2017 Leadership Development Annual Report

2017

LEADERSHIP DEVELOPMENT

4101 Washington Ave. Newport News, VA 23607

ANNUAL REPORT

TABLE OF

CONTENTS

Message From The President and CEO.................................................................................................2 New Programs 2017..................................................................................................................................4 Early Identification.....................................................................................................................................6 Transitional Leadership..............................................................................................................................8 Executive Education................................................................................................................................10 Enhancing Personal Leadership.............................................................................................................12 Enhancing Leadership Skills....................................................................................................................14 Ingalls I-Lead.............................................................................................................................................18 NNS Huntington Lecture Series.............................................................................................................20 Performance Coaching............................................................................................................................22 Aligning HII Leaders with the CEO’s Vision.........................................................................................24 Leadership Programs Summary.............................................................................................................25

MESSAGE FROM THE

PRESIDENT AND CEO

When most people see one of Huntington Ingalls Industries’ mighty ships, they’re likely to think about the talented men and women who designed and built it and the brave men and women who sail it into harm’s way. Potentially overlooked but equally important are the men and women who lead that work.

HII’s leaders are the ones who ensure that their employees have the tools and equipment they need to do their jobs. They’re the ones who consistently recognize employees’ efforts. They’re the ones who ensure that everyone on their team has opportunities to learn and grow—and the ones who empower every single employee to speak up and share his or her ideas, regardless of age, gender, race or any other discriminating factor. They’re the ones who inspire us to achieve “Hard Stuff Done Right.”

This is what great leadership looks like at HII, and it’s why we treat it as a competency—just like engineering, welding, planning, accounting and hundreds of other skills needed to be successful in all that we do.

This annual report documents the many facets of HII’s leadership development efforts. The breadth and depth of these programs are testament to our commitment to cultivating leaders at every level of the company—from first-line supervisors to the senior executive team, from the corporate office to our three divisions. I think they also shine a light on the critical role leaders play in HII’s continued success and prove that we are well on our way toward achieving my vision of our company being a “leadership factory.”

Sincerely,

Mike Petters President and Chief Executive Officer Huntington Ingalls Industries

2

NEW PROGRAMS 2017

PEER PROGRAM

The Professional Enhancement and Enrichment Rotation (PEER) Program is an excellent way for salaried, individual contributors to discover other opportunities in the shipyard or become a more valuable contributor for their home department. Selected employees rotate through different Newport News Shipbuilding areas over a 2 year period. PEER Program participants:

• Develop relationships, gain understanding, and improve communication across value streams • Gain exposure to onsite work in various products and processes • Contribute their talents to host departments leading to improved efficiency and productivity • Improve personal growth and development

The PEER program provided me with exciting opportunities to expand my network and to work in high demand positions. The outpouring of support from this and other NNS leaders that I met during this journey has inspired me to grow exponentially, professionally, and personally. My diverse experience now allows me to effect bigger impact in the solutions we choose, and that’s a very satisfying feeling!

Carla Minett 4

NEW PROGRAMS 2017

FRONTLINE LEADER WORKSHOP The Frontline Leadership Workshop was designed to introduce newly promoted Ingalls front-line managers to elements involving human resource management fundamentals as well as innovative leadership competencies. The objective for this course is to define leadership behaviors that will assist participants in developing, influencing and motivating their team members to achieve exceptional performance.

The Frontline Leadership class is crucial to all new management. I learned so many things that will help in my transition as a manager. The principles taught are fundamental to our core company values.

I will be a better manager because of it.

Jennifer Jones

5

EARLY IDENTIFICATION

HOURLY LEADERSHIP DEVELOPMENT PROGRAM Established in 2005, the Hourly Leadership Development Program (HLDP) is designed to provide each trade with a substantial pool of available and competent candidates for supervisor positions.

In 2017 Newport News Shipbuilding selected 60 shipbuilders to participate in a pilot initiative aimed at refreshing the multi-phase program. The enhanced program focuses on aligning participants’ behaviors with the company values, learning about leadership and observing leaders on the job, and practicing in a leadership role. Graduates of the program are recognized for their efforts and are better prepared to compete for a future leadership position.

The Hourly Leadership Development Program taught me the expectations of a leader; how to include others, share a vision, and understand people’s motivation. It’s a better way of putting people to work. The course bridged the gap between make-up foreman and developing the qualities of a leader. By following the layout of the program, I will be a better leader.

Tyquan Spratley

HLDP participants put leadership skills into practice with an exercise designed to demonstrate the important role leadership plays in achieving higher levels of performance.

6

TRANSITIONAL LEADERSHIP

CRAFT MANAGEMENT ESSENTIALS AND WORK LEADERMAN ESSENTIALS Ingalls’ transitional leadership programs assist future and existing leaders with their preparation for the next level of leadership. Courses are tailored by level, with in-depth techniques, methodologies and assessments enhanced by the practical experience of seasoned facilitators.

Our transitional leadership programs provide the requisite skills training necessary for the success of our most critical role, which is the deckplate leader.

The deckplate leader sets the tone for the organization and must influence their crew’s development and achievements as a team and as individuals.

Damita Caldwell

Design Engineering manager Robert Gilbert lists issues that could jeopardize company ethics during an EPL lesson.

9

EXECUTIVE EDUCATION

EXECUTIVE PROGRAM AT WILLIAM & MARY Newport News Shipbuilding partners with the College of William and Mary’s Mason School of Business to offer the Executive Program. The program is designed to help senior leaders improve their strategic thinking skills and to challenge current leadership paradigms. Each cohort includes one vice president who serves as the Executive in Residence. The four-day program challenges participants to:

• Consider the legacy they will leave and its value to the organization • Differentiate leadership (strategic value) from management (tactical effectiveness) • Develop trusting and engaging 360 degree relationships within the organization and with customers • Expand problem solving thinking to incorporate big picture “possibility thinking” • Become aware of the ecosystem of relationships in which they are embedded

Regardless of how long a leader has been in his or her role, business skills and knowledge must be reset from time to time. The W&M Executive Program, delivered by educational experts with business experiences, offers HII leaders broad exposure to new approaches in improving organizational behavior and provides global views on hot-button business topics of today. The program also provides a chance for Newport News Shipbuilding business professionals to network and to share experiences from across the enterprise.

Martin Walsh

Participants work in the Design Thinking Lab. 11

ENHANCING PERSONAL LEADERSHIP

DISRUPTING OUR BUSINESS...

CREATING OUR FUTURE The 2017 CEO’s EPL focused on changing the way Huntington Ingalls Industries leaders look at business risk. Across HII, all vice presidents and directors were assigned to teams to act as aspiring entrepreneural companies that are wrestling with the question, “How can we steal some or all of the value from Huntington Ingalls Industries?” Over a two-month period, teams met to develop a 10-minute presentation on their ideas and in a series of sessions run August through September, presented their ideas to a panel comprised of HII CEO Mike Petters, HII Executive Vice President, Strategy and Development Michael S. Smith, Ingalls President Brian Cuccias, NNS President Jennifer Boykin, and Technical Solutions President Andy Green.

Participants left the workshop with a reshaped perspective of business risk and were confronted with the reality of external and internal forces that can disrupt our company and seriously erode or destroy its value.

12

ENHANCING LEADERSHIP SKILLS

MENTORING

Ingalls’ LegacyBuilders Mentoring Program is designed to prepare the next generation of managers and technical leaders for future positions of increasing responsibility and accountability. Positioning senior leaders as trusted advisors and counselors to selected high potential individuals facilitates the transfer of strategic perspective, organizational savvy and the desired set of leadership behaviors to our next generation of executives. Within an atmosphere of accelerated learning about the science and art of shipbuilding with a senior leader, the intent is to challenge individuals to achieve greater organizational impact and thereby reach their full potential in terms of professional and personal growth.

As an individual contributor, the LegacyBuilders Program provided me with networking opportunities and exposure, in addition to providing some valuable insight into other organizations, personal influence, and preparation for the next level. As I’ve recently transitioned to that “next level” into leadership, I find myself repeatedly going back to the valuable lessons learned in the program, not only to assist me with being a leader, but also in being a mentor and an influence to others.

Ben Howell

Experiential learning is integrated into all of the LegacyBuilders mentoring programs and helps participants practice and develop their leadership skills.

14

ENHANCING LEADERSHIP SKILLS

THE ENGAGED LEADER NEWSLETTER Learning about leadership is a lifelong undertaking. NNS’s Management Development Center produces a monthly newsletter for the entire leadership team focused on the leader’s role in leading engagement for the company. Each issue focuses on leadership behaviors that can create a more engaging environment for their teams, with specific examples of things a leader can do, today, to make a difference.

The last edition of “The Engaged Leader” really hit home for me. I fully agree with everything said about ‘leading by permission.’ I have a new crew and I’m still in the process of getting to know each one.

However, over the course of a month and a half of leading them I have been able to form a bond. Through this bond we are able to have a great working relationship. I try to get to know each one and actually care about them as a person. I listen to their ideas, and try to implement them. When they speak I listen to them. I give them an open platform to speak. When it’s all said and done I want them to follow me because I’m a great leader, not just because of my position.

Chelsee Mooring

Sue Purdum from Penn State’s Smeal College of Business addresses the Buyers Certification Program at Newport News Shipbuilding

ENHANCING LEADERSHIP SKILLS

BUYERS CERTIFICATION PROGRAM The Buyers Certification Program is a multi-phase learning experience where participants focus on the procurement process, governing regulations, strategic thinking and problem solving, and team and leadership development. This technical and leadership skills based program is a collaborative partnership with Newport News Shipbuilding’s Strategic Sourcing Organization, the Management Development Center, and Pennsylvania State University.

The Buyers Certification Program got us out of our cubicle comfort zone and helped us to really work together as a team. Learning about my strengths increases my understanding of how I work alone and with others. The hands on negotiation mock case was extremely informative and aided my transition from high volume, low dollar purchases to negotiating high dollar contracts.

Curstin Zydron 17

INGALLS

I-LEAD Richard Montañez

Vice President, Multicultural Sales & Marketing Pepsi North America August 2017 Richard’s message inspired listeners to have “freedom to be yourself.”

He stated one of the primary enablers of that is to allow the drive to succeed to overcome fear of failure. He also emphasized that name and reputation are on the line with each endeavor so that no matter how menial the task may seem, do it with excellence.

Augustus L. Collins

Major General, U.S. Army (Ret.), CEO of MINACT Inc., and HII Board Member November 2017 Augustus L. Collins (U.S. Army, Ret.) is the CEO of MINACT Inc., a Mississippi-based contractor that supports the U.S. Department of Labor’s Job Corps program in several states throughout the country.

With more than 35 years of service with the U.S. Army and the Mississippi National Guard, and having held numerous command and staff positions during peace and war, Collins’ wealth of experience from his leadership journey is shared with Ingalls leaders at the I-LEAD event.

18

NEWPORT NEWS SHIPBUILDING

HUNTINGTON LECTURE SERIES John Rossman

Managing Director at Alvarez and Marshall August 2017 Managing Director at Alvarez and Marshall and former Director of Enterprise Services at Amazon, Mr. Rossman presented on disruption, change, and how leadership values and aligned behaviors at Amazon enabled that company to thrive and become a global leader in online retailing and other adjacent markets.

Stephen Wilson

Former Chief Financial Officer, RJR Nabisco, Inc, and HII Board Member November 2017 Board Member Stephen Wilson, an independent business consultant at Arthur J. Gallagher & Co., a global insurance brokerage and risk management services firm, and a retired executive vice president and chief financial officer of RJR Nabisco, Inc., will present in November.

21

PERFORMANCE COACHING

PIT STOP PERFORMANCE CHALLENGE In a timed exercise, Newport News Shipbuilding employees work with a real stock car!

Supplies include a car jack, air guns, fuel can, and more. Teams must figure out the quickest, most efficient way to carry out a pit stop. Participants practice teamwork, competitive cooperation, process improvement, trust, and communication skills.

Performance Coaching focuses on helping leaders at all levels adopt and exhibit the right behaviors which will enable their teams to achieve success. Coaching programs are embedded across the organization, including Integrated Planning and Production Control, In-Service Aircraft Carriers, Information Technology, New Carrier Construction, Newport News Industrial, Trades Operations, Submarines, and Nuclear Refueling.

The Pit Stop Performance Challenge is a great opportunity to learn how, in only 30 seconds, a small team working harmoniously together can make a huge impact. Tradesmen, technicians and engineers work towards a common goal while learning how all parts of the process, from staging to execution to cleanup, is vital in completing the job safely. This program truly embodies the values our company upholds.

Sherrie Flint

23

Walter Earl Fluker

ALIGNING HII LEADERS WITH THE CEO’S VISION

2017 HII SENIOR STAFF OFFSITE ATLANTA As part of the 2017 HII Senior Staff Offsite, the leadership team spent time visiting the Martin Luther King Jr. International Chapel at Morehouse College where Dr. Fluker led a seminar on “having the tough conversations about race.” Additionally, the CEO’s library added the book Hidden Figures which details the accomplishments of NASA pioneers Katherine Johnson, Dorothy Vaughn, and Mary Jackson.

24

LEADERSHIP

PROGRAMS SUMMARY

NEW PROGRAMS 2017

Frontline Leader Workshop Introduces human resource management, engagement, and leadership competencies New Supervisor Orientation Introduction to leading self, others and the company PEER Program Professional enhancement and enrichment program for professional growth ATTENDEES: 880

HOURS: 9216

EARLY IDENTIFICATION

Emerging Leader Program (‘08) Early development of salaried employees Hourly Leadership Development Program (‘03) Early identification of craft management ATTENDEES: 87

HOURS: 1473

TRANSITIONAL LEADERSHIP Craft Management Essentials (‘08) New foreman training

Enhancing Personal Leadership for New Supervisors (’05) Essentials skills for new leadership role New Leader Assimilation (‘09) Accelerates the assimilation process for new leaders Work Leaderman Essentials (‘15) Preparation of fill-in foremen ATTENDEES: 321

HOURS: 6614 25

LEADERSHIP

PROGRAMS SUMMARY EXECUTIVE EDUCATION

ENHANCING PERSONAL LEADERSHIP

Executive Program at William & Mary (’13) Senior leaders improve strategic thinking skills

Leadership Role in Growing HII (’13) Creating an Inclusive Culture (’15)

Disrupting Our Business…Creating Our Future (’17) ATTENDEES: 23

HOURS: 552

ENHANCING LEADERSHIP SKILLS

Buyers Certification Program (‘16) Focuses on leadership development, strategic thinking, and problem solving Coaching 4 Performance – Middle Managers (‘12) Aligns leaders with proven coaching concepts Engagement Catalysts (‘10) Key embedded functional focal points for engagement resources, information, and knowledge Engineering Leadership Standards (‘14) Deliberate coaching/mentoring to reduce time to competency Engineering Mentoring Program (‘16) Functional mentoring for high potential employees Enhancing Personal Leadership Modules (’00) Aligns leaders at all levels with a common vision

26

HOURS: 1184

Foreman Qualification Standards (’00) Deliberate coaching/mentoring to reduce time to competency Foreman Technical Skills (‘14) Quality, safety, and physical progression training Leadership Communication & Presentation Skills (’12) Communication and presentation skills training for management Learning After the Whistle (LAW) (‘16) A series of professional development courses offered off-the-clock LegacyBuilders (’03) Cross functional mentoring for high potential employees Mentoring Program (‘14) Develop the skills and knowledge of employees to promote professional growth Supply Chain Mentoring Program (‘07) Functional mentoring for high potential employees

EPL Mini-Modules for Non-Managers (’14) The competitive landscape of U.S. Shipbuilding

ATTENDEES: 4013

ATTENDEES: 296

HOURS: 15520

LEADERSHIP

PROGRAMS SUMMARY INGALLS I-LEAD

2009 - General Dick Myers

2014 - Col. Lee Ellis | Anastasia Kelly

2010 - Wes Bush | Wendy Lawrence

2015 - Carey Lohrenz | Dr. Martin Davidson | Karl von der Hayden

2011 - Artur Davis

2016 - Chris Gardner | Riki Ellison

2012 - Jim Tunney 2013 - Tom Schievelbein | Dr. Steve Robbins ATTENDEES: 250

NNS HUNTINGTON LECTURE SERIES 2004 - Dr. Ron Sugar

2006 - Kevin Sharer | Jim O’Neill | Adm. Joe Prueher 2007 - Capt. James Lovell

2017 - Richard Montanez | Leon Collins HOURS: 500

2012 - Vice Admiral John Richardson | Frank Beamer | JoAnn Falleta 2013 - Artur Davis | Dr. John Izzo 2014 - Charlie Morecraft

2008 - Aulana Peters | Bart Starr

2015 - Dr. Steve Robbins | Dr. Martin Davidson

2009 - Gen. Victor E. Renuart 2010 - Susan Ford | Bruce Gordon ATTENDEES: 690

PERFORMANCE COACHING

Coaching Moments (‘16) Facilitation and discussions focus on leadership topics Leadership Coaching (’08) Focuses on professional and personal development ATTENDEES: 826

2017 - John Rossman | Stephen R. Wilson

HOURS: 1035

NNS Performance Coaching (‘11) Unlocking the potential of our leaders and work teams

HOURS: 2870