Boeing’s Integrated Defense Systems (IDS) is reorganizing by reducing the number of business units reporting to IDS President Jim Albaugh and putting some new managers in charge of the broader business areas.
The company currently is structured with most of its reporting units responsible for serving specific customers such as the Air Force or NASA. It will now be divided into three units organized by capabilities.
“It’s the same organization put together in a different way,” said Albaugh, who also is chief executive officer of St. Louis-based IDS, who outlined the changes at a breakfast with reporters Jan. 27.
All of IDS’s space businesses will now fall under the Networks and Space Systems unit, headed by President Roger Krone, who formerly served as vice president and general manager of IDS’s Army systems unit. Howard Chambers will serve as vice president of Space and Intelligence Systems under Krone; and will oversee all of IDS’s space programs.
Work included under the Networks and Space Systems business includes combat systems, space and expendable launchers, missile defense, command control and communications networks, security and intelligence systems, and space exploration. Albaugh categorized the Networks and Space Systems unit, which will be headquartered in Arlington, Va., as a $12.5 billion business, and estimated the annual space portion of that business to be worth about $4 billion.
The other two new IDS units are Precision Engagement and Mobility Systems, and Support Systems.
John Lockard, former vice president and general manager of IDS’s Navy Systems unit, will be president of the new Precision Engagement organization, which will oversee such things as rotorcraft and global strike.
Pat Finneran, currently the vice president of IDS’s Logic and Support Systems segment, will now be president of a unit called Support Systems, which includes such things as maintenance modifications and logistics.
The Advanced Defense and Security Systems segment of Boeing’s Phantom Works research unit in St. Louis, which does technology development for the company as a whole, also will report to IDS and be led by George Muellner, the current head of Air Force Systems. Albaugh said the move is designed to create greater accountability for the segment, which formerly did not have to directly report to IDS, Albaugh said.
The restructuring will allow Boeing to better pursue contracts, focus more on its customers and reduce costs, Albaugh said, though he declined to specify how much money will be saved by the reorganization .
Some employees likely will be laid off during the process, but Albaugh would not quantify how many, saying the number would be “not of any great significance.” None of the company’s facilities are scheduled to be shut down under the new arrangement, he said.
The restructuring will take approximately three weeks to complete, Albaugh said, at which time all the management will be named and some employees’ locations will be reshuffled.
For 2006, Albaugh predicted growth in the support organization, in network and connecting platforms, and internationally because of business opportunities in Japan, India and elsewhere. This year, Boeing will put less emphasis on acquiring homeland security-related business, he said.
“We just feel there have not been programs that play to our strengths,” Albaugh said.
Albaugh added he is encouraged by future space opportunities for 2006 in government, but not on the commercial side.
“You will not see me spending a lot of money on commercial space anytime soon,” he said.
Albaugh declined to make any specific financial projections regarding 2006. Boeing will release its fourth quarter financial results during a conference call with investors Feb. 1.
Comments: mfrederick@space.com
