direction of having a management system that creates a common architecture across the corporation but leaves the implementation and the details to the business units. As a large corporation, Lockheed Martin has over 600 locations in the United States that have ESH significance. Over half of those facilities have fewer than 100 people on staff. Several hundred sites are so small that they do not have the dedicated staff resources to handle ESH, but they still have the requirements.

How do staff in smaller offices comply and where do they go for information? The company is creating a web-based information management system in which the corporate people can provide guidance and support information in easy-to-find and easy-to-use formats.

Second, Lockheed Martin is under continuous pressure to reduce costs and improve performance, and it became evident that putting the management system into place would help to achieve that goal. Third, the continuing enforcement emphasis at the federal level translated into a greater need for more effective compliance programs. Fourth, the federal regulatory framework was becoming stable enough so that the company was not constantly dealing with major new regulations.

Fifth, Lockheed Martin's federal government customers are becoming more knowledgeable about and sensitive to ESH issues, which are being worked into contract performance requirements. DOE contracts, for example, have numerical safety goals and performance-based contracting whereby the company can earn a bonus if its safety performance is at a specified level.

Last, the majority of Lockheed Martin's future business growth, building on its core businesses in the United States, is going to be international. Many international business opportunities that Lockheed Martin foresees in the future likely will require ISO 14001 registration.

Corporatewide Initiatives

The management system initiative is nearing completion. Lockheed Martin has revised corporate policy and procedure documents essentially to reflect the core elements of ISO 14001. An ESH management system that follows the ISO 14001 architecture is a corporatewide requirement.

The corporation has put in a management system model, a gap analysis tool (called a self-assessment or management system assessment protocol) and a risk assessment methodology. All are critical components of a web-based guidance module to assist business units in putting the management system in place. The corporate leaders feel strongly that ESH should be treated like all other business elements, where resources are allocated on the basis of risk.

Oil and gas, pharmaceuticals, and electronics firms are probably leading all industry sectors in their ESH sophistication. They are addressing ESH — quality and customer satisfaction and all other important functions — as



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