Read the case study

with
Engaging mature workers
Knowledge retention @ BAE Systems
Knowledge retention in the shipyard
BAE Systems is a global defence, aerospace and security company employing around 88,000
people worldwide. Its Australian operations include a shipyard in Williamstown, Victoria which
employs 400 trade-based employees and 400 people working on shipbuilding projects. The shipyard
is a male dominated, high-risk industrial environment with a fluctuating demand for labour.
It’s probably not the first place you would look for an example of Future Work but BAE Systems
has used it to develop innovative ways of working in the shipyard to increase productivity and
reduce business risk.
How did the journey begin?
Kelly explains:“The average age of our people was 45 years, with 70 per cent of our workforce
having less than four years experience in the shipyard.” In reviewing the workforce, Kelly and his
team discovered that a small number of employees held a large amount of BAE Systems’
shipbuilding knowledge. Further analysis revealed that the age of these knowledge champions
placed the company’s capability at risk for future projects.
The major challenges
“That different ways of working had simply not been applied before created an initial barrier to
change for many team leaders,” explains Kelly. With the aging workforce and the physically
demanding nature of the work, BAE Systems needed to look at alternative approaches to delivering
work to ensure that the shipyard knowledge was retained into the future.
Key drivers
Retaining mature workers
In 2013, the Maritime Business Unit made some changes to help it better manage risk and drive
change. One change was made through a new Enterprise Agreement; trades employees moved from
a five-day, 38-hour week to a four-day, 36-hour week. Anecdotal reports from employees confirm
this has resulted in a better lifestyle balance. Ironically, some part-time workers returned to fulltime hours because the new roster enabled them to maintain the balance they had been achieving in
a part-time capacity.
In addition, a campaign to promote part-time work options was developed and rolled out with the
support of the Diversity and Inclusion team to help retain employees and provide even further
flexibility for the trade workforce. While part-time working is not a new concept in Australia,
Case Study provided for The Agile Future Series 2014 | Sydney 1 April | Melbourne 3 April |
1
with
trades-based employees had not been actively encouraged to work on a part-time basis in the
shipyard prior to 2013.
Supporting leaders with new ways of working
Workshops were integral to raising awareness and educating the team leaders and trade-based
employees about how to manage an aging workforce and to consider new ways of working. Two
programs focussed on critical knowledge transfer, as the leadership team had identified this as a
major risk. The third program aimed to connect with the mature workforce (those over 50) and to
assist them plan a positive and productive late career and transition to retirement.
The Maritime Business Unit is on a journey with new ways of working and is in the process of
setting its next set of priorities and establishing a working group (trades and staff) to gain input
from employees. Today the shipyard has a number of employees working part-time and team
leaders now have options available to help them balance employees’ needs and the retention of
valuable industry knowledge. Kelly explains:“We recognise that the changes we are making are not
particularly innovative for some sectors, but for us it represents a major step forward.”
Leader in profile
Kelly Nutter, General Manager of the BAE Systems Williamstown
shipyard, has more than 25 years experience in the defence industry. Prior
to this role, he was responsible for Programs and Shipbuilding at Abu
Dhabi Shipbuilding and Director of Submarine Construction at Northrop
Grumman Corporation. Kelly sees that Future Work provides an
opportunity to better meet the needs of the business and its people at the
same time.
Leader’s tips for success
“It is possible to develop an outcome that suits the business and employees. But it’s not something
that can be achieved ‘overnight’. Understanding the challenges and planning are pivotal as is the
engagement of employees. Our business has changed significantly for the better because our leaders
were well supported, our employees had ownership of the outcome and the business was committed
to a shared solution.”
Contact information
Joanne Hansen - [email protected]
Case Study provided for The Agile Future Series 2014 | Sydney 1 April | Melbourne 3 April |
2