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(This article is a condensed
excerpt from the upcoming book Technology and the Agents of Change.)
Change happens. Everywhere and all of the time. Change goes so
fast that many of us long for a stable place to rest.
So how do you feel about choosing a life of instability? About
deciding to deal with change every day? About leaving any hope
of calm in favor of an ongoing avalanche of opportunities and
problems?
If you've chosen a career in or around technology, then you've
made just those decisions. Congratulations!
Truths About Your World: Managing development and/or movement
of technology is precisely the same as managing purposeful change.
Think about that for a moment.
Movement of technology is every bit as important to the success
of a technology and its developers as is creation of the technology.
All technology development is creation of change, from basic
R&D to final manufacturing. All technology movement is creation
of change, from delivery of technical papers to delivery of polished
products.
Your job is that of change agent, whether you see it that way
or not. Change-agent skills are as important to your career as
are your technical discipline skills.
Moving Technologies: The ideas above come from my recent
study on the movement of technology within Amoco, Chrysler, Corning,
Fisher-Price, Lockheed Martin Astronautics, Lucent (Bell Laboratories),
Motorola, Texaco, and U S WEST. You know the flows:
- R&D to engineering to manufacturing
- R&D to customers in operations
- Technical services to company
operations
I found paradigm shifting views
on technology management processes, as reported in the next article
in this series. We'll begin, however, with a focus on the nature
of change within companies and the skills needed by people involved
in change. We will use the terms "R&D" and "lab"
for simplicity, yet our conclusions apply broadly to research,
development, engineering, product development, manufacturing
support, information services, and other technical services.
Let's begin by looking at change within Corning and Texaco.
Corning is a technology-based company that sees
opportunities as the intersections of technical innovation and
market demand. Their technology portfolio is managed to maximize
the value of corporate opportunities.
Corning's technology moves from research to end customers along
a value chain defined by:
Idea Generation: Creation and development of ideas about
a technology area
Proof
of Concept: Demonstration
that the idea can be converted into a clean experiment
Reduction
to Practice: Demonstration
that results of the experiment can be manufactured
Scale
Up: Pilot manufacturing
studies to learn costs and set process specifications
Commercialization: Full manufacturing, distribution, marketing,
and customer service
At each transition, cost and risk decisions are made based on:
- Progress -vs- milestones
- The plan going forward, including
costs and required resources
- Project value in light of
others in the portfolio and the fit between technical and business
strategies
Technology, manufacturing, and
marketing work together from the beginning. A cross-functional
innovation team directs progress and performs evaluations at
every stage.
Three key roles maintain momentum.
Team leader: Provides cross-functional management
Project
champion: A high-level
manager who drives project momentum in the face of competing
opportunities
Sponsor: A Corning business manager who provides
funding and links to top management
Cross-functional concurrence over time enables seamless technology
movement. Once the innovation team is created, the only barrier
to transition into manufacturing should be the relevance of the
project to changes in market conditions and corporate strategies.
In practice, the process requires special skills. Team leaders
enable people with diverse backgrounds and styles to work together.
Team presentations influence management and the technology portfolio.
Team focus and alignment on corporate goals improve the likelihood
of making an impact.
Both creation and movement of technology at Corning depend on
the abilities of people to learn together, communicate, and share
responsibilities and commitments.
Texaco: In
1986, the price of oil collapsed, and oil companies worldwide
began restructuring to the new cost regime. Industry R&D
labs transitioned from having corporate funding and autonomy
to funding and existence dependent on paying customers within
the company.
Texaco's Exploration and Production Technology Department is
a survivor. EPTD serves Texaco business units worldwide with
core research and technical services. EPTD has made a dramatic
evolution from an inward to an outwardly focused organization
- a dramatic yet necessary transition to a new way of doing business.
The transition is less in technology creation than in technology
movement. EPTD has learned how to build advance demand for its
services through alignment, accountability, and communications.
Alignment:
First, EPTD appointed two directors
from technology and two from the business units. Understanding
of R&D and technical services was balanced with clarity on
business-unit issues.
Second, EPTD was strategically re-engineered to ensure that Texaco's
investment would result in added value not available from other
resources. R&D became a true strategy for corporate health
and competitive advantage.
Third, portfolio managers were developed as the heart of EPTD's
alignment on needs. Each manager handles 40-50 projects and is
responsible for confirming goals, helping principle investigators
orient projects on true customer needs, and managing budget.
Accountability: Projects themselves are defined by contracts
between EPTD and one or more business units. Each contract specifies
value added, deliverables, cost-time-resources, and progress
review points.
Contracts are proposed by the business units, yet a director
or portfolio manager won't sign off until satisfied that the
project is aligned with business-unit needs; a champion for the
project exists in one or more business units; and clear business
unit demand exists to "pull" results quickly into operations.
That is, project approval is not approval of an idea or process,
but authorization to use science and engineering to solve problems
and create opportunities for Texaco's business units. This is
a huge redirection of motivations for an oil-industry R&D
lab. It requires accountability of scientists and engineers to
their customers as well as their management.
Communications: EPTD "creates awareness of needs."
Maintaining technical leadership requires looking beyond what
customers know they want to what they would want if such a thing
were possible. When customers are not yet aware of their needs,
EPTD helps them see the future. The lab takes the initiative
to go out, open doors, listen to needs, and share visions.
This approach requires people skills, especially in the portfolio
managers. Creating demand is a marketing task involving customer
focus, listening, learning about customer needs, making presentations
in customer language and context, and working together to reach
viable contracts.
Agents of Change
Centralized R&D at Corning serves product development, while
R&D at Texaco serves company operations. At Lockheed Martin,
R&D is distributed to product areas, and at Lucent part is
centralized and part is distributed. At Chrysler and Fisher-Price,
R&D of suppliers is highly leveraged. At U S West, R&D
is primarily a strategic planning tool.
A synthesis of these studies clearly shows that R&D is all
about change and needs more than science, engineering, and project
management to survive. Efficient technology and product development
require innovation plus eight social skills. R&D needs conscious
agents of change.
Innovation: Innovation is change by introduction
of new ideas and methods. Important innovations add value, so
important innovators contribute new and better ways to satisfy
customers at a profit.
Innovators work on both results and processes. They target end-user
satisfaction with persistent, optimistic, and aggressive hard
work. Leveraging innovation requires these change-agent skills:
Vision: Sense the need for change. Envision
a desired future and its many implications. Instill ownership
of the vision in others to gain their commitment to renewal.
See tactical details and how to deal with the full complexity
of a situation. Look beyond current practices to new alternatives,
then constantly re-evaluate how to best achieve the vision.
Learning: Seek knowledge as an ongoing, open-minded,
flexible adaptation to both vision and reality. Be willing to
unlearn.
Look outside self-centered domains to find new ideas, methods,
opportunities, and solutions. Synthesize knowledge to leverage
the strengths of other learners.
Leadership: Facilitate ownership, validation, and
enhancement of visions. Draw out the strengths and contributions
of people and teams.
Find, enhance, and use all strengths, and create new strengths
through synergies and teams. Integrate people with diverse skills
into more powerful resources for positive change.
Coach, mentor, inspire, empower, encourage risk taking, and reward
performance. Challenge convention, motivate out of complacency,
and turn resistance into momentum.
Strategy: Set goals and choose strategies. Discover
and evaluate options. Think outside current paradigms to gain
competitive advantage. Without violating values, give up personal
preference to best achieve goals.
Be a strategy! Be the best way to reach goals, the solution to
problems, and the product or service that meets customer needs.
Marketing: Make and keep satisfied customers, at
a profit, over time, in a competitive environment. Assess customer
needs and design solutions that satisfy those needs. Create demand,
build credibility, and gain product acceptance.
Develop broad ownership of visions, innovations, and strategies.
Support internal culture changes as well as external market changes.
Cooperation: Teaming - Build effective teams around
core opportunities and problems. Build shared vision and sense
of purpose, then empower decision making.
Concurrence - Work together in teams across disciplines and cultures
within the company. Share responsibilities and rewards to achieve
common goals.
Leveraging - Find, acknowledge, develop, and gain from the strengths
of others. Contribute strengths for others to leverage.
Communication: Listen, learn from others, interact,
and share knowledge, methods, experience, and learning. Focus
on the value of what is offered or has been done.
Center communications on target audiences. See situations and
products through audience eyes, then meet their needs, in their
language, and on their terms.
Relationship
Management: Initiate
and sustain mutually beneficial connections to people and organizations.
Be willing to go beyond cooperation to partnering and interdependence.
Look beyond immediate context and commit to extended, win-win
interactions. Work at personal levels as well as task and strategy
levels. See the personal issues in any change and deal effectively
with those issues.
Every respondent in this study stressed the need for people skills
like these. Skill presence determines whether we can learn what
we need and make changes that are necessary. These skills can
make or break projects, technologies, and even R&D as a corporate
function.
So, you've chosen a career in
technology. Congratulations. You are a change agent. Are you
ready?
As a change agent, you will change what is possible by creating
and moving technologies. If you don't have the required skills,
you need to learn them. You must change yourself in order to
initiate and sustain changes in your company.
There is no calm place any more in technology. Change is accelerating,
and we will never again see change proceed as slowly as it does
today. To survive and thrive, we will accept our roles as change
agents and learn how to do the job well.
Think about that!
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Dr. Gary Lundquist specializes in managing change with marketing
tools. He works with companies to increase market impact and
with technical professionals to enhance careers. He is a Ph.D.
scientist, Certified Management Consultant, professional speaker,
and business author. Contact Gary at garyl@market-engineering.com.
Copyright Dr. Gary Lundquist.
Permission to reprint this article is encouraged. Please include
the following credit line: "An excerpt from Technology and
the Agents of Change by Dr. Gary Lundquist, garyl@market-engineering.com"
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