Research and development projects, not more than success. In fact, out of 10 R & D projects, the five flops, three refused, and only two in the final analysis, to be commercially successful. The main problem is that many companies do not know how to organize their laboratory for R & D work. Classical hierarchical structure, for example, tend to prevent the rapid spread of knowledge. Matrix organizations, on the other hand, can lead to blockages of information, confusion, and conflict between employees. To explore how companies can better manage their efforts on innovation, the author conducted a thorough study of six R & D projects in the Laboratory Corporation of the Fortune 500. She found that the highly successful R & D projects, there are four major factors that reinforce each other: strong and stable corporate support, the presence of an open model of communication and a low level of formal reporting (in addition, R & D team should be organized in a particular way, so that informal social networks increases - not thwarted - by formal organizational structure) included in R & D projects, the person who is central to the "technical advice network," and the inclusion of one key to the "organizational advice network." Understanding of the interaction between informal social networks and formal organizational structures can help companies develop and support research organizations in which employees share relevant knowledge effectively and readily, resulting in more successful R & D efforts. "Hide
by Polly Rizova Source: MIT Sloan Management Review 9 pages. Publication Date: April 1, 2006. Prod. #: SMR203-PDF-ENG