Developing the Innovative Technical Organization

RONALD R. LUMAN, DSc, is a Senior Adviser, former Chief of Staff, and former Assistant Director for Strategy at APL. TIMOTHY J. GALPIN, PhD, is the former Chief Strategy Officer and Assistant Director for Programs at APL. JERRY A. KRILL, PhD, is APL’s Assistant Director for Science and Technology and Chief Technology Officer. ERIK W. JOHNSON, MBA, is APL’s Chief of Staff and former Managing Executive of its Force Projection Sector. ANN E. KEDIA, MS, is the Chief Communications Officer at APL and former Vice President at T. Rowe Price. BRIANA D. VECCHIO-PAGÁN, PhD, is Program Manager for Innovation and Collaboration at APL. With a foreword by Admiral James Stavridis, USN (RET)

• About the Authors xiiiForeword xviiA Note from the Series Editor xixAcknowledgments xxi1 Introduction 1References 62 The Strategic Innovation Imperative 72.1 What Is Innovation? 72.2 Why Innovate? 82.2.1 Innovation Is Profitable 92.2.2 Your National Security Depends on It 102.2.3 Your Board of Directors Will Expect It 112.2.4 Your Organization Cannot Rest on the Occasional Innovation 122.3 What Is the Innovation Imperative for Your Organization? 13References 173 The Integrated Strategy System 213.1 Classic Long-Range Vision Framework 233.1.1 Core Purpose 243.1.2 Core Values 253.1.3 Big Hairy Audacious Goal 263.1.4 Vivid Description of the Envisioned Future 273.2 One-Page Strategy Articulation: The VSE 273.3 Alignment of Resources to Strategic Priorities 293.4 Regular Accountability Reviews 303.5 Continuous Decision-Making Process 313.6 Inspiring the Entire Organization to Innovate 323.7 Looking Ahead 35References 374 Implementing the System’s Annual Cycle: Phase 1 394.1 Background 404.2 Adopting a Discipline for Decision-Making: The Strategic Decision Agenda 434.3 Crafting Strategy on One Page: The VSE 464.3.1 Methodology 464.3.2 Implementation Considerations 484.3.3 Internal Impact and Selected Results of the First VSE 504.3.4 Evolution of the VSE 534.4 Adding the “Bite”: Alignment of Resources with Strategy 544.5 Ensuring Strategic Accountability: Regular Portfolio Reviews 564.6 Inspiring Innovation: Initial Efforts 574.6.1 Ignition Grants 584.6.2 Central Spark 594.6.3 APL Achievement Awards 594.6.4 Monetary Awards 614.6.5 Review 614.7 Summary: The Complete Annual Strategy Cycle 62References 655 Annual Strategy Cycle Planning Guide 675.1 Why a Planning Guide? 675.2 Establishing the Annual Priorities 685.3 Allocating Financial Resources 725.3.1 Baseline Allocations 735.3.2 Reserve Allocations 745.3.3 Budget Request Process 765.4 Reviews 775.4.1 Software and IT Systems 775.4.2 Facility Construction and Renovation 785.4.3 Discussions and Deliberations 785.5 Outcomes 795.6 Summary 825.7 Sample Annual Planning Memo 835.7.1 General Resource Allocation Approach for FY 24 845.7.2 Above-Baseline IIP Requests for Mission Areas and Departments 875.7.3 IIP Request Submission Guidance and Format 885.7.4 Requests for Reserves Post-Award 895.7.5 Changes in Customer Funding 89Reference 906 Building the Long-Range Vision to Anchor the System: Phase 2 916.1 The Perfect Storm Motivates the Long-Term Strategy 916.2 Core Purpose 966.3 Core Values 966.4 BHAG and Defining Innovations 986.5 Vivid Description of the Envisioned Future 1026.6 Summary: The Complete System 106References 1087 Innovating Innovation – “Keep What Works” 1097.1 Permission 1117.1.1 Rules 1117.1.2 Open Discourse 1127.1.3 Opportunities to Explore Bold, High-Risk Concepts 1137.1.4 Extension to All Activities 1167.1.5 Potential Metrics to Assess Permission 1177.1.6 Review 1187.2 Proximity 1207.2.1 Proximity to Other Staff Members Within the Organization 1217.2.2 Proximity to the Organization’s Peer Community 1237.2.3 Proximity to the National and Global Innovation Ecosystem 1247.2.4 Proximity and Access to Emerging S&T Developments 1257.2.5 Potential Metrics to Assess Proximity 1277.2.6 Review 1287.3 Privacy 1297.3.1 Physical Workspaces 1297.3.2 Work Arrangements 1307.3.3 Flexibility 1317.3.4 Concept Provenance 1317.3.5 Potential Metrics to Assess Privacy 1317.3.6 Review 1337.4 Perspective 1347.4.1 Divergent Thought Education and Tools 1347.4.2 Rotational Programs and Shadowing 1357.4.3 Cross-Disciplinary Teaming 1367.4.4 Potential Metrics to Assess Perspective 1377.4.5 Review 1377.5 Performance 1387.5.1 Skunkworks’ Role in Innovation Performance 1397.5.2 Virtual Skunkworks – Promoting Privacy and Permission While Maintaining Performance Engines 1407.5.3 Innovation Transition from an R&D Organization to an Engineering Manufacturing Company 1417.5.4 Potential Metrics to Assess Performance 1427.5.5 Review 1427.6 Summary 1447.6.1 Tracking the Innovation Pipeline Using Metrics 1457.6.2 Overarching Insights 147References 1488 Engaging Middle Management 1538.1 The Critical Role of Middle Managers 1538.2 That’s a Nice VSE, But What About Me? 1558.3 But We’re Already Too Busy! 1588.4 What About My Day Job? 1628.5 Experimentation Is the Key 1638.5.1 Purposeful Communications 1648.5.2 Incentivizing Ideas 1658.6 Augmenting the Workforce 1668.6.1 Increasing the Proportion of Doctoral-Level Researchers 1678.6.2 Early-Career Rotational Program 1698.7 Summary: Key Takeaways 171References 1719 Communicating the Strategy 1739.1 Communications’ Central Role in Effective Strategy Execution 1739.2 Essential Communications Elements and Capabilities for Strategic Change 1769.2.1 The Information Source 1769.2.2 The Message 1779.2.3 The Medium 1799.2.4 The Channel 1809.2.5 The Audience 1819.2.6 Feedback 1829.3 The Importance of Aligning Communications Efforts 1839.4 Strategy Communications in Action 1869.4.1 Direct Customer Communications 1869.4.2 Informational Materials 1879.4.3 Strategy-Related Events 1879.4.4 A Slogan 1889.4.5 Annual Report 1889.4.6 Products that Highlight the Organization’s Legacy 1899.4.7 Experiential Graphics 1899.4.8 Newsletters 1909.4.9 Public-Facing Website 1919.4.10 Other Digital Media 1929.4.11 Social Media 1929.4.12 Products and Tools to Empower Staff Members as Strategy Ambassadors 1939.5 Metrics and Indicators to Evaluate Effectiveness of Communicating the Strategy 1949.5.1 Staff Participation in Strategy-Related Events 1949.5.2 Overall Staff Connection to Mission and Strategy 1959.5.3 Effectiveness of Internal Communication Channels 1959.5.4 Leadership Engagement 1969.5.5 External Website Activity 1979.5.6 Publications Engagement 1989.5.7 Social Media Activity 1989.5.8 News Media Engagement 1999.5.9 Other Qualitative Indicators 1999.6 Summary 200References 20110 Strategy-Driven Results 20310.1 Innovating Through the COVID Crucible 20510.2 Strategy-Driven Transformative Innovations 20910.2.1 National Coronavirus Resource Center 20910.2.2 Dragonfly NASA Mission 21010.2.3 Positioning, Navigation, and Timing 21210.2.4 Secure Communications in a Cyberattack 21310.2.5 Food from Air 21310.2.6 Support to Forward-Deployed Naval Defenses 21410.2.7 The Rise and Evolution of AI-Piloted Aviation 21510.2.8 Parker Solar Probe Touches the Sun 21610.3 New Defining Innovations 21710.3.1 BMD from the Sea 21810.3.2 Planetary Defense 21910.4 Formal External Recognition 21910.5 Engaging Within the Global Innovation Ecosystem 221References 22311 Lessons Learned and Retrospective 22511.1 Lessons Learned 22511.2 Retrospective and a Challenge 238References 239Appendix A The Federally Funded Research and Development Sector 241References 248Appendix B APL’s Innovation Imperative and Strategy Journey 249B. 1 Foundation of Critical Contributions to Critical Challenges 249B. 2 The First Five Decades: World War II Through the Cold War 251B. 3 The First Disruptive Decade: The Post–Cold War “Peace Dividend” 252B. 4 The Second Disruptive Decade: New Strategies for New Adversaries 255B. 5 Preparing for the Storm 256References 257Index 259