Sunday, May 30, 2010

How to predict Success in an R&D organization?

An important question to business leaders - how can one predict the success of an R&D organization? To answer this question consideration is first given to the purpose of R&D followed by theory related to the factors that make an R&D team successful.


Purpose of R&D:


As shown in Figure 1, a “Gap” exists whenever problems, needs, or opportunities exist in the absence of solutions, products, or processes to satisfy them. The purpose of spending resources on R&D is to close the gaps. Gaps are closed by breaking down Raw Knowledge into applicable pieces of information and converting to useable end solutions, products, or processes.



Figure 1



















R&D Team Success:


To achieve success, an R&D team must (1) close the gap and (2) close the gap efficiently. If the gap is not reduced or is reduced only marginally, the team is not successful. In most business environments if the efficiency in closing the gap is low (as measured by cost and time required compared to the gain achieved by closing the gap), the benefit of closing the gap will likely be negated.


The time required to close the gap may well be argued to be a subset of the cost. However, in a competitive environment where time to market is important, time is a factor that must also be considered independently from cost. For example, if a solution, product or process can be developed inexpensively but at twice the length of time a competitor closes the same gap, the benefit may be largely lost to the competitor.



Factors affecting R&D Team success:

A. Human Factors [1]

1. Skill – The R&D team must be comprised of team members with adequate skill sets and training to function within the environment

2. Thought pattern – In dealing with technical development detail, team members who think in patterns of “prove by design” will be able to more completely close the gap relative to those who think in patterns of “prove by test”

3. Attitude – Team members of a “do or die” mindset will achieve high performance relative to those who are complacent.

B. Available Resources

If enough resources are provided to allow the R&D team to function without choke points, they will have a higher probability of succeeding. If resources are too scarce, progress may be slowed.

C. Tasks Required vs. Allowable Time

Although time pressure will always be present, if the circumstances are equivalent to stuffing 20lbs of potatoes into a 5lb sack, success will be less likely.



R&D Success Model:

The R&D Success model is derived by inserting the human factors, resources, and Time factors into the model and obtaining a Total score. If each of the human factors for both the leader and staff are at the highest level the Human Factors score would be 100 (see Figure 2). Attitude is weighted more heavily than skills or thought pattern.


The total score is the product of the Human Factors x Resource Factor x Time Factor. The Resource and Time factors are capped at a maximum value of 1, leaving the Human factor as the distinguisher of success in cases where resources and time are adequately provided.


Figure 3 shows the case where both Resource and Time factors are adequate, but the Human factors are low. Under these conditions the total score is 27, indicating success is unlikely.


To prevent outsourcing of R&D, the R&D team must be able to show it can consistently outperform the alternative options. This model provides insight into factors needing consideration in assembling a successful R&D team.


[1] Refer to “Becoming Re-Successful” by J. Demeron Skouson, www.lulu.com/product/paperback/becoming-re-successful/3652586 or at Amazon.com


Figure 2















Figure 3