A Conversation with Norman Augustine, Former CEO and Chairman of Lockheed Martin Corporation

Norm Augustine, former CEO and chairman of Lockheed Martin Corporation

Business Today (Maxwell Chung): With Lockheed Martin recently proposing its own concept for NASA's Gateway, do you believe the Lockheed Martin Company profile will shift to become more space minded or will there always be a need for military tech?*

Norman Augustine: I should emphasize that being retired I cannot speak for Lockheed Martin; however, I do believe that aerospace companies have enormous opportunities today, in part because the world is turning more and more to systems and products and services that cut across technologies. The aerospace industry has increasingly become a systems integration industry. In addition to its space and other activities, there will always be a need to support national defense. Having said that, I know from experience that entering new markets can be a precarious undertaking.

“While science and technology can also destroy jobs, it has generally created more jobs and more rewarding jobs.”

BT: The second Augustine Committee in 2009 concluded that the goal of the human spaceflight program was (1) physical sustainability and (2) economic sustainability. How do you think our progress toward these goals has advanced since 2009?

NA: The study you refer to addressed sustainability quite seriously.  From an economic standpoint, there have been two studies, each of which has led to a Nobel Prize, that concluded that up to 87% of the growth in the nation’s GDP has been attributable to advancements in just two areas: science and technology. That’s of course what the space program is all about: science and technology. With regard to the economy, it is interesting that surveys around the world show that people believe that having a good job is the most important factor in their wellbeing. The ability to create jobs has always been a strong suit for science and technology. While science and technology can also destroy jobs, it has generally created more jobs and more rewarding jobs.

BT: Due to your experience in the defense and the private sector, how can businesses in the United States play a role in shaping the future of technology while at the same time ensuring privacy and security for consumers, especially considering the current multi-polar international system and the rise of powers like China?**

NA: One of the great dilemmas of today’s advancing technology is that it is providing capabilities that in some cases adversely impact privacy and security. Some years ago, I had the occasion to speak with a CEO of one of the best known and largest companies in the information and technology sector, and I postulated a situation that would impact privacy to a very negative extent. I asked him what we should do about it, and his answer was, “Get used to it.” That’s quite disappointing to me. To what extent are we actually going to give up our privacy? Fortunately, science and technology can also be a positive force, ranging from applications in encryption to more thoughtful overall design to the incorporation of new advancements such as those in quantum science.  But this is a legitimate problem, even though I think that it is to some degree generational as older people seem to place greater value on privacy than today’s youth.

“Not surprisingly, ideas for new products tend to be most successful when they originate from the individuals who are in most close contact with customers (sales, service, etc.)—working with the research staff.”

BT: What would you say the importance of marketing/branding is in today’s business world?

NA: Having been on the board of Proctor and Gamble Corp. for many years, I have developed a strong appreciation for marketing and branding. P&G was renowned for its branding, and probably even more so for its marketing prowess, particularly in the sense of knowing its customers. I could hardly think of any other firm that puts as much effort into knowing the needs and preferences of its customers. Marketing and branding is increasingly part of the coin of the realm.

Unfortunately, there are many examples of marketing failures. Oftentimes, these occurrences take place when companies decide that a customer should have something that the customer does not want. Then the company assumes that the consumer is at fault for not wanting their products. This is rather convoluted reasoning, but there are serious examples of this occurring.

Not surprisingly, ideas for new products tend to be most successful when they originate from the individuals who are in most close contact with customers (sales, service, etc.)—working with the research staff. Ironically, the products that derive from ideas in the executive suite tend to be most prone to failure!

BT: What would you say are the three qualities that young students such as myself need to have in order to succeed in the business world today?***

“Motivation will almost always beat sheer talent.”

NA: First, you obviously need to be well prepared in whatever field you would like to pursue. In this regard, one also has to be committed to a lifetime of learning. I always believed that a college diploma should have an expiration date printed on it! While I realize that isn’t a popular notion, in today’s world one has to keep learning simply to stay even. Second, one of my sayings is that motivation will almost always beat sheer talent. Motivation and the willingness to work hard and to enjoy what you are doing is critical. Being both well-prepared and highly motivated is all the better.  Third would be the willingness to take on new challenges. “When opportunity knocks, try to answer the door.”

In today’s business world, things are generally accomplished by teams of people working together, rather than by soloists. Communication skills are therefore very important.

The bottom line is to find a job that you like and focus on doing that job to the best of your ability and not worrying much about getting ahead. Just do your job—it’s amazing how many opportunities will then open up.

*Question submitted by Thomas Santini at the University of Bath in England

**Question submitted by Alejandro Leal at Jagiellonian University in Poland

***Question submitted by Amanuel Alemayehu at Addis Ababa University in Ethiopia