Some organizations have become like walruses, they have excess fat that it does not need.
- Need to determine which 'excess R&D fat' to cut out requires clear objectivity
- Retaining sufficient RD for mature products while creating space for new initiatives
- Downsizing RD can cause unrest, impacting project delivery
- Assessing which location regime gives the best return on R&D investment
Organizations must be careful when cutting fat because:
- Cutting R&D further may irreparably impair it
- Morale may already be low and staff stretched to the limit.
- R&D may not have a good image among new potential recruits
- The self image of R&D may actually be perceived as technical world class externally
How to optimize your R&D location?
1. Keep your key stakeholders involved throughout
2. Bring the key stakeholders together to decide what is important, before you start
3. Then, work with stakeholders to determine the practical R&D structures
Here's a short clip from his presentation below: