This document discusses three fundamentals of best practice R&D management: strategy, governance, and performance. It provides inputs and outputs for each fundamental. The document then discusses evaluating an organization's R&D management needs through an audit that establishes context, compares existing practices to best practices, and quantifies performance to provide recommendations. Audits of other organizations found performance benchmark ranges and strategic focus, governance, and performance percentages.

1. R&D Management:
Best Practice
“Delivering the Best R&D Outcomes
For Your Business”
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2. Three Best Practice Fundamentals
Strategy
Governance Performance
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3. Strategy
Inputs Outputs
• Corporate and Business • Purpose/Role of R&D
Drivers Confirmed/Accepted
• Internal R&D and Science • Knowledge Gaps
Priorities Identified
• External Drivers and • Key Research Focus
Emerging Issues Areas Identified
• Internal/External • Short/Long Term R&D
Customer Needs Plan/s Established
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4. Governance
Inputs Outputs
• Purpose of R&D Function • Desired R&D
• Current R&D Management Process
Management Process – Integrated with
Commercialisation and IP Mgt
• Best Practice Criteria – Focussed on Customer Needs
• IP and Commercialisation – Transparent, Auditable,
Flexible, Reportable
Management
• Resource Requirements
• R&D Plan/s
Established
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5. Performance
Inputs Outputs
• Reporting Requirements • Universal Report for R&D
• Agreed Key Performance Programs & Projects
Indicators – Board, Financial, IP and
Commercialisation Performance
• Agreed Benefit Measures Reporting
• Project Evaluation • Integrated Performance
Methodologies Metrics
– Measurable Over Long Term
• Communication and
– Accepted Measures of R&D
Technical Transfer Performance and Value
– Measurable, Auditable
Outcomes
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6. R&D Management Audit:
Evaluating Your Best Practice Needs
“Audit, Assess, Recommend”
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7. Establish Context
• Understand Corporate and Business Strategy &
Drivers (Document Reviews, Interviews, Questionnaire)
• Model Existing R&D Program Management and
Delivery Process (Questionnaire, Interviews and Workshop/s)
• Identify Internal/External Linkages (Document Reviews and
Interviews)
• Identify Key Stakeholder Needs (Interviews, Questionnaire)
• Identify Desired R&D Program Management and
Delivery Process (Interviews, Questionnaire and Workshop/s)
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8. Compare and Contrast
• Compare Existing R&D Management, Research
Program and Delivery Processes with Current Best
Practice
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10. Compare and Contrast
• Audits Undertaken to Date indicate that:
– Overall Performance Benchmarks Range: 37.0% to 67.6%
– Strategic Focus: 42.2% to 70.9%
– Governance: 34.6% to 66.5%
– Performance: 40.7% to 65.5%
– NB: ≥ 75% Equates to Optimal Performance (Depends on an
Organisation’s Structure and Needs)
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11. Quantify and Recommend
• Quantify Current Performance
• Outcomes Report (Performance, Perceived Gaps,
Options for Improvement)
– R&D Management Style, Research Drivers, Current
Performance, R&D Management, Key Practices for R&D
Excellence, R&D Process and Process Management
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