Andrew White Managing Director, Aircelle

Aircelle Limited
Successfully Growing in Manufacturing
Overcoming the Attraction and Retention Challenge

Andrew White Managing Director 16 June 2011

Aircelle - Who are we and what do we do?

A division of the international, hightechnology SAFRAN Group ( 11bn T/O, 54 000 employees) European leader and Global No.2 in the design, integration and manufacturing of Aero Engine Nacelles and Thrust Reversers From Business Jets to the A380 Super Jumbo World-wide presence for after-sales services 3 000 people across 7 sites in France, Morocco and UK Aircelle Ltd is the only UK manufacturing site within Aircelle Group (130m T/O, 800 employees)

My Approach to this Workshop A Journey

Where we were What we identified as our challenges and our opportunities What we did to change What have been the results What is next for us

Where We Were

Our Business Context

The Aerospace Market has a high growth forecast 5% per annum The UK has a positive reputation for high technology design and manufacture The Safran Group were happy to invest but concerned about the ability of the business to respond to the challenge

Our Core Issues

Employees were unhappy and disinterested Low Pride Lack of recognition of the positives internally or externally Skills pipelines were dry .and worsening Too reliant on the stories of the good old days a very traditional business Lack of new blood

Major opportunities existed to achieve significant business growth

IF we could take advantage of them

What we did to change We tried to look at the same problems

differently to other people & other businesses And differently to how we ever had done before in order to get a different result

Some A-Ha Moments for us

Community & Education

We could utilise relationships within our local community to build employee pride We needed to consider how the skills pool was fed Schools, Colleges, Universities and how we could influence Our senior teams needed to be personally visible and committed to the community we were in (rolemodelling the way)

Organisational Culture

We had to create internal and external pipelines to plug our future skills gaps recognising the changing skills mix and emerging skills needed within the aerospace sector Dignity, respect and trust were key deliverables for our employees We needed to value and develop leadership skills AND technical skills within our business HOW WE WORK is as important as WHAT WE MAKE

We had an opportunity to combine BOTH agendas to develop a unique and special business, focussed on our future and not our past Our leadership team and employees needed to buy-in and be engaged for it to work

What we did we change focus on to Researched our town Defined what Placed our
and regions biggest issues - how could we add value ? Networked with key players within our local community - Education, Council, Universities, Businesses Chose STEM (Science,
Technology, Engineering & Maths) to be our key focus

wanted to be famous for - Building a Sustainable Business in Burnley Utilised our employees as our Ambassadors within the local community Asked employees to play a part in making school fun and enjoyable for young people in our area bringing work in manufacturing to life Focus on Inspiration as well as Education

developing long-term pipelines for skills - a strategic Win-Win for Aircelle and community Placed senior leaders on local, regional and national Industry Boards, and encouraged employees to become School Governors Improved our workplace for our own employees Reviewed all HR policies, established a Dignity @ Work agenda, strategy of Health & Well-Being etc.

area for collaboration Re-established our apprentice programme (8 per year for Craft, 2 per year Technical)

What we did to change

Clarified what we expected of our leaders and reviewed how we developed leadership skills

Defined what it means to be a successful leader within Aircelle Our Leadership Brand Amended our HR processes to attract, recruit, develop, reward and grow these people skills Trained 65 managers to NVQ Level 5 in Management

Placed more value on what people were best at senior specialist AND generalist roles developed

Developed both Leadership and Technical Pathways to provide visibility of progression options

What we did to change

Asked ourselves - did career pathways really exist for specialists? Risk of underperformance in role or loss of skills, due to specialists being wronglyplaced in leadership positions Strategic need to develop and retain highly-technical skill base Opportunity to provide tailored pathways and development solutions for individual employees

Opportunity to develop into a senior role

Route 1 Route 2

What have been the results

Strong engagement with all 5 local high schools, 6th form college, FE college and UCLAN To date 70 events involving over 4 000 young people across 50 schools 30 Ambassadors supporting local Burnley schools Employee representatives on all local School, College and Training Providers Governor Boards Developing leadership skills for senior managers of schools

Annual sponsor of The Manufacturing Institutes Make It Challenge

What have been the results - business

2008 Lancashire Business of the Year 2009 Burnley Business of the Year Investors in People Accreditation 2010 Best Environmental Practice Award North West 2011 Nominations for .... NW Business Class Award Burnley Large Business of the year Burnley Environmental Sustainability Award Burnley Staff Training & Development Award Burnley Business Commitment to the Community Award

What have been the results - people

200+ jobs created within Burnley since 2007 50% reduction in disciplinaries and grievances since 2007

Labour turnover 5% in 2010 (2005 15% 2007 13%) Average Recruitment Costs - 609 (2005 - 4730) Pride of Aircelle an annual event designed to recognise employee commitment and development

Over 150 employees participating in external activities or cultural activities on site

Over 400 employees gained/working towards work-based qualifications

What is next - creating a business where our employees want to be

Our Goal is to create A Great Place To Work a place where employees " TRUST the people they work for, have PRIDE in what they do, and ENJOY the people they work with " Scores from our Survey in March 2009:

I want to work here for a long time 81% Overall, I think this is a When I look at what we accomplish, Great Place to Work I feel a sense of pride 83% 56% in 2007 70% I am proud to tell others I work here 83% in 2009
TBC% in 2011
Our next survey is planned for late 2011

Our Key Question:

What is next - attracting the right skills and talent for the future targeting our offer

To an Engineer ?

To a Leader ?

To a Graduate ? To a Shop Floor Employee ?

To a Specialist ?

Questions and Discussion

This document and the information contained are Aircelle property and shall not be copied or disclosed to any third party without Aircelle prior written authorization

For further information, please contact: Andrew White Managing Director 419390 Helen Gopsill HR Director 419326

01282 01282

THANK YOU FOR YOUR ATTENTION