Creating an Engaged Workforce at Bombardier Aerospace
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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

Creating an Engaged Workforce at Bombardier Aerospace

June 14, 10:50

Lise St-Arnaud

Director, Internal Communications

Bombardier Aerospace


Table of content

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


Overview fields of activity as of january 31 2007

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


A history of innovation continues

  • 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.


Bombardier s b usiness a ircraft

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.


Bombardier regional aircraft

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.


Table of content1

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


The early 2000 s bring changes to the political and social environment

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


And changes in the economic environment

… and changes in the economic environment

Dow Jones: August 2001- July 2002

Bombardier: January 2001- July 2002


The aerospace industry faces unprecedented challenges

The aerospace industry faces unprecedented challenges


The challenges faced by the aerospace industry had an impact on bombardier sales

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


What could we control and influence in this challenging environment

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


Table of content2

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


To move forward we needed to engage employees

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


Communications needed to respect phases people go through in a change process

… 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.


Communicating for change data collection

CHOICES

1. Awareness

(WHAT?)

Communicating for Change: Data Collection

What?

Hey! Listen!

Something is happening!

We need to change.

Where are we going?


Communicating for change data collection1

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?


Communicating for change personal decisions

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


Communicating for change personal decisions1

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


Communicating for change towards new behaviours

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


Communicating for change reaching set goals

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


Our communication model for change

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)


Table of content3

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


We started by addressing the issue of business acumen

We started by addressing the issue of business acumen

Weekly electronic

bulletin

Quarterly publication

Employee portal


We also recognized the importance of opening up lines of communications across the organization

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


At the same time we wanted to build stronger emotional engagement

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


We were progressing but how much what steps should we take next

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


The 2004 communications survey results revealed

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


However s ome 2004 results were surprising

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


Some members of management weren t clear about their role in employee communications

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%)


Interestingly the communications survey itself triggered management to reflect about their role

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


The 2004 cultural survey results were also enlightening

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


Table of content4

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


It became clear that we had to address key cultural dimensions

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


To transform our culture we needed to provide a clear context for change

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


Creating an engaged workforce at bombardier aerospace

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


Creating an engaged workforce at bombardier aerospace

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


The bombardier aerospace transformation was to start with its leaders

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


Members of management are reminded regularly to embrace our leadership attributes

Members of management are reminded regularly to embrace our Leadership Attributes


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

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


And we are aligning our systems processes and programs

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


All employees have an opportunity to contribute

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)


As we progress in our transformation it is important to share key achievements and success stories

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


In 2006 we introduced our recognition program to celebrate people who make a difference

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)


Health and safety awards

Health and Safety Awards

Sites keeps the trophy for one year

Each site receives a commemorative plate

The trophy, designed by our Engineers


Annual accomplishment awards

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


Our communication model for change1

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)


And the journey continues

And the journey continues…

  • In the months to come, we will be focusing on:

    • Developing the next three-year employee communications strategy

    • Building a development plan and process to support supervisors in their communication role with employees

    • Evolving the Communications and Culture survey to an Employee Engagement Survey with benchmark against external references


Thank you for your attention

Thank you for your attention!

Questions?

Comments?


Creating an engaged workforce at bombardier aerospace

Creating an Engaged Workforce at Bombardier Aerospace

June 14, 10:50

Lise St-Arnaud

Director, Internal Communications


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