Six Sigma Guides Lockheed Martin Toward Corporate Sustainability Goals

Since the 1990’s Lockheed Martin, the world’s largest defense contractor, has used Six Sigma methodologies to streamline its business processes. In recent years the organization has begun applying these strategies toward corporate sustainability goals. For some, it may not be obvious how Six Sigma strategies, originally designed to reduce errors in manufacturing processes, can be used as tools for corporate sustainability. Fortunately, prominent companies like Lockheed Martin are providing strong examples of how Six Sigma professionals can broaden their horizons and apply their knowledge to address sustainability issues within their own organizations.

Planning a Strategy for Improvement

The strategic development of powerful metrics and a detailed plan of action inherent to the Six Sigma environment have helped Lockheed Martin make impressive progress toward corporate sustainability goals. In addition, making sustainability goals a part of corporate culture has helped the organization maintain and expand its success.

After the release of the company’s 2013 sustainability report, President and CEO Marillyn A. Hewson commented, “Our commitment to sustainability continues to accelerate our business strategy. We respect and support our employees, our communities and our environment because it’s the right thing to do.”

Setting metrics in place, identifying goals that are in full alignment with corporate mission and values are important to any Six Sigma project. When applying the methodologies to improving sustainability ratings and triple bottom line (TBL) performance, Lockheed Martin divided their projects into areas such as:

  • Operational Efficiency – Re-examining physical space allocation allowed the company to achieve the same outcomes with less physical space. Using less space translated into a savings of energy and other resources previously used. By acting on the metrics put in place, the organization was able to reduce costs by over 20%.
  • Resource Efficiency – Since 2010, using Six Sigma strategies has allowed Lockheed Martin to reduce water use and carbon emissions close to 20%. In addition, there has been a 36% decrease in landfill materials, while energy use has been reduced by 12 %.
  • Product Performance: Understanding that product innovation comes with an environmental price, Lockheed Martin has developed partnerships to build alternative energy options, expand waste disposal options and address climate adaptation challenges.
  • Supplier Sustainability: Setting transparency as a goal has framed Lockheed Martin’s relationships with suppliers. By improving the processes used to guide decision making with regard to company partners, the organization has set higher standards for social and business conduct across the many partners of the organization.

Using Six Sigma strategies to develop and monitor metrics, create projects with clear goals and maintain a commitment to constant improvement, translate perfectly to reaching strong TBL performance ratings, as well as reducing an organization’s negative impact on the environment.

The company has also made positive contributions to the communities in which it has a presence. To date, Lockheed Martin has donated over $25 million to civic programs around the globe. In addition, the company has been named to the Dow Jones Sustainability North America Index for its leadership in the area of corporate sustainability.