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Creating an Engaged Workforce at Bombardier Aerospace

Creating an Engaged Workforce at Bombardier Aerospace. June 14, 10:50 Lise St-Arnaud Director, Internal Communications Bombardier Aerospace. Table of content. Bombardier Overview Early 2000’s Business Environment Communicating for change Initial steps to engage employees

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Creating an Engaged Workforce at Bombardier Aerospace

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  1. Creating an Engaged Workforce at Bombardier Aerospace June 14, 10:50 Lise St-Arnaud Director, Internal Communications Bombardier Aerospace

  2. Table of content • Bombardier Overview • Early 2000’s Business Environment • Communicating for change • Initial steps to engage employees • Evolving into a journey to transform the organization

  3. Aerospace Annual revenues: $8.2 billion 56% of total revenues Backlog: $13.2 billion* Employees: 27,130* Transportation Annual revenues: $6.6 billion 44% of total revenues Backlog: $27.5 billion* Employees: 29,100* Overview: fields of activity*As of january 31, 2007

  4. Company start-up • Invention of passengersnowmobile(1942) • Creation of personalsnowmobile(1959) • Vertical integration • Energy crisis provoked market collapse (1973) • Diversification into mass transit market • Learning of new industry • 1982 New York metro contract secured strong position in American market • Entry into aerospace through Canadairacquisition • Consolidation of N. American mass transit position and reinforcement of presence in Europe • CRJ Series • Global Express • Challenger 300 • Tilting train • AGC (Autorail Grande Capacité) • Strategic acquisitions to build • market leadership • Aerospace: Short Brothers (U.K.), Learjet (U.S.), de Havilland (Canada) • Transportation: BN (Belgium), ANF (France), Deutsche Waggonbau (Germany), Concarril (Mexico), Talbot (Germany), Adtranz (Germany) • Recreational products: Evinrude and Johnson marine engines (U.S.) A history of innovation continues 1942-73 1974-85 1986-93 1993-2001 2001-2007 • Restructuring the balance sheet • Sale of legacy Recreational products business unit • CRJ1000 • ORBITA • SEKURFLO CRJ, Global Express, Challenger 300, CRJ1000, ORBITA, and SEKURFLO are trademarks of Bombardier Inc. or its subsidiaries.

  5. Bombardier’s business aircraft LEARJET FAMILY Learjet 40 XR Learjet 45 XR Learjet 60 XR CHALLENGER FAMILY Challenger 850 Challenger 300 Challenger 605 GLOBAL FAMILY Global Express XRS Bombardier Global 5000 Learjet, Learjet 40 XR, Learjet 45 XR, Learjet 60 XR, Challenger, Challenger 300, Challenger 605, Challenger 850, Global, Bombardier Global 5000, and Global Express XRS are trademarks of Bombardier Inc. or its subsidiaries.

  6. Bombardier regional aircraft Q100/200 Q300 Q400 CRJ200 CRJ700 CRJ900/705 CRJ1000 CRJ, CRJ200, CRJ700, CRJ705, CRJ900,CRJ1000, Q100/200, Q300 and Q400 are trademarks of Bombardier Inc. or its subsidiaries.

  7. Table of content • Bombardier Overview • Early 2000’s Business Environment • Communicating for change • Initial steps to engage employees • Evolving into a journey to transform the organization

  8. The early 2000’s bring changes to the political and social environment…

  9. … and changes in the economic environment Dow Jones: August 2001- July 2002 Bombardier: January 2001- July 2002

  10. The aerospace industry faces unprecedented challenges

  11. The challenges faced by the aerospace industry had an impact on Bombardier sales BOMBARDOER BUSINESS AIRCRAFT DELIVERIES Units Delivered (Calendar Years 2001 – 2004) BOMBARDOER REGIONAL JET ORDERS Net RJ orders (Calendar Years 2001 – 2004) 80% drop 61%drop

  12. What could we control and influence in this challenging environment? • Declining financial results lead to sharp decline in stock value and credit downgrading • Employees were shocked by layoffs… and moral plummeted In this context, • We couldn’t really control our external environment… • But we could certainly do something about our internal environment

  13. Table of content • Bombardier Overview • Early 2000’s Business Environment • Communicating for change • Initial steps to engage employees • Evolving into a journey to transform the organization

  14. To move forward we needed to engage employees • Building intellectual engagement through knowledge • Building business acumen • Introducing new formal communications tools and processes • Maintaining emotional engagement through organizational culture • Building trusting and respectful relationships • Creating a positive environment where specific behaviours are encouraged

  15. … communications needed to respect phases people go through in a change process • Bombardier Aerospace communications model has been adapted to address employees’ requirements as they progress through six key steps leading to change. • This model allows us to monitor progress and guide our next steps.

  16. CHOICES 1. Awareness (WHAT?) Communicating for Change: Data Collection What? Hey! Listen! Something is happening! We need to change. Where are we going?

  17. 1. Awareness CHOICES (WHAT?) 2. Understanding (WHY?) Communicating for Change: Data Collection Why are we doing this? What is the rationale behind the change? What is the plan? What will happen if we do not change?

  18. Communicating for Change: Personal Decisions Will this help us meet our business objectives? What are the expected benefits for Bombardier Aerospace? Why do you want me to embrace this change? Should I trust you? 1. Awareness CHOICES (WHAT?) 2. Understanding (WHY?) 3. Acceptance (INTELLECTUAL ENGAGEMENT) PERSONAL DECISIONS

  19. What is the impact on me and my job? Why should I change? (Positive consequences of changing vs negative consequences) What’s in it for me? – 2. Understanding + (WHY?) Communicating for Change: Personal Decisions 1. Awareness CHOICES (WHAT?) 4. Commitment 3. Acceptance (INTELLECTUAL ENGAGEMENT) (EMOTIONAL ENGAGEMENT) PERSONAL DECISIONS

  20. 1. Awareness (WHAT?) 2. Understanding (WHY?) Communicating for Change: Towards New Behaviours O.K. Now that I am convinced this change is good for me… CHOICES ACTION How will we make this happen?(Training on new techniques, new tools, adopting new management model, etc.) Are all the systems in place to allow me to adopt these new behaviours?(Can I move from “emotional engagement” to “actionable engagement”) Is my performance improving? Does anyone care? 5. DevelopNew Habits (HOW?) 3. Acceptance 4. Commitment (INTELLECTUAL ENGAGEMENT) (EMOTIONAL ENGAGEMENT) PERSONAL DECISIONS

  21. 1. Awareness (WHAT?) 2. Understanding (WHY?) Communicating for Change: Reaching Set Goals What are our successes? (Small and Big) Are we recognizing our people and our achievements? Are we maintaining the desired behaviours over time? Are we reaching our goals? CHOICES ACTION 6. Reach Goals 5. DevelopNew Habits (HOW?) 4. Commitment 3. Acceptance (INTELLECTUAL ENGAGEMENT) (EMOTIONAL ENGAGEMENT) PERSONAL DECISIONS

  22. ACTION CHOICES 1. Awareness (WHAT?) 2. Understanding (WHY?) PERSONAL DECISIONS Our Communication Model for Change 6. Reach Goals 5. DevelopNew Habits (HOW?) 3. Acceptance 4. Commitment (EMOTIONAL ENGAGEMENT) (INTELLECTUAL ENGAGEMENT)

  23. Table of content • Bombardier Overview • Early 2000’s Business Environment • Communicating for change • Initial steps to engage employees • Evolving into a journey to transform the organization

  24. We started by addressing the issue of business acumen Weekly electronic bulletin Quarterly publication Employee portal

  25. We also recognized the importance of opening up lines of communications across the organization • A Communications strategy was developed clarifying: • management’s responsibility in building employees’ business acumen • and key messages around our business priorities • Quarterly videoconferences to review business results, achievements and challenges • first involving vice-presidents, they where opened up to include directors and then managers • Managers were provided with tools to support them in their communications with employees concerning: • our business performance and challenges • difficult decisions made and the context in which they were made

  26. At the same time, we wanted to build stronger emotional engagement • Strengthening relationships between employees and their manager • Building credibility by providing consistent and coherent messages across the organization • Treating people with respect, which meant namely to share information and news with employees before they would hear or read it in the mass media • It’s all about putting people first – Putting yourself in the shoes of the different stakeholders and finding out how best to meet their needs and requirements

  27. We were progressing, but how much? What steps should we take next? • In 2004, we conducted three surveys with employees • Employee Communications survey – March • Bureaucracy (in-house) electronic survey – July • Cultural survey – August • Since June 2005, we have been conductinga combined Annual Communications and Culture Survey

  28. The 2004 Communications survey results revealed… • We had established good communications in the upper levels of management (directors and up) • Frontline communications still lacked in consistency and credibility • And importantly, employees who participated in meetings with their management were: • more aware of our business priorities, and • better understood how their business unit contributed • and better understood what they could do to influence business outcomes

  29. However, some 2004 results were surprising… • At Bombardier Aerospace, employees said they preferred getting news first from senior management and second from their immediate supervisor • While most external studies identify the « immediate supervisor » as the first person employees want to hear news from, followed by senior managers and union representatives • This suggested that in times of great change employees look at senior management for clear direction • It also told us we had to help managers and supervisors build their credibility as reliable information providers

  30. Some members of management weren’t clear about their role in employee communications • When asked if they had communicated with employees about our business priorities, our quarterly results, our key achievements and issues • 47 % of management said they had • Those who answered they hadn’t communicated on these subjects said: • I didn’t know I had to (29%) • I didn’t have the necessary information (28%) • I don’t consider it my role (13%)

  31. Interestingly, the Communications survey itself triggered management to reflect about their role • When management members who hadn’t communicated our business priorities with their employees were asked if they planned to so in the future: • 73% answered yes

  32. The 2004 cultural survey results were also enlightening… • Bombardier Aerospace distinguished itself by its powerful foundation • People who are ready to exert extraordinary effort when needed and a drive for results • Solid base of institutional capabilities, expertise, knowledge and technologies • Exciting products that our clients want to buy • Conviction of the need to deliver profitability, efficiency and customer satisfaction • Residual emotional engagement and strong desire to regain pride

  33. Table of content • Bombardier Overview • Early 2000’s Business Environment • Communicating for change • Initial steps to engage employees • Evolving into a journey to transform the organization

  34. It became clear that we had to address key cultural dimensions • In the fall of 2004, Bombardier Aerospace launched an important transformation initiative • The initiative sponsored by the President and Chief Operating Officer is coordinated by a team that includes members from Strategic Planning, Human Resources, Communications and the Business Units • A key objective of this initiative is to address cultural dimensions perceived as essential to the overall health of the organization: • Leadership alignment and development • Employee engagement • Customer centric

  35. To transform our culture we needed to provide a clear context for change • After restructuring the organization into a business unit model, the President and COO set the context for change by: • sharing his vision, • re-establishing our business priorities • and outlining the key behaviours that should distinguish our organizational culture

  36. Creating a safe and rewarding workplace Providing an amazing customer experience Eliminating waste in everything we do We put people first and We work together and We have a passion for winning and We have a drive for results around the world, through innovation, pride and setting the highest standard for excellence focusing on… Three Priorities and Leadership Attributes

  37. Our behaviour… What a reporter would say about Bombardier Aerospace after listening to our stories and observing our people • We get to know the person and the employees • We celebrate successes… we acknowledge people • We tackle problems… not the person • A good idea has no rank • We inspire confidence in our employees • We deal with everyone with simplicity and openness We put People first and We work in teams and value teamwork • Everyone is on the playing field… on the ice • We communicate… we set the context before focusing on tasks • We engage each other with passion and trust… we have fun! and We have a drive for performance • We seek clarity… and take action • We focus… we share common goals • We always drive for improvements and quality • We take ownership for something bigger than our individual responsibilities and We have a winning attitude • We have a “find a way” attitude • We focus on opportunity… not problems • We play to win

  38. The Bombardier Aerospace transformation was to start with its leaders • All members of senior management participated in two-day workshops, an opportunity to reflect on: • their leadership style and practices… • and the need for them to change some of their mindsets and behaviours • Leadership engagement is essential to foster broader employee engagement • These Leadership Engagement Forums later involved participation of all managers and supervisors as well as a number of professionals

  39. Members of management are reminded regularly to embrace our Leadership Attributes

  40. Information on our cultural transformation is readily available on our employee portal

  41. And we are aligning our systems, processes and programs • As part of the transformation initiative, all business units and functions are engaged in an effort to align systems, policies, processes and practices. Some examplesinclude: • Performance management process • People practices (to better engage, develop and recognize employees) • Decision rights and governance structure • Key performance indicators • Bureaucracy reduction • « Cultural catalysts » to eliminate cultural bottlenecks that hinder teamwork

  42. All employees have an opportunity to contribute • Achieving Excellence(launched late 2005) • An engaging initiative that provides a continuous improvement road map to deliver business results through the definition and the integration of world-class best practices • Aligned with our three priorities Achieving Excellenceguides employees within their work unit through specific accomplishments defined under targeted best practices attributes • On May 1,2007,19,728 employees received BRONZE certification (or higher)(78% of our 25,423 active employees)

  43. As we progress in our transformation it is important to share key achievements and success stories • Key achievements and success stories are captured and shared: • to recognize people and the behaviours we want to foster • and to provide models to emulate • Success stories are shared in many ways: • In the President and COO quarterly business reviews • Video and « story telling » • In our formal communications tools • Bfocus, Bclick!, Bnet • In special publications • Of Planes and People

  44. In 2006 we introduced our recognition program to « celebrate people who make a difference » • Informal recognition • Health and Safety Awards • Achiiving Excellence • Annual Accomplishment Award (2007)

  45. Health and Safety Awards Sites keeps the trophy for one year Each site receives a commemorative plate The trophy, designed by our Engineers

  46. Annual Accomplishment Awards In 2007 • 23 teams received an Honourable Mention certificate • 3 teams were presented with a medal of Merit • 1 team received the Annual Accomplishment Award

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