Enterprise Technology Strategy skunk works

DEF:

• A way to become an ambidextrous organization
• Setting up R&D division that is highly distinct from the rest of organization
• No formalities
• Decentralizing activities such as R&D into many small units so that they behave like small, independent ventures. Whereas traditionally research emphasized the importance of diffusing information across the firm and ensuring cross-fertilization of ideas across new product development efforts, recent research suggests that some amount of isolation of teams, at least in early development stages, can be valuable.

FEATURE:

• 独立于母公司
• 内部高度自治
• 团队人少力强
• 项目高度保密
• 倡导高度创新

HOW:

• 一是选择一位在技术上能够胜任，可以做出权威领导的领导者
• 二是有一个由具有高度工作激情的员工主导的工作环境。 臭鼬工厂的经验是倡导高度创新的管理者必须有能力保护他们的伟大资产——员工。接受风险是达到平衡的一个重要元素，领导者不能给员工不可能完成的任务，让他们担心被裁员。臭鼬工厂的领导者认为，「只要你正在做你知道怎么去做的每件事情，即使失败了也无所谓。从头再来，重新努力。重要的是要从失败中学习。失败的同时是挑战极限。如果你没给你的人尝试失败的机会，那么你对他们是不公平的」。

focus on

disruptive innovation versus incremental improvements to an organization’s existing product line or processes.

The 14 Rules

1. The Skunk Works manager must be delegated practically complete control of his program in all aspects. He should report to a division president or higher.
2. Strong but small project offices must be provided both by the military and industry.
3. The number of people having any connection with the project must be restricted in an almost vicious manner. Use a small number of good people (10% to 25% compared to the so-called normal systems).
4. A very simple drawing and drawing release system with great flexibility for making changes must be provided.
5. There must be a minimum number of reports required, but important work must be recorded thoroughly.
6. There must be a monthly cost review covering not only what has been spent and committed but also projected costs to the conclusion of the program. Don’t have the books ninety days late and don’t surprise the customer with sudden overruns.
7. The contractor must be delegated and must assume more than normal responsibility to get good vendor bids for subcontract on the project. Commercial bid procedures are very often better than military ones.
8. The inspection system as currently used by the Skunk Works, which has been approved by both the Air Force and Navy, meets the intent of existing military requirements and should be used on new projects. Push more basic inspection responsibility back to subcontractors and vendors. Don’t duplicate so much inspection.
9. The contractor must be delegated the authority to test his final product in flight. He can and must test it in the initial stages. If he doesn’t, he rapidly loses his competency to design other vehicles.
10. The specifications applying to the hardware must be agreed to well in advance of contracting. The Skunk Works practice of having a specification section stating clearly which important military specification items will not knowingly be complied with and reasons therefore is highly recommended.
11. Funding a program must be timely so that the contractor doesn’t have to keep running to the bank to support government projects.
12. There must be mutual trust between the military project organization and the contractor with very close cooperation and liaison on a day-to-day basis. This cuts down misunderstanding and correspondence to an absolute minimum.
13. Access by outsiders to the project and its personnel must be strictly controlled by appropriate security measures.
14. Because only a few people will be used in engineering and most other areas, ways must be provided to reward good performance by pay not based on the number of personnel supervised.

Benefits and drawbacks

• PROS
  • allows teams to fully break from their usual routines
  • a separation of duties that allows teams to deliver the innovations that Johnson’s team did during World War II.
• CONS
  • companies shouldn’t have innovation by exception but rather focus on continuous disruption
  • must build innovation into its core capacities, into existing R&D efforts and into its everyday work.