Eleanor Spector Vice President, Contracts Lockheed Martin Corporation April 10, 2006

2. Federal Government Contracting: Achieving High Performance through Leadership Eleanor Spector Vice President, Contracts Lockheed Martin Corporation April 10, 2006 NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

3. Leadership at Lockheed Martin “We need ‘full spectrum leaders’ – those who are rock-solid on performance – they get results, meet objectives, and put numbers on the board – at the same time they exhibit strong leadership behavior. Leaders must have both attributes, performance and behavior, not either/or.” Bob Stevens, Chairman, President, and CEO Leadership Qualities are Universal NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

4. Leadership: A Critical Investment 79% of CEOs said that the ability to develop leaders is the most important or one of the top 5 factors in achieving competitive advantage. 2005 survey of 750 executives - Center for Creative Leadership “Management is nothing more than motivating other people." Lee Iococca American industrialist  NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

5. Contracts Business Environment • Role of Contracting work force changing from transaction-based to strategic focus. • Contracts are increasingly complex, large and difficult to manage. • Increased risks must be identified, quantified, mitigated and managed. • Must develop experts with leadership skills who can replace retiring contracts personnel. Developing Leaders is Critical NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

6. Full Spectrum Leaders • Shape the Future • Build Effective Relationships • Energize the Team • Deliver Results • Model Personal Excellence, Integrity and Accountability Lockheed Martin Leadership Imperatives NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

7. Shape the Future Create and inspire the vision. Examine strategic possibilities and establish strategic direction. Passionately articulate the steps and changes necessary to make it happen. • Develop creative contracting strategies that contribute to improved performance. • Influence congressional and agency policy and law affecting the conduct of Government acquisition. NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

8. Build Effective Relationships Establish enduring, inclusive relationships within Government and industry. Foster cooperation among different functional areas. Share information. Understand impact of personal behavior on others. • Place high priority on honesty and ethics. • Maintain effective communication with customers. • Develop enduring relationships. NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

9. Energize the Team Create a positive environment. Foster a diverse culture. Build a learning organization that enables employees to realize their highest potential. Clearly communicate messages that motivate and inspire action. Celebrate victories. • Enhance the workforce training. • Establish goals and provide awards for achievement. • Provide feedback for improving performance. NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

10. Deliver Results Translate strategy into operational reality. Align and adapt to deliver results. Meet commitments. Make timely and sound business decisions to meet objectives. Exercise business acumen. • Execute sound contracts on time. • Assure contracts promote excellent performance and permit contractors to earn a fair return for the risks undertaken. NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

11. Model Personal Excellence, Integrity and Accountability Demonstrate personal excellence, ethical behavior, and integrity. Exhibit managerial courage to overcome obstacles. Demonstrate a zeal for continuous learning. Be accountable for behavior and results. • Comply fully with ethical principles in all transactions. • Actively encourage straightforward business behavior. NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

12. Behaviors that Derail Leaders • Impulsive- Ready! Fire! Aim! • Not a team player, procrastinates, “lone ranger” • Arrogant- condescending, self-promoting, not valuing others views, inconsiderate • Perfectionistic- micromanager, controlling and demanding, getting caught up in details rather than becoming strategic Counterproductive in Any Organization NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

13. Behaviors that Derail Leaders (cont’d) • Attention Seeking-takes credit for others contributions • Volatile - emotional, easily excited, quick to anger • Risk Averse-overly cautious • Argumentative-focused on protecting their own interests • Eccentric-outlandish actions and behaviors These Behaviors Drive Away Good People NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

14. Summary You cannot be a leader without followers. Delivering results is necessary but not sufficient.Leaders must also shape the future, build effective relationships, and energize their teams while modeling personal integrity and accountability. NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management