Term Paper: Norman Augustine Norman R

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[. . .] It is headquartered in Austin, Texas and includes such members as IBM, AMD and Hewlett-Packard. (Welcome to International Sematech 2004)

In addition to his success with the Department of Defense he has also been a successful CEO of Lockheed Martin. A book entitled "Defense Addiction: Can America Kick the Habit?," explains that Augustine played an instrumental role in the success that the firm has enjoyed over the years. The author contends that,

As president and CEO of Martin Marietta, a fast-growing aerospace giant, he single-mindedly pursued consolidation. A few years earlier, he might not have predicted Martin Marietta's merger in 1995 with rival Lockheed, but the logic of Augustine's vision led to the marriage of these two, the second and third biggest defense contractors. With declining military budgets, Augustine saw four options for Pentagon contractors. First, they could try to convert to commercial production. Noting past failures, he suggested that it would be very hard for defense companies to break into commercial fields already dominated by civilian firms. Second, defense contractors could "hunker down," a choice Augustine associated with business failure. Third, they could liquidate. This, he said, would make the shareholders rich, but "that's tearing things apart, not building." Fourth, they could consolidate, a path leading to growth and lowered costs. This is the path Martin Marietta followed by buying General Electric (GE) Aerospace and the General Dynamics Space Systems Division. Maryland-based Martin Marietta almost doubled its assets with the 1993 purchase of GE Aerospace even with the resulting layoff of 11,000 workers. For Augustine, size is clearly a key to survival." (Gottlieb 1997)

The book asserts and Augustine was indeed in favor of mergers and believed that they were more cost effective. In fact Augustine argued that mergers between defense companies could save the Department of Defense millions of dollars each year and increase productivity. (Gottlieb 1997) his insight into productivity and cost effective mergers allowed Lockheed Martin to become the successful firm that it is today

Theories and Augustine's Laws

Augustine had some definite theories concerning defense conversion. In an article entitled "Defense Conversion: Bulldozing the Management" written by Augustine and Kenneth L. Adelman these theories are explained. In the article the authors assert that defense conversion is complicated by the fact that the civilian work is rarely related to defense. Augustine and his colleague assert that defense conversion just doesn't work.

The article promotes the theory that the term "defense conversion" shouldn't even be used. The authors assert that,

Defense conversion should not even be regarded 'conversion' at all: "Rather it is the result of two independent and parallel actions: shedding many elements of the defense sector; and absorbing those assets into a new entrepreneurial consumer sector. The way to increase the production of sausage-making machines is to expand the sausage factory... not to anoint the rocket makers as sausage makers... The bad news here is for the managers, most of whom become unsalvageable."(Adelman and Augustine 1992)

Some argue that instead of destroying old or unwanted military items they should be converted and used in business. Augustine's theory asserted that products that were once used for matters of defense could not be converted to be used for civilian work. He believed that attempts of conversion in places like the former of Soviet Union is proof that Augustine's assertions are correct.

Amongst Augustine's various books is Augustine's Laws. This book published in 1997 discusses the problems that impede progress in business and in government. The book contains 52 laws that are both serious and comical. One of the most quoted lines from the book in Rule 5 which reads, "One-tenth of the participants produce over one-third of the output. Increasing the number of participants merely reduces the average output." (Augustine 1997)

The book also pokes fun at the federal government and discusses spending and the department of defense. Another book entitled "Fundable Knowledge: The Marketing of Defense Technology" asserts that in the book Augustine's Laws Augustine observes that the most critical aerospace material is now widely believed to be wood pulp. In the first chapter of Augustine's Laws, entitled "Paper Airplanes," Augustine lavishes attention on the volumes of paper required in the preparation of proposals by defense contractors. He devises a new unit of measurement, the Load Factor, which is the number of pages contained in typical proposals for any project divided by the dollar value of the project. Then he graphs the Load Factor for 69 actual DoD aerospace projects and interprets the results by various measurements of volume. One bidder's proposals during four rounds of competition for the C-5A cargo aircraft, for example, stacked up to a height of 211 feet. Another contractor's proposals for the Advanced Helicopter Improvement Program exceeded the takeoff weight of the helicopter. (Nostrand, 1997)

The book Augustine's Laws is an honest depiction of the issues that come up everyday in business. It also sheds light on some of the ridiculous policies that shape our government and can impede progress and productivity.

Conclusion

The purpose of this discussion was to provide a biographical sketch of Augustine. We found that Augustine was born in 1935 and grew up in Colorado. We also found that he was educated at Princeton where he received degrees in engineering. In addition, discussed his career accomplishments and how they have impacted America and the World. We found that he played an instrumental role in creating the Sematech Consortium which aids in the manufacturing of semiconductors in the United States. Our investigation also found that he everything to do with the success of Lockheed Martin as a government contracting business.

Finally we focused on Augustine's theory concerning Defense Conversion and the book Augustine Laws. Our research illustrate that Augustine's theory of defense conversion asserts that it is impossible to accomplish because jobs in the private sector have very little to do with defense. We also discussed the book Augustine's Law which provides a satirical view of the world of business and the government.

References

Adelman K.L. And Augustine, N. (1992) "Defense Conversion: Bulldozing the Management." Foreign Affairs. Vol 71, Number 2 http://www.questia.com/PM.qst?a=o&d=9934652

Gottlieb, S. (1997). Defense Addiction: Can America Kick the Habit?. Boulder, CO: Westview Press. http://www.questia.com/PM.qst?a=o&d=23599633

Pages, E.R. (1996). Responding to Defense Dependence: Policy Ideas and the American Defense Industrial Base. Westport, CT: Praeger Publishers. http://www.questia.com/PM.qst?a=o&d=24440337

Van Nostrand, A.D. (1997). Fundable Knowledge: The Marketing of Defense Technology. Mahwah, NJ: Lawrence Erlbaum Associates.

Commissioner. (n.d.) U.S. Commision on National secuirty. Retrieved April 18, 2004 from; http://www.nssg.gov/About_Us/People/Commissioners/Norm_Augustine/norm_augustine.htm

Lockheed CEO to Deliver Sheffield Address at Yale University. 1996. Retrieved April 18, 2004 from; http://www.eng.yale.edu/sheff/Augustine/announce.html

Outside experts Norman Augustine.2004. Retrieved April 18, 2004 from; http://www.govexec.com/features/0204hs/0204HS_experts1.htm

Norman R. Augustine Legacy. 1996. History Center. Retrieved April 18, 2004 from; http://www.ieee.org/organizations/history_center/legacies/augustine.html

Norman R. Augustine. Forbes. Retrieved April 18, 2004 from; http://www.forbes.com/finance/mktguideapps/personinfo/FromMktGuideIdPersonTearsheet.jhtml?passedMktGuideId=28413

Welcome to International Sematech (2004) http://www.sematech.org [END OF PREVIEW]

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