Skunk works Smells Like Money

Now that we are through our elections,  it would be wise to take a pause and think for a moment about what trying times and the birth of true innovation can look like.  After all, our circumstances are not new.  We need to take a creative pause as well as deep breath and prepare to take a little risk and make some hard decisions about how we view innovation and creative change.  I learned of a term that is new to me, but for many of you reading today, perhaps it is not new to you.  Recall from the early 1940’s a strategy called Skunk works or skunkworks.  

            A skunkworks project is one typically developed by a small and loosely organized group of people who research and develop a project primarily for the sake of radical innovation.  Skunk works was born within the minds of the leadership of the Lockheed Aircraft Corporation in 1943 as they were tasked by the United States Government to build a jet fighter to counter a rapidly growing German jet threat.  In one month, based on the request, Clarence L. “Kelly” Johnson and his team of engineers at Lockheed are reputed to have developed a proposal, received a go-ahead with funding, and began development.  A formal contract for approval from the “powers that be” did not arrive until four months of project work had already been completed.  This type of Skunk Work strategy came to be known as the way to move forward with innovation quickly with only a handshake and rolling up your sleeves.  No contracts.  No official submittal process.  No slow meandering “take your time while we analyze this” complacency.  Skunkworks operates with a high degree of autonomy and unhampered by bureaucracy. 

Kelly is credited with operating the Skunk works effectively and efficiently albeit in an unconventional manner certainly.  He broke the rules, challenged the bureaucratic system and unleashed innovation.  End result:  Progress.  Skunk Works then is a small group of people who work on a project in an unconventional way.  The group's purpose is to develop something quickly with minimal management constraints.  Skunk Works are often used to initially roll out a product or service that thereafter will be developed according to usual business processes.

Although people have speculated that the name Skunkworks was inspired by the poor hygiene habits of overworked employees; it was really taken from the moonshine factory in the cartoon series "L'il Abner.”  Lockheed Martin has trademarked the name Skunk Works but they also refer to this type of project by the more formal name "Advanced Development Program" (ADP).  Kelly’s rule for innovation at Lockheed helped turn the face of a corporation answering the call of their country.  Perhaps it can help you innovate as you face the demands of your own business and customers.  Lockheed developed 14 basic rules for running an effective skunkwork.  I have modified them here to fit my general business needs.  Perhaps they will help you too as you innovate and create your own skunkwork for your organization.

1. The Skunk Works manager must be delegated practically complete control
2. Develop strong but small offices
3. The number of people having any connection with the project must be restricted in an almost vicious manner.  Use a small number of good people (10% to 25% compared to the so-called normal systems
4. Keep it simple for greater flexibility
5. Keep the paperwork way down, but do document the important things
6. Check your costs monthly to stay on top of expenses, commitments and what is needed to finish the project
7. Delegate to your project leader and give them greater than normal responsibility.   
8. Inspection and follow up are key, but do not duplicate effort
9. The leader must be delegated the authority to test his final product.  He can and must test it in the initial stages as well.
10. The specifications for the project must be decided immediately.
11. Funding a program must be timely so that the leader doesn't have to keep running to the bank to get support
12. There must be mutual trust between the project organization and the project leader with very close cooperation and liaison on a day-to-day basis.  This cuts down misunderstanding and correspondence to an absolute minimum.
13. Access by outsiders to the project and its personnel must be strictly controlled by appropriate security measures.
14. Reward based on performance and nothing else