASE oF oUR VALUES

“every year, the sheer brilliance of the nominations for the awards never ceases to amaze me”

ABoVE: CHAIrmAn DICk OLvEr TOLD THE gOLD nOmInEES: “yOu HAvE ACHIEvED grEAT THIngS fOr Our COmPAny”

LEFT: rOnALD rEAgAn BuILDIng AnD InTErnATIOnAL TrADE CEnTEr In wASHIngTOn, D.C.

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inspire • 19

01 ENHANCING CUSToMER pERFoRMANCE

CoLLABoRATIoN DELIVERS UoR CyBER SUCCESS Team members: michael Bowes, Alan Brice, Timothy Hodges, grant Hume, robert milford, Stephen mudd, mark Page, Ian Pendlebury, roy Speakman, Steve Taylor, kevin Tsang, Paul whittle. Nominator: Daren Smith.Business: Defence Information within military Air & Information.

The uk’s Armed forces need to exchange mission-critical information rapidly and securely with their coalition partners at the “secret” level. To meet this need, significant cyber security challenges were overcome to deliver two consecutive urgent operational requirements (uOrs) that enhanced the operational performance of uk forces engaged in front-line operations.

The team has a strong pedigree of delivering secure networks with in-depth understanding of the information assurance challenges and solutions. using these skills the team developed solutions to both uOrs in extremely short timescales, ensuring the customer can communicate safely and with confidence across operational domains.

The team met a capability gap to protect coalition forces and save lives through providing timely information and overall situational awareness.

SCoTLAND: pERFoRMANCE VIA INTEGRATIoNTeam members: Scott Andersen, Zan Aslett, James Bernabeo, noah Cowles, Leslie garza, Stephen Harris, John maceachin, Curtis mcConnell, Bernard mcguirk, David new, Susan Oakley, Don widener. Nominator: wes green.Business: Intelligence & Security

Tracking the production and deployment of improvised explosive devices (IEDs) is critically important to the coalition mission in Afghanistan. The “Scotland” programme team developed an intelligence, surveillance, and reconnaissance (ISr) capability that surpasses anything previously available to the intelligence community in combating insurgent networks that use these deadly weapons.

Scotland exceeds the mission requirements of its customer, the Commander of Coalition forces-Afghanistan, in detecting, identifying, locating, tracking, and reporting on the production, shipment, and emplacement of IEDs.

The Scotland programme team – drawn from three businesses across the Electronic Systems and Intelligence & Security sectors – integrated new unique sensor

technology with intelligence analysis techniques to push the boundaries of ISr intelligence collection and analysis. Delivery of this groundbreaking system in under a year is an astounding achievement and a life-saving advancement to operations in Afghanistan.

02 INNoVATIoN

LITEHUD – LoW-pRoFILE HEAD-Up DISpLAyTeam members: Philip Appleby, glen Collins, Tom Cronin, Steve Ellison, Trevor Hill, Samantha Holder, martyn Ingleton, David Larkin, Stephen mason, Paul morant, Elaine Parkes, Simon randall. Nominator: mark Hiseman.Business: Electronic Systems.

LiteHuD is a totally new head-up

display (HuD) concept using a revolutionary optical waveguide. It replaces the multiple, bulky

expensive lenses of existing HuDs

with a single, low-profile piece of glass,

which is 85 per cent smaller than conventional displays.

This enables an extremely compact, low-cost HuD solution able to fit in any cockpit. It is particularly useful in modern

cockpits with large area displays, because LiteHuD is slim enough to fit above them.

Other teams have tried, and failed, to produce a waveguide HuD. LiteHuD adopted the latest “learn first” techniques to ensure success, and within a year the team turned an unproven concept into a fully fledged product, which has matured enough to be bid into major opportunities.

ULTRA LoW NoISE CMoS IMAGING Team members: Hung Do, Chiao Liu, Steve mims, Brad Ostman.Nominator: Boyd fowler.Business: Electronic Systems Six years ago, BAE Systems set out to develop a world-class CmOS (complementary metal-oxide semiconductor) sensor capable of capturing images in any lighting conditions. It has delivered by creating the world’s best-performing CmOS image sensor (CIS), combining speed, resolution, wide dynamic range, wide field of view and sensitivity in a single visible sensor.

The uses for a highly diverse sensor are endless. for medical applications, security and especially the military, the ability to see what is in the shadows is critical.

Already credited with helping stem a cholera epidemic in Haiti, the sensor has been embraced by the life-science markets for use in

© C

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012

Globally, 3,300 nominations were entered for the 2012 Chairman’s Awards. Approximately one third received Bronze awards, with 64 going on to earn Silver. Sixteen finalists went on to present to the Gold panel, with the eight teams profiled here emerging as winners

CoNTINUES oVERLEAF>

THE SCOTLAnD TEAm PrEPArE An AIrCrAfT

fOr A mISSIOn

COLLABOrATIOn DELIvErS uOr CyBEr SuCCESS: THE TEAm’S wOrk IS

PrOTECTIng fOrCES On THE frOnT LInE

BAE Systems In Focus

20 • inspire

multiple camera platforms. for the military, improved night vision means better situational awareness and better decision-making in front-line operations. CIS is finding a ready market in military and commercial intelligence, surveillance, and reconnaissance applications.

The team is continuing to build on the earlier successes of CIS by developing additional low noise circuitry and other design architecture which provides a path to the “Holy grail” of imaging – solid-state night-vision imaging.

03 TRANSFERRING BEST pRACTICE

SAFETy FIRST THRoUGH GLoBAL CoLLABoRATIoNTeam members: Debbie Allen, mike gee, Lloyd Hankin, Danny martland, Steve messam, Angela mulgrew, Angela murray, mike Powell, Hannah Sesay, Andrew Standen, Ian worrall. Nominator: michael Ord.Business: naval Ships

The Safety first programme has been developed to radically improve levels of safety across sites, significantly reduce accident figures and give employees ownership of their own safety. The programme ensures that, where appropriate, we go beyond our regulatory requirements to ensure that our employees start safe, talk safe and return home safe.

The Safety first programme consists of a clear strategy accompanied by a highly visible communications campaign, featuring a unique and recognisable Safety first identity that uses common language and is easily transferrable between business units.

The programme originated within the Programmes & Support SHE Policy Board and developed globally. naval Ships implemented its Safety first campaign on 1 January 2010, and through

global collaboration and the sharing of best practice, has achieved amazing results five years earlier than industry benchmarking suggests. All sites now collaborate and share best practice with one another, ensuring continued learning and improvement – with naval Ships becoming a prime donor.

Safety first has delighted the customer as well as attracting external recognition through several prestigious awards.

USS CHoSIN MoDERNISATIoN SUppoRT TEAMTeam members: Sherell Estrada, will gallegos, ron Henry, marco Hernandez, keavin Hess, Tom Johnson, roy Layug, reymundo Trejo. Nominator: Bob koerber.Business: Support Solutions

modernising the uSS Chosin, a guided-missile cruiser based at Pearl Harbor, was a huge and complex undertaking, larger than any ever undertaken in Hawaii. The uS government, concerned that the resources needed to accomplish such a big job exceeded what was available on the islands, considered moving the work to the mainland. BAE Systems Ship repair assured the government that its Hawaii shipyard was up to the task and delivered on that promise.

To help support Hawaii with resources and bring best practices to the project, the uSS Chosin modernisation team travelled to

Hawaii on an extended 14-month contract to support the programme to completion. The team brought its management tools and lessons learned to Pearl Harbor and quickly integrated with local managers and government personnel to provide programme management support, scheduling tools, and test metrics.

The team demonstrated to the customer that BAE Systems could mobilise a work force and execute a project in any home port.

04 SUppoRTING oUR ToTAL pERFoRMANCE CULTURE

BEDFLEXTeam members: Joseph Birks, John Connor, Samantha freeman, Sean gallagher, mike Hammond, Bradley Hodgeson, Jordan Hunter, ross Sixsmith, Liam Smith, matt Stevens, Daniel walker, rebecca wolfenden.Nominator: David Short.Business: Core Engineering within military Air & Information

for soldiers returning from the battlefield with traumatic

injuries, adjusting to a hospital stay and

a slow return to health can be hugely challenging. Anything that can ease the burden for

those who have already given

so much is worth considering.

BAE Systems apprentices in the uk recognised this when they talked with physiotherapists at the Queen Elizabeth Hospital in Birmingham while preparing for their Apprentice Innovation Challenge. The apprentices learned that bedbound

injured soldiers had been building back lost muscle mass doing stretching exercise using elastic tubing. But the tubing kept slipping. A device was needed that was simple to use and which cured the problem.

After consulting with doctors, nurses, patients and physiotherapists, the apprentices invented a device that did the job. They called it the BedfleX. manufactured using three- dimensional printing techniques, the device grips tubing reliably, giving soldiers complete confidence during their resistance training exercises.

The BedfleX device has now been widely recognised as a significant invention of real value.

opERATIoN NoAHTeam members: khaled Ahmed, richard Ashooh, Jerry Burke, robert Eckler, michael fitzpatrick, Jim garceau, Doug garner, Paul mcDonald, kevin Perkins, Bijon ray, nolan Schmidt, Bridgett Schroeder. Nominator: Dan gobel.Business: Electronic Systems

On 8 September 2011, the forces of nature struck catastrophically at one of BAE Systems’ major uS operations. The next day, a dedicated and tireless team of employees in Johnson City, new york, struck back.

The northeast flood of 2011 was the worst on record, destroying the Johnson City facility (pictured left) and devastating many employees’ homes. Through an innovative, enterprise-wide crisis response model, the Operation nOAH team rescued a business and aided a workforce and a community, earning the recognition of our customers, the gratitude of the community, and the admiration of our industry in a stellar example of BAE Systems’ Total Performance culture.

Employees at all levels responded to this crisis without delay – literally while the disaster was still occurring.

<FRoM pREVIoUS pAGE

LEFT: THE rEvOLuTIOnAry LITEHuD (LEfT) IS 85 PEr CEnT SmALLEr THAn COnvEnTIOnAL DISPLAyS

overwhelmed: the johnson city site, new york

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inspire • 21

Training commitment

BAE Systems plans to recruit 387 engineering and business apprentices across its UK businesses in 2013 – the highest intake since 2008 – and 60 more than the company recruited in 2012.

The announcement in February came as the Prime Minister, David Cameron, continues to urge businesses across the country to take on apprentices to stimulate economic growth through manufacturing, exports and infrastructure.

The expansion of BAE Systems’ 2013 apprentice recruitment programme is testament to the

vital role apprentices play in the company, coupled with the growing demand among young people for viable alternatives to university.

Almost 10 per cent of the new recruits will join the five-year Higher Apprentice Programme, which combines invaluable on-the-job training with the opportunity to study degree-level qualifications, free from tuition fees.

The new recruits will work across BAE Systems’ air, maritime, cyber security and munitions businesses.

Nigel Whitehead, BAE Systems Group Managing Director, Programmes & Support, said: “Our continued commitment to

BAE Systems manufacturing engineer Jenny westworth was crowned the first uk Apprenticeship Champion of the year last november. The new award recognises the significant impact apprentices make to their employer’s business development and growth, and their role in championing apprenticeships to schools, young people and the public.

Jenny, who completed her advanced apprenticeship in aerospace engineering at military Air & Information in warton, Lancashire, last year, is also a BAE Systems Education Ambassador and a STEm ambassador for the region.

She is currently working on the final assembly line for the Typhoon aircraft. After receiving the accolade, Jenny said: “It’s nice to be acknowledged and to represent the company.

“my career stems from the support BAE Systems has given me, so it’s great to be able to give something back. I am really passionate about encouraging young people into engineering, and especially asking women to consider careers in aeronautical engineering as it has exciting and varied prospects.”

Jenny, who joined the apprenticeship scheme in 2007, explained: “I originally planned to do a design engineering degree at university. Then I heard about the apprenticeship scheme at

BAE Systems and thought it would be perfect for me – I was the kind of child that pulled my toys apart to see exactly what they were made of.”

for Sean gallagher, who works in mAI Quality team at warton, 2012 was an exceptional year. He was named BAE Systems Apprentice of the year at the uk Apprenticeship Awards. for good measure, Sean also picked up the Community Achievement Award.

As team leader for the apprentice team who produced the Bedflex technology, designed to help recovering amputees and critical care patients take part in bed-based exercise to aid rehabilitation, Sean won the

“Breakthrough” category in the make it in great Britain Challenge. He then went on to win the EEf’s final year Apprentice Award and The Manufacturer magazine’s young manufacturer of the year title in november before topping it off with a gold BAE Systems Chairman’s Award in December (see opposite page).

Sean, who joined BAE Systems in 2008 and completed his apprenticeship last march, said: “I’m completely overwhelmed. It’s been such a brilliant year for me and the team who designed Bedflex. I’d recommend an apprenticeship to anyone – it’s a great way to learn and get paid at the same time.”

Inspirational role models acclaimed

Foundations for the future2013 intake of UK apprentices is highest in five years the apprentice programme reflects

the sustainable position of our UK business and the success of the programme in generating BAE Systems’ workforce of the future.

“We like to train people from an early age and find that the combination of on-the-job training and academic study without debt is a great motivator for our apprentices to stay with us. We look forward to welcoming our new intake in September.”

Apprentice training is a key element of BAE Systems’ Skills 2020 programme, which represents the company’s commitment to ensuring it has the right skills to remain competitive and operate successfully in the UK over the next decade, into 2020 and beyond.

ABoVE: uk’S BEST – JEnny wESTwOrTH

“BrILLIAnT yEAr”: SEAn gALLAgHEr

ABOvE: PrOgrAmmES & SuPPOrT grOuP mD nIgEL wHITEHEAD

BAE Systems In Focus

22 • inspire

Giving something back

BAE Systems and its people are committed to investing in and supporting the communities in which we live and work around the globe. In Scotland, that commitment has taken an ambitious step further – the company is creating an entirely new community on a former munitions site.

The 1,800-acre former Royal Ordnance Factory site at Bishopton near Glasgow had produced explosives since the First World War and continued to supply the Army and Royal Air Force until production at the site ceased in 2002.

“As the site owner, BAE Systems began working closely with Renfrewshire Council and the Scottish Environment Protection Agency to look at how we could transform the site and develop it so that it gave something back to the community it had been

a part of for more than 100 years,” explained Lynda Johnstone, Project Lead for BAE Systems Shared Services Real Estate Solutions.

“We have started to deliver against our plan to revitalise the site and transform it into a new, thriving community of homes, recreational facilities, commercial and community

buildings. The development will not only expand the existing community of Bishopton but also create local employment and commercial opportunities.”

Andrew Cheesman, Director, Real Estate Solutions, added: “The multi-million pound Bishopton development is one of the largest regeneration projects currently under way in the United Kingdom and is due to be completed in 2026.

“As a defence, aerospace and security company, we are used to managing very important, complex programmes over a long period of time with multiple stakeholders. The life-cycle management framework we apply to aircraft, ships and submarines is also used within our property projects, helping create value for the business and the local community.

“We have an experienced team of environmental specialists working with us to carry out this remediation – a procedure which we’ve completed safely at other BAE Systems sites across the UK for almost 20 years.”

When complete, the project will have turned the surplus brownfield site into a community of about 2,500 new homes and a business park with 150,000 square metres of commercial and employment-related spaces. Dargavel Village, as it is now known, will also include a community woodland park, a library, health centre and a primary school.

The development is also expected to provide a real economic boost to the region, creating about 4,000 full and part-time jobs for people in the area through the construction phases and then the operation of the planned commercial businesses.

To support the development, to date, BAE Systems has invested £32m on the supporting infrastructure, which will benefit the local community.

Construction work on the first phase of the residential development started last September with three leading UK housebuilders, and the first homes went on sale in January.

Andrew said: “Our vision is to transform this massive site into a whole new community, and we are well on the way to making this a reality.”

New community arises from ashes of munitions siteHomes, business park and leisure space taking shape

ABoVE: DEmOLITIOn unDEr wAy AT THE OLD munITIOnS fACTOry AS THE rEAL ESTATE SOLuTIOnS TEAm’S AmBITIOuS PLAn TO TrAnSfOrm THE SITE PrOgrESSES

Link with the past

Eight-year old Emma Brown won a BAE Systems competition to create an identity for the housing element of the new development. Emma chose “Dargavel village” after reading her dad’s book on the history of Bishopton and noticed a photograph of Dargavel House in the grounds of the old royal Ordnance factory site.

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inspire • 23

Anam’s dream is to become a teacher. We are helping to make it happen

ABoVE: AnAm, CEnTrE, AnD mOrE THAn A THOuSAnD InDIAn CHILDrEn LIkE HEr ArE EnJOyIng An EDuCATIOn mADE POSSIBLE By BAE SySTEmS’ SuPPOrT fOr THE SmILE fOunDATIOn

BELoW: Dr DEBOrAH ALLEn, mAnAgIng DIrECTOr, COrPOrATE rESPOnSIBILITy, InAugurATES A LIBrAry AT AnAm’S SCHOOL In DELHI, PrESEnTIng ITS fIrST SET Of BOOkS TO THE SCHOOL’S fOunDEr mr kC PAnT (LEfT)

Smile Foundation

Education is an elusive dream for many young children in India. Nine-year-old Anam, a girl living in a slum cluster in the National Capital Region of India, is one among thousands of such children. Her father, Md. Samsuddin Malik, runs a small shop and her mother contributes to the meagre family income by taking up tailoring jobs for the neighbourhood, which is mostly made up of migrant workers. Together, they can barely manage two meals a day for Anam’s six-member family, and schooling for four children is a luxury they just can’t afford.

Now enrolled in a school that BAE Systems supports, Anam blushes with excitement and her eyes gleam with dreams as she proudly announces to her classmates: “I want to be a teacher.”

The company’s recently launched community investment programme in India gives wings to the dreams of more than 1,000 Anams spread across seven rural and urban locations in six Indian states.

Over a three-year period, our support for the Smile Foundation, a national-level development organisation, will enable children from economically disadvantaged communities and help to put them back into school, supporting all expenses for school infrastructure, teaching staff and classroom material.

Guy Griffiths, Group Managing Director, International, said: “Creating and maintaining strategies for community investment that are focused on addressing each home market’s priorities is a prerequisite

to making a real difference. India has a clearly articulated goal of achieving universal primary education and healthcare, and I’m pleased that our long-term partnership agreement with Smile Foundation in India will be a contribution to this.

“As we continue to develop the considerable opportunities for the Company in India, this investment demonstrates our commitment to creating a successful and sustainable business by focusing not just on what we do, but how we do it.”

Dean McCumiskey, Managing Director and Chief Executive, said: “Smile Foundation has an impressive track record of catalysing meaningful and sustainable change in the lives of millions of children and families across both urban and rural India, and we are delighted to join forces with it

to establish a national footprint for our Corporate Responsibility programme in India.

“Employee volunteering is an integrated aspect of our commitment, and we are looking forward to contributing our time and skills and work in the communities.”

Shortly after the signature of the partnership with Smile Foundation, Deborah Allen, Managing Director, Corporate Responsibility, visited India and spent time at a girls-only school that BAE Systems’ grant supports.

She said: “Our maiden Community Investment in India is very robust, and I’m particularly pleased that it engages a cross section of our stakeholders in the market.

“My visit to the girls school was truly memorable, and I am moved by the eagerness to learn, the aspirations, the joie de vivre and the exponential change each student demonstrated.”

“smile foundation has an impressive track record of catalysing change in the lives of millions”

24 • inspire

Daily rocket attacks, temperatures exceeding 125 degrees Fahrenheit and

isolation were just some of the challenges facing a BAE Systems Electronic Systems sector field team as it brought a critical air-to-ground situational awareness system to forces on the front line, upholding the sector’s motto of “We Protect Those Who Protect Us”®.

The Electronic Systems team, comprising employees from Greenlawn, New York, and Wayne, New Jersey, recently returned from deploying the situational awareness system, known as a Combat Identification (CID) server, in Afghanistan.

Designed for fixed-wing aircraft, the system helps US and coalition forces determine which targets to hit and which to avoid. Feeding from a variety of tracking systems, the CID server feeds pilots real-time situational awareness data in the cockpit to help them verify the locations of friendly forces within a specific area. The system queries several tracking sources and reports to the pilot

within seconds, greatly reducing the incidences of friendly fire.

“Many people questioned my decision to deploy to Afghanistan since I had already deployed two times as a member of the US Navy,” said Anthony DiDio, field service engineer. “When I saw the system’s capabilities and the hard work that went into putting it together, I was proud to be a part of deploying a system that would help keep our men and women safe. That was all the motivation I needed to fuel my decision to deploy.”

The architecture of the CID server allows existing communications systems into a single friend-or-foe identification capability.

“The sharing of information from multiple systems is the essence of net-centric operations,” said Eric Hansen, Business Development Manager.

Since 2007, the CID server has been part of Bold Quest, the Joint Forces Command’s series of coalition CID capability demonstrations in which a dozen countries participate. The CID server demonstrated that it can take friendly-force location information from different sources and provide it in real-time in a coalition environment. The decision to deploy the system was based on its successful demonstrations at Bold Quest.

“The CID server improves combat identification capabilities and saves lives,” said John Cosenza, Programme Manager. “It gives pilots a view of friendlies that they’ve never had before.”

The borderless team took the CID server product through final product development, received certification at Eglin Air Force Base, Florida, and finally deployed the system in theatre. To date, the CID server has performed with no system failures, exceeding customer expectations. As well as Anthony and John, the team included Robert Jelavic, Jack Gold, Christopher Reyes, Thomas DeGregorio, Bryan Kruse and Charlie Verbeke.

“i was proud to be a part of deploying a system that would keep our men and women safe”

In the heart of itElectronic Systems field engineers share front-line hardships to support US forces

ABoVE: EngInEEr AnTHOny DIDIO, PICTurED HErE In THE fIELD AnD wITH SOmE Of THE SErvICE mEmBErS HE wAS SuPPOrTIng, HAD nO HESITATIOn In DEPLOyIng TO AfgHAnISTAn

ABoVE: AnTHOny DIDIO wITH THrEE Of HIS COLLEAguES – (frOm LEfT) JACk gOLD, rOB JELAvIC AnD CHrIS rEyES – AT THE TImE Of HIS DEPLOymEnT wITH THE COmBAT IDEnTIfICATIOn SySTEm

BAE Systems In Focus