Creating a winning R&D culture – 1

Article Type: Abstracts From: Strategic Direction, Volume 25, Issue 7

Stevens G.A., Swogger K. Research Technology Management, January-February 2009, Vol. 52 No. 1, Start page: 35, No. of pages: 16

Purpose – to present the first of two articles describing how the selection and training of people to identify profitable new business concepts renewed the vigour and vitality of an ailing company. Design/methodology/approach – in 1991 Dow Chemical’s Polyolefins and Elastomers (PO&E) business was performing badly and led the management to introduce approaches aimed at training managers to improve the company performance by identifying profitable new business concepts, comprising: a technology approach called Insite, which takes advantage of inventions in catalysis, process and materials; and a development philosophy called Speed Based Development (Speed), a scheme that allows for very rapid product development cycle times and is based on selecting the right personality types for specific job roles. Findings – the application of Speed to PO&E’s problems led successfully to a five-step process for effective new business development (NBD), involving: measuring and increasing the creativity of the R&D leadership culture (where genetics was assumed to play an important role);matching leadership personalities to job roles; training and coaching creative“rainmakers” as business opportunity analysts (BOAs); ensuring that there are sufficient “finishers” in the working groups to complete the projects; and reviewing middle management’s implementation plan. Concludes that the research led to the formulation of five new forward-looking performance metrics, comprising: more visionary leaders; better fit of leaders’personalities with job roles; high rainmaker indices and quality analyses;include 70-80 percent finishers among non-leadership employees; and hold 360 degree meetings. Practical implications – The “roadmap” based on these five metrics resulted in over 16 successful new breakthrough product innovations spanning ten years, including such products as Engage, Polyolefin Elastomers, Dow XLA Elastic Fibers, Affinity Adhesives, Thermoplastic TPOs, and Polyolefin Dispersions. Originality/value – provides very comprehensive,case study based evidence of the development of a successful approach to creating a highly successful R&D culture. ISSN: 0895-6308 Reference: 38AE419

Keywords: Case studies, Chemical industries, Innovation,Managers, Organizations, Product development, Product innovation, R&D,Technology-led strategy, Training, USA