Third Generation R & D: Managing the Link to Corporate Strategy

by Philip A. Roussel, Tamara J. Erickson, Kamal N. Saad, et al.

Three management and technology consultants argue that rather than either letting research and development departments have a free hand, or subjecting them to strict conditions, corporate managers should integrate the department's directions into the company's overall strategy. Annotation copyright

• Format: Hardcover
• Language: English
• ISBN: 0875842526
• ISBN13: 9780875842523
• Release Date: April 1991
• Publisher: Harvard Business Review Press
• Length: 192 Pages
• Weight: 1.25 lbs.
• Dimensions: 0.9" x 6.5" x 9.7"

Customer Reviews

Excellent Book, Thoughful & Precise

Congratulations to the authors! This is a well-written, honest book, which at least addresses the specific differences in outlook between R & D staff and standard business-oriented management. I worked for many years in R & D and fully agree that R & D people do require a unique management approach. Furthermore, the authors are correct in stating that expert input from technical staff is often "not included in the company's higher councils" that leads to alienation of R & D people. On this subject, I would like to add that the book does not address one aspect crucial to good management/R & D working relationships. Nowhere is it stated that R & D people, because of their higher education and expertise, find it difficult to respect managers, who are not expert in the project's subject area, yet are frequently assigned by upper management, to make all the pertinent technical and business project decisions.By the way, I recently read another very enjoyable book. It openly addresses many of R & D staff's frustrations with management in a typical company, which has clearly not embraced "Third Generation R & D" management principles! It is a hilarious, witty, sharp, satire that brings to life many of the underlying R & D problems covered in "Third Generation R & D". If you feel like a good laugh, do try "Management by Vice" by C.B. Don.

Patrick Desbrow - Peperdine University Student

Roussel et al's 1991 text, Managing the link to corporate strategy, Third Generation R & D describes that evolution of research and development in the corporate business environment. This text provides a guide to link organizations objectives and strategies to their R & D activities. Below is a description of this reader's reactions, big ideas, implications, and lingering questions after completing this book. Reactions The theory behind Roussel's text is very well thought out. It offers a set of easy to understand models for developing a third generation R & D environment for your organization. Roussel present these models in an optimistic way that encourages the reader to reconsider how R & D should be managed. This book is an excellent tool for all technology managers. Roussel blends the business and technology disciples together and helps struggling technology managers to bridge the gap between these long separated functions within the organization. For example, Roussel suggests that projects must be organized into portfolios in order to manage risk and return. The concept of project management is a technology disciple while portfolios, and managing risk is a business discipline. Big IdeasThere are a number of pressures, which require companies to invest in research and development (R & D) activities. These pressures include competition from local and global companies, as well as a decreasing availability of scientists and technologists. The pressures from competitors require companies to continuously introduce "high quality, innovative, cost-effective new products". Roussel's answer to these pressures is third generation R & D. Roussel states that there are three generations of R & D. The first generation of R & D relies on the insights and intuition of technology managers to determine which projects are worth investing time and money. In addition, there is no connection between the R & D projects and the objectives of the company. Top management only considers these projects as a required cost to the company. The second generation of R & D organizes activities into projects and measures the progress against a set of established goals. In addition, the cost of each project is examined against the possible benefits that will result from the research and development. The third generation of R & D technology managers and top management work together as a partnership to selected and evaluate projects. The goals of the organization are aligned with the R & D activities. Projects are organized in to portfolios in order to manage risk and maximize profits. When companies employ a third generation philosophy they are more competitive, more effective with a smaller investment in R & D activities. Roussel also states that there are three types of R & D. The first type is called incremental R & D. This is referred to as small "r" and big "D" and represents small advances in technology. However, the focus is on clever applicat

Matching R & D projects with corporate strategy

This is one of the great classics in research management. All R & D departments can and want to do more R & D than there are funds available. Prioritisation between projects is therefore unavoidable. For many years there was hope that by forecasting income and costs for the projects and comparing the two the most profitable projects could be chosen. Unfortunately that does not work other than for very simple development projects. This book describes the "portfolio method". The portfolio consists of projects. The projects are presented in two-dimensional diagrams. The axes of the diagram can be competitive position and technological maturity, or reward and probability of success, or annual budget and years to completion. Each organisation must decide which diagrams are relevant for their situation. These diagrams form the basis for a meaningful dialogue between the R & D function and other functions in the organisation and with top management. Another great merit of the book is that it introduces a new vocabulary where words are properly defined. Examples of subjects covered this way are types of R & D, technological impact, technological competitive position and project attractiveness. Even though the explanations of the portfolio system in the book are very clear the reader should not think that they are easily introduced. In a report by the European Industrial Research Management Association (EIRMA) of 95 six case studies are presented describing portfolio installation projects. Four represent successes and two failures. At least two conditions are essential for success: interest and support from top management and active participation in the development of the system of all the functions concerned (R & D, and marketing for example). It is impossible for an outsider to impose a standard system.

Inspiring. A book that really helps you to get results

Selection of the most attractive R & D projects is complex and puts strain on an organization. This book offers useful tools. I've tried them. They work