building successful r&d organizations in emerging markets: challenges, successes and lessons...

Rosa WeberOctober 24, 2014

Building successful R&D organizations in emerging markets: Challenges, Successes and Lessons Learned

Copyright © 2014, by Honeywell International Inc.

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Introduction: Rosa Weber


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Outline

Introductions – What do you expect to learn today?

What Aerospace technologies are we investigating?Why do companies build R&D teams abroad?What challenges can we expect?What did we learn? …Culture, Politics and the Global TeamWhy work abroad? …Rewards for the Fearless.


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What Aerospace technologies are we working on?

V. P. Advanced Technology COE

Crew Interface & Platform Systems

Components, Power & Controls

Communications,Navigation &

Surveillance Systems

Advanced Sensors& Microsystems

Advanced Systems& Prototyping

Engines &Air Management

TechnologyStrategy

GlobalAir Traffic Management

BusinessDevelopment

Advanced Technology Center Of Excellence


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G05-338-33

Advanced Technology COE –

Crew Interface & Platform SystemsCharter• Strategically develop

innovative Displays, HumanCentered Systems, Platform Systems and Software Technologies that enable our Aerospace businesses to competitively deliver world class products

Core Technologies• Advanced user interfaces• Advanced visualization techniques• User requirements capture• Human-automation design techniques• Dependable architectures• Data and control networks• Model-based development• High performance displays• Advanced graphics• Flexible displays• Heads-up displays• Advanced cockpit simulation• Integrated displays systems

Application Areas• Soldier systems, future combat

systems,space, ground base vehicles, and aircraft


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Advanced Technology Center Of Excellence (COE)

Advanced Systems & PrototypingCharter• Integrated Technology System

Solutions, and System-of-systemsand platforms (vehicles) conceptdevelopment

• Meet customers’ needs by integratingtechnology and expertise from acrossHoneywell

Core Technologies/Competencies• Systems engineering & methodologies• System-of-Systems Modeling & Simulation• Conceptual Design and Analysis• Embedded and Immersive Training Systems• Rapid prototyping, behavioral modeling, and

analysis• Network centric applications• Interactive decision aids• Planning, scheduling, & optimization• Integrated VHM, diagnostics & prognostics• Maintenance and Decision Systems• Vehicle Systems Solutions• Signal / Image & Data Processing

G05-338-39

SMARTlab™ Sys-of-Sys Modeling & Simulation

Vehicle Health Management

Planning, Scheduling Optimization

Integrated Systems Solutions

Net-Centric Applications

Advanced Vehicle Concepts

Signal, Image, & Data Processing

Charter• Integrated Technology System

Solutions, and System-of-systemsand platforms (vehicles) conceptdevelopment

• Meet customers’ needs by integratingtechnology and expertise from acrossHoneywell

Core Technologies/Competencies• Systems engineering & methodologies• System-of-Systems Modeling & Simulation• Conceptual Design and Analysis• Embedded and Immersive Training Systems• Rapid prototyping, behavioral modeling, and

analysis• Network centric applications• Interactive decision aids• Planning, scheduling, & optimization• Integrated VHM, diagnostics & prognostics• Maintenance and Decision Systems• Vehicle Systems Solutions• Signal / Image & Data Processing

Application Areas• Commercial and Military aviation• Combat and Vehicle systems • Homeland Defense and Commercial Security• Space (crew exploration vehicle, lunar

exploration)


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G05-338-35

Advanced Technology COE –

Communications, Navigation & Surveillance Systems

Charter• Develop advanced navigation,

communication, surveillance, and guidancetechnologies for driving growth andimproving engineering productivity

Core Capabilities• Inertial navigation systems• GPS/INS integration • GPS denied navigation • GNSS receivers and applications• Aeronautical Radios and Data Link Communications: HF/VHF/Satcom • Wireless communications & networking• Aeronautical Surveillance – TCAS/ADS-B Applications• Obstacle Detection & Avoidance• Weather and MMW Radar • Flight Management Systems

Application Areas• Satellite-based navigation: WAAS, LAAS, GRAS • MEMS GPS/INS systems• Autonomous Guidance for UAVs, UGVs• Personal navigation for soldiers • Military Communications • Aeronautical communication and

information management networks • Secure air-ground, air-air

communications• Software Defined Radios for CNS

CommunicationTechnologies

Air TrafficManagement

Navigation Technologies

AutonomousGuidance

Chip Level Communications Systems


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Why do we build R&D teams abroad?

• Support Global opportunities

– Support avionics system research, development and demonstration for both global and local indigenous market opportunities.

• Help Growth Abroad– Help develop our technology strategy for the regional market

– Understand global systems and local challenges

– Build direct local interface with customers and decision makers,

– Validate new Concepts Of Operations

Prague, Brno

Czech Republic

Toulouse, France


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How do we build R&D teams abroad?

• Build Centers Of Excellence

1. Hire and develop local talent to serve regional markets

2. Use a global team of researchers to train and mentor new technical staff abroad, build domain expertise in advanced Aerospace Technology

3. Conduct joint research with local aviation industry and universities in advanced ATM Modernization solutions

4. Showcase technologies and help define ATM modernization roadmaps

5. Transition beneficial R&D into local product development with local partners

6. Introduce new products and services into regional market; EU Areas of Interest

Quality & Affordability ChallengeSecurity

Challenge

Safety Challenge

Environment Challenge

ATM Efficiency Challenge


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Cultural Differences Across the World• Spitting in public and littering in public areas are considered an offense and are

subject to fines. (Indonesia)• It is customary to accept food and drink with your right hand; this is also the

hand you should eat with. • Offer and accept business/credit cards with both hands. (China)• Avoid showing the soles of your feet, or pointing your foot at anyone. (Thailand) • When sitting in front of an important guest, it is rude to cross your legs. (Dubai)• Do not beckon or point with your finger; use the whole hand to gesture• Public displays of affection should be minimal – holding hands is acceptable but

kissing and hugging in public is not. (Israel, China…)• It is important to stand up for new guests and older or higher-ranking people;

men are expected to stand when a woman enters the room. (Dubai)• When greeting a member of the opposite sex, it is important not to offer to

shake hands unless they extend their hand first – both men and women may prefer not to shake hands with the opposite sex due to religious reasons.

• What have you encountered?


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What types of challenges did we encounter?

Language

CultureMisc.Team

Maturity


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What challenges did we encounter?

Challenges

Senior business partners may not be able to communicate in English

No requests for clarification if message is not understood

Inaccurate translation (softened, misunderstood)

“yes” = I have heard you

Meeting/presentation progress is very slow.

.• Language

Mitigation

Multi-language presentations

Translators for both organizations

Documentation exchanged ahead of meetings.

A picture is worth a thousand words

Spell out acronyms

Speak slowly, reword if not understood.

Avoid sayings. “greatest thing since sliced bread”


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Challenge Mitigation

A team of fresh grads w/o work experience.

Work on low hanging fruit Strong US leadership

Tech transfer between remotely located mentors & mentees

Collaboration technology and a global team ready to travel.

Lack of Business Processes Transfer of MOS to Emerging Market

Lack of local Leaders (legal, finance, IP…)

Expat and bubble assignments; Reversed “brain drain”

Building trust takes time Spend time in country, weekly calls.

Global team(mentees) wish for independence from US mentors before they are ready to lead

Work with global leader to establish responsibility growth strategy.

Maturity


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Building an Independent Team• What has worked well for developing technical leaders abroad?

– Build technology-based teams where young engineers are paired with international experts as technical/organizational guides and mentors.

– Assign multi-year projects where task responsibility and project leadership is slowly, systematically shifted from the experts to the up-and-coming leaders.

– Assign project leadership to individuals who• are well spoken, confident, team-focused and pay attention to detail, • have a mind of their own, yet are still eager to learn from their global counterparts.

– Training• Tech Talks• Technology, leadership and PM academy• Formal mentoring programs


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Emerging Market Challenges

Observations1. Top candidates in high

demand– Multiple offers– Government enticements– Non-compete clauses

2. Resume embellishment

• What would you do?

Solutions1. Grow leaders from within your

organization.

Encourage connections forged by current staff.

Offer interesting work, global travel/training, learn from the experts in their field.

2. Test their knowledge– Present their solution to a problem. – Take a written test covering basic

knowledge.

Short term employment contracts

Finding, hiring and retaining highly qualified engineers


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• Business Culture– Rank and the sole voice of the senior leader– Business leader attendance based on rank of visiting leader.– Older generation: different behaviors and expectations.– Body Language, expressed by us, observed by others– Saving face: respect for people’s feelings and reputation

Photo: deliveringdignity.comPhoto: CRIENGLISH.comPhoto: ftc.gov


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Business Culture: Forging a business relationship

– Food and drink• Drinking rituals part of doing business• If you don’t engage in drinking, indulge in the food

– Gift exchange• Although not extravagant, gifts should reflect a person’s status. • Gifts to an individual should be given in private as a gesture of

friendship.• If negotiations are involved, gifts should be presented once they

are finished.


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Business Culture: Negotiation Tactics

Asia Pacific

• Building Experience– Request a seat in the room or at the table– Observe, learn from the trained executives– Volunteer to take minutes, ask a question or two.– Follow your executives’ lead– Provide positive feedback– Request advice on business books

Source: http://www.businessinsider.com/communication-charts-around-the-world-2014-3#ixzz3ENF8cixa

http://www.businessinsider.com/communication-charts-around-the-world-2014-3


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How do we deal with Conflict?

• US– Debates are quite common and acceptable in negotiations, as long as they remain

polite and there is a focus on win-win strategies. – Conflicts and disagreements are typically dealt with right as they arise and are

discussed openly as opposed to waiting until after the negotiation, unless they are highly complex and require more finesse than is possible at the time.

• China– In general, Chinese do not approach conflict directly and openly, because they do not

want to lose face, and they want to maintain harmony on the surface.– Very often, they engage a third party to relay their disagreements and have that third

party do what is necessary to resolve the conflict. • Czech Republic

– If conflict arises, it may lengthen the negotiating process or terminate it altogether. – As indirect communicators, Czechs would rather negotiate with someone else than

confront conflict. In the process of negotiating, they likely will speak around the issue or talk about something else.

Source: Cultural Navigator, TMC



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Negotiation Tactics: America vs. China

• What could possibly go wrong?




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Negotiation Tactics: Europe




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Challenge Mitigation

Not able to secure external funding as a US company

Establish corporations abroad. Join local consortiums.

Weak Intellectual property protection (trade secrets, patents, processes)

Expose/trade older technology, keep latest technology in the US.

Pollution Particle mask (highly valued gift)

GPS maps do not work Multi-language city map

Infrastructure (cell phone, internet, power, heating) less robust

Bring a warm coat…

No taxis available in the evening Arrange car and driver; arrive early

Miscellaneous


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What did we learn? Culture, Politics and the Global Team

• Don’t underestimate the difficulties of working across cultures.• Visa’s may be an obstacle to travel for business partners• Work with a local leader to avoid cultural mistakes • Accept help from engineers, assistants and drivers.• Be aware of historical/political tensions• Become an eager student of the culture, history and business

practices.• Be generous with your time, your praise, and your knowledge.


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Why work abroad? Rewards for the Fearless

“What would you do if you weren’t afraid?” - Sheryl Sandberg

• Rewards?– global travel, – greater exposure to corporate

leadership, – professional growth, – culture of hope and optimism, – facing and overcoming your

(temporary) limitations,– greater understanding of other

cultures, religions and history,– friendship, good food and a lot of

laughter.


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Suggested References


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www.honeywell.com

building successful r&d organizations in emerging markets: challenges, successes and lessons...

Engineering

global systems

honeywell international

humancentered systems

advanced navigation

future combat systems

technology strategy

data link communications

ugvs personal navigation