Creating the Optimal R&D Organization

As companies strive to keep up with global competition and technological change, their R&D functions must accelerate innovation while keeping costs in check. However, the organizational structures of many large international companies are sub-optimal and hinder performance improvement. To maximize R&D's contribution to business value, companies must address structure, governance, and process. Arthur D. Little has identified eight imperatives crucial for navigating through organizational change, including clarifying the role of R&D and establishing a cross-functional steering team. By addressing these challenges, R&D reorganization can deliver immense value and increase the likelihood of sustainable success and optimal delivery of business value.