By Ann Roosevelt
The BAE Systems Inc., leadership team yesterday unveiled organizational changes that will take effect July 1 to make the company as efficient as possible in a marketplace increasingly conscious of costs.
“Through these changes, we will be better aligned to our key markets, be more competitive in a challenging environment by reducing cost, and be more agile to effectively respond to customer needs,” Linda Hudson, president and CEO of BAE Systems Inc., said in a company-wide notice. “Moreover, we will be well positioned to pursue growth opportunities in existing and emerging markets.”
The review conducted over the past several months examined the company’s global markets and customer needs, which pointed the way toward change to continue a successful business.
Hudson took the helm of the North American arm of the U.K.-based BAE Systems plc in October last year after a successful stint leading the land & armaments unit, including a realignment to a market-driven strategy (Defense Daily, April 23, 2009, Oct. 27 2009).
In a new role, Bob Murphy has been appointed executive vice president (EVP), product sectors, reporting to Hudson. Murphy will oversee operations of the following three sectors:
- electronic solutions, led by Tom Arseneault, president;
- platform solutions, led by Dan Gobel, president; and
- land & armaments, led by Frank Pope, appointed president in Murphy’s stead.
While BAE conducts an executive search for an EVP, service sectors, Hudson will serve as acting EVP and oversee operations of two sectors–intelligence & security, led by John Gannon, president, and support solutions, led by David Herr, president.
As part of the office of the president & CEO of BAE Systems, Inc., these two EVPs–product sectors and service sectors–will develop and execute cross-sector strategies aligned to the Inc. strategy.
That means they are to “meet and exceed cost objectives; identify and develop future leaders; implement best practices and operational efficiencies; and build and maintain high-level customer relationships necessary for future success,” the notice said.
In addition, the EVPs will represent BAE Systems Inc. on the BAE Systems Executive Committee, along with Hudson, and supported by the BAE Systems Inc. functional staff, as needed.
Under the new organizational structure, the two EVPs, the five sector presidents and the functional staff will form the BAE Systems Inc. Senior Leadership Team.
Reporting directly to Hudson will be functional staff:
- Doug Belair, senior vice president, strategy & planning;
- Michael Bennett, senior vice president, information management;
- Bob Fitch, senior vice president, government relations;
- Jake Gatch, acting chief of staff. He will become vice president, business management systems, reporting to Curt Gray once a successor is named;
- Ian Graham, senior vice president & general counsel;
- Curt Gray, senior vice president, human resources & administration;
- Brad Jacobs, senior vice president, finance;
- Michelle Lamberton, vice president, internal audit; and
- John Suttle, senior vice president, communications.
The operating group headquarters of electronics, intelligence and support (EI&S) will cease operations July 1.
Land & armaments, because of its integrated business model, will restructure its headquarters and lines of business over the coming months to a sector organization geared to the evolving land business, the company said.
The leaders of the new sectors will assess their businesses and decide how they should be structured as they move forward to best deliver BAE products and services.