A report from Water Resources Group

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Global contribution An overwhelming majority of executives surveyed ( ) believe organizations position themselves best to achieve their goals The approach is to establish satellite units that operate and collaborate as a network. But only 20% of respondents said their R&D facilities already include satellites. Executive responses to the current state of R&D reflect an increasingly global reality that contradicts today's organizational structures. Specifically, many respondents ( ) stated that their current R&D organization consists of core functions located in a single location. To achieve their collaboration goals over the next three to five years, more than half of respondents acknowledged that their organizations should adopt a more decentralized model.

This overall preference away from centralization reflects reality: of executives say their companies plan to increase offshoring of global R&D activities. While there has been much discussion recently about companies bringing manufacturing activities and processes closer to home (e.g., to increase operational flexibility), our results suggest that the offshoring trend remains for many R&D organizations. continue. In fact, only 10% of respondents said their companies will increase outsourcing of global R&D Job Function Email List functions and processes over the next three to five years , only 50% of respondents also felt the same way about nearshoring (bringing functions and processes closer to home). headquarter). The Value and Challenges of Collaboration For now, however, collaboration is an art that many R&D organizations have yet to master.



Less than half of the executives who responded to this question said collaboration between their central functions and subsidiary units was very or extremely effective. About the author is a senior specialist in McKinsey & Company's Boston office and a leader in McKinsey's global innovation practice. is of counsel in the firm's Washington, D.C. office. is a consultant in the firm's Seattle office. The authors would like to acknowledge contributions to this work. Tags: collaborative knowledge sharing.