Collaborative Research and Development Projects: A Practical Guide

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Collaborative Research and Development Projects

Tom Harris

Collaborative Research and Development Projects A Practical Guide Foreword by Ray Browne

With 16 Figures

123

Dr Tom Harris www.hi-consulting.com

There are no warranties, expressed or implied, on any of the methods or approaches described in this book. You must use them at your own risk and seek legal and professional advice as appropriate. They do however represent my best endeavors to convey good practice in creating and running a successful collaborative research and development project.

Library of Congress Control Number: 2007923126

ISBN 978-3-540-46052-7 Springer Berlin Heidelberg New York This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. Springer is a part of Springer Science+Business Media springer.com © Springer-Verlag Berlin Heidelberg 2007 The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Production: LE-TEX Jelonek, Schmidt & V¨ ockler GbR, Leipzig Cover-design: WMX Design GmbH, Heidelberg SPIN 11884750

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Foreword

ByȱRayȱBrowneȱ Developingȱ newȱ techniques,ȱ implementingȱ innovativeȱ technologyȱ andȱsolvingȱawkwardȱproblemsȱhaveȱalwaysȱbeenȱkeenȱinterestsȱofȱ mine.ȱ Iȱ spentȱ theȱ firstȱ twentyȱ yearsȱ ofȱ myȱ careerȱ undertakingȱ scientificȱ researchȱ andȱ theȱ lastȱ twentyȬfiveȱ yearsȱ helpingȱ industryȱ doȱ theȱ same,ȱ largelyȱ throughȱ supportingȱ governmentȱ sponsoredȱ researchȱ andȱ developmentȱ programmes.ȱ Theȱ scientists,ȱ engineersȱ andȱbusinessȱpeopleȱwhoȱundertakeȱsuchȱR&Dȱprojectsȱareȱallȱgreatȱ peopleȱforȱwhomȱIȱhaveȱconsiderableȱrespect.ȱTheyȱareȱusuallyȱveryȱ enthusiasticȱandȱmanifestlyȱpragmatic,ȱ butȱ theyȱstillȱ needȱ asȱ muchȱ helpȱ asȱ theyȱ canȱ get,ȱ particularlyȱ inȱ attractingȱ theȱ supportȱ thatȱ isȱ oftenȱessentialȱifȱtheyȱareȱtoȱrealiseȱtheȱfullȱbenefitsȱofȱtheirȱwork.ȱIȱ amȱ sureȱ thisȱ bookȱ willȱ provideȱ themȱ withȱ thisȱ supportȱ inȱ aȱ trulyȱ practicalȱandȱuserȬfriendlyȱmanner.ȱ CollaborativeȱR&D,ȱespeciallyȱwhenȱexternalȱfundingȱisȱinvolved,ȱisȱ notȱ onlyȱ aboutȱ meetingȱ deadlinesȱ andȱ deliverablesȱ butȱ perhapsȱ moreȱimportantlyȱaboutȱensuringȱaȱreturnȱonȱtheȱinvestmentȱmadeȱ inȱ theȱ project.ȱ Thisȱ book’sȱ particularȱ strengthȱ liesȱ inȱ itsȱ focusingȱ attentionȱ onȱ achievingȱ thisȱ return.ȱ Itȱ alsoȱ showsȱ aȱ crucialȱ dependenceȱ onȱ soundȱ projectȱ management,ȱ notȱ onlyȱ ofȱ theȱ coreȱ R&DȱbutȱalsoȱofȱtheȱcommercialȱactivitiesȱthatȱareȱallȱpreȬrequisitesȱ forȱsuccess.ȱ Theȱ author,ȱ Tomȱ Harris,ȱ isȱ aȱ friendȱ andȱ colleagueȱ whoȱ Iȱ haveȱ knownȱ asȱ aȱ scientist,ȱ successfulȱ businessȱ manȱ andȱ consultant.ȱ Inȱ thisȱ bookȱ heȱ combinesȱ hisȱ considerableȱ experienceȱ withȱ practicalȱ handsȬonȱ adviceȱ thatȱ willȱ beȱ ofȱ benefitȱ toȱ anyoneȱ involvedȱ inȱ

viȱȱȱȱȱȱForewordȱȱ

collaborativeȱprojects.ȱThisȱisȱnotȱanotherȱtheoryȬbasedȱtextbook,ȱitȱ isȱessentialȱreadingȱandȱIȱrecommendȱitȱtoȱallȱaspiringȱcollaborators.ȱ ȱ Rayȱ Browneȱ isȱ currentlyȱ aȱ Deputyȱ Directorȱ inȱ theȱ Officeȱ ofȱ Scienceȱ andȱ InnovationȱatȱtheȱDepartmentȱofȱTradeȱandȱIndustryȱinȱtheȱUKȱwhereȱheȱisȱ responsibleȱ forȱ managingȱ theȱ department’sȱ fundedȱ researchȱ andȱ developmentȱprojects.ȱ

Acknowledgements

Thereȱ areȱ manyȱ peopleȱ thatȱ deserveȱ myȱ thanksȱ forȱ theȱ inspirationȱ andȱcreationȱofȱthisȱbook.ȱTheȱapproachesȱandȱmethodsȱhaveȱbeenȱ developedȱthroughȱmyȱexperiencesȱworkingȱwithȱmanyȱprojectsȱasȱ anȱacademic,ȱindustrialistȱandȱmonitoringȱofficer,ȱtogetherȱwithȱtheȱ adaptationȱofȱprojectȱmanagementȱtechniquesȱdevelopedȱby,ȱamongȱ others,ȱJȱRodneyȱTurnerȱofȱHenleyȱManagementȱCollege.ȱ Fromȱmyȱacademicȱandȱindustrialȱdays,ȱIȱwouldȱparticularlyȱlikeȱtoȱ thankȱ Profȱ Johnȱ MacIntyreȱ ofȱ Sunderlandȱ University,ȱ Profȱ Ianȱ Nabneyȱ ofȱ Astonȱ University,ȱ Paulȱ Wilkinson,ȱ Chrisȱ Kirkhamȱ andȱ LeeȱGamlyn,ȱTWI,ȱArjoȱWiggins,ȱSPȱTyresȱandȱCardioneticsȱLtd.ȱ Iȱ wouldȱ alsoȱ likeȱ toȱ thankȱ allȱ thoseȱ thatȱ areȱ involvedȱ withȱ theȱ UKȱ Technologyȱ Programme.ȱ Specialȱ thanksȱ goȱ toȱ Rayȱ Browneȱ andȱ hisȱ teamȱ atȱ DTI,ȱ especiallyȱ Leeȱ Vousdenȱ andȱ Jackieȱ Whalley;ȱ Davidȱ Crawfordȱ andȱ theȱ teamȱ atȱ TUVȱ NEL;ȱ theȱ UKȱ Researchȱ Councilsȱ especiallyȱ Emilyȱ Nottȱ ofȱ EPSRCȱ andȱ Jimȱ Clipsonȱ ofȱ NERC;ȱ Jonȱ Tennerȱ ofȱ Execulence;ȱ Helenȱ Lucas;ȱ Audreyȱ Canning;ȱ andȱ theȱ projects,ȱ assessorsȱ andȱ monitoringȱ officersȱ Iȱ workȱ with,ȱ especiallyȱ GrahamȱHeskethȱofȱRollsȱRoyce,ȱGillianȱArnoldȱofȱIBM,ȱJohnȱKellyȱ ofȱ DKRȱ Electrical,ȱ Paulȱ Donachyȱ ofȱ Queensȱ Universityȱ Belfast,ȱ Martinȱ Doveȱ ofȱ Cambridgeȱ University,ȱ andȱ Neilȱ Lewisȱ ofȱ Enigmaȱ Interactive.ȱ Ofȱallȱtheseȱindividuals,ȱRayȱBrowneȱdeservesȱmyȱspecialȱthanksȱforȱ hisȱ friendshipȱ andȱ supportȱ andȱ forȱ honouringȱ meȱ byȱ writingȱ theȱ forewordȱforȱthisȱbook.ȱ Last,ȱ butȱ byȱ noȱ meansȱ least,ȱ Iȱthankȱ myȱ wonderfulȱ wife,ȱ andȱ onceȱ again,ȱnotȱjustȱforȱdoingȱallȱtheȱdiagrams.ȱ

Contents

ForewordȱbyȱRayȱBrowneȱ

vȱ

Introductionȱ

1ȱ

1ȱGrantȱfundingȱ ȱȱȱȱ1.1ȱStatesȱaidsȱ ȱȱȱȱȱȱȱȱȱȱȱȱEuropeanȱstatesȱaidȱrulesȱ ȱȱȱȱȱȱȱȱȱȱȱȱWhatȱcanȱbeȱfunded?ȱ ȱȱȱȱ1.2ȱAdditionalityȱ ȱȱȱȱȱȱȱȱȱȱȱȱMarketȱfailureȱ ȱȱȱȱȱȱȱȱȱȱȱȱKnowledgeȱspillȬoverȱ ȱȱȱȱȱȱȱȱȱȱȱȱKnowledgeȱtransferȱ ȱȱȱȱȱȱȱȱȱȱȱȱCriticalityȱofȱfundingȱ ȱȱȱȱȱȱȱȱȱȱȱȱTechnologyȱreadinessȱlevelsȱ ȱȱȱȱ1.3ȱEligibleȱcostsȱ ȱȱȱȱȱȱȱȱȱȱȱȱLabourȱcostsȱ ȱȱȱȱȱȱȱȱȱȱȱȱOverheadsȱ ȱȱȱȱȱȱȱȱȱȱȱȱOtherȱeligibleȱcostȱheadingsȱ ȱȱȱȱ1.4ȱFinancialȱmanagementȱ ȱȱȱȱȱȱȱȱȱȱȱȱKeepingȱrecordsȱ ȱȱȱȱȱȱȱȱȱȱȱȱAuditȱrequirementsȱ ȱȱȱȱȱȱȱȱȱȱȱȱMonitoringȱyourȱspendingȱ ȱȱȱȱ1.5ȱGrantȱcontractsȱandȱoffersȱ ȱȱȱȱȱȱȱȱȱȱȱȱGrantȱtermsȱandȱconditionsȱ ȱȱȱȱȱȱȱȱȱȱȱȱReportingȱandȱmonitoringȱ ȱȱȱȱ1.6ȱWinningȱgrantsȱ ȱȱȱȱȱȱȱȱȱȱȱȱPickingȱtheȱrightȱgrantȱ ȱȱȱȱȱȱȱȱȱȱȱȱInstructionsȱandȱbriefingsȱ ȱȱȱȱȱȱȱȱȱȱȱȱGetȱtheȱbasicsȱrightȱ

5ȱ 5ȱ 6ȱ 7ȱ 9ȱ 9ȱ 10ȱ 11ȱ 12ȱ 13ȱ 14ȱ 14ȱ 16ȱ 17ȱ 19ȱ 19ȱ 20ȱ 20ȱ 21ȱ 22ȱ 24ȱ 25ȱ 26ȱ 26ȱ 28ȱ

xȱȱȱȱȱȱContentsȱȱ

ȱȱȱȱȱȱȱȱȱȱȱȱBuildȱtheȱrightȱteamȱ ȱȱȱȱȱȱȱȱȱȱȱȱInterviewsȱ ȱȱȱȱȱȱȱȱȱȱȱȱLearnȱfromȱdisappointmentsȱ ȱȱȱȱ1.7ȱSoȱinȱconclusionȱ

30ȱ 32ȱ 33ȱ 34ȱ

2ȱLegalȱarrangementsȱ ȱȱȱȱ2.1ȱPurposeȱofȱtheȱagreementȱ ȱȱȱȱ2.2ȱAgreementȱtermsȱ ȱȱȱȱȱȱȱȱȱȱȱȱScopeȱofȱtheȱprojectȱ ȱȱȱȱȱȱȱȱȱȱȱȱResponsibilitiesȱandȱliabilitiesȱ ȱȱȱȱȱȱȱȱȱȱȱȱProjectȱmanagementȱ ȱȱȱȱȱȱȱȱȱȱȱȱChangingȱtheȱconsortiumȱ ȱȱȱȱȱȱȱȱȱȱȱȱTerminationȱ ȱȱȱȱȱȱȱȱȱȱȱȱFinancialȱmanagementȱ&ȱgrantȱdistributionȱ ȱȱȱȱȱȱȱȱȱȱȱȱIntellectualȱpropertyȱrightsȱ ȱȱȱȱȱȱȱȱȱȱȱȱPublicationȱandȱannouncementsȱ ȱȱȱȱȱȱȱȱȱȱȱȱConfidentialityȱ ȱȱȱȱȱȱȱȱȱȱȱȱBoilerȱplateȱ ȱȱȱȱ2.3ȱWorkingȱwithȱlawyersȱ ȱȱȱȱ2.4ȱSoȱinȱconclusionȱ

37ȱ 38ȱ 39ȱ 39ȱ 39ȱ 40ȱ 41ȱ 42ȱ 43ȱ 44ȱ 45ȱ 46ȱ 47ȱ 47ȱ 48ȱ

3ȱGettingȱoffȱtoȱaȱgoodȱstartȱ ȱȱȱȱ3.1ȱTheȱbusinessȱcaseȱ ȱȱȱȱȱȱȱȱȱȱȱȱQualitativeȱandȱquantitativeȱobjectivesȱ ȱȱȱȱȱȱȱȱȱȱȱȱAnalysingȱtheȱbenefitsȱ ȱȱȱȱȱȱȱȱȱȱȱȱDefineȱtheȱcustomersȱ ȱȱȱȱȱȱȱȱȱȱȱȱAnalysingȱtheȱproblemsȱtoȱbeȱsolvedȱ ȱȱȱȱȱȱȱȱȱȱȱȱTheȱmarketȱopportunitiesȱ ȱȱȱȱȱȱȱȱȱȱȱȱTheȱprojectȱdeliverablesȱ ȱȱȱȱȱȱȱȱȱȱȱȱPotentialȱreturnsȱ ȱȱȱȱȱȱȱȱȱȱȱȱDoȱyouȱhaveȱaȱproject?ȱ ȱȱȱȱ3.2ȱCollaborativeȱprojectȱplanningȱ ȱȱȱȱȱȱȱȱȱȱȱȱDoȱyouȱstillȱhaveȱaȱproject?ȱ ȱȱȱȱ3.3ȱSoȱinȱconclusionȱ

49ȱ 49ȱ 51ȱ 52ȱ 53ȱ 53ȱ 55ȱ 56ȱ 56ȱ 59ȱ 60ȱ 73ȱ 74ȱ

Contentsȱȱȱȱȱȱxiȱȱ

4ȱMaintainingȱmomentumȱ ȱȱȱȱ4.1ȱProjectȱcontrolȱ ȱȱȱȱȱȱȱȱȱȱȱȱSteeringȱcommitteesȱ ȱȱȱȱ4.2ȱDetailedȱplanningȱ ȱȱȱȱ4.3ȱManagingȱriskȱ ȱȱȱȱȱȱȱȱȱȱȱȱTypesȱofȱriskȱ ȱȱȱȱȱȱȱȱȱȱȱȱRiskȱmanagementȱ ȱȱȱȱ4.4ȱProjectȱleadershipȱ ȱȱȱȱȱȱȱȱȱȱȱȱCommunicationȱ ȱȱȱȱ4.5ȱWorkingȱwithȱmonitoringȱofficersȱ ȱȱȱȱ4.6ȱSoȱinȱconclusionȱ

77ȱ 78ȱ 79ȱ 82ȱ 83ȱ 83ȱ 84ȱ 88ȱ 89ȱ 90ȱ 91ȱ

5ȱWorkingȱwithȱacademicsȱ ȱȱȱȱ5.1ȱAcademicȱobjectivesȱ ȱȱȱȱȱȱȱȱȱȱȱȱPublicationsȱ ȱȱȱȱ5.2ȱAttitudeȱtoȱriskȱ ȱȱȱȱ5.3ȱAgilityȱ ȱȱȱȱ5.4ȱAcademicȱseasonsȱ ȱȱȱȱ5.5ȱOwnershipȱofȱIPRȱ ȱȱȱȱ5.6ȱAcademicȱfinanceȱofficesȱ ȱȱȱȱ5.7ȱSoȱinȱconclusionȱ

93ȱ 93ȱ 95ȱ 96ȱ 97ȱ 98ȱ 99ȱ 100ȱ 101ȱ

6ȱWorkingȱwithȱindustrialistsȱ ȱȱȱȱ6.1ȱCommercialȱmotivationsȱ ȱȱȱȱ6.2ȱAgilityȱ ȱȱȱȱ6.3ȱCashȱflowȱ ȱȱȱȱ6.4ȱMicroȱcompaniesȱ ȱȱȱȱ6.5ȱSoȱinȱconclusionȱ

103ȱ 103ȱ 104ȱ 105ȱ 106ȱ 109ȱ

7ȱManagingȱproblemsȱ ȱȱȱȱ7.1ȱPartnerȱproblemsȱ ȱȱȱȱȱȱȱȱȱȱȱȱFindingȱreplacementȱpartnersȱ ȱȱȱȱ7.2ȱRelationshipȱbreakdownsȱ ȱȱȱȱ7.3ȱDelaysȱandȱoverspendsȱ ȱȱȱȱ7.4ȱTechnicalȱfailuresȱ ȱȱȱȱ7.5ȱMarketȱchangesȱ

111ȱ 111ȱ 116ȱ 118ȱ 120ȱ 122ȱ 122ȱ

xiiȱȱȱȱȱȱContentsȱȱ

ȱȱȱȱ7.6ȱHowȱtoȱavoidȱproblemsȱ ȱȱȱȱ7.7ȱSoȱinȱconclusionȱ

123ȱ 124ȱ

8ȱExploitingȱtheȱresultsȱ ȱȱȱȱ8.1ȱWhatȱcountsȱasȱexploitation?ȱ ȱȱȱȱ8.2ȱBusinessȱcaseȱ ȱȱȱȱ8.3ȱWhenȱandȱwhatȱtoȱplanȱ ȱȱȱȱ8.4ȱMarketȱunderstandingȱ ȱȱȱȱȱȱȱȱȱȱȱȱAnalysingȱtheȱmarketȱopportunityȱ ȱȱȱȱȱȱȱȱȱȱȱȱQuantifyingȱtheȱmarketȱopportunityȱ ȱȱȱȱȱȱȱȱȱȱȱȱUnderstandingȱtheȱindustryȱforcesȱ ȱȱȱȱ8.5ȱExploitationȱplanȱ ȱȱȱȱȱȱȱȱȱȱȱȱTheȱmarketȱopportunityȱ ȱȱȱȱȱȱȱȱȱȱȱȱTheȱrouteȱtoȱmarketȱ ȱȱȱȱȱȱȱȱȱȱȱȱAdditionalȱdevelopmentȱrequirementsȱ ȱȱȱȱȱȱȱȱȱȱȱȱStandardsȱandȱaccreditationȱ ȱȱȱȱȱȱȱȱȱȱȱȱTheȱplanȱforȱtheȱfutureȱ ȱȱȱȱȱȱȱȱȱȱȱȱPresentationȱ ȱȱȱȱ8.6ȱLicensingȱ ȱȱȱȱȱȱȱȱȱȱȱȱAccessȱtoȱbackgroundȱintellectualȱpropertyȱ ȱȱȱȱȱȱȱȱȱȱȱȱOwnershipȱofȱforegroundȱintellectualȱpropertyȱ ȱȱȱȱȱȱȱȱȱȱȱȱThirdȱpartyȱlicensingȱ ȱȱȱȱ8.7ȱExploitationȱvehiclesȱ ȱȱȱȱ8.8ȱDisseminationȱ ȱȱȱȱ8.9ȱSoȱinȱconclusionȱ

127ȱ 127ȱ 129ȱ 129ȱ 130ȱ 131ȱ 137ȱ 140ȱ 145ȱ 146ȱ 146ȱ 146ȱ 147ȱ 147ȱ 147ȱ 148ȱ 148ȱ 149ȱ 149ȱ 149ȱ 150ȱ 151ȱ

9ȱProjectȱcompletionȱ ȱȱȱȱ9.1ȱReachingȱtheȱfinishingȱlineȱ ȱȱȱȱ9.2ȱDocumentationȱ ȱȱȱȱ9.3ȱPostȱcompletionȱreviewsȱ ȱȱȱȱ9.4ȱProjectȱcloseȱmeetingȱ&ȱfestivitiesȱ ȱȱȱȱ9.5ȱSoȱinȱconclusionȱ

153ȱ 153ȱ 155ȱ 156ȱ 156ȱ 157ȱ

10ȱClosingȱremarksȱ

159ȱ

Contentsȱȱȱȱȱȱxiiiȱȱ

Glossaryȱ

161ȱ

Indexȱ

167ȱ

Introduction

Gettingȱ involvedȱ inȱ aȱ collaborativeȱ researchȱ andȱ developmentȱ projectȱ canȱ beȱ oneȱ ofȱ theȱ mostȱ exciting,ȱ rewardingȱ andȱ businessȱ changingȱexperiencesȱyouȱandȱyourȱorganisationȱeverȱtakeȱon.ȱTheȱ opportunitiesȱ toȱ pushȱ theȱ boundariesȱ ofȱ technology,ȱ solveȱ majorȱ problems,ȱopenȱupȱnewȱmarketsȱandȱbeȱpartȱofȱaȱleadingȱedgeȱteam,ȱ driveȱ thousandsȱ ofȱ companiesȱ andȱ universitiesȱ toȱ workȱ togetherȱ everyȱ year.ȱ Allȱ economiesȱ recogniseȱ theseȱ benefitsȱ andȱ encourageȱ theseȱ collaborationsȱ byȱ offeringȱ grantȱ funding,ȱ taxȱ reliefȱ schemesȱ andȱotherȱbenefitsȱworthȱhundredsȱofȱmillionsȱofȱdollarsȱeachȱyear.ȱȱ Forȱmanyȱprojectsȱtheȱoutcomesȱareȱhighlyȱbeneficial,ȱincludingȱtheȱ developmentȱofȱnewȱproducts,ȱservicesȱandȱtheȱopeningȱupȱofȱnewȱ marketȱ opportunities.ȱ Howeverȱ forȱ tooȱ many,ȱ theȱ projectȱ doesȱ notȱ bringȱ allȱ thatȱ wasȱ hopedȱ for.ȱ Theȱ reasonsȱ behindȱ theseȱ lostȱ opportunitiesȱ areȱ variedȱ butȱ aȱ greatȱ dealȱ ofȱ responsibilityȱ liesȱ inȱ poorȱ appreciationȱ ofȱ whatȱ isȱ involvedȱ inȱ runningȱ aȱ collaborativeȱ projectȱ andȱ inȱ poorȱ planningȱ andȱ communicationȱ betweenȱ theȱ partners.ȱPerhapsȱtheȱmostȱcommonȱandȱseriousȱreasonȱhowever,ȱisȱ theȱlackȱofȱappropriateȱunderstandingȱofȱhowȱtoȱexploitȱtheȱresultsȱ ofȱtheȱproject.ȱ Thisȱ bookȱ hasȱ beenȱ writtenȱ toȱ provideȱ youȱ withȱ aȱ userȱ guideȱ forȱ yourȱ collaborativeȱ R&Dȱ project.ȱ Weȱ willȱ startȱ withȱ anȱ analysisȱ ofȱ grantȱ funding,ȱ lookingȱ toȱ seeȱ whatȱ helpȱ mightȱ beȱ availableȱ toȱ youȱ andȱ howȱ bestȱ toȱ secureȱ it.ȱ Weȱ willȱ lookȱ atȱ theȱ legalȱ arrangementsȱ thatȱneedȱtoȱbeȱenteredȱintoȱbetweenȱyouȱandȱyourȱpartners.ȱInȱtheȱ thirdȱ chapterȱ weȱ getȱ muchȱ moreȱ handsȱ onȱ andȱ Iȱ provideȱ methodsȱ forȱplanningȱyourȱprojectȱandȱbuildingȱaȱsoundȱbusinessȱcaseȱforȱit.ȱ Nextȱ weȱ lookȱ atȱ theȱ specialȱ projectȱ managementȱ considerationsȱ

2ȱȱȱȱȱȱIntroductionȱȱ

involvedȱinȱcollaborativeȱprojectsȱandȱpresentȱmethodsȱtoȱkeepȱtheȱ momentumȱgoing.ȱ Theȱ followingȱ twoȱ chaptersȱ areȱ providedȱ toȱ helpȱ youȱ understandȱ theȱ otherȱ membersȱ ofȱ yourȱ consortium.ȱ Ifȱ youȱ areȱ anȱ industrialȱ orȱ commercialȱ animalȱ andȱ haveȱ notȱ workedȱ withȱ academicsȱ before,ȱ thisȱ shortȱ guideȱ willȱ provideȱ anȱ insightȱ intoȱ theirȱ motivesȱ andȱ workingȱpractices.ȱTheȱsameȱisȱprovidedȱforȱacademicsȱtoȱhelpȱyouȱ appreciateȱtheȱcommercialȱworldȱsoȱthatȱyouȱcanȱunderstandȱwhatȱ drivesȱyourȱindustrialȱpartners.ȱ Inȱtheȱnextȱchapterȱweȱlookȱatȱwhatȱcanȱgoȱwrongȱandȱhowȱbestȱtoȱ firstlyȱrecogniseȱandȱavoidȱtheȱproblems,ȱandȱsecondlyȱhowȱtoȱdealȱ withȱthemȱifȱyouȱfindȱyourselvesȱinȱtrouble.ȱ Theȱpenultimateȱchapterȱdealsȱwithȱexploitation.ȱAlthoughȱtheȱlastȱ butȱ oneȱ chapterȱ inȱ theȱ book,ȱ itȱ isȱ perhapsȱ theȱ mostȱ importantȱ andȱ describesȱaȱprocessȱthatȱstartsȱbeforeȱtheȱprojectȱandȱcontinuesȱlongȱ after.ȱȱ Finallyȱweȱlookȱatȱwhatȱhappensȱatȱtheȱendȱofȱtheȱprojectȱandȱhowȱ yourȱ managementȱ approachȱ changes.ȱ Weȱ alsoȱ lookȱ atȱ evaluatingȱ theȱresultsȱofȱyourȱhardȱwork.ȱ Myȱownȱcareerȱstartedȱasȱaȱuniversityȱresearcherȱdevelopingȱnovelȱ computingȱ systemsȱ forȱ analysingȱ complexȱ data.ȱ Asȱ Iȱ builtȱ myȱ researchȱgroup,ȱitȱwasȱtheȱapplicationsȱthatȱwereȱmoreȱexcitingȱthatȱ theȱ technologyȱ itselfȱ andȱ soȱ allȱ theȱ projectsȱ thatȱ weȱ tookȱ onȱ wereȱ collaborative.ȱ Weȱ workedȱ withȱ theȱ healthcare,ȱ energyȱ generation,ȱ aerospaceȱandȱpaperȱsectorsȱtoȱnameȱbutȱaȱfew.ȱAfterȱspinningȱoutȱaȱ companyȱ fromȱ oneȱ ofȱ theseȱ projects,ȱ Iȱ wasȱ thenȱ involvedȱ inȱ collaborativeȱ R&Dȱ projectsȱ fromȱ theȱ industrialȱ side.ȱ Currentlyȱ myȱ managementȱ consultancy,ȱ Hiȱ Consulting,ȱ isȱ partȱ ofȱ theȱ deliveryȱ teamȱ forȱ theȱ UKȱ Departmentȱ ofȱ Tradeȱ andȱ Industry’sȱ Technologyȱ Programme.ȱ Thisȱ programmeȱ supportsȱ inȱ excessȱ ofȱ $1.5ȱ billionȱ worthȱofȱcollaborativeȱR&D.ȱMyȱroleȱinȱtheȱprogrammeȱisȱpracticalȱ

Introductionȱȱȱȱȱȱ3ȱ

asȱ wellȱ asȱ strategic,ȱ briefingȱ theȱ applicants,ȱ assessorsȱ andȱ monȬ itoringȱ officers.ȱ Iȱ amȱ alsoȱ responsibleȱ forȱ theȱ projectȱ monitoringȱ regimeȱadoptedȱbyȱtheȱprogrammeȱtoȱmonitorȱallȱitsȱinvestments.ȱȱ Thisȱbookȱhasȱgrownȱfromȱtheȱexperiencesȱonȱallȱthreeȱsidesȱofȱtheȱ triangle,ȱ academicȱ partner,ȱ industrialȱ partnerȱ andȱ finallyȱ fundingȱ organisationȱandȱprojectȱmonitor.ȱItȱisȱintendedȱtoȱhelpȱyouȱgetȱtheȱ mostȱfromȱyourȱcollaborativeȱprojectȱbyȱunderstandingȱwhatȱwillȱbeȱ involved,ȱ howȱ toȱ runȱ itȱ professionallyȱ andȱ mostȱ importantly,ȱ howȱ toȱexploitȱtheȱresultsȱtoȱtheȱfull.ȱ ȱ So,ȱlet’sȱgetȱdownȱtoȱbusiness.ȱ

1 Grant funding

Whilstȱ notȱ everyȱ collaborativeȱ researchȱ projectȱ isȱ supportedȱ byȱ fundingȱfromȱoutsideȱtheȱconsortium,ȱaȱlargeȱpercentageȱofȱprojectsȱ areȱ eligibleȱ forȱ supportȱ fromȱ theȱ governments,ȱ charitiesȱ andȱ otherȱ organisations.ȱ Notȱ surprisingly,ȱ allȱ theseȱ organisationsȱ layȱ downȱ criteriaȱ forȱ whatȱ theyȱ canȱ andȱ can’tȱ support.ȱ Theȱ rulesȱ getȱ stricterȱ whenȱ taxȱ payers’ȱ moneyȱ isȱ involvedȱ andȱ whereȱ theȱ supportȱ mustȱ complyȱwithȱnationalȱandȱinternationalȱregulations.ȱȱ Thisȱ chapterȱ aimsȱ toȱ provideȱ aȱ generalȱ understandingȱ ofȱ grantȱ fundingȱ rulesȱ andȱ anȱ explanationȱ ofȱ theȱ typesȱ ofȱ thingsȱ grantȱ assessorsȱ lookȱ forȱ inȱ makingȱ fundingȱ decisions.ȱ Itȱ isȱ obviouslyȱ notȱ possibleȱ toȱ coverȱ everyȱ individualȱ grantȱ schemeȱ hereȱ andȱ soȱ youȱ mustȱ thoroughlyȱ checkȱ theȱ criteriaȱ andȱ rulesȱ forȱ theȱ schemesȱ youȱ wishȱtoȱapplyȱfor.ȱ

1.1 States aids Theȱrulesȱforȱfundingȱprojectsȱwithȱtaxȱpayers’ȱmoneyȱvaryȱgreatlyȱ betweenȱ theȱ USȱ andȱ Europe.ȱ Europeanȱ companiesȱ areȱ ableȱ toȱ receiveȱ fundingȱ forȱ commerciallyȱ focusedȱ projectsȱ andȱ retainȱ theȱ intellectualȱ propertyȱ thatȱ isȱ generated.ȱ Theȱ fundingȱ isȱ increasinglyȱ targetedȱ onȱ projectsȱ intendedȱ toȱ giveȱ Europeanȱ companiesȱ aȱ competitiveȱ advantageȱ inȱ globalȱ markets.ȱ Inȱ theȱ Unitedȱ Statesȱ theȱ philosophyȱ tendsȱ muchȱ moreȱ towardsȱ fundingȱ fundamentalȱ research.ȱ Anotherȱ keyȱ differenceȱ isȱ thatȱ theȱ intellectualȱ propertyȱ developedȱ throughȱ USȱ stateȱ fundedȱ projectsȱ doesȱ notȱ becomeȱ theȱ propertyȱofȱtheȱparticipants;ȱtheȱIPRȱisȱplacedȱinȱtheȱpublicȱdomainȱ forȱallȱtheȱmarketȱcompetitorsȱtoȱshare,ȱevenȱoverseasȱcompetitors.ȱ

6ȱȱȱȱȱȱ1ȱGrantȱfundingȱ

Theseȱ differentȱ approachesȱ formȱ partȱ ofȱ theȱ highȱ profileȱ disputeȱ betweenȱ USȱ andȱ Europeanȱ aircraftȱ manufacturersȱ aboutȱ theȱ levelsȱ ofȱ stateȱ assistanceȱ eachȱ areȱ receivingȱ inȱ orderȱ toȱ competeȱ withȱ theȱ other.ȱ European states aid rules Althoughȱ theȱ fundingȱ availableȱ inȱ Europeȱ isȱ moreȱ commerciallyȱ focused,ȱthereȱareȱstillȱstrictȱregulationsȱthatȱcontrolȱstateȱfundingȱofȱ researchȱ andȱ developmentȱ programmes.ȱ Theȱ regulationsȱ areȱ laidȱ downȱ inȱ theȱ Europeanȱ treaties.ȱ Aȱ secretariatȱ inȱ Brusselsȱ providesȱ clearanceȱ toȱ individualȱ stateȱ programmesȱ andȱ monitorsȱ thatȱ theȱ regulationsȱ areȱ properlyȱ adheredȱ to.ȱ Itȱ isȱ worthȱ understandingȱ theseȱ regulationsȱ sinceȱ theyȱ mayȱ helpȱ youȱ focusȱ yourȱ applicationȱ forȱfunding.ȱAlsoȱifȱanȱerrorȱisȱmade,ȱyouȱmayȱhaveȱtoȱpayȱtheȱgrantȱ back.ȱ Theȱ basicȱ principalȱ isȱ thatȱ stateȱ assistanceȱ whichȱ couldȱ distortȱ competitionȱ andȱ affectȱ tradeȱ byȱ favouringȱ certainȱ undertakingsȱ orȱ producingȱ certainȱ goods,ȱ isȱ againstȱ theȱ interestsȱ ofȱ theȱ commonȱ marketȱandȱisȱthereforeȱprohibited.ȱFortunatelyȱhowever,ȱthereȱareȱ aȱfewȱexceptionsȱtoȱthisȱrule.ȱMemberȱstatesȱareȱallowedȱtoȱassistȱinȱ disasterȱ recovery,ȱ operateȱ theȱ commonȱ agriculturalȱ policyȱ andȱ supportȱ publicȱ transportȱ systemsȱ forȱ example.ȱ Ofȱ moreȱ interestȱ toȱ usȱthough,ȱisȱthatȱtheyȱareȱallowedȱtoȱfacilitateȱdevelopmentȱofȱcertainȱ economicȱ activitiesȱ orȱ ofȱ certainȱ economicȱ areasȱ whereȱ thisȱ willȱ notȱ adverselyȱaffectȱtradingȱconditions.ȱInȱotherȱwords,ȱmemberȱstatesȱareȱ allowedȱ toȱ supportȱ companiesȱ workingȱ inȱ economicallyȱ depressedȱ regionsȱ orȱ workingȱ onȱ strategicallyȱ importantȱ technologiesȱ orȱ activities.ȱȱ Mostȱ memberȱ statesȱ takeȱ advantageȱ ofȱ theseȱ exceptionsȱ toȱ offerȱ aȱ rangeȱ ofȱ supportȱ measuresȱ toȱ theirȱ businesses.ȱ Inȱ additionȱ theȱ Europeanȱ Unionȱ itselfȱ runsȱ Frameworkȱ programmesȱ thatȱ fundȱ projectsȱthatȱspanȱEurope.ȱȱ

1.1ȱStatesȱaidsȱȱȱȱȱȱ7ȱ

What can be funded? Theȱ specificȱ fundingȱ rulesȱ willȱ varyȱ fromȱ schemeȱ toȱ schemeȱ dependingȱ onȱ whatȱ theȱ fundingȱ bodyȱ wantsȱ toȱ achieveȱ andȱ whoȱ theyȱ areȱ tryingȱ toȱ attract.ȱ Youȱ willȱ haveȱ toȱ checkȱ outȱ theȱ exactȱ criteriaȱ ofȱ eachȱ schemeȱ asȱ youȱ applyȱ toȱ them.ȱ Thereȱ areȱ howeverȱ someȱcommonȱprinciplesȱthatȱareȱgenerallyȱfollowed.ȱ Inȱ manyȱ casesȱ smallȱ andȱ mediumȱ sizesȱ enterprisesȱ (SMEs)ȱ areȱ treatedȱ particularlyȱ well.ȱ Thisȱ isȱ becauseȱ itȱ isȱ goodȱ toȱ encourageȱ smallȱ companiesȱ toȱ innovateȱ andȱ grow;ȱ theyȱ createȱ employmentȱ andȱnewȱopportunitiesȱinȱtheȱmarketȱplace.ȱThereȱareȱmanyȱgrantsȱ availableȱ toȱ individualȱ companiesȱ forȱ investigatingȱ innovativeȱ ideas,ȱ buildingȱ prototypesȱ andȱ carryingȱ outȱ marketȱ research.ȱ Hereȱ though,ȱ weȱ areȱ moreȱ interestedȱ inȱ theȱ roleȱ ofȱ SMEsȱ withinȱ collaborations.ȱ Inȱ manyȱ casesȱ theȱ involvementȱ ofȱ SMEsȱ isȱ keenlyȱ encouraged,ȱevenȱtoȱtheȱextentȱthatȱtheyȱcanȱreceiveȱextraȱfunding.ȱ AmȱIȱanȱSME?ȱ Accordingȱ toȱ 2006ȱ Europeanȱ definitions,ȱ aȱ smallȱ companyȱ isȱ oneȱthat:ȱ Ȭȱhasȱfewerȱthanȱ50ȱemployeesȱ Ȭȱhasȱeitherȱaȱturnoverȱofȱlessȱthanȱ€10ȱmillionȱorȱaȱbalanceȱ ȱȱsheetȱtotalȱofȱlessȱthanȱ€10ȱmillionȱ Ȭȱisȱindependent,ȱinȱotherȱwordsȱisȱnotȱownedȱbyȱmoreȱthanȱ ȱȱ25%ȱbyȱaȱmediumȱorȱlargeȱenterpriseȱ Aȱmediumȱsizedȱcompanyȱisȱoneȱthat:ȱ Ȭȱhasȱfewerȱthanȱ250ȱemployeesȱ Ȭȱhasȱeitherȱaȱturnoverȱofȱlessȱthanȱ€50ȱmillionȱorȱaȱbalanceȱ ȱȱsheetȱtotalȱofȱlessȱthanȱ€43ȱmillionȱ Ȭȱisȱindependent,ȱinȱotherȱwordsȱisȱnotȱownedȱmoreȱthanȱ25%ȱ ȱȱbyȱaȱlargeȱenterpriseȱ


InȱtheȱUnitedȱStatesȱthereȱisȱnoȱstandardȱdefinitionȱforȱaȱsmallȱ business.ȱGenerallyȱitȱisȱdeterminedȱbyȱtheȱindustryȱinȱwhichȱ itȱcompetes,ȱwhereȱincomeȱandȱnumberȱofȱemployeesȱisȱusedȱ toȱ determineȱ whetherȱ aȱ companyȱ isȱ aȱ smallȱ businessȱ orȱ not.ȱ Manyȱgovernmentȱcontractsȱareȱ‘setȱaside’ȱorȱlimitedȱtoȱsmallȱ businessesȱ only,ȱ mostȱ oftenȱ involvingȱ servicesȱ orȱ minorȱ construction.ȱ Toȱbeȱeligibleȱforȱgrantȱfunding,ȱtheȱ researchȱ willȱ oftenȱ needȱ toȱ beȱ preȬcompetitive.ȱ Thisȱ meansȱ thatȱ theȱ outcomesȱ orȱ resultsȱ ofȱ theȱ researchȱ willȱ notȱ beȱ inȱ aȱ stateȱ whereȱ theyȱ canȱ beȱ immediatelyȱ commerciallyȱ exploited.ȱ Furtherȱ developmentȱ willȱ beȱ requiredȱ beforeȱ thisȱ canȱ takeȱ place.ȱ Theȱ moreȱ additionalȱ workȱ thatȱ willȱ beȱ required,ȱtheȱfurtherȱfromȱmarketȱtheȱprojectȱisȱsaidȱtoȱbe.ȱȱ

ȱ Fig.ȱ 1.1.ȱ Requirementȱ forȱ grantȱ fundingȱ decreasesȱ asȱ nearȬmarketnessȱ increasesȱȱ

TheȱlevelȱofȱgrantȱthatȱcanȱbeȱprovidedȱoftenȱdependsȱonȱthisȱnearȬ marketȱ measure.ȱ Fundamentalȱ researchȱ whereȱ projectsȱ developȱ resultsȱ thatȱ areȱ veryȱ farȱ fromȱ exploitation,ȱ areȱ oftenȱ fundedȱ atȱ

1.2ȱAdditionalityȱȱȱȱȱȱ9ȱ

betweenȱ 75ȱ andȱ 100%.ȱ Industrialȱ research,ȱ thoseȱ whichȱ couldȱ beȱ exploitedȱ afterȱ sayȱ 3ȱ yearsȱ ofȱ furtherȱ developmentȱ areȱ normallyȱ fundedȱatȱ50%.ȱNearȱmarketȱorȱpreȬcompetitiveȱdevelopmentȱworkȱ whichȱmightȱbeȱexploitableȱafterȱsayȱ1ȱyearȱisȱoftenȱrestrictedȱtoȱjustȱ 25%ȱfunding.ȱ Theseȱ limitsȱ makeȱ senseȱ whenȱ youȱ considerȱ thatȱ statesȱ useȱ theseȱ grantsȱtoȱincentiviseȱcompaniesȱtoȱcarryȱoutȱriskyȱresearchȱthatȱtheyȱ wouldȱ otherwiseȱ notȱ haveȱ theȱ confidenceȱ toȱ fullyȱ investȱ in.ȱ Theȱ moreȱ riskyȱ theȱ research,ȱ theȱ furtherȱ fromȱ realisingȱ aȱ return,ȱ theȱ moreȱincentiveȱhasȱtoȱbeȱprovidedȱtoȱmakeȱitȱhappen.ȱ

1.2 Additionality Theȱ firstȱ thingȱ aȱ grantȱ awardingȱ bodyȱ willȱ wantȱ toȱ knowȱ isȱ whyȱ youȱneedȱtheirȱmoney.ȱWhyȱdon’tȱyouȱfundȱtheȱworkȱyourself?ȱThisȱ isȱ aȱ perfectlyȱ fairȱ question,ȱ especiallyȱ whereȱ taxȱ payers’ȱ moneyȱ isȱ involved.ȱ Theȱ questionȱ isȱ oftenȱ calledȱ theȱ ‘additionality’ȱ questionȱ becauseȱ basicallyȱ theȱ fundingȱ bodyȱ wantsȱ toȱ knowȱ whatȱ addedȱ valueȱ isȱ createdȱbyȱthemȱfundingȱyourȱproject.ȱȱ Thereȱ areȱ aȱ wideȱ rangeȱ ofȱ potentialȱ answersȱ toȱ thisȱ questionȱ andȱ thereforeȱ aȱ wideȱ rangeȱ ofȱ activitiesȱ thatȱ yourȱ consortiumȱ couldȱ carryȱ outȱ inȱ orderȱ toȱ makeȱ theȱ addedȱ valueȱ generatedȱ byȱ yourȱ projectȱmoreȱattractiveȱtoȱpotentialȱfunders.ȱTheȱfourȱmainȱadditionȬ alityȱ argumentsȱ areȱ marketȱ failure,ȱ knowledgeȱ spillȬover,ȱ knowȬ ledgeȱtransferȱandȱcriticalityȱofȱfunding.ȱ Market failure Inȱ anȱ idealȱ world,ȱ thereȱ wouldȱ beȱ anȱ economicȱ demandȱ forȱ yourȱ serviceȱorȱproductȱtoȱbeȱimproved.ȱThisȱwouldȱleadȱtoȱaȱdesireȱforȱ youȱ andȱ yourȱ partnersȱ inȱ theȱ marketȱ toȱ investȱ inȱ developingȱ newȱ


innovationsȱthatȱwouldȱsatisfyȱthisȱdemandȱandȱprovideȱyouȱwithȱaȱ healthyȱ returnȱ onȱ yourȱ investment.ȱ Oftenȱ thisȱ isȱ theȱ caseȱ butȱ notȱ always.ȱMarketȱfailureȱisȱsaidȱtoȱhaveȱoccurredȱwhenȱyouȱandȱyourȱ partnersȱinȱtheȱmarketȱcannotȱinvestȱsufficientlyȱinȱtheȱdevelopmentȱ ofȱ newȱ innovationsȱ andȱ theȱ paceȱ ofȱ improvementȱ slowsȱ beyondȱ whatȱisȱoptimalȱforȱtheȱeconomy.ȱ Perhapsȱ theȱ greatestȱ contributorȱ toȱ marketȱ failureȱ isȱ thatȱ research,ȱ developmentȱ andȱ innovationȱ projectsȱ areȱ characterisedȱ byȱ aȱ highȱ degreeȱ ofȱ riskȱ andȱ uncertainly.ȱ Companiesȱ haveȱ limitedȱ resourcesȱ toȱ spendȱ onȱ researchȱ andȱ developmentȱ andȱ oftenȱ doȱ notȱ haveȱ theȱ confidenceȱ toȱ directȱ thoseȱ resourcesȱ atȱ projectsȱ thatȱ mayȱ notȱ beȱ successful.ȱ Byȱ helpingȱ toȱ fundȱ theȱ project,ȱ theȱ fundingȱ bodyȱ isȱ sharingȱtheȱrisk.ȱIdeallyȱtheȱlevelȱofȱfundingȱwillȱbeȱjustȱsufficientȱtoȱ enticeȱtheȱcompaniesȱtoȱcarryȱoutȱtheȱproject,ȱanyȱhigherȱisȱwastefulȱ ofȱtheȱgrantȱresources,ȱanyȱlowerȱandȱtheȱprojectȱwouldȱstillȱnotȱgoȱ ahead.ȱ Knowledge spill-over Research,ȱ developmentȱ andȱ innovationȱ projectsȱ oftenȱ generateȱ benefitsȱforȱsocietyȱinȱtheȱformȱofȱknowledgeȱspillȬoversȱthatȱareȱnotȱ ofȱ anyȱ benefitȱ toȱ theȱ projectȱ participants.ȱ Leftȱ toȱ theȱ market,ȱ theȱ projectȱ mightȱ notȱ haveȱ anȱ attractiveȱ rateȱ ofȱ returnȱ forȱ theȱ participantsȱ alone.ȱ Theȱ benefitsȱ toȱ theȱ widerȱ societyȱ isȱ onlyȱ achievableȱ therefore,ȱ ifȱ theȱ fundingȱ bodyȱ makesȱ partȱ ofȱ theȱ investment,ȱ thusȱ increasingȱ theȱ rateȱ ofȱ returnȱ forȱ theȱ participants.ȱ Toȱ achieveȱ thisȱ knowledgeȱ spillȬoverȱ however,ȱ theȱ projectȱ mustȱ disseminateȱ theȱ resultsȱ ofȱ theȱ projectȱ soȱ thatȱ societyȱ canȱ indeedȱ benefit.ȱ Aȱ logicalȱ extensionȱ ofȱ thisȱ argumentȱ comesȱ inȱ theȱ creationȱ ofȱ generalȱ knowledgeȱ throughȱ fundamentalȱ research.ȱ Generalȱ knowledgeȱisȱcreatedȱwhenȱresearchȱleadsȱtoȱresultsȱthatȱcannotȱbeȱ protectedȱ orȱ exclusivelyȱ exploitedȱ byȱ theȱ participants.ȱ Theȱ likelyȱ returnȱ onȱ investmentȱ forȱ unprotectedȱ researchȱ isȱ oftenȱ veryȱ smallȱ


forȱtheȱparticipantsȱ andȱsoȱ wouldȱ beȱ unlikelyȱ toȱ occurȱ unlessȱstateȱ fundingȱ wasȱ provided.ȱ Thisȱ isȱ whyȱ statesȱ oftenȱ haveȱ toȱ payȱ 100%ȱ forȱfundamentalȱandȱpureȱresearch.ȱHereȱagainȱtheȱdisseminationȱofȱ theȱ resultsȱ toȱ aȱ wideȱ audienceȱ willȱ beȱ anȱ importantȱ partȱ ofȱ theȱ project.ȱ Knowledge transfer Inȱ manyȱ cases,ȱ theȱ innovationȱ thatȱ isȱ requiredȱ inȱ theȱ marketȱ isȱ developedȱwithinȱaȱuniversityȱorȱsimilarȱresearchȱorganisation.ȱItȱisȱ veryȱ seldomȱ theȱ caseȱ thatȱ companiesȱ canȱ simplyȱ buyȱ theseȱ innovationsȱ offȱ theȱ shelfȱ asȱ theyȱ usuallyȱ requireȱ furtherȱ developȬ mentȱ beforeȱ theyȱ canȱ beȱ appliedȱ toȱ aȱ realȱ productȱ orȱ service.ȱ Inȱ theseȱsituations,ȱtheȱcompanyȱneedsȱtoȱworkȱwithȱtheȱuniversityȱonȱ aȱ projectȱ toȱ developȱ andȱ transferȱ theȱ knowledgeȱ toȱ theȱ company.ȱ Thisȱprocessȱworksȱbestȱifȱtheȱacademicȱexpertsȱareȱfullyȱinvolvedȱinȱ theȱprojectȱbutȱtheyȱareȱseldomȱhappyȱtoȱleaveȱtheirȱacademicȱcareerȱ toȱjoinȱtheȱcompany.ȱȱ Theȱ answerȱ isȱ toȱ runȱ aȱ collaborativeȱ projectȱ betweenȱ theȱ companyȱ andȱ theȱ universityȱ butȱ thisȱ isȱ expensive.ȱ Theȱ university,ȱ quiteȱ rightly,ȱwillȱneedȱtoȱseeȱallȱitsȱcostsȱandȱoverheadsȱcoveredȱforȱtheȱ workȱ itȱ willȱ haveȱ toȱ carryȱ out.ȱ Universitiesȱ oftenȱ wantȱ toȱ involveȱ postȱgraduateȱandȱpostȱdoctoralȱstudentsȱtoȱdoȱtheȱnecessaryȱworkȱ andȱtoȱaddȱtoȱtheirȱresearchȱcapability,ȱallȱofȱwhichȱputsȱtheȱcostȱupȱ withoutȱ necessarilyȱ improvingȱ theȱ companiesȱ return.ȱ Aȱ fundingȱ bodyȱ isȱ thenȱ requiredȱ toȱ shareȱ theȱ costsȱ toȱ anȱ extentȱ thatȱ makesȱ itȱ favourableȱforȱtheȱcompanyȱtoȱgoȱaheadȱwithȱtheȱproject.ȱ Inȱ reality,ȱ mostȱ knowledgeȱ transferȱ projectsȱ areȱ theȱ resultȱ ofȱ theȱ stateȱ wantingȱ toȱ makeȱ aȱ returnȱ onȱ itsȱ investmentȱ inȱ fundamentalȱ researchȱ byȱ providingȱ knowledgeȱ transferȱ grantsȱ thatȱ promoteȱ projectsȱtoȱdevelopȱandȱcommerciallyȱexploitȱearlierȱresearchȱwork.ȱ Alsoȱ underȱ thisȱ headingȱ comesȱ theȱ justificationȱ forȱ knowledgeȱ networksȱ andȱ coordinationȱ activities.ȱ Theseȱ specialȱ projectsȱ oftenȱ


helpȱ toȱ educateȱ theȱ commercialȱ playersȱ aboutȱ theȱ technologyȱ thatȱ couldȱ beȱ availableȱ toȱ them,ȱ helpȱ coordinateȱ researchȱ activitiesȱ acrossȱaȱmarketȱsectorȱandȱtoȱhelpȱcompaniesȱandȱuniversitiesȱfindȱ partnersȱ withȱ whomȱtheyȱ canȱ workȱ onȱ innovationȱ projects.ȱ Itȱ mayȱ helpȱ yourȱ grantȱ applicationȱ ifȱ youȱ identifyȱ relevantȱ knowledgeȱ networksȱthatȱyouȱwillȱuseȱtoȱdisseminateȱyourȱresults.ȱ Criticality of funding Itȱisȱnotȱalwaysȱaȱgoodȱideaȱtoȱtellȱaȱfundingȱbodyȱthatȱwithoutȱtheirȱ supportȱ theȱ projectȱ willȱ notȱ goȱ aheadȱ inȱ anyȱ shapeȱ orȱ form.ȱ Thisȱ givesȱ theȱ impressionȱ thatȱ youȱ areȱ moreȱ interestedȱ inȱ theirȱ moneyȱ thanȱ theȱ project’sȱ results.ȱ Askȱ yourselvesȱ honestlyȱ whatȱ couldȱ beȱ developedȱevenȱifȱthereȱwasȱnoȱexternalȱfundingȱavailable.ȱ Theȱ criticalityȱ ofȱ fundingȱ argumentȱ statesȱ whatȱ differenceȱ theȱ fundingȱwillȱmakeȱtoȱtheȱproposedȱprojectȱandȱtheȱimpactȱthatȱwillȱ haveȱ bothȱ commerciallyȱ andȱ forȱ society.ȱ Thereȱ areȱ manyȱ potentialȱ impactsȱsuchȱas:ȱ x Timeȱtoȱmarketȱ–ȱwithoutȱtheȱadditionalȱfundingȱtheȱprojectȱ willȱ moveȱ atȱ aȱ muchȱ slowerȱ pace,ȱ potentiallyȱ missingȱ theȱ windowȱ ofȱ opportunityȱ inȱ theȱ marketȱ orȱ allowingȱ outsideȱ competitionȱtoȱtakeȱhold.ȱ x Scopeȱ ofȱ theȱ projectȱ –ȱ withoutȱ theȱ additionalȱ fundingȱ theȱ projectȱ willȱ notȱ beȱableȱ toȱ addressȱallȱ theȱkeyȱissues,ȱ whichȱ wouldȱleadȱtoȱaȱsubȬstandardȱsolution.ȱ x Higherȱriskȱ–ȱwithoutȱtheȱadditionalȱfundingȱtheȱprojectȱwillȱ beȱlessȱinnovativeȱandȱnotȱtakeȱfullȱadvantageȱofȱwhatȱcouldȱ beȱpossible.ȱ x Smallerȱ teamȱ –ȱ withoutȱ theȱ additionalȱ fundingȱ theȱ SMEȱ orȱ universityȱpartnersȱwillȱnotȱbeȱableȱtoȱaffordȱtoȱtakeȱpart,ȱsoȱ thatȱtheirȱknowledgeȱwillȱnotȱbeȱavailableȱandȱtheyȱwillȱnotȱ benefitȱfromȱtheȱinnovationsȱdeveloped.ȱ


Sometimesȱ itȱ willȱ simplyȱ notȱ beȱ possibleȱ toȱ progressȱ theȱ projectȱ atȱ allȱ withoutȱ additionalȱ funding.ȱ Ifȱ thisȱ isȱ theȱ caseȱ makeȱ sureȱ youȱ carefullyȱexplainȱwhyȱthisȱisȱtheȱcaseȱinȱyourȱproposal.ȱ Technology readiness levels Technologyȱ readinessȱ levelsȱ areȱ usedȱ toȱ describeȱ theȱ positionȱ ofȱ aȱ pieceȱofȱtechnologyȱonȱaȱscaleȱbetweenȱpureȱresearchȱandȱeventualȱ successfulȱ deployment.ȱ Thisȱ scaleȱ wasȱ originallyȱ developedȱ byȱ NASAȱ inȱ theȱ lateȱ 1980sȱ andȱ hasȱ subsequentlyȱ beenȱ adoptedȱ byȱ manyȱ governmentȱ departmentsȱ aroundȱ theȱ worldȱ (especiallyȱ defenceȱ departments)ȱ toȱ describeȱ theȱ statusȱ andȱ risksȱ involvedȱ inȱ researchȱandȱhenceȱatȱwhatȱratesȱitȱshouldȱbeȱsupported.ȱ

ȱ Fig.ȱ1.2.ȱTechnologyȱreadinessȱlevelsȱ(SourceȱUKȱMOD)ȱ

Theȱscaleȱisȱillustratedȱinȱfigureȱ1.2ȱandȱusesȱnumbersȱfromȱ1ȱtoȱ9ȱtoȱ describeȱtheȱcurrentȱstatusȱofȱaȱtechnologyȱandȱtheȱtypesȱofȱresearchȱ workȱinvolvedȱatȱeachȱstage.ȱȱ


1.3 Eligible costs Theȱ vastȱ majorityȱ ofȱ collaborativeȱ researchȱ grantsȱ provideȱ aȱ percentageȱcontributionȱtowardsȱtheȱcostsȱofȱtheȱprojectȱratherȱthanȱ providingȱ aȱ lumpȬsumȱ andȱ lettingȱ youȱ getȱ onȱ withȱ theȱ work.ȱ Thereforeȱinȱorderȱtoȱknowȱhowȱmuchȱtoȱaskȱfor,ȱyouȱneedȱtoȱknowȱ howȱ muchȱ itȱ willȱ costȱ toȱ carryȱ outȱ theȱ projectȱ andȱ whatȱ costsȱ theȱ fundingȱbodyȱwillȱacceptȱasȱeligible.ȱAgainȱitȱisȱimpossibleȱtoȱcoverȱ everyȱruleȱfromȱeveryȱschemeȱhere,ȱbutȱwhatȱfollowsȱareȱtheȱgeneralȱ guidelinesȱ thatȱ areȱ commonȱ amongȱ fundingȱ bodies.ȱ Youȱ mustȱ checkȱ theȱ guidanceȱ forȱ theȱ grantȱ youȱ applyȱ forȱ inȱ orderȱ toȱ understandȱtheirȱspecificȱcriteria.ȱ Aȱfundamentalȱruleȱthatȱisȱalmostȱuniversallyȱappliedȱisȱthatȱallȱtheȱ projectȱcostsȱshouldȱbeȱrealȱandȱnotȱincludeȱanyȱprofitȱelements.ȱInȱ otherȱ wordsȱ onlyȱ theȱ actualȱ costsȱ accruedȱ byȱ theȱ companyȱ inȱ carryingȱ outȱ theȱ projectȱ areȱ acceptable.ȱ Forȱ exampleȱ theȱ costȱ ofȱ aȱ daysȱworkȱbyȱanȱengineerȱisȱnotȱwhatȱtheyȱwouldȱbeȱchargedȱoutȱatȱ toȱaȱclient,ȱbutȱwhatȱitȱactuallyȱcostsȱinȱsalaryȱandȱpackageȱcostsȱtoȱ haveȱthemȱworkȱforȱthatȱday.ȱAȱlotȱofȱmistakesȱareȱmadeȱwhenȱthisȱ ruleȱ isȱ appliedȱ toȱ products,ȱ servicesȱ andȱ inȱ particularȱ softwareȱ licences.ȱIfȱaȱcompanyȱsuppliesȱaȱsoftwareȱlicenceȱtoȱaȱpartnerȱinȱtheȱ projectȱ toȱ workȱ onȱ theȱ project,ȱ theȱ eligibleȱ costȱ isȱ notȱ theȱ normalȱ marketȱpriceȱofȱtheȱsoftwareȱbutȱwhatȱitȱactuallyȱcostȱtoȱprovideȱit.ȱ Thisȱ mightȱ includeȱ burningȱ theȱ mediaȱ andȱ postageȱ butȱ notȱ muchȱ else!ȱ Labour costs Theȱ largestȱ costsȱinȱ researchȱandȱdevelopmentȱ projectsȱareȱ usuallyȱ theȱ labourȱ orȱ humanȱ resourceȱ costs.ȱ Theseȱ areȱ theȱ salariesȱ ofȱ theȱ peopleȱworkingȱdirectlyȱonȱtheȱproject.ȱTypicallyȱitȱisȱappropriateȱtoȱ calculateȱtheseȱcostsȱonȱaȱpersonȬdayȱbasis.ȱYouȱcanȱusuallyȱincludeȱ directȱ employmentȱ costsȱ inȱ thisȱ calculationȱ suchȱ asȱ pensionȱ contributionsȱandȱemploymentȱtaxesȱbutȱnotȱanyȱprofitȱdistribution,ȱ shareȱoptionsȱorȱdividendsȱthatȱtheyȱreceiveȱfromȱtheȱcompany.ȱȱ

1.3ȱEligibleȱcostsȱȱȱȱȱȱ15ȱ

Toȱ workȱ outȱ theȱ personȬdayȱ cost,ȱ takeȱ theȱ totalȱ annualȱ salaryȱ costȱ forȱtheȱindividualȱandȱdivideȱitȱbyȱtheȱnumberȱofȱavailableȱworkingȱ daysȱinȱtheȱyear.ȱToȱdoȱthis,ȱsubtractȱweekends,ȱpublicȱholidaysȱandȱ annualȱ leaveȱ entitlementȱ fromȱ 365.ȱ Anȱ exampleȱ isȱ shownȱ inȱ tableȱ 1.1.ȱ ȱ

Directȱ Labourȱ costȱ

Availableȱ workingȱ daysȱ

Eligibleȱ labourȱ costsȱ

50,000ȱ

ȱ

ȱ

Pensionȱ@ȱ9%ȱ

4,500ȱ

ȱ

ȱ

EmploymentȱTaxȱ@ȱ11%ȱ

5,500ȱ

ȱ

ȱ

Totalȱannualȱdirectȱcostsȱ

60,000ȱ

ȱ

ȱ

ȱ

ȱ

ȱ

ȱ

Daysȱinȱtheȱyearȱ

ȱ

365ȱ

ȱ

Weekendsȱ

ȱ

104ȱ

ȱ

Publicȱholidaysȱ

ȱ

8ȱ

ȱ

Annualȱleaveȱentitlementȱ

ȱ

20ȱ

ȱ

Totalȱavailableȱworkingȱdaysȱ

ȱ

233ȱ

ȱ

ȱ

ȱ

ȱ

ȱ

DayȱRateȱ

ȱ

ȱ

258ȱ

ȱ

ȱ

ȱ

ȱ

Daysȱtoȱbeȱworkedȱonȱtheȱprojectȱ

ȱ

ȱ

400ȱ

ȱ

ȱ

ȱ

ȱ

TotalȱEligibleȱLabourȱCostsȱ

ȱ

ȱ

103,200ȱ

Salaryȱ

Tableȱ1.1.ȱCalculatingȱdirectȱlabourȱcostsȱ

Toȱcalculateȱtheȱcostȱofȱpartȱtimeȱstaff,ȱfirstȱbringȱtheirȱsalaryȱlevelȱ upȱ toȱ aȱ fullȱ timeȱ equivalent.ȱ Forȱ exampleȱ ifȱ youȱ payȱ someoneȱ


$10,000ȱ aȱ yearȱ butȱ theyȱ workȱ oneȱ dayȱ aȱ weekȱ orȱ 20%.ȱ Theirȱ equivalentȱfullȱtimeȱannualȱsalaryȱwouldȱbyȱ$50,000.ȱ Overheads Inȱadditionȱtoȱtheȱdirectȱlabourȱcosts,ȱmostȱfundingȱbodiesȱallowȱaȱ contributionȱtowardsȱtheȱoverheadsȱofȱtheȱcompany.ȱOverheadsȱareȱ theȱcostsȱassociatedȱwithȱemployingȱsomeoneȱthatȱareȱnotȱincludedȱ inȱtheȱdirectȱcosts.ȱOverheadsȱmightȱthereforeȱincludeȱtheȱdeskȱtheyȱ sitȱat,ȱtheȱenergyȱtheyȱuseȱandȱsoȱon.ȱ Becauseȱitȱwouldȱbeȱunrealisticȱtoȱtryȱandȱcalculateȱtheseȱcostsȱonȱanȱ employeeȱ byȱ employeeȱ basis,ȱ overheadsȱ areȱ usuallyȱ calculatedȱ forȱ theȱ wholeȱ companyȱ asȱ aȱ percentageȱ ofȱ theȱ wholeȱ salaryȱ billȱ thenȱ appliedȱ toȱ theȱ projectȱ staffȱ costsȱ onȱ thatȱ basis.ȱ Forȱ exampleȱ ifȱ aȱ companyȱhasȱaȱtotalȱsalaryȱbillȱofȱ$1,000,000ȱandȱtheȱoverheadȱcostsȱ totalȱ$800,000ȱthenȱtheȱoverheadȱisȱ80%.ȱThatȱmeansȱthatȱforȱeveryȱ $1ȱ theȱ companyȱ paysȱ inȱ salaryȱ itȱ spendsȱ anȱ additionalȱ 80cȱ onȱ overheads.ȱȱ Theȱeligibleȱoverheadsȱforȱtheȱexampleȱinȱtableȱ1.1ȱwouldȱbeȱ80%ȱofȱ $103,200ȱorȱ$82,800.ȱ Thisȱisȱfineȱinȱtheoryȱbutȱwhatȱshouldȱbeȱincludedȱinȱtheȱoverheadȱ calculation?ȱ Here,ȱ onceȱ againȱ youȱ willȱ needȱ toȱ checkȱ withȱ theȱ individualȱ fundingȱ bodiesȱ butȱ theȱ followingȱ itemsȱ areȱ usuallyȱ acceptable:ȱ x Heating,ȱlightingȱandȱgeneralȱutilitiesȱ x Supportȱ staffȱ salariesȱ suchȱ asȱ administration,ȱ humanȱ resourcesȱandȱseniorȱmanagementȱ x Staffȱwelfareȱandȱoccupationalȱhealthȱprogrammesȱ x Staffȱrecruitment,ȱtrainingȱandȱinductionȱcostsȱ x Generalȱofficeȱequipment,ȱITȱservicesȱ x Generalȱlaboratoryȱcostsȱandȱstockȱ x Corporateȱlegalȱandȱaccountingȱfeesȱ x Generalȱpostageȱandȱcommunicationȱcostsȱ

1.3ȱEligibleȱcostsȱȱȱȱȱȱ17ȱ

x

Buildingȱmaintenance,ȱrentȱandȱsecurityȱcostsȱ

Theȱ followingȱ itemsȱ areȱ generallyȱ notȱ allowedȱ asȱ partȱ ofȱ theȱ overheadȱcalculation:ȱ x Productȱofȱcorporateȱmarketingȱcostsȱ x Entertainmentȱcostsȱ x Anythingȱconnectedȱwithȱproductȱmanufacture,ȱdeliveryȱorȱ clientȱservicesȱprovisionȱ x Bonusȱschemesȱorȱprofitȱdistributionsȱ x Companyȱcarsȱ Toȱ beȱ practical,ȱ mostȱ overheadȱ calculationsȱ areȱ providedȱ basedȱ onȱ theȱ previousȱ year’sȱ accountsȱ ofȱ theȱ company.ȱ Inȱ thisȱ wayȱ realȱ numbersȱ canȱ beȱ used.ȱ Onceȱ aȱ rateȱ isȱ arrivedȱ atȱ andȱ agreedȱ byȱ theȱ fundingȱ body,ȱ itȱ tendsȱ toȱ remainȱ fixedȱ forȱ theȱ durationȱ ofȱ theȱ project.ȱȱ Other eligible cost headings Otherȱ commonȱ eligibleȱ costȱ headingsȱ allowȱ forȱ theȱ purchaseȱ ofȱ materialsȱ thatȱ willȱ beȱ usedȱ duringȱ theȱ project,ȱ capitalȱ equipmentȱ thatȱ mightȱ needȱ toȱ beȱ purchased,ȱ travelȱ andȱ subsistenceȱ costsȱ associatedȱ withȱ theȱ projectȱ andȱ anyȱ subȬcontractedȱ workȱ thatȱ isȱ required.ȱ Whenȱ detailingȱ withȱ materialsȱ costsȱ takeȱ careȱ notȱ toȱ includeȱ itemsȱ thatȱyouȱhaveȱalreadyȱincludedȱinȱtheȱoverheadȱcalculationȱsuchȱasȱ stockȱchemicalsȱinȱyourȱlaboratory,ȱstationaryȱandȱsoȱon.ȱAȱcommonȱ mistakeȱ isȱ toȱ includeȱ officeȱ computersȱ inȱ theȱ overheadȱ calculationȱ andȱ thenȱ claimȱ theȱ purchaseȱ ofȱ aȱ PCȱ forȱ theȱ engineerȱ workingȱ onȱ theȱ project.ȱ Eitherȱ excludeȱ ITȱ costsȱ inȱ theȱ overheadȱ calculationȱ butȱ addȱtheȱPCȱtoȱtheȱequipmentȱcostsȱorȱviceȱversa.ȱ Capitalȱequipmentȱcostsȱareȱnormallyȱeligibleȱbutȱmayȱbeȱrestrictedȱ toȱ theirȱ depreciatedȱ valueȱ andȱutility.ȱTheȱ depreciatedȱ valueȱ isȱ theȱ differenceȱbetweenȱwhatȱitȱcostȱtoȱpurchaseȱatȱtheȱbeginningȱofȱtheȱ


projectȱ andȱ itsȱ residualȱ valueȱ atȱ theȱ endȱ ofȱ theȱ project.ȱ Theȱ equipment’sȱ utilityȱ mayȱ alsoȱ beȱ partȱ ofȱ theȱ calculation.ȱ Ifȱ theȱ equipmentȱ isȱ onlyȱ usedȱ onȱ theȱ project,ȱ thenȱ theȱ entireȱ depreciatedȱ valueȱisȱeligible,ȱifȱhoweverȱitȱisȱusedȱ50%ȱforȱthisȱprojectȱandȱ50%ȱ forȱaȱdifferentȱone,ȱtheȱeligibleȱcostȱtoȱtheȱprojectȱwillȱbeȱ50%ȱofȱtheȱ depreciationȱvalue.ȱ Thereȱ areȱ aȱ fewȱ exceptionsȱ toȱ thisȱ equipmentȱ costȱ rule.ȱ Inȱ theȱ UK,ȱ academicȱ purchaseȱ ofȱ equipmentȱ isȱ nowȱ treatedȱ asȱ theȱ purchaseȱ priceȱwithȱnoȱutilityȱorȱdepreciationȱreduction.ȱTheȱreasonȱforȱthisȱisȱ thatȱtheȱUKȱresearchȱcouncilsȱuseȱgrantsȱtoȱupdateȱandȱimproveȱtheȱ equipmentȱ baseȱ withinȱ theȱ universities.ȱ Beforeȱ youȱ immediatelyȱ decideȱ toȱ putȱ allȱ equipmentȱ purchasesȱ onȱ theȱ university’sȱ costsȱ however,ȱ rememberȱ thatȱ theȱ equipmentȱ mustȱ remainȱ onȱ theȱ universityȱcampusȱandȱremainsȱtheȱpropertyȱofȱtheȱuniversityȱwhenȱ theȱprojectȱisȱcompleted.ȱ Manyȱ fundingȱ bodiesȱ acceptȱ subȬcontractedȱ workȱ asȱ eligibleȱ costs.ȱ SubȬcontractorsȱ couldȱ carryȱ outȱ someȱ nonȬinnovativeȱ aspectsȱ ofȱ aȱ projectȱ suchȱ asȱ fabricatingȱ circuitȱ boardsȱ orȱ carryingȱ outȱ specialistȱ testing.ȱTheyȱwouldȱbeȱpaidȱfullȱpriceȱforȱtheirȱcontributionȱbutȱnotȱ receiveȱanyȱbenefitȱfromȱtheȱprojectȱoutcomes.ȱ Itȱ mayȱ beȱ possibleȱ toȱ includeȱ otherȱ costsȱ suchȱ asȱ patentȱ filingȱ toȱ protectȱ theȱ intellectualȱ propertyȱ youȱ generate,ȱ commissioningȱ marketȱ analysisȱ orȱ purchasingȱ specialistȱ trainingȱ forȱ theȱ developȬ mentȱteams.ȱIfȱyouȱdon’tȱaskȱyouȱwon’tȱget.ȱȱ Mostȱ grants,ȱ onceȱ awarded,ȱ areȱ fixedȱ andȱ soȱ ifȱ youȱ forgetȱ toȱ addȱ somethingȱtoȱtheȱproposal;ȱitȱwon’tȱbeȱeligibleȱduringȱtheȱproject.ȱItȱ isȱ thereforeȱ veryȱ importantȱ toȱ estimateȱ yourȱ costsȱ asȱ accuratelyȱ asȱ possible.ȱ Weȱ willȱ visitȱ thisȱ againȱ laterȱ inȱ theȱ sectionȱ onȱ projectȱ planning.ȱ

1.4ȱFinancialȱmanagementȱȱȱȱȱȱ19ȱ

1.4 Financial management Onceȱ youȱ haveȱ workedȱ outȱ howȱ muchȱ theȱ projectȱ willȱ cost,ȱ itȱ isȱ importantȱ toȱ understandȱ howȱ theȱ grantȱ willȱ beȱ paidȱ out.ȱ Itȱ wouldȱ beȱ niceȱ ifȱ theȱ fundingȱ bodyȱ wereȱ toȱ sendȱ youȱ aȱ chequeȱ forȱ theirȱ contributionȱatȱtheȱstartȱofȱtheȱprojectȱandȱleaveȱyouȱtoȱit,ȱbutȱthisȱisȱ notȱhowȱtheyȱtendȱtoȱwork.ȱTheȱmajorityȱofȱfundingȱbodiesȱwillȱpayȱ theirȱ contributionȱ inȱ instalmentsȱ andȱ oftenȱ inȱ arrears.ȱ Thisȱ meansȱ thatȱatȱtheȱendȱeachȱperiodȱ(usuallyȱanȱannualȱquarter),ȱtheȱfundingȱ bodyȱ willȱ expectȱ aȱ statementȱ fromȱ you,ȱ detailingȱ whatȱ youȱ haveȱ spentȱ onȱ theȱ project.ȱ Theyȱ willȱ thenȱ sendȱ youȱ fundsȱ equalȱ toȱ theirȱ contributionȱ ofȱ theȱ costs.ȱ Soȱ forȱ exampleȱ ifȱ yourȱ grantȱ isȱ aȱ 50%ȱ contributionȱandȱyouȱtellȱthemȱyouȱhaveȱspentȱ$1,000ȱtheyȱwillȱsendȱ youȱ$500.ȱ Thisȱ putsȱ pressureȱ onȱ yourȱ companyȱ cashȱ flowȱ becauseȱ youȱ mustȱ payȱ theȱ fullȱ amountȱ forȱ theȱ researchȱ upȱ frontȱ eachȱ periodȱ beforeȱ youȱ getȱ paidȱ backȱ byȱ theȱ fundingȱ body.ȱ Rememberȱ tooȱ thatȱ theȱ paymentȱ processȱ mayȱ notȱ beȱ immediate;ȱ itȱ mayȱ takeȱ youȱ aȱ littleȱ whileȱtoȱcalculateȱandȱpresentȱyourȱcostsȱafterȱtheȱperiodȱhasȱended.ȱ Theȱ fundingȱ bodyȱ willȱ thenȱ takeȱ someȱ timeȱ toȱ checkȱ theseȱ andȱ processȱtheȱpayment.ȱȱ Furtherȱ delaysȱ mayȱ beȱ experiencedȱ ifȱ theȱ grantȱ isȱ paidȱ toȱ aȱ leadȱ partnerȱ whoȱ thenȱ distributesȱ itȱ amongȱ theȱ otherȱ partnersȱ inȱ theȱ project.ȱ Makeȱ sureȱ yourȱ financeȱ departmentȱ appreciatesȱ thisȱ fromȱ theȱoutset.ȱ Keeping records Itȱ shouldȱ beȱ obvious,ȱ butȱ ifȱ youȱ areȱ requiredȱ toȱ makeȱ statementsȱ aboutȱ whatȱyouȱ haveȱ spentȱ onȱ theȱ project,ȱ youȱ needȱ toȱ keepȱ goodȱ recordsȱ ofȱ yourȱ expenditureȱ andȱ activitiesȱ asȱ theyȱ occur.ȱ Withȱ labourȱnormallyȱbeingȱtheȱlargestȱexpense,ȱtimesheetsȱmayȱbecomeȱ necessaryȱ toȱ logȱ activityȱ onȱ theȱ project.ȱ Mostȱ largeȱ companiesȱ willȱ haveȱ systemsȱ toȱ logȱ employeeȱ time,ȱ butȱ makeȱ sureȱ anyȱ SMEȱ


partnersȱ haveȱ sufficientȱ measuresȱ inȱ placeȱ toȱ beȱ ableȱ toȱ trackȱ theirȱ expenses.ȱ Academicȱpartnersȱcanȱfindȱdifficultyȱwithȱconceptsȱlikeȱtimesheets.ȱ Makeȱsureȱthatȱtheyȱareȱableȱtoȱcomplyȱwithȱtheȱaccountingȱtermsȱofȱ theȱgrant.ȱ Audit requirements Toȱavoidȱfraud,ȱmostȱfundingȱbodiesȱrequireȱanȱauditȱofȱtheȱprojectȱ expenditure.ȱ Thisȱ normallyȱ takesȱ theȱ formȱ ofȱ anȱ independentȱ auditorȱexaminingȱtheȱrecordsȱofȱtheȱprojectȱandȱtheȱaccountsȱofȱtheȱ partnersȱ toȱ confirmȱ thatȱ theȱ costsȱ claimedȱ haveȱ indeedȱ beenȱ properlyȱspent.ȱTheȱdetailsȱofȱtheseȱauditsȱvaryȱconsiderably,ȱsomeȱ fundingȱbodiesȱwillȱrequireȱanȱindependentȱauditȱwithȱeveryȱclaim,ȱ andȱothersȱwillȱjustȱwantȱoneȱatȱtheȱendȱofȱtheȱproject.ȱȱ Theseȱ auditsȱ canȱ beȱ expensive,ȱ soȱ makeȱ sureȱ youȱ understandȱ theȱ exactȱ requirementsȱ andȱ shopȱ aroundȱ forȱ theȱ bestȱ deal.ȱ Inȱ theoryȱ yourȱ existingȱ companyȱ auditorȱ shouldȱ beȱ cheapestȱ becauseȱ theyȱ alreadyȱ understandȱ yourȱ accountingȱ proceduresȱ butȱ thisȱ isȱ notȱ alwaysȱ theȱ case.ȱ Inȱ someȱ casesȱ itȱ mightȱ makeȱ senseȱ toȱ haveȱ oneȱ auditorȱcarryȱoutȱtheȱauditȱforȱallȱtheȱpartnersȱratherȱthanȱhaveȱeachȱ partners’ȱcostsȱauditedȱseparately.ȱ Monitoring your spending Asȱalreadyȱ explained,ȱ mostȱfundingȱbodiesȱwillȱprovideȱaȱ grantȱinȱ theȱ formȱ ofȱaȱ percentageȱ contributionȱ towardsȱ theȱ totalȱ costȱ ofȱ theȱ project.ȱItȱisȱthenȱnormallyȱupȱtoȱtheȱpartnersȱtoȱdecideȱhowȱthisȱisȱ sharedȱoutȱ(thereȱareȱhoweverȱlikelyȱtoȱbeȱrulesȱaboutȱtheȱmaximumȱ eachȱ partnerȱ isȱ allowedȱ toȱ receive).ȱ Forȱ exampleȱ mostȱ universitiesȱ willȱrequireȱ100%ȱofȱtheirȱcostsȱtoȱbeȱmetȱbyȱtheȱgrantȱasȱtheyȱhaveȱ noȱotherȱwayȱofȱfundingȱtheȱwork.ȱȱ

1.5ȱGrantȱcontractsȱandȱoffersȱȱȱȱȱȱ21ȱ

Inȱextremeȱcases,ȱallȱtheȱgrantȱmoneyȱcouldȱbeȱgoingȱtoȱuniversities.ȱ Forȱ example,ȱ imagineȱ aȱ projectȱ withȱ aȱ totalȱ costȱ ofȱ $500,000.ȱ Theȱ projectȱisȱmadeȱupȱofȱaȱuniversityȱandȱaȱcompany,ȱeachȱwithȱcostsȱ ofȱ $250,000.ȱ Ifȱ theȱ fundingȱ bodyȱ providesȱ aȱ 50%ȱ grantȱ thenȱ theȱ entireȱ grantȱ willȱ goȱ theȱ university.ȱ However,ȱ thereȱ willȱ onlyȱ beȱ enoughȱ grantȱ availableȱ toȱ coverȱ theȱ university’sȱ costsȱ ifȱ theȱ companyȱ doesȱ indeedȱ incurȱ costsȱ ofȱ $250,000.ȱ Ifȱ theyȱ underȬspendȱ andȱ onlyȱ incurȱ costsȱ ofȱ $200,000ȱ theȱ totalȱ projectȱ costȱ willȱ beȱ justȱ $450,000.ȱ Inȱ thisȱ caseȱ theȱ 50%ȱ grantȱ willȱ beȱ reducedȱ toȱ $225,000ȱ leavingȱtheȱuniversityȱshort.ȱ Itȱisȱthereforeȱveryȱimportantȱwhenȱestimatingȱtheȱcostsȱupȱfront,ȱtoȱ beȱrealisticȱandȱensureȱthatȱeveryoneȱwillȱbeȱableȱtoȱaccumulateȱtheȱ costsȱ theyȱ initiallyȱ commitȱ toȱ theȱ project.ȱ Onceȱ running,ȱ itȱ isȱ alsoȱ veryȱimportantȱtoȱmonitorȱhowȱtheȱprojectȱspendȱisȱprogressing.ȱIfȱ someȱpartnersȱareȱunderȬspendingȱitȱmayȱbeȱpossibleȱtoȱmoveȱmoreȱ workȱ toȱ themȱ fromȱ anotherȱ partnerȱ orȱ allowȱ anotherȱ partnerȱ toȱ carryȱoutȱmoreȱworkȱtoȱtakeȱupȱtheȱslack.ȱ

1.5 Grant contracts and offers Whenȱ youȱ enterȱ intoȱ aȱ grantȱ fundedȱ projectȱ youȱ enterȱ intoȱ aȱ legalȱ arrangementȱbothȱbetweenȱyouȱandȱyourȱpartnersȱbutȱalsoȱbetweenȱ youȱ andȱ theȱ fundingȱ body.ȱ Inȱ someȱ casesȱ thisȱ legalȱ arrangementȱ willȱbeȱsetȱoutȱ inȱ aȱcontractȱthatȱ bothȱ youȱ andȱ theyȱ sign.ȱ Onȱ otherȱ occasionsȱ theȱ termsȱ ofȱ theȱ grantȱ willȱ beȱ setȱ outȱ inȱ anȱ offerȱ letter,ȱ whichȱbyȱsigningȱyouȱindicateȱyourȱacceptanceȱofȱitsȱterms.ȱ Thereȱareȱsomeȱlegalȱdifferencesȱbetweenȱcontractsȱandȱgrantȱoffers.ȱ Strictlyȱspeakingȱaȱcontractȱtiesȱyouȱintoȱdeliveringȱtheȱprojectȱandȱ itsȱresultsȱinȱreturnȱforȱtheȱgrant.ȱAnȱofferȱletterȱisȱsubtlyȱdifferentȱinȱ thatȱyouȱareȱnotȱcontractedȱtoȱdoȱtheȱwork,ȱbutȱifȱyouȱcarryȱoutȱtheȱ projectȱ withinȱ theȱ terms,ȱ aȱ grantȱ willȱ beȱ provided.ȱ Theȱ differencesȱ areȱ notȱ worthȱ worryingȱ aboutȱ tooȱ muchȱ however,ȱ becauseȱ theȱ


choiceȱ willȱ notȱ beȱ upȱ toȱ you,ȱ itȱ willȱ beȱ imposedȱ byȱ theȱ fundingȱ body.ȱ Thereȱ areȱ alsoȱ differencesȱ inȱ theȱ structureȱ ofȱ contractsȱ orȱ offersȱ made.ȱInȱsomeȱcasesȱaȱsingleȱcontractȱisȱmadeȱwithȱtheȱleadȱpartnerȱ ofȱtheȱproject.ȱTheȱotherȱpartnersȱwillȱsignȱtheirȱacceptanceȱbutȱtheȱ grantȱ processȱ willȱ beȱ runȱ throughȱ thisȱ leadȱ partner.ȱ Whenȱ claimsȱ areȱmade,ȱitȱwillȱbeȱmadeȱthroughȱtheȱleadȱpartnerȱwhoȱwillȱreceiveȱ theȱ grantȱ andȱ beȱ responsibleȱ forȱ distributingȱ itȱ toȱ allȱ theȱ otherȱ partners.ȱ Thisȱ isȱ knownȱ asȱaȱ ‘hubȱ andȱ spoke’ȱ contractȱ andȱ isȱ quiteȱ common.ȱ Alternativelyȱ theȱ fundingȱ bodyȱ couldȱ provideȱ eachȱ partnerȱ withȱ anȱ individualȱ contractȱ andȱ allowȱ eachȱ toȱ makeȱ grantȱ claimsȱindependently.ȱTheseȱ‘individual’ȱcontractsȱareȱoftenȱusedȱifȱ aȱ projectȱ isȱ phasedȱ andȱ partners’ȱ contributionsȱ occurȱ atȱ differentȱ timesȱthroughoutȱtheȱproject.ȱAgainȱtheȱchoiceȱofȱstructureȱisȱlikelyȱ toȱbeȱimposedȱbyȱtheȱfundingȱbody.ȱ

ȱ Fig.ȱ1.3.ȱContractȱstructureȱoptionsȱȱ

Figureȱ1.3ȱillustratesȱtheseȱtwoȱgrantȱcontractȱstructures.ȱ Grant terms and conditions Whetherȱ yourȱ grantȱ isȱ providedȱ throughȱ aȱ contractȱ orȱ anȱ offerȱ letter,ȱ theȱ termsȱ areȱ likelyȱ toȱ beȱ broadlyȱ similar.ȱ Thereȱ willȱ beȱ anȱ activeȱperiodȱforȱtheȱprojectȱ betweenȱ aȱ startȱ dateȱ andȱ anȱendȱ date.ȱ

1.5ȱGrantȱcontractsȱandȱoffersȱȱȱȱȱȱ23ȱ

Normallyȱ onlyȱ projectȱ costsȱ incurredȱ betweenȱ theseȱ datesȱ willȱ beȱ eligibleȱ forȱ aȱ grantȱ contribution.ȱ Inȱ otherȱ words,ȱ ifȱ youȱ startȱ workȱ beforeȱ theȱ formalȱ startȱ date,ȱ youȱ won’tȱ getȱ paidȱ forȱ it.ȱ Theȱ termsȱ willȱ alsoȱ setȱ outȱ inȱ detailȱ theȱ grantȱ paymentȱ processȱ andȱ theȱ requirementsȱforȱanyȱauditingȱofȱtheȱprojectȱcosts.ȱȱ Beingȱaȱlegalȱdocument,ȱtheȱtermsȱwillȱincludeȱaȱsetȱofȱmeasuresȱtoȱ controlȱ whatȱ happensȱ whenȱ everythingȱ goesȱ wrong.ȱ Thereȱ areȱ likelyȱtoȱbeȱtermsȱtoȱceaseȱtheȱgrantȱifȱyouȱorȱoneȱofȱyourȱpartnersȱ becomeȱinsolvent,ȱfailȱtoȱcarryȱoutȱtheȱprojectȱtoȱtheirȱsatisfactionȱorȱ wishȱtoȱterminateȱtheȱproject.ȱThereȱareȱalsoȱlikelyȱtoȱbeȱtermsȱthatȱ coverȱtheȱcreationȱofȱintellectualȱpropertyȱandȱconfidentiality.ȱȱ Thereȱ willȱ alsoȱ beȱ termsȱ thatȱ ensureȱ thatȱ theȱ fundingȱ body’sȱ objectivesȱforȱprovidingȱtheȱgrantȱareȱmet.ȱInȱtheȱcaseȱofȱaȱstateȱaidȱ grantȱ toȱ promoteȱ theȱ creationȱ ofȱ newȱ commercialȱ opportunities,ȱ thereȱareȱlikelyȱtoȱbeȱtermsȱthatȱcompelȱtheȱpartnersȱtoȱuseȱtheirȱbestȱ endeavoursȱ toȱ exploitȱ theȱ technologyȱ withinȱ aȱ certainȱ timeȱperiod.ȱ Thereȱ mayȱ alsoȱ beȱ termsȱ thatȱ restrictȱ theȱ exploitationȱ toȱ certainȱ territories.ȱForȱexample,ȱifȱtheȱgrantȱisȱgivenȱinȱanȱattemptȱtoȱcreateȱ employmentȱinȱaȱdepressedȱarea,ȱthenȱanyȱjobsȱcreatedȱasȱaȱresultȱofȱ theȱprojectȱwillȱhaveȱtoȱbeȱinȱthatȱarea.ȱȱ Manyȱ grantsȱ alsoȱ includeȱ termsȱ thatȱ compelȱ theȱ partnersȱ toȱ disseminateȱtheirȱresultsȱinȱtheȱformȱofȱpublications,ȱorȱtakeȱpartȱinȱ networkingȱactivitiesȱwithȱotherȱprojectsȱfundedȱbyȱtheȱsameȱbody.ȱȱ Finallyȱ theȱ termsȱ willȱ includeȱ anyȱ arrangementsȱ forȱ youȱ toȱ reportȱ theȱprogressȱofȱtheȱprojectȱandȱforȱtheȱfundingȱbodyȱtoȱmonitorȱtheȱ project.ȱ Theȱ grantȱ termsȱ oftenȱ workȱ inȱ concertȱ withȱ aȱ Consortiumȱ Agreementȱorȱaȱframeworkȱdocumentȱwhichȱsetsȱtheȱtermsȱofȱyourȱ collaborationȱ withȱ yourȱ partners.ȱ Weȱ willȱ lookȱ intoȱ theseȱ inȱ aȱ lotȱ moreȱdetailȱinȱtheȱnextȱchapter,ȱbutȱforȱnowȱbeȱassuredȱthatȱyouȱwillȱ needȱoneȱ ofȱ theseȱ documents.ȱNormallyȱ theȱtextȱ willȱ beȱ forȱyouȱtoȱ


agreeȱ withȱ yourȱ partnersȱ butȱ someȱ schemesȱ provideȱ modelȱ agreementsȱ toȱ getȱ youȱ started,ȱ othersȱ willȱ imposeȱ anȱ agreementȱ structureȱonȱyou.ȱȱ Readȱtheȱtermsȱfirst!ȱ Theȱgrantȱtermsȱmightȱnotȱbeȱtheȱmostȱexcitingȱreadȱyouȱwillȱ everȱ have,ȱ butȱ itȱ canȱ saveȱ youȱ aȱ lotȱ ofȱ effortȱ andȱ embarrȬ assmentȱ ifȱ youȱ canȱ readȱ themȱ beforeȱ youȱ submitȱ yourȱ proposal.ȱȱ Thereȱisȱnothingȱworseȱthanȱwinningȱaȱgrantȱonlyȱtoȱfindȱthatȱ yourȱ consortiumȱ thenȱ fallsȱ apartȱ becauseȱ oneȱ ofȱ theȱ partnersȱ cannotȱacceptȱtheȱterms.ȱAllȱthatȱeffortȱinȱwritingȱtheȱproposalȱ isȱwastedȱandȱitȱdoesȱnotȱdoȱyourȱreputationȱwithȱtheȱfundingȱ bodyȱanyȱgoodȱatȱall.ȱ Alwaysȱaskȱtheȱfundingȱbodyȱforȱaȱcopyȱofȱtheȱtermsȱupȱfrontȱ andȱmakeȱsureȱ allȱ theȱ partnersȱhaveȱ readȱ them,ȱ shownȱ themȱ toȱ theirȱ management,ȱ andȱ areȱ happyȱ toȱ signȱ anȱ offerȱ letterȱifȱ youȱareȱsuccessful.ȱ

Reporting and monitoring Dependingȱ onȱ theȱ sizeȱ ofȱ theȱ grant,ȱ theȱ fundingȱ bodyȱ willȱ imposeȱ someȱ formȱ ofȱ reportingȱ structureȱ onȱ youȱ andȱ yourȱ partners.ȱ Thisȱ couldȱ beȱ asȱ simpleȱ asȱ aȱshortȱ reportȱ whenȱ youȱ haveȱ finished,ȱ orȱ itȱ couldȱ entailȱ detailedȱ reportingȱ coupledȱ withȱ aȱ visitȱ fromȱ anȱ appointedȱmonitoringȱofficerȱeveryȱmonth.ȱ Itȱ isȱ worthȱ findingȱ outȱ inȱ advanceȱ whatȱ levelȱ ofȱ reportingȱ willȱ beȱ required.ȱ Ifȱ itȱ isȱ particularlyȱ arduousȱ youȱ willȱ needȱ toȱ includeȱ anȱ estimateȱofȱtheȱtimeȱitȱwillȱtakeȱinȱtheȱlabourȱcostsȱofȱyourȱproject.ȱ Byȱ wayȱ ofȱ example,ȱ tableȱ 1.2ȱ illustratesȱ aȱ threeȱ yearȱ projectȱ comprisingȱ aȱ collaborationȱ ofȱ fiveȱ organisations,ȱ whichȱ isȱ monȬ itoredȱ throughȱ reportsȱ andȱ aȱ projectȱ managementȱ meetingȱ heldȱ everyȱ quarter,ȱ theȱ totalȱ managementȱ effortȱ isȱ likelyȱ toȱ beȱ almostȱ 6ȱ

1.6ȱWinningȱgrantsȱȱȱȱȱȱ25ȱ

personȬmonths!ȱIfȱweȱuseȱtheȱdayȱandȱoverheadȱratesȱfromȱtableȱ1.1,ȱ thisȱequatesȱtoȱoverȱ$50,000ȱofȱcosts.ȱ ȱ

Daysȱeffortȱ

Reportȱfromȱeachȱpartnerȱeachȱquarterȱ 5ȱpartnersȱforȱ12ȱquartersȱ Partnersȱattendingȱquarterlyȱprogressȱ meetingsȱ 5ȱpartnersȱforȱ12ȱquartersȱ Projectȱmanagerȱchasingȱandȱcompilingȱ reportsȱeachȱquarterȱ 12ȱquartersȱ Grantȱtotalȱ

Totalȱdaysȱ effortȱ

0.5ȱ

ȱ

ȱ

30ȱ

1ȱ

ȱ

ȱ

60ȱ

2ȱ

ȱ

ȱ

24ȱ

ȱ

114ȱdaysȱ

Tableȱ1.2.ȱReportingȱeffortsȱforȱaȱtypicalȱprojectȱ

Itȱ isȱ importantȱ toȱ rememberȱ howeverȱ thatȱ thisȱ effortȱ isȱ criticallyȱ importantȱforȱtheȱsuccessȱofȱtheȱproject.ȱItȱisȱtimeȱwellȱspentȱforȱeachȱ ofȱtheȱpartnersȱtoȱknowȱwhatȱtheȱothersȱareȱdoingȱandȱtoȱbeȱableȱtoȱ discussȱ progressȱ onȱ theȱ project.ȱ Inȱ otherȱ words,ȱ youȱ shouldȱ beȱ doingȱ thisȱ anyway,ȱ theȱ imposedȱ reportingȱ merelyȱ formalisesȱ theȱ process.ȱ

1.6 Winning grants Whatȱfollowsȱinȱthisȱsectionȱisȱaȱsetȱofȱbestȱpracticeȱadviceȱandȱtipsȱ forȱincreasingȱyourȱchancesȱofȱsuccessȱinȱwinningȱgrantȱsupportȱforȱ yourȱproject.ȱȱ


Pick the right grant Thereȱ isȱ actuallyȱ aȱ greatȱ dealȱ ofȱ choiceȱ whenȱ itȱ comesȱ toȱ grants.ȱ Theyȱ areȱ availableȱ atȱ localȱ authority,ȱ nationalȱ andȱ internationalȱ levelsȱ fromȱ theȱ publicȱ sector.ȱ Theyȱ areȱ availableȱ toȱ buildȱ collaborationsȱ betweenȱ countries.ȱ Theyȱ areȱ availableȱ toȱ supportȱ regionalȱdevelopment.ȱTheyȱareȱavailableȱfromȱcharitiesȱtoȱsupportȱ social,ȱ environmentalȱ andȱ medicalȱ innovationsȱ andȱ theyȱ areȱ availableȱforȱdefenceȱprojects.ȱTheyȱareȱevenȱavailableȱfromȱwealthyȱ philanthropistsȱinȱareasȱthatȱexciteȱthem.ȱȱ Eachȱfundingȱbodyȱwillȱhaveȱaȱclearȱideaȱofȱtheȱsortȱofȱprojectȱtheyȱ wantȱ toȱ supportȱ toȱ meetȱ theirȱ particularȱ objectives.ȱ Theȱ firstȱ thingȱ youȱneedȱtoȱdoȱisȱmakeȱsureȱthatȱyourȱprojectȱfitsȱtheseȱneeds.ȱThereȱ isȱabsolutelyȱnoȱpointȱputtingȱinȱaȱproposalȱthatȱdoesȱnotȱmeetȱtheirȱ criteriaȱ‘justȱinȱcase’.ȱȱ Theȱotherȱsideȱofȱthisȱcoinȱisȱtoȱmakeȱsureȱthatȱtheȱgrantȱsuitsȱyourȱ needsȱ too.ȱ Makingȱ sureȱ thatȱ youȱ canȱ liveȱ withȱ theȱ grantȱ termsȱ isȱ partȱ ofȱ thisȱ processȱ butȱ if,ȱ forȱ example,ȱ theȱ grantȱ isȱ dependentȱ onȱ youȱ workingȱ withȱ aȱ companyȱ fromȱ aȱ differentȱ country,ȱ makeȱ sureȱ thatȱthisȱwillȱaddȱvalueȱtoȱyourȱprojectȱbeforeȱgoingȱahead.ȱȱ TheȱlevelȱofȱpreȬcompetitivenessȱofȱyourȱprojectȱalsoȱneedsȱtoȱmatchȱ whatȱ theȱ fundingȱ bodyȱ isȱ tryingȱ toȱ achieve.ȱ Itȱ isȱ inȱ everyone’sȱ interestȱ thatȱ thisȱ matchȱ isȱ made,ȱ ifȱ youȱ areȱ forcedȱ toȱ moveȱ yourȱ projectȱawayȱfromȱtheȱmarketȱtoȱsuitȱtheȱgrant,ȱyouȱcouldȱendȱupȱnoȱ furtherȱforwardȱthanȱyouȱareȱnow.ȱȱ Instructions and briefings Mostȱ grantȱ schemesȱ provideȱ documentationȱ withȱ instructionsȱ andȱ guidanceȱ forȱ applicants.ȱ Youȱ andȱ yourȱ partnersȱ shouldȱ readȱ thisȱ information.ȱItȱsoundsȱobvious,ȱbutȱmanyȱapplicantsȱdoȱnotȱbotherȱ toȱ readȱ thisȱ guidanceȱ andȱ thenȱ wonderȱ whyȱ theirȱ proposalsȱ areȱ criticisedȱ andȱ rejected.ȱ Youȱ shouldȱ studyȱ allȱ theȱ guidanceȱ veryȱ


carefullyȱandȱreferȱtoȱitȱwhileȱyouȱareȱwritingȱyourȱproposal.ȱThisȱisȱ particularlyȱ importantȱ whenȱ theȱ assessmentȱ isȱ basedȱ onȱ aȱ definedȱ setȱofȱquestionsȱratherȱthanȱaȱfreeȱflowingȱproposalȱdocument.ȱ Asȱ freedomȱ ofȱ informationȱ becomesȱ moreȱ commonplace,ȱ itȱ shouldȱ beȱpossibleȱtoȱobtainȱanyȱguidanceȱthatȱtheȱfundingȱbodyȱprovidesȱ toȱ theirȱ assessors.ȱ Ifȱ youȱ can,ȱ readȱ thisȱ guidanceȱ inȱ conjunctionȱ toȱ theȱ applicants’ȱ guidanceȱ toȱ ensureȱ youȱ understandȱ fullyȱ whatȱ theȱ assessorsȱwillȱbeȱlookingȱfor.ȱȱ Someȱ largerȱ schemesȱ provideȱ briefingȱ sessionsȱ forȱ applicants.ȱ Youȱ shouldȱdefinitelyȱmakeȱeveryȱeffortȱtoȱattendȱtheseȱsessions.ȱYouȱareȱ likelyȱtoȱpickȱupȱinsightsȱintoȱtheȱobjectivesȱofȱtheȱschemeȱandȱwhatȱ theȱ assessorsȱ areȱ lookingȱ forȱ inȱ theȱ proposals.ȱ Theyȱ alsoȱ giveȱ youȱ theȱopportunityȱtoȱaskȱdirectȱquestionsȱandȱseekȱindividualȱadvice.ȱȱ Ifȱ possibleȱ bringȱ asȱ manyȱ ofȱ yourȱ partnersȱ alongȱ asȱ youȱ canȱ andȱ takeȱ theȱ opportunityȱ toȱ discussȱ theȱ projectȱ andȱ theȱ detailsȱ ofȱ yourȱ proposal.ȱ Thatȱ wayȱ whenȱ youȱ comeȱ acrossȱ unclearȱ areasȱ youȱ canȱ getȱthemȱresolvedȱatȱtheȱbriefing.ȱ Getȱsomeȱfaceȱtimeȱ Ifȱtheȱschemeȱoffersȱaȱbriefingȱsessionȱthanȱmakeȱsureȱyouȱtalkȱ toȱ theȱ keyȱ officialsȱ fromȱ theȱ scheme.ȱ Don’tȱ pesterȱ them,ȱ butȱ findȱ aȱ wayȱ ofȱ introducingȱ yourȱ projectȱ toȱ them.ȱ Veryȱ oftenȱ youȱ willȱ getȱ adviceȱ onȱ theȱ shapeȱ ofȱ yourȱ projectȱ andȱ candidȱ suggestionsȱ aboutȱ howȱ itȱ couldȱ beȱ improvedȱ toȱ suitȱ theȱ scheme.ȱ Afterȱ allȱ itȱ isȱ inȱ theȱ official’sȱ interestȱ toȱ attractȱ goodȱ proposals;ȱtheyȱleadȱtoȱgoodȱprojectsȱandȱsuccessfulȱoutcomesȱ forȱtheȱfundingȱbody.ȱ Ifȱ thereȱ areȱ noȱ formalȱ briefingȱ sessions,ȱ andȱ forȱ smallerȱ schemesȱthisȱisȱoftenȱtheȱcase,ȱtheȱofficialsȱareȱoftenȱavailableȱ forȱ privateȱ meetingsȱ toȱ helpȱ adviseȱ potentialȱ applicants.ȱ Ifȱ


possibleȱ arrangeȱ aȱ meetingȱ toȱ discussȱ yourȱ projectȱ ideaȱ andȱ howȱitȱmightȱfitȱwithȱtheirȱscheme.ȱȱ

Get the basics right Theȱ fundingȱ bodyȱ willȱ haveȱ outlinedȱ exactlyȱ whatȱ theyȱ expectȱ toȱ seeȱinȱyourȱproposalȱbutȱthereȱareȱaȱsmallȱcoreȱsetȱofȱareasȱthatȱtheyȱ areȱallȱlikelyȱtoȱrequire.ȱTheseȱare:ȱ x whyȱyouȱneedȱtheirȱfunds,ȱȱ x whatȱinnovationsȱareȱyouȱgoingȱtoȱmake,ȱȱ x whatȱareȱyouȱgoingȱtoȱdo,ȱ x whatȱwillȱhappenȱtoȱtheȱresults,ȱ x andȱhowȱwillȱyouȱmanageȱprogress.ȱ Theȱ firstȱ pointȱ isȱ theȱ additionalityȱ questionȱ alreadyȱ discussed.ȱ Inȱ describingȱtheȱinnovationsȱyouȱareȱgoingȱtoȱmake,ȱyouȱwillȱneedȱtoȱ ensureȱ thatȱ whatȱ youȱ areȱ proposingȱ isȱ indeedȱ novel.ȱ Ifȱ thereȱ areȱ similarȱ technologiesȱ orȱ methodsȱ eitherȱ provenȱ orȱ underȱ developmentȱ elsewhere,ȱ youȱ willȱ needȱ toȱ explainȱ veryȱ carefullyȱ howȱyourȱideasȱareȱdifferentȱandȱworthyȱofȱadditionalȱattention.ȱȱ Theȱinnovationsȱmayȱbeȱrequiredȱtoȱfitȱwithinȱaȱtechnicalȱscopeȱthatȱ theȱfundingȱbodyȱisȱtryingȱtoȱencourage.ȱIfȱthisȱisȱtheȱcaseȱmakeȱsureȱ thatȱ youȱ describeȱ theȱ innovationsȱ inȱ thisȱ contextȱ andȱ stressȱ theȱ relevanceȱ ofȱ theȱ innovationsȱ toȱ theȱ academicȱ subjectȱ orȱ industryȱ sectorȱthatȱtheȱschemeȱisȱattemptingȱtoȱsupport.ȱ Describeȱwhatȱyouȱareȱactuallyȱgoingȱtoȱdoȱduringȱtheȱproject.ȱThisȱ isȱoftenȱreferredȱtoȱasȱtheȱtechnicalȱapproachȱorȱmethod.ȱThisȱareaȱofȱ theȱproposalȱoftenȱseparatesȱtheȱwellȱthoughtȱoutȱprojectsȱfromȱtheȱ ‘punts’.ȱItȱisȱ notȱ uncommonȱ forȱassessorsȱ toȱ reportȱ thatȱ aȱproposalȱ soundsȱ veryȱ excitingȱ butȱ thatȱ theyȱ don’tȱ actuallyȱ knowȱ whatȱ theȱ partnersȱ areȱ goingȱ toȱ do.ȱ Weȱ willȱ coverȱ projectȱ planningȱ inȱ moreȱ detailȱ later,ȱ butȱ forȱ nowȱ ensureȱ thatȱ whatȱ youȱ writeȱ allowsȱ theȱ


assessorȱtoȱappreciateȱwhatȱtheȱdeliverablesȱofȱtheȱprojectȱareȱgoingȱ toȱbeȱandȱexactlyȱhowȱyouȱareȱgoingȱachieveȱthem.ȱ Theȱ disseminationȱ andȱ exploitationȱ aspectsȱ ofȱ yourȱ projectȱ willȱ beȱ veryȱ importantȱ toȱ mostȱ fundingȱ bodiesȱ becauseȱ thisȱ isȱ howȱ theyȱ achieveȱtheirȱknowledgeȱspillȬoverȱandȱeconomicȱgrowthȱobjectives.ȱ Theȱbasicȱdifferenceȱbetweenȱdisseminationȱandȱexploitationȱisȱthatȱ youȱreceiveȱaȱdirectȱreturnȱforȱexploitationȱofȱtheȱresults.ȱȱ Disseminationȱ oftenȱ includesȱ theȱ traditionalȱ academicȱ journalȱ andȱ conferenceȱ publicationsȱ butȱ doȱ notȱ forgetȱ theȱ commercialȱ andȱ industrialȱaudiences.ȱTheseȱpeopleȱdon’tȱreadȱacademicȱjournalsȱorȱ attendȱ conferences,ȱ butȱ theyȱ doȱ readȱ theȱ industryȱ press,ȱ attendȱ professionalȱ institutionȱ seminarsȱ andȱ participateȱ inȱ networks.ȱ Fundingȱ bodiesȱ oftenȱ supportȱ specificȱ knowledgeȱ networksȱ thatȱ disseminateȱ resultsȱ fromȱ theȱ projectsȱ theyȱ fund.ȱ Youȱ mayȱ beȱ compelledȱ toȱ disseminateȱ throughȱ suchȱ networks,ȱ butȱ evenȱ ifȱ youȱ areȱnot,ȱitȱisȱaȱgoodȱideaȱtoȱincludeȱthem.ȱItȱwillȱpleaseȱtheȱfundingȱ bodyȱ andȱ giveȱ youȱ andȱ yourȱ partners’ȱ exposureȱ thatȱ willȱ enhanceȱ yourȱimageȱinȱtheȱmarket.ȱȱ Exploitationȱ plansȱ atȱ thisȱ stageȱ willȱ beȱ limitedȱ toȱ aȱ descriptionȱ ofȱ howȱ youȱ expectȱ toȱ takeȱ theȱ resultsȱ toȱ marketȱ atȱ theȱ endȱ ofȱ theȱ project.ȱ Evenȱ ifȱ itȱ isȱ notȱ explicitlyȱ requestedȱ itȱ isȱ aȱ goodȱ ideaȱ toȱ outlineȱ theȱ sizeȱ ofȱ theȱ potentialȱ marketȱ opportunityȱ forȱ theȱ innovationsȱandȱdescribeȱtheȱcurrentȱandȱexpectedȱdynamicsȱofȱtheȱ targetȱmarkets.ȱȱ Projectȱmanagementȱisȱanȱessentialȱpartȱofȱanyȱproject.ȱTableȱ1.2ȱhasȱ alreadyȱ illustratedȱ theȱ effortȱ requiredȱ simplyȱ toȱ reportȱ yourȱ progress.ȱ Toȱ activelyȱ manageȱ theȱ progressȱ takesȱ atȱ leastȱ twiceȱ thisȱ effort.ȱTheȱfundingȱbodyȱwillȱwantȱtoȱassureȱitselfȱthatȱitȱisȱinvestingȱ itsȱfundsȱinȱsafeȱhands.ȱWeȱwillȱcoverȱprojectȱmanagementȱlaterȱbutȱ forȱ nowȱ ensureȱ theȱ projectȱ managementȱ methodsȱ areȱ explainedȱ clearlyȱandȱthatȱitemsȱsuchȱasȱGanttȱchartsȱareȱclear,ȱdemonstratingȱ thatȱyouȱknowȱwhatȱyouȱareȱdoing.ȱ


Build the right team Youȱ couldȱ haveȱ anȱ ideaȱ forȱ aȱ projectȱ whichȱ promisesȱ outstandingȱ innovations,ȱ hasȱ aȱ vibrantȱ waitingȱ market,ȱ willȱ haveȱ soundȱ manȬ agementȱ methodsȱ andȱ compellingȱ additionalityȱ arguments,ȱ butȱ ifȱ theȱteamȱyouȱbuildȱisȱnotȱrightȱyouȱareȱstillȱgoingȱtoȱfail.ȱ Pullingȱdifferentȱcompaniesȱandȱorganisationsȱtogetherȱintoȱaȱteamȱ withȱcompatibleȱobjectivesȱisȱnotȱeasyȱatȱtheȱbestȱofȱtimes.ȱTryingȱtoȱ doȱ itȱ asȱ aȱ proposalȱ deadlineȱ looms,ȱ expectingȱ themȱ toȱ trustȱ eachȱ otherȱwithȱtheirȱplans,ȱworkȱtogetherȱforȱseveralȱyearsȱandȱafterȱallȱ that,ȱcooperateȱasȱtheyȱexploitȱtheȱresultsȱisȱevenȱharder.ȱȱ Ifȱatȱallȱpossibleȱbuildȱyourȱcollaborationȱinȱplentyȱofȱtime.ȱThisȱwillȱ giveȱ everyoneȱ aȱ chanceȱ toȱ getȱ toȱ knowȱ andȱ trustȱ eachȱ otherȱ atȱ aȱ sensibleȱpaceȱbeforeȱ theȱ proposalȱisȱ submitted.ȱ Networkingȱ eventsȱ andȱ conferencesȱ areȱ goodȱ placesȱ toȱ meetȱ prospectiveȱ partnersȱ butȱ sometimesȱcoldȱcallingȱisȱnecessary.ȱIfȱitȱcomesȱdownȱtoȱthis,ȱtryȱtoȱ getȱintoȱaȱprospectiveȱpartnerȱthroughȱaȱcontactȱofȱsomeȱtype.ȱAȱcallȱ toȱaȱcontactȱtoȱaskȱwhoȱyouȱshouldȱtalkȱtoȱinȱtheirȱcompanyȱaboutȱ theȱ projectȱ andȱ whetherȱ theyȱ couldȱ helpȱ withȱ anȱ introductionȱ willȱ probablyȱ beȱ muchȱ moreȱ fruitfulȱ thanȱ simplyȱ emailingȱ theȱ Chiefȱ TechnologyȱOfficer.ȱȱ Partneringȱ activitiesȱ areȱ arrangedȱ byȱ someȱ fundingȱ bodiesȱ andȱ industrialȱnetworks.ȱTheseȱcanȱbeȱfruitfulȱifȱyouȱreallyȱareȱstuckȱforȱ partnersȱbutȱmakeȱsureȱyouȱproperlyȱresearchȱprospectiveȱpartnersȱ beforeȱ contactingȱ them.ȱ Thereȱ isȱ aȱ riskȱ thatȱ theyȱ haveȱ addedȱ themselvesȱ toȱ theȱ listȱ toȱ findȱ outȱ whatȱ theȱ competitionȱ isȱ doingȱ ratherȱthanȱthroughȱaȱgenuineȱdesireȱtoȱcollaborate.ȱȱ Theȱ teamȱ willȱ growȱ throughȱ thisȱ processȱ andȱ theȱ projectȱ willȱ continueȱ toȱ redefineȱ itselfȱ asȱ eachȱ newȱ setȱ ofȱ objectivesȱ andȱ capabilitiesȱjoinsȱtheȱtable.ȱBeȱpreparedȱtoȱletȱthisȱhappenȱbutȱensureȱ thatȱ eachȱ partnerȱ remainsȱ happyȱ withȱ whereȱ theȱ projectȱ isȱ goingȱ andȱ thatȱ theirȱ objectivesȱ areȱ stillȱ likelyȱ toȱ beȱ met.ȱ Asȱ soonȱ asȱ possibleȱstartȱworkingȱonȱtheȱprojectȱplanȱincludingȱtheȱdeliverablesȱ


andȱ theȱ majorȱ technicalȱ andȱ marketȱ hurdles.ȱ Compareȱ theȱ capabilitiesȱofȱtheȱteamȱwithȱtheseȱplans;ȱanyȱholesȱwillȱneedȱtoȱbeȱ filledȱwithȱadditionalȱpartners.ȱWhenȱtheȱteamȱisȱcompleteȱyouȱcanȱ startȱplanningȱinȱmoreȱdetail.ȱ Notȱallȱmembersȱofȱtheȱteamȱneedȱtoȱbeȱfullȱpartnersȱinȱtheȱproject.ȱ ItȱisȱnotȱuncommonȱforȱfundingȱbodiesȱtoȱacceptȱsubȬcontractorsȱtoȱ fulfilȱ nonȬcoreȱ aspectsȱ ofȱ theȱ project.ȱ Usingȱ subȬcontractorsȱ meansȱ youȱ canȱ keepȱ yourȱ coreȱ teamȱ smallȱ andȱ manageableȱ butȱ fillȱ anyȱ gapsȱinȱyourȱcapabilities.ȱUsingȱsubȬcontractorsȱcanȱbeȱexpensiveȱofȱ course,ȱ butȱ sinceȱ theyȱ doȱ notȱ receiveȱ anyȱ shareȱ ofȱ theȱ projectȱ benefitsȱ orȱ theȱ intellectualȱ propertyȱ theyȱ mayȱ workȱ outȱ cheaperȱ thanȱanȱadditionalȱpartnerȱinȱtheȱlongȱrun.ȱ Endȱ usersȱ areȱ oftenȱ anȱ essentialȱ componentȱ ofȱ aȱ researchȱ andȱ developmentȱ project.ȱ Theyȱ ensureȱ thatȱ theȱ projectȱ deliverablesȱ areȱ alignedȱ toȱ aȱ clearȱ commercialȱ andȱ practicalȱ need.ȱ Manyȱ projects,ȱ particularlyȱfarȱfromȱmarketȱprojects,ȱhaveȱmanyȱpotentialȱendȱuserȱ groups.ȱ Itȱ couldȱ beȱ unwieldyȱ toȱ includeȱ tooȱ manyȱ differentȱ endȬ usersȱinȱtheȱcoreȱprojectȱteam,ȱbutȱfortunatelyȱthereȱisȱaȱsolutionȱtoȱ thisȱ dilemma.ȱ Advisoryȱ groupsȱ areȱ anȱ excellentȱ wayȱ ofȱ ensuringȱ marketȱfocusȱforȱtheȱprojectȱwithoutȱmakingȱtheȱteamȱtooȱlarge.ȱAnȱ advisoryȱ groupȱ isȱ ideallyȱ madeȱ upȱ ofȱ betweenȱ sixȱ andȱ tenȱ peopleȱ whoȱ comeȱ togetherȱ everyȱ sixȱ monthsȱ orȱ soȱ toȱ hearȱ aboutȱ progressȱ withȱ theȱ project,ȱ toȱ seeȱ andȱ commentȱ onȱ demonstrationsȱ andȱ toȱ provideȱ feedbackȱ andȱ marketȱ intelligenceȱ toȱ theȱ projectȱ team.ȱ Theȱ groupȱcanȱcompriseȱaȱmixtureȱofȱindustrialȱandȱacademicȱmembersȱ includingȱtheȱkeyȱopinionȱleadersȱinȱtheȱfield.ȱȱ Formingȱaȱgoodȱadvisoryȱboardȱisȱactuallyȱeasierȱthanȱitȱsoundsȱasȱ theȱtimeȱcommitmentȱandȱhenceȱyourȱcostsȱareȱveryȱlow.ȱTheȱgroupȱ membersȱ benefitȱ throughȱ keepingȱ upȱ toȱ dateȱ withȱ theȱ excitingȱ thingsȱyouȱareȱdoingȱandȱatȱtheȱendȱofȱtheȱdayȱitȱisȱratherȱflatteringȱ toȱbeȱasked.ȱȱ ȱ


Getȱtheȱteamȱtogetherȱ Onceȱ youȱ haveȱ yourȱ collaborationȱ organisedȱ makeȱ sureȱ youȱ allȱ meetȱ togetherȱ atȱ leastȱ onceȱ whileȱ theȱ proposalȱ isȱ beingȱ written.ȱTheȱmeetingȱwillȱbeȱveryȱimportantȱforȱplanningȱtheȱ projectȱandȱensuringȱeveryoneȱagreesȱwithȱit.ȱItȱwillȱalsoȱgiveȱ everyoneȱanȱopportunityȱtoȱgetȱtoȱknowȱeachȱotherȱaȱlittleȱsoȱ thatȱifȱanyȱproblemsȱoccur,ȱyouȱhaveȱaȱchanceȱtoȱfixȱtheȱissueȱ orȱfindȱaȱreplacement.ȱȱ Perhapsȱofȱmostȱimportanceȱthoughȱisȱthatȱitȱallowsȱeveryoneȱ toȱshowȱtheirȱcommitmentȱtoȱtheȱproject.ȱTakingȱaȱdayȱoutȱtoȱ travelȱ toȱ aȱ meetingȱ isȱ aȱ trivialȱ undertakingȱ comparedȱ toȱ theȱ effortȱ thatȱ willȱ beȱ requiredȱ duringȱ theȱ projectȱ itself.ȱ Ifȱ youȱ can’tȱ getȱ theȱ teamȱ togetherȱ toȱ workȱ onȱ theȱ proposal,ȱ itȱ doesȱ notȱbodeȱwellȱforȱtheȱfuture,ȱdoesȱit?ȱ

Interviews Manyȱ fundingȱ bodiesȱ employȱ interviewsȱ orȱ visitsȱ asȱ partȱ ofȱ theirȱ assessmentȱprocess.ȱIfȱthisȱisȱtheȱcase,ȱbeȱunderȱnoȱillusionsȱthatȱtheȱ interviewȱ isȱ aȱ criticalȱ partȱ ofȱ theȱ processȱ andȱ willȱ determineȱ yourȱ ultimateȱ success.ȱ Inȱ otherȱ words,ȱ theȱ writtenȱ proposalȱ merelyȱ getsȱ youȱontoȱtheȱshortlist,ȱyourȱperformanceȱatȱtheȱinterviewȱisȱtheȱrealȱ decidingȱfactor.ȱ Givenȱthisȱlevelȱofȱimportanceȱitȱisȱimperativeȱthatȱyouȱmakeȱaȱgoodȱ showing.ȱThereȱareȱtwoȱkeyȱelementsȱthatȱwillȱhelp:ȱ x bringȱtheȱrightȱpeopleȱ x provideȱaȱgoodȱpresentationȱ Youȱmayȱbeȱlimitedȱtoȱaȱmaximumȱnumberȱofȱpeopleȱyouȱcanȱbringȱ toȱtheȱinterview.ȱIfȱnotȱmakeȱsureȱallȱtheȱpartnersȱareȱrepresented.ȱIfȱ youȱ areȱ limited,ȱ thinkȱ carefullyȱ aboutȱ theȱ teamȱ youȱ bring.ȱ Thinkȱ aboutȱ theȱ objectivesȱ ofȱ theȱ fundingȱ bodyȱ andȱ tailorȱ yourȱ teamȱ appropriately.ȱIfȱtheȱfundingȱbodyȱisȱkeenȱonȱexploitation,ȱdon’tȱfillȱ


theȱ roomȱ withȱ academicsȱ atȱ theȱ expenseȱ ofȱ theȱ endȱ usersȱ inȱ yourȱ consortium.ȱȱ Itȱisȱalsoȱaȱgoodȱideaȱtoȱbringȱtheȱindividualȱwhoȱwillȱbeȱresponsibleȱ forȱ managingȱ theȱ project.ȱ Letȱ themȱ explainȱ howȱ theyȱ willȱ runȱ theȱ projectȱsoȱthatȱtheȱpanelȱcanȱseeȱtheirȱmoneyȱwillȱbeȱinȱsafeȱhands.ȱ Aȱgoodȱpresentationȱisȱobviouslyȱessential,ȱitȱisȱaȱgoodȱideaȱtoȱhaveȱ twoȱ peopleȱ doingȱ theȱ talking,ȱ butȱ bringȱ theȱ othersȱ inȱ duringȱ theȱ questioningȱsessionȱsoȱthatȱeverybodyȱhasȱaȱchanceȱtoȱspeak.ȱThisȱisȱ likelyȱ toȱ workȱ muchȱ betterȱ thanȱ tryingȱ toȱ involveȱ everyoneȱ inȱ theȱ actualȱpresentationȱwhichȱwillȱendȱupȱbeingȱbittyȱandȱloseȱitsȱflow.ȱ Practiceȱ theȱ presentationȱ andȱ tryȱ toȱ anticipateȱ whatȱ questionsȱ areȱ likelyȱtoȱbeȱasked.ȱIfȱyouȱareȱgivenȱaȱtimeȱlimitȱforȱtheȱpresentation,ȱ makeȱ sureȱ thatȱ youȱ stayȱ withinȱ it.ȱ Youȱ mightȱ thinkȱ thatȱ whatȱ youȱ haveȱtoȱsayȱisȱworthȱrunningȱoverȱtimeȱfor,ȱbutȱtheȱpanelȱwon’t.ȱ Rememberȱalsoȱthatȱyouȱareȱtalkingȱaboutȱaȱproposalȱlevelȱplan.ȱIfȱ theȱ panelȱ makesȱ suggestionsȱ orȱ spotsȱ errors,ȱ don’tȱ standȱ defiant,ȱ butȱratherȱtakeȱthemȱonȱboard,ȱthankȱthemȱforȱimprovingȱtheȱplanȱ andȱletȱthemȱknowȱthatȱyouȱareȱreceptiveȱtoȱadvice.ȱAfterȱallȱifȱyouȱ includedȱanȱadvisoryȱgroup,ȱyouȱneedȱtoȱshowȱthatȱyouȱareȱcapableȱ ofȱlisteningȱtoȱwhatȱpeopleȱhaveȱtoȱsay.ȱȱ Finally,ȱ yourȱ presentationȱ isȱ notȱ justȱ aboutȱ theȱ projectȱ itȱ isȱ aboutȱ youȱandȱyourȱteam.ȱItȱmayȱbeȱoldȱfashionedȱbutȱdoȱdressȱsmartly.ȱAȱ professionalȱappearanceȱshowsȱrespectȱtoȱtheȱpanelȱandȱsetsȱaȱlevelȱ ofȱexpectationȱwhenȱyouȱenterȱtheȱroom.ȱFirstȱimpressionsȱcouldȱbeȱ veryȱimportant.ȱ Learn from disappointments Theȱcruelȱtruthȱisȱthatȱthereȱareȱmanyȱmoreȱgoodȱprojectsȱthanȱthereȱ areȱgrantsȱavailable.ȱMostȱlargeȱschemesȱareȱ onlyȱableȱ toȱfundȱ oneȱ inȱeveryȱtenȱorȱmoreȱproposalsȱtheyȱreceive.ȱThisȱmeansȱthatȱifȱyourȱ proposalȱisȱrejectedȱitȱmayȱnotȱbeȱbecauseȱitȱwasȱbad.ȱItȱcouldȱhaveȱ


beenȱveryȱgoodȱbutȱunfortunatelyȱthereȱwereȱtooȱmanyȱothersȱthatȱ wereȱbetter.ȱ Mostȱ schemesȱ provideȱ feedbackȱ inȱ theȱ eventȱ thatȱ youȱ areȱ unsuccessful.ȱ Itȱ isȱ notȱ easyȱ butȱ tryȱ toȱ takeȱ theȱ positivesȱ fromȱ theȱ feedbackȱ andȱ workȱ onȱ theȱ negatives.ȱ Ifȱ possibleȱ tryȱ toȱ meetȱ theȱ officialsȱtoȱdiscussȱhowȱyouȱcouldȱimproveȱnextȱtime.ȱItȱisȱveryȱrareȱ thatȱ thereȱ areȱ anyȱ appealȱ proceduresȱ asȱ inȱ realityȱ theȱ availableȱ fundsȱwillȱallȱbeȱcommittedȱtoȱtheȱwinners.ȱByȱtheȱway,ȱitȱisȱneverȱaȱ goodȱ ideaȱ toȱ showȱ yourȱ angerȱ toȱ theȱ fundingȱ bodyȱ orȱ startȱ anȱ argumentȱwithȱthem.ȱ Thinkȱbackȱtoȱyourȱadditionalityȱargumentsȱandȱwhatȱyouȱmightȱbeȱ ableȱtoȱgetȱstartedȱevenȱwithoutȱtheirȱfunding.ȱIfȱtheȱprojectȱreallyȱisȱ soȱimportantȱtoȱyouȱandȱyourȱpartners,ȱmakeȱaȱstartȱwhereȱyouȱcanȱ whileȱyouȱkeepȱlookingȱforȱtheȱadditionalȱfunding.ȱ

1.7 So in conclusion 1.ȱGrantsȱcanȱbeȱwonȱfrom:ȱ x Governments,ȱ(local,ȱnationalȱandȱinternational)ȱ x Charitiesȱ x Philanthropistsȱ 2.ȱ Stateȱ aidȱ regulationsȱ defineȱ whatȱ grantsȱ canȱ beȱ awardedȱ byȱ governmentsȱwithinȱEuropeȱincluding:ȱ x SpecialȱsupportȱforȱSMEsȱ x LevelsȱofȱfundingȱforȱdifferentȱlevelsȱofȱpreȬcompetitivenessȱ x Supportȱforȱregionalȱdevelopmentȱ 3.ȱAdditionalityȱisȱaȱkeyȱconsiderationȱandȱincludes:ȱ x Marketȱfailureȱ x KnowledgeȱspillȬoverȱ x Knowledgeȱtransferȱ x Criticalityȱofȱfundingȱ x Technologyȱreadinessȱ

1.7ȱSoȱinȱconclusionȱȱȱȱȱȱ35ȱ

4.ȱTypicallyȱprojectȱeligibleȱcostsȱwillȱinclude:ȱ x Directȱlabourȱcostsȱ x Overheadsȱ x Materialsȱ x Capitalȱequipmentȱdepreciationȱ x Travelȱandȱsubsistenceȱ x SubȬcontractedȱworkȱ 5.ȱ Goodȱ financialȱ controlȱ isȱ requiredȱ whenȱ runningȱ grantȱ fundingȱ projectsȱincluding:ȱ x Keepingȱfinancialȱrecordsȱ x Ensuringȱthatȱyouȱcanȱsatisfyȱanyȱauditȱrequirementsȱ x Monitoringȱandȱcontrollingȱspendingȱ 6.ȱ Grantȱ contractsȱ andȱ offerȱ lettersȱ setȱ theȱ legalȱ frameworkȱ underȱ whichȱyouȱcanȱreceiveȱtheȱgrant.ȱȱ 7.ȱStepsȱtowardsȱsuccessfullyȱwinningȱgrantȱsupportȱinclude:ȱ x Pickingȱtheȱrightȱgrantȱtoȱapplyȱforȱ x Followingȱtheȱinstructionsȱ x Attendingȱtheȱbriefingsȱ x Gettingȱtheȱbasicsȱrightȱ x Buildingȱaȱstrongȱpartnershipȱ x Learningȱfromȱdisappointmentsȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱȱ

2 Legal arrangements

Whetherȱ youȱ planȱ toȱ runȱ aȱ grantȱ fundedȱ projectȱ orȱ not,ȱ allȱ collaborativeȱ R&Dȱ projectsȱ requireȱ someȱ formȱ ofȱ legallyȱ bindingȱ agreementȱ betweenȱ theȱ partnersȱ thatȱ controlsȱ theirȱ relationshipȱ bothȱ duringȱ andȱ afterȱ theȱ project.ȱ Thisȱ documentȱ goesȱ underȱ variousȱ titles,ȱ theyȱ areȱ commonlyȱ referredȱ toȱ asȱ consortiumȱ agreements,ȱ collaborationȱ agreementsȱ orȱ frameworkȱ forȱ collabȬ orationȱdocuments.ȱRegardlessȱofȱtheȱname,ȱtheyȱallȱdoȱbasicallyȱtheȱ sameȱjob.ȱȱ Negotiatingȱandȱagreeingȱaȱ consortiumȱagreementȱ canȱbeȱcomplexȱ andȱ timeȱ consuming.ȱ Youȱ areȱ thereforeȱ stronglyȱ advisedȱ toȱ startȱ discussionsȱasȱearlyȱasȱpossibleȱinȱtheȱprocess.ȱItȱisȱnotȱunknownȱforȱ itȱtoȱtakeȱoverȱaȱyearȱtoȱagreeȱaȱconsortiumȱagreement.ȱSometimesȱ grantȱ winningȱ projectsȱ fallȱ byȱ theȱ waysideȱ becauseȱ theȱ partnersȱ cannotȱ reachȱ agreementȱ inȱ timeȱ toȱ acceptȱ theȱ fundingȱ offer.ȱ Ifȱ youȱ canȱ atȱ leastȱ agreeȱ onȱ theȱ basicȱ principlesȱ orȱ reachȱ aȱ ‘headsȱ ofȱ agreement’ȱbeforeȱtheȱgrantȱproposalȱisȱsubmitted,ȱthisȱwillȱgreatlyȱ easeȱtheȱpressure.ȱȱ Obviouslyȱ theseȱ agreementsȱ areȱ legalȱ documentsȱ andȱ asȱ suchȱ youȱ willȱ needȱ toȱ seekȱ professionalȱ legalȱ adviceȱ andȱ assistanceȱ inȱ preparingȱandȱnegotiatingȱtheȱterms.ȱ Iȱ appreciateȱ thatȱ thisȱ isȱnotȱ oneȱ ofȱ theȱ mostȱ excitingȱ orȱ sexyȱ topicsȱ butȱ itȱ isȱ oneȱ ofȱ theȱ mostȱ importantȱ aspectsȱ thatȱ youȱ needȱ toȱ dealȱ withȱ beforeȱ youȱ canȱ getȱ startȱ creatingȱ andȱ runningȱ yourȱ stimulating,ȱinnovativeȱandȱpotentiallyȱhighlyȱbeneficialȱproject.ȱSo,ȱ getȱsomeȱcoffee,ȱaȱchocolateȱbiscuitȱorȱtwoȱandȱlet’sȱgetȱgoing.ȱ

38ȱȱȱȱȱȱ2ȱLegalȱarrangementsȱ

2.1 Purpose of the agreement Theȱ consortiumȱ agreementȱ setsȱ outȱ theȱ internalȱ managementȱ guidelinesȱforȱtheȱconsortiumȱandȱtheȱproject.ȱEvenȱifȱyourȱprojectȱisȱ grantȱfunded,ȱinȱmostȱcasesȱtheȱtermsȱofȱtheȱagreementȱwillȱbeȱforȱ theȱ consortiumȱ toȱ decide.ȱ Thatȱ said,ȱ manyȱ fundingȱ bodiesȱ offerȱ modelȱ agreementsȱ thatȱ couldȱ greatlyȱ speedȱ upȱ theȱ processȱ byȱ providingȱaȱgoodȱstartingȱpoint.ȱ Atȱ aȱ basicȱ level,ȱ theȱ consortiumȱ agreementȱ shouldȱ includeȱ termsȱ thatȱsetȱout:ȱ x theȱ definitionȱ andȱ scopeȱ ofȱ theȱ projectȱ includingȱ aȱ descriptionȱofȱeachȱpartners’ȱcontribution,ȱ x howȱ theȱ projectȱ willȱ beȱ managedȱ includingȱ theȱ rolesȱ ofȱ steeringȱcommitteesȱandȱtheȱprojectȱmanager,ȱ x whatȱ responsibilitiesȱ andȱ liabilitiesȱ areȱ imposedȱ onȱ eachȱ partner,ȱ x howȱadditionalȱpartnersȱareȱallowedȱtoȱjoinȱtheȱconsortium,ȱ x howȱpartnersȱmayȱwithdrawȱfromȱtheȱproject,ȱ x howȱ theȱ budgetȱ forȱ theȱ projectȱ isȱ managedȱ andȱ howȱ anyȱ grantȱfundingȱisȱdistributed,ȱ x howȱ backgroundȱ andȱ foregroundȱ intellectualȱ propertyȱ isȱ dealtȱwith,ȱ x howȱ partnersȱ areȱ allowedȱ toȱ disseminateȱ theȱ resultsȱ ofȱ theȱ project,ȱ x howȱdisputesȱareȱresolved,ȱ x howȱtheȱprojectȱcanȱbeȱterminatedȱandȱ x whatȱhappensȱwhenȱthingsȱgoȱwrong,ȱincludingȱlegalȱ‘boilerȱ plate’ȱsuchȱasȱforceȱmajeure,ȱdisclaimersȱandȱsoȱon.ȱ Theȱfollowingȱsectionsȱdescribeȱeachȱareaȱinȱmoreȱdetail.ȱ

2.2ȱAgreementȱtermsȱȱȱȱȱȱ39ȱ

2.2 Agreement terms Scope of the project Thisȱ partȱ ofȱ theȱ agreementȱ describesȱ theȱ scopeȱ ofȱ theȱ project,ȱ itsȱ objectivesȱandȱtheȱapproachȱthatȱwillȱbeȱtakenȱtoȱachieveȱthem.ȱThisȱ isȱcommonlyȱprovidedȱbyȱreferringȱtoȱtheȱprojectȱplanȱwhichȱwouldȱ beȱattachedȱtoȱtheȱagreementȱinȱtheȱformȱofȱanȱannexȱorȱschedule.ȱȱ Thisȱ isȱ aȱ majorȱ partȱ ofȱ theȱ agreementȱ becauseȱ itȱ basicallyȱ setsȱ outȱ whatȱeachȱpartnerȱpromisesȱtoȱdoȱduringȱtheȱproject.ȱItȱalsoȱsetsȱoutȱ theȱresourcesȱthatȱeachȱpartnerȱwillȱcommitȱtoȱtheȱproject.ȱItȱwouldȱ normallyȱalsoȱreferȱtoȱaȱprojectȱbudgetȱsettingȱoutȱwhatȱeachȱpartnerȱ willȱ spendȱ inȱ termsȱ ofȱ costȱ headingsȱ suchȱ asȱ labour,ȱ materials,ȱ equipmentȱandȱsoȱon,ȱasȱwellȱasȱanyȱcashȱcontributionȱthatȱisȱbeingȱ paidȱ toȱ anyȱ ofȱ theȱ otherȱ partners.ȱ Weȱ willȱ coverȱ whatȱ shouldȱ beȱ includedȱinȱtheȱprojectȱplanȱinȱmuchȱmoreȱdetailȱinȱtheȱnextȱchapter.ȱȱ Ifȱtheȱprojectȱisȱgrantȱfunded,ȱaȱcopyȱofȱtheȱproposalȱandȱtheȱgrantȱ offerȱletterȱorȱcontractȱshouldȱalsoȱbeȱincludedȱinȱtheȱschedules.ȱ Theȱscopeȱdescriptionȱshouldȱalsoȱdescribeȱtheȱlegalȱhierarchyȱofȱtheȱ variousȱprojectȱdocuments.ȱAnyȱgrantȱofferȱtermsȱwillȱusuallyȱtakeȱ priorityȱoverȱtheȱconsortiumȱagreement.ȱThisȱmeansȱthatȱifȱaȱtermȱinȱ aȱgrantȱofferȱletterȱcontradictsȱaȱtermȱinȱtheȱconsortiumȱagreement,ȱ itȱ isȱ theȱ termȱ withinȱ theȱ offerȱ letterȱ thatȱ shallȱ apply.ȱ Itȱ isȱ thereforeȱ simplerȱ toȱ makeȱ theȱ consortiumȱ agreementȱ agreeȱ withȱ anyȱ offerȱ letterȱ termsȱ toȱ avoidȱ potentialȱ confusionȱ (andȱ legalȱ bills)ȱ inȱ theȱ future.ȱȱ Responsibilities and liabilities Thereȱ shouldȱ beȱ aȱ setȱ ofȱ fairlyȱ standardȱ clausesȱ thatȱ compelȱ eachȱ partnerȱ toȱ carryȱ outȱ itsȱ respectiveȱ contributionsȱ toȱ theȱ projectȱ asȱ definedȱinȱtheȱprojectȱplan,ȱactȱinȱgoodȱfaithȱandȱcomplyȱwithȱtheirȱ obligationsȱasȱdefinedȱinȱtheȱrestȱofȱtheȱagreement.ȱIfȱtheȱprojectȱisȱ


grantȱfunded,ȱyouȱmayȱalsoȱwantȱtoȱaddȱtermsȱthatȱensureȱthatȱeachȱ partnerȱ compliesȱ withȱ theȱ reportingȱ andȱ monitoringȱ requirementsȱ setȱoutȱbyȱtheȱfundingȱbody.ȱ Theȱvariousȱliabilitiesȱmayȱtakeȱaȱlittleȱmoreȱeffortȱtoȱagreeȱon.ȱYouȱ areȱ likelyȱ toȱ needȱ termsȱ thatȱ outlineȱ andȱ restrictȱ eachȱ partner’sȱ liabilitiesȱtoȱtheȱothersȱinȱdealingȱwithȱbackgroundȱandȱforegroundȱ intellectualȱ property,ȱ theȱ supplyȱ ofȱ materialsȱ andȱ soȱ on.ȱ Forȱ exampleȱ youȱ mayȱ wantȱ toȱ includeȱ aȱ termȱ thatȱ prohibitsȱ aȱ partnerȱ fromȱsupplyingȱbackgroundȱIPȱtoȱtheȱprojectȱinȱtheȱknowledgeȱthatȱ byȱ usingȱ itȱ withinȱ theȱ projectȱ theȱ rightsȱ ofȱ aȱ thirdȱ partyȱ wouldȱ beȱ infringed.ȱ Limitsȱofȱanyȱindemnitiesȱandȱwarranteesȱbetweenȱtheȱpartnersȱwillȱ alsoȱ needȱ toȱ beȱ set.ȱ Theseȱ liabilitiesȱ mayȱ resultȱ fromȱ actsȱ orȱ omissionsȱ byȱ eachȱ partnerȱ thatȱ mayȱ causeȱ damageȱ orȱ lossȱ toȱ theȱ others.ȱȱ Liabilitiesȱ toȱ thirdȱ partiesȱ willȱ alsoȱ needȱ toȱ beȱ coveredȱ byȱ theȱ agreement.ȱ Ifȱ theȱ liabilityȱ toȱ thirdȱ partiesȱ isȱ jointȱ andȱ several,ȱ injuredȱ partiesȱ mayȱ sueȱ anyȱ consortiumȱ memberȱ forȱ damages,ȱ whoeverȱ wasȱ actuallyȱ atȱ fault.ȱ Thisȱ couldȱ leadȱ toȱ injuredȱ partiesȱ simplyȱattemptingȱtoȱsueȱtheȱrichestȱpartnerȱratherȱthanȱtheȱpartnerȱ atȱfault.ȱNotȱsurprisinglyȱtheȱlawyersȱwillȱargueȱstronglyȱaboutȱsuchȱ termsȱ andȱ hopefullyȱ arriveȱ atȱ aȱ setȱ ofȱ wordingȱ acceptableȱ toȱ everyone.ȱ Project management Theȱ mostȱ commonȱ wayȱ ofȱ managingȱ aȱ collaborativeȱ projectȱ isȱ throughȱ theȱ creationȱ ofȱ aȱ projectȱ steeringȱ groupȱ orȱ committee.ȱ Normallyȱeachȱpartnerȱwillȱnominateȱaȱsingleȱrepresentativeȱtoȱthisȱ committeeȱ butȱ mayȱ beȱ entitledȱ toȱ haveȱ othersȱ attendȱ meetingsȱ asȱ nonȬvotingȱobservers.ȱEachȱfullȱmemberȱofȱtheȱcommitteeȱhasȱaȱvoteȱ andȱallȱsignificantȱdecisionsȱareȱmadeȱbyȱaȱsimpleȱmajority.ȱThisȱisȱaȱ veryȱ democraticȱ approachȱ andȱ doesȱ notȱ takeȱ intoȱ accountȱ theȱ


relativeȱ contributionsȱ ofȱ eachȱ ofȱ theȱ partners,ȱ soȱ inȱ extremeȱ casesȱ youȱmayȱneedȱtoȱallowȱaȱmajorȱpartnerȱtoȱhaveȱtwoȱorȱmoreȱvotes.ȱ Theȱ termsȱ shouldȱ defineȱ thisȱ steeringȱ committeeȱ includingȱ itsȱ votingȱ rights,ȱ howȱ regularlyȱ itȱ meets,ȱ whatȱ constitutesȱ aȱ quorum,ȱ theȱappointmentȱandȱpowersȱofȱaȱchairpersonȱandȱsoȱon.ȱȱ

ȱ Fig.ȱ2.1.ȱTypicalȱprojectȱmanagementȱstructureȱȱ

Itȱ isȱ alsoȱ usualȱ thatȱ theȱ steeringȱ committeeȱ willȱ appointȱ aȱ projectȱ managerȱ whoȱ willȱ beȱ responsibleȱ toȱ theȱ committeeȱ forȱ theȱ dayȱ toȱ dayȱ runningȱ ofȱ theȱ project,ȱ liaisonȱ withȱ theȱ fundingȱ body,ȱ monitoringȱandȱreportingȱtheȱprogressȱofȱtheȱprojectȱwithȱrespectȱtoȱ milestones,ȱ deliverablesȱ andȱ resources.ȱ Theȱ termsȱ shouldȱ describeȱ thisȱ roleȱ togetherȱ withȱ theirȱ appointmentȱ andȱ replacementȱ mechanisms.ȱ Changing the consortium Itȱisȱnotȱunusualȱforȱtheȱconsortiumȱtoȱchangeȱduringȱtheȱlifeȱofȱtheȱ project.ȱ Companyȱ strategiesȱ andȱ prioritiesȱ change,ȱ academicȱ staffȱ moveȱ institutionsȱ takingȱ researchȱ groupsȱ andȱ projectsȱ withȱ themȱ andȱ soȱ on.ȱ Theȱ consortiumȱ agreementȱ thereforeȱ needsȱ toȱ makeȱ provisionȱ forȱ partnersȱ toȱ leaveȱ theȱ consortiumȱ andȱ forȱ newȱ membersȱtoȱjoin.ȱ


Theȱadditionȱofȱnewȱpartnersȱisȱtheȱsimplestȱtoȱcontrol.ȱUsuallyȱtheȱ additionȱ willȱ needȱ toȱ beȱ agreedȱ unanimouslyȱ byȱ allȱ theȱ existingȱ partnersȱandȱonceȱin,ȱtheyȱhaveȱtoȱagreeȱtoȱbeȱboundȱbyȱtheȱtermsȱofȱ theȱ existingȱ consortiumȱ agreement.ȱ Inȱ someȱ cases,ȱ newȱ partnersȱ mayȱbeȱrequiredȱtoȱmakeȱaȱcontributionȱonȱentryȱwhichȱrecognisesȱ theȱresourcesȱalreadyȱexpendedȱbyȱtheȱexistingȱpartners.ȱTheȱexactȱ natureȱofȱtheȱcontributionȱorȱvalueȱofȱanyȱsumȱtoȱbeȱpaidȱwouldȱbeȱ agreedȱbyȱtheȱsteeringȱcommittee.ȱȱ Theȱ termsȱ relatingȱ toȱ theȱ withdrawalȱ ofȱ partnersȱ fromȱ theȱ projectȱ andȱ agreementȱ areȱ likelyȱ toȱ beȱ moreȱ arduousȱ asȱ ownershipȱ andȱ accessȱtoȱnewȱintellectualȱpropertyȱandȱtheȱdisruptionȱcausedȱtoȱtheȱ remainingȱmembersȱcanȱbeȱdifficultȱtoȱdealȱwith.ȱ Typically,ȱ partnersȱ canȱ onlyȱ leaveȱ theȱ projectȱ withȱ theȱ unanimousȱ consentȱ ofȱ theȱ otherȱ membersȱ andȱ subjectȱ toȱ anyȱ conditionsȱ thatȱ theyȱ mightȱ unanimouslyȱ agreeȱ toȱ impose.ȱ Theseȱ conditionsȱ mightȱ includeȱ aȱ sumȱ payableȱ byȱ theȱ departingȱ memberȱ asȱ compensationȱ toȱtheȱothers,ȱorȱanȱagreementȱconcerningȱtheȱcontinuedȱuseȱofȱanyȱ intellectualȱ propertyȱ thatȱ hasȱ beenȱ generatedȱ orȱ wasȱ providedȱ byȱ theȱdepartingȱpartner.ȱ Inȱ theȱ eventȱ ofȱ aȱ partnerȱ withdrawingȱ fromȱ theȱ consortium,ȱ theȱ agreementȱ willȱ needȱ toȱ allowȱ theȱ steeringȱ committeeȱ toȱ reallocateȱ theirȱobligationsȱandȱcontributionsȱtowardsȱtheȱproject,ȱbothȱwithinȱ theȱ remainingȱ consortiumȱ andȱ throughȱ theȱ introductionȱ ofȱ newȱ partnersȱorȱsubȬcontractors.ȱ Termination Terminationȱ clausesȱ usuallyȱ dealȱ withȱ twoȱ eventualities,ȱ theȱ removalȱofȱaȱpartnerȱwhoȱisȱinȱbreachȱofȱtheȱtermsȱofȱtheȱagreementȱ andȱtheȱwindingȱupȱofȱtheȱwholeȱproject.ȱ TheȱremovalȱofȱaȱdefaultingȱpartnerȱwillȱnormallyȱinvolveȱtheȱnonȬ defaultingȱ partnersȱ unanimouslyȱ instructingȱ theȱ chairmanȱ ofȱ theȱ


steeringȱ committeeȱ toȱ issueȱ writtenȱ noticeȱ ofȱ theȱ breech,ȱ statingȱ aȱ periodȱinȱwhichȱtheȱbreechȱmustȱbeȱremediedȱtoȱavoidȱtheȱremovalȱ ofȱ thatȱ partnerȱ fromȱ theȱ project.ȱ Similarȱ clausesȱ willȱ dealȱ withȱ theȱ windingȬupȱorȱinsolvencyȱofȱaȱpartner.ȱ Inȱtheȱeventȱthatȱitȱisȱagreedȱunanimouslyȱthatȱthereȱareȱnoȱlongerȱ validȱ reasonsȱ toȱ continueȱ theȱ project,ȱ clausesȱ shouldȱ allowȱ theȱ terminationȱofȱtheȱproject.ȱIfȱtheȱprojectȱisȱgrantȱfunded,ȱtheȱtermsȱofȱ theȱofferȱletterȱorȱgrantȱcontractȱwillȱbeȱrelevantȱinȱthisȱsituationȱandȱ soȱshouldȱbeȱconsidered.ȱItȱisȱalsoȱworthȱnotingȱthatȱsomeȱpartnersȱ mayȱ notȱ wishȱ toȱ terminateȱ aȱ failingȱ projectȱ forȱ theirȱ ownȱ reasons.ȱ Academicȱ partnersȱ forȱ exampleȱ whoȱ haveȱ employedȱ researchȱ staffȱ andȱ areȱ receivingȱ 100%ȱ grantȱ fundingȱ areȱ unlikelyȱ toȱ agreeȱ toȱ aȱ terminationȱ thatȱ wouldȱ leaveȱ themȱ withȱ outstandingȱ liabilities.ȱ Itȱ mayȱ thereforeȱ beȱ necessaryȱ forȱ theȱ unanimousȱ voteȱ ofȱ commercialȱ partnersȱtoȱbeȱsufficientȱtoȱwindȱtheȱprojectȱup.ȱȱ Financial management & grant distribution Theȱsteeringȱcommitteeȱshouldȱoverseeȱtheȱfinancialȱmanagementȱofȱ theȱ project.ȱ Thisȱ isȱ likelyȱ toȱ includeȱ regularȱ statementsȱ ofȱ expenȬ ditureȱ andȱ resourceȱ commitmentȱ fromȱ eachȱ memberȱ setȱ againstȱ whatȱwasȱinitiallyȱagreedȱinȱtheȱprojectȱplanȱandȱbudget.ȱȱ Grantȱdistributionȱtermsȱwillȱbeȱrequiredȱforȱprojectsȱsupportedȱbyȱ aȱ fundingȱ organisation.ȱ Theȱ termsȱ shouldȱ setȱ outȱ timeȱ periodsȱ forȱ financialȱ disclosuresȱ andȱ grantȱ requests.ȱ Inȱ theȱ caseȱ whereȱ aȱ leadȱ partnerȱ isȱ claimingȱ grantȱ onȱ behalfȱ ofȱ theȱ consortiumȱ andȱ thenȱ distributingȱ theȱ grantȱ onȱ receipt,ȱ termsȱ willȱ beȱ requiredȱ whichȱ setȱ outȱ theȱ invoicingȱ regimeȱ andȱ theȱ timeȱ periodsȱ inȱ whichȱ theȱ leadȱ partnerȱhasȱtoȱmakeȱgrantȱclaimsȱandȱdistributeȱtheȱgrantȱwhenȱitȱisȱ received.ȱ Termsȱmayȱalsoȱbeȱrequiredȱthatȱpermitȱanȱindependentȱaccountantȱ orȱ auditorȱ toȱ examineȱ booksȱ andȱ recordsȱ ofȱ theȱ leadȱ partnerȱ andȱ projectȱmanagerȱonȱdemand.ȱ


Intellectual property rights Theȱ majorityȱ ofȱ R&Dȱ projectsȱ createȱ newȱ innovationsȱ andȱ henceȱ intellectualȱpropertyȱthatȱcanȱbeȱowned,ȱprotectedȱandȱtraded.ȱTheȱ collaborationȱ agreementȱ willȱ needȱ toȱ makeȱ provisionȱ forȱ theȱ ownershipȱ ofȱ thisȱ newȱ intellectualȱ propertyȱ andȱ forȱ existingȱ orȱ backgroundȱIPȱthatȱisȱsuppliedȱtoȱtheȱproject.ȱInȱtheȱcaseȱofȱUSȱstateȱ fundedȱ projectsȱ whereȱ theȱ IPȱ isȱ disseminatedȱ toȱ theȱ widerȱ community,ȱ theȱ agreementȱ mayȱ needȱ toȱ makeȱ provisionȱ forȱ theȱ identificationȱandȱdisseminationȱofȱtheȱnewȱintellectualȱproperty.ȱ WhatȱareȱbackgroundȱandȱforegroundȱIP?ȱ Backgroundȱ intellectualȱ propertyȱ isȱ IPȱ thatȱ wasȱ generatedȱ eitherȱ priorȱ toȱ theȱ startȱ ofȱ theȱ projectȱ orȱ developedȱ independentlyȱofȱtheȱproject.ȱBackgroundȱIPȱisȱmadeȱavailableȱ toȱ theȱ projectȱ eitherȱ forȱ theȱ project’sȱ developmentȱ orȱ asȱ aȱ necessaryȱpartȱofȱtheȱexploitationȱofȱtheȱproject’sȱownȱIP.ȱȱ ForegroundȱintellectualȱpropertyȱisȱtheȱIPȱthatȱisȱgeneratedȱasȱ partȱofȱtheȱproject’sȱR&Dȱactivities.ȱȱ Itȱ isȱ goodȱ practiceȱ toȱ maintainȱ aȱ logȱ ofȱ intellectualȱ propertyȱ thatȱisȱusedȱandȱgeneratedȱbyȱtheȱproject.ȱThisȱlogȱshouldȱbeȱ maintainedȱ byȱ theȱ projectȱ managerȱ andȱ beȱ accessibleȱ byȱ allȱ partners.ȱ Normallyȱtheȱownershipȱofȱnewȱintellectualȱpropertyȱvestsȱwithȱtheȱ partnerȱ thatȱ createdȱ itȱ andȱ theyȱ areȱ thenȱ responsibleȱ forȱ itsȱ protection.ȱ Ifȱ aȱ partnerȱ isȱ notȱ ableȱ orȱ willingȱ toȱ protectȱ itsȱ foregroundȱ intellectualȱ property,ȱ theȱ steeringȱ committeeȱ mayȱ beȱ givenȱ powerȱ toȱ considerȱ theȱ assignmentȱ ofȱ rightsȱ toȱ aȱ differentȱ partnerȱ whoȱ hasȱ theȱ desireȱ andȱ resourceȱ toȱ protectȱ them.ȱ Inȱ manyȱ cases,ȱ newȱ IPȱ isȱ generatedȱjointlyȱandȱ inȱ suchȱcasesȱtheȱ ownershipȱ wouldȱ alsoȱ beȱ heldȱ jointly.ȱ Theȱ ownersȱ thenȱ agreeȱ betweenȱ themselvesȱhowȱtheȱrightsȱareȱtoȱbeȱprotectedȱandȱpaidȱfor.ȱ


Theȱownershipȱofȱintellectualȱpropertyȱisȱonlyȱhalfȱofȱtheȱissue.ȱTheȱ useȱofȱitȱwithinȱandȱafterȱtheȱprojectȱisȱjustȱas,ȱifȱnotȱmoreȱimportant.ȱ TypicallyȱbackgroundȱIPRȱneedsȱtoȱbeȱassignedȱonȱaȱnonȬexclusive,ȱ royaltyȬfreeȱ baseȱ byȱ eachȱ partnerȱ toȱ theȱ otherȱ partners,ȱ toȱ enableȱ themȱ toȱ undertakeȱ theȱ project.ȱ Newȱ foregroundȱ IPRȱ needsȱ toȱ beȱ equallyȱ assignedȱ forȱ researchȱ purposesȱ butȱ notȱ forȱ commercialȱ exploitationȱ purposes.ȱ Ifȱ oneȱ partnerȱ requiresȱ useȱ ofȱ anotherȱ partner’sȱforegroundȱIPRȱforȱcommercialȱpurposes,ȱtheȱtermsȱofȱtheȱ agreementȱ needȱ toȱ ensureȱ thatȱ thisȱ canȱ takeȱ place.ȱ Thisȱ willȱ typicallyȱbeȱthroughȱtheȱpaymentȱofȱaȱlicenseȱfee.ȱTheȱlevelȱofȱtheseȱ feesȱcouldȱbeȱagreedȱinȱadvance,ȱbutȱareȱmoreȱcommonlyȱreferredȱtoȱ asȱaȱfairȱandȱreasonableȱrateȱtakingȱintoȱconsiderationȱtheȱrespectiveȱ financialȱ andȱ technicalȱ contributionsȱ ofȱ theȱ partnersȱ inȱ developingȱ theȱ IPȱ andȱ theȱ costsȱ incurredȱ inȱ itsȱ protection.ȱ Thisȱ isȱ aȱ formȱ ofȱ ‘agreeingȱ toȱ agree’ȱ andȱ defersȱ theȱ moreȱ difficultȱ negotiationsȱ intoȱ theȱfutureȱwhenȱmoreȱwillȱbeȱunderstoodȱaboutȱtheȱownershipȱandȱ worthȱofȱtheȱinnovationsȱthatȱareȱdevelopedȱduringȱtheȱproject.ȱ Theȱ generationȱ ofȱ newȱ technologyȱ orȱ innovationsȱ andȱ henceȱ intellectualȱ propertyȱ isȱ theȱ mainȱ reasonȱ whyȱ companiesȱ enterȱ intoȱ collaborativeȱ R&Dȱ projectsȱ andȱ soȱ thisȱ areaȱ ofȱ theȱ agreementȱ isȱ oftenȱ consideredȱ theȱ mostȱ crucial.ȱ Itȱ isȱ thereforeȱ anȱ areaȱ aroundȱ whichȱ mostȱ ofȱ theȱ negotiationsȱ revolveȱ andȱ whereȱ mostȱ ofȱ theȱ lawyers’ȱinvolvementȱisȱconcentrated.ȱȱ Publication and announcements Ifȱ youȱ haveȱ academicȱ partnersȱ withinȱ yourȱ consortium,ȱ theyȱ areȱ likelyȱtoȱbeȱveryȱkeenȱtoȱpublishȱjournalȱandȱconferenceȱpapersȱonȱ theȱ projectȱ andȱ theȱ results.ȱ Manyȱ companiesȱ alsoȱ benefitȱ fromȱ issuingȱ pressȱ releasesȱ andȱ publishingȱ articlesȱ inȱ theȱ tradeȱ pressȱ aboutȱ theȱ excitingȱ andȱ leadingȱ edgeȱ projectsȱ theyȱ areȱ involvedȱ in.ȱ Smallȱ companiesȱ willȱ alsoȱ beenȱ keenȱ toȱ tellȱ peopleȱ thatȱ theyȱ areȱ workingȱ withȱ largeȱ andȱ prestigiousȱ companiesȱ asȱ aȱ wayȱ ofȱ impressingȱtheirȱclientsȱandȱinvestors.ȱ


Tightȱ controlȱ overȱ publicationsȱ andȱ announcementsȱ isȱ requiredȱ whereȱtheyȱcouldȱharmȱtheȱpotentialȱprotectionȱofȱnewȱintellectualȱ property.ȱ Forȱ example,ȱ patentingȱ becomesȱ veryȱ difficult,ȱ ifȱ notȱ impossible,ȱ onceȱ theȱ technicalȱ detailsȱ haveȱ beenȱ published.ȱ Theȱ termsȱofȱtheȱconsortiumȱagreementȱshouldȱthereforeȱincludeȱcontrolȱ overȱ publications.ȱ Typically,ȱ thisȱ isȱ doneȱ byȱ requiringȱ unanimousȱ agreementȱonȱtheȱtextȱofȱintendedȱpublicationsȱpriorȱtoȱtheirȱrelease,ȱ togetherȱ withȱ clausesȱ thatȱ stateȱ thatȱ permissionȱ shouldȱ notȱ beȱ unfairlyȱ orȱ unreasonablyȱ withheld.ȱ Timeȱ limitsȱ mightȱ beȱ setȱ toȱ allowȱsufficientȱtimeȱforȱpartnersȱtoȱreadȱandȱagreeȱaȱtextȱpriorȱtoȱanȱ intendedȱpublicationȱdate.ȱ Ifȱ academicȱ researchȱ studentsȱ areȱ involvedȱ inȱ theȱ project,ȱ thereȱ shouldȱ beȱ provisionȱ thatȱ nothingȱ inȱ theȱ agreementȱ shallȱ preventȱ themȱsubmittingȱaȱthesisȱtoȱexaminersȱinȱorderȱtoȱgraduate.ȱȱ Confidentiality Oneȱ ofȱ theȱ dangersȱ ofȱ enteringȱ intoȱ aȱ collaborativeȱ projectȱ isȱ thatȱ youȱhaveȱtoȱshareȱsensitiveȱandȱconfidentialȱinformationȱwithȱyourȱ partners.ȱ Thisȱ mayȱ notȱ beȱ limitedȱ toȱ technicalȱ knowȬhowȱ butȱ mayȱ includeȱmarketȱintelligenceȱandȱfutureȱbusinessȱplans.ȱEachȱpartnerȱ needsȱtoȱbeȱassuredȱthatȱtheirȱsecretsȱwillȱonlyȱbeȱusedȱbyȱtheȱotherȱ partnersȱ forȱ theȱ purposesȱ ofȱ theȱ projectȱ andȱ shallȱ notȱ beȱ disclosedȱ outsideȱofȱtheȱconsortium.ȱTheȱtermsȱofȱtheȱagreementȱwillȱneedȱtoȱ compelȱ eachȱ partnerȱ toȱ treatȱ allȱ receivedȱ confidentialȱ informationȱ withȱtheȱsameȱcareȱasȱtheyȱtreatȱtheirȱownȱinformationȱandȱtoȱtakeȱ reasonableȱstepsȱtoȱensureȱitsȱcontinuedȱconfidentiality.ȱȱ Itȱ isȱ alsoȱ quiteȱ commonȱ toȱ putȱ aȱ timeȱ limitȱ onȱ theȱ durationȱ ofȱ theȱ confidentialityȱ clauses.ȱ Forȱ exampleȱ itȱ mayȱ stateȱ thatȱ theȱ informationȱshallȱremainȱconfidentialȱforȱaȱperiodȱofȱ10ȱyearsȱfromȱ theȱtimeȱofȱdisclosure.ȱInȱmostȱcasesȱthereȱwillȱalsoȱbeȱletȱoutȱclausesȱ shouldȱ theȱ informationȱ becomeȱ publicȱ throughȱ anotherȱ means,ȱ beȱ acquiredȱlawfullyȱfromȱanotherȱsourceȱorȱisȱrequiredȱtoȱbeȱdisclosedȱ byȱlawȱorȱbyȱaȱcourtȱorder.ȱ

2.3ȱWorkingȱwithȱlawyersȱȱȱȱȱȱ47ȱ

Clausesȱmayȱalsoȱdealȱwithȱbreachesȱinȱconfidentialityȱwhichȱcould,ȱ forȱexampleȱleadȱtoȱtheȱguiltyȱpartyȱbeingȱexpelledȱfromȱtheȱproject.ȱ Boiler plate Inȱadditionȱtoȱtheȱtermsȱdiscussedȱabove,ȱmostȱagreementsȱwillȱalsoȱ containȱ aȱ fairȱ quantityȱ ofȱ legalȱ ‘boilerȱ plate’ȱ thatȱ dealsȱ withȱ issuesȱ suchȱas:ȱ x disclaimersȱ coveringȱ theȱ usefulnessȱ andȱ fitnessȱ forȱ purposeȱ ofȱbackgroundȱIP,ȱmaterialsȱandȱsoȱon,ȱ x forceȱ majeureȱ statingȱ thatȱ partnersȱ willȱ notȱ beȱ responsibleȱ forȱ failuresȱ toȱ deliverȱ itsȱ obligationsȱ ifȱ theȱ reasonsȱ areȱ beyondȱtheirȱreasonableȱcontrol,ȱ x nonȬassignment,ȱ inȱ otherȱ wordsȱ membershipȱ ofȱ theȱ consortiumȱ cannotȱ beȱ transferredȱ orȱ reȬassignedȱ toȱ aȱ thirdȱ party,ȱ x continuingȱ obligationsȱ thatȱ surviveȱ theȱ durationȱ ofȱ theȱ projectȱsuchȱasȱconfidentialityȱandȱIPȱlicenses,ȱ x theȱgoverningȱlawȱofȱtheȱcontractȱ x noȱ partnership,ȱ inȱ otherȱ wordsȱ theȱ projectȱ isȱ notȱ aȱ jointȱ ventureȱ orȱ partnershipȱ asȱ describedȱ byȱ companyȱ law,ȱ butȱ ratherȱaȱcollaboration,ȱandȱ x disputeȱresolutionȱmeasuresȱthatȱcontrolȱhowȱdisagreementsȱ betweenȱtheȱpartnersȱareȱdealtȱwith.ȱ

2.3 Working with lawyers Asȱ willȱ haveȱ becomeȱ obvious,ȱ professionalȱ legalȱ assistanceȱ willȱ beȱ requiredȱtoȱagreeȱandȱdraftȱtheȱconsortiumȱagreement.ȱItȱisȱperhapsȱ notȱ bestȱ practiceȱ howeverȱ toȱ leaveȱ theȱ negotiationsȱ entirelyȱ inȱ theȱ handsȱ ofȱ eachȱ partner’sȱ legalȱ representation.ȱ Theȱ resultsȱ areȱ likelyȱ toȱbeȱexpensiveȱandȱnotȱquiteȱwhatȱtheȱpartnersȱenvisagedȱas,ȱquiteȱ rightly,ȱeachȱpartner’sȱlawyerȱwillȱconcentrateȱonȱtheȱrightsȱofȱtheirȱ clientȱ ratherȱ thanȱ thinkingȱ ofȱ theȱ greaterȱ goodȱ ofȱ theȱ projectȱ asȱ aȱ whole.ȱ


Itȱisȱthereforeȱrecommendedȱthatȱtheȱpartnersȱagreeȱtheȱbasicȱtermsȱ andȱ headsȱ ofȱ agreementȱ first,ȱ concentratingȱ onȱ theȱ keyȱ aspectsȱ ofȱ intellectualȱ propertyȱ ownershipȱ andȱ use,ȱ publicationsȱ andȱ projectȱ management.ȱTheȱlawyersȱcanȱthenȱdraftȱupȱtheȱagreementȱaroundȱ theseȱ principlesȱ andȱ addȱ inȱ theȱ necessaryȱ ‘boilerȱ plate’ȱ toȱ protectȱ theirȱclients.ȱ AsȱIȱwarnedȱyou,ȱnotȱtheȱmostȱexcitingȱofȱtopics,ȱbutȱhopefullyȱyouȱ willȱ appreciateȱ itsȱ importanceȱ andȱ theȱ needȱ toȱ considerȱ theȱ termsȱ earlyȱ onȱ inȱtheȱdevelopmentȱ ofȱyourȱplans.ȱWellȱdone,ȱ Iȱthinkȱ youȱ haveȱearnedȱanotherȱbiscuit!ȱ

2.4 So in conclusion 1.ȱ Allȱ collaborativeȱ projectsȱ shouldȱ beȱ coveredȱ byȱ aȱ consortiumȱ agreementȱthatȱdefines:ȱ x theȱscopeȱandȱdefinitionȱofȱtheȱprojectȱ x theȱresponsibilitiesȱandȱliabilitiesȱ x howȱtheȱprojectȱwillȱbeȱmanagedȱ x theȱroleȱandȱstructureȱofȱtheȱSteeringȱCommitteeȱ x changesȱtoȱtheȱconsortiumȱ x terminationȱofȱtheȱprojectȱ x financialȱmanagementȱ x intellectualȱpropertyȱrightsȱ x publicationsȱ x confidentialityȱ x legalȱboilerȱplateȱ 2.ȱ Professionalȱ legalȱ assistanceȱ shouldȱ beȱ soughtȱ whenȱ preparingȱ andȱwritingȱcollaborationȱagreements.ȱ

3 Getting off to a good start

Managingȱ aȱ collaborativeȱ projectȱ differsȱ considerablyȱ fromȱ normalȱ projectȱ managementȱ forȱ twoȱ reasons.ȱ Firstlyȱ theȱ objectivesȱ ofȱ theȱ projectȱareȱmultiple,ȱinȱotherȱwordsȱnotȱallȱtheȱparticipantsȱshareȱtheȱ sameȱmotivationsȱforȱbeingȱinvolvedȱinȱtheȱproject.ȱSecondly,ȱnotȱallȱ theȱ participantsȱ workȱ forȱ you.ȱ Inȱ aȱ traditionalȱ project,ȱ evenȱ ifȱ youȱ useȱ subȬcontractors,ȱ theȱ projectȱ managerȱ normallyȱ hasȱ someȱ lineȱ managementȱ controlȱ overȱ allȱtheȱresourcesȱ involvedȱ inȱtheȱproject.ȱ Inȱaȱcollaborativeȱprojectȱtheyȱdoȱnot.ȱȱ Weȱ areȱ goingȱ toȱ lookȱ inȱ detailȱ atȱ twoȱ keyȱ areasȱ thatȱ needȱ toȱ beȱ addressedȱbeforeȱtheȱprojectȱstarts.ȱTheȱfirstȱisȱtheȱdevelopmentȱofȱaȱ businessȱ caseȱ whichȱ clearlyȱ explainsȱ theȱ commercialȱ reasonsȱ forȱ carryingȱ outȱ theȱ project.ȱ Thisȱ couldȱ beȱ usedȱ toȱ winȱ theȱ backingȱ ofȱ eachȱ partner’sȱ seniorȱ managementȱ orȱ formȱ theȱ basisȱ ofȱ yourȱ grantȱ applications.ȱ Secondlyȱ weȱ areȱ goingȱ toȱ lookȱ atȱ projectȱ planningȱ withinȱ aȱ collaborativeȱ context.ȱ Whilstȱ itȱ isȱ notȱ theȱ intentionȱ ofȱ thisȱ bookȱ toȱ coverȱ theȱ topicȱ ofȱ projectȱ management,ȱ Iȱ willȱ shareȱ withȱ youȱ aȱ highlyȱeffectiveȱprojectȱplanningȱmethodȱthatȱyouȱcanȱuseȱtoȱbuildȱaȱ projectȱplanȱthatȱtheȱwholeȱconsortiumȱunderstands,ȱisȱboughtȱintoȱ andȱisȱcommittedȱtoȱachieving.ȱ

3.1 The business case Theȱpurposeȱofȱtheȱbusinessȱcaseȱisȱtoȱclearlyȱdefineȱtheȱjustificationȱ forȱ carryingȱ outȱ theȱ project.ȱ Theȱ justificationȱ isȱ basedȱ onȱ theȱ commercialȱ orȱ otherȱ opportunitiesȱ itȱ willȱ create,ȱ balancedȱ againstȱ

50ȱȱȱȱȱȱ3ȱGettingȱoffȱtoȱaȱgoodȱstartȱ

theȱcostsȱandȱrisksȱinvolvedȱinȱcarryingȱitȱout.ȱTheȱbusinessȱcaseȱisȱ thereforeȱ usedȱ toȱ sayȱ whyȱ theȱ expectedȱ timeȱ andȱ effortȱ willȱ beȱ worthȱ while.ȱ Theȱ projectȱ steeringȱ committeeȱ canȱ useȱ theȱ businessȱ caseȱ toȱ regularlyȱ monitorȱ theȱ ongoingȱ viabilityȱ ofȱ theȱ project.ȱ Theȱ businessȱ caseȱ documentȱ therefore,ȱ likeȱ soȱ manyȱ othersȱ inȱ projectȱ management,ȱ becomesȱ aȱ livingȱ documentȱ thatȱ isȱ referredȱ toȱ andȱ revisedȱcontinuallyȱthroughoutȱtheȱdurationȱofȱtheȱproject.ȱ Theȱfirstȱthingȱtoȱdefineȱinȱyourȱproject’sȱbusinessȱcaseȱisȱtheȱsetȱofȱ objectivesȱ thatȱ youȱ andȱ yourȱ partnersȱ wantȱ toȱ achieve.ȱ Asȱ alreadyȱ mentioned,ȱ theȱ objectivesȱ ofȱ collaborativeȱ projectsȱ areȱ oftenȱ multiple.ȱ Thereȱ willȱ beȱ aȱ principalȱ objectiveȱ suchȱ asȱ toȱ buildȱ aȱ prototypeȱthatȱprovesȱthatȱaȱcertainȱtechnologyȱcanȱprovideȱbenefitsȱ toȱ customers,ȱ orȱ toȱ solveȱ aȱ technicalȱ barrierȱ thatȱ isȱ preventingȱ theȱ exploitationȱ ofȱ aȱ newȱ technique.ȱ Howeverȱ thereȱ willȱ beȱ otherȱ individualȱobjectivesȱsuchȱasȱtoȱprovideȱanȱopportunityȱforȱaȱsmallȱ businessȱtoȱworkȱwithȱaȱlargerȱplayerȱinȱtheȱmarket,ȱtoȱimproveȱtheȱ efficiencyȱ ofȱ yourȱ productionȱ orȱ marketingȱ process,ȱ toȱ seeȱ theȱ resultsȱ ofȱ yourȱ researchȱ workȱ beingȱ appliedȱ andȱ soȱ on.ȱ Ideallyȱ everybodyȱ inȱ theȱ consortiumȱ shouldȱ understandȱ everyoneȱ else’sȱ objectivesȱ upȱ frontȱ soȱ thatȱ theȱ projectȱ planȱ canȱ beȱ builtȱ toȱ satisfyȱ everyone.ȱȱ Thereȱisȱanotherȱreasonȱwhyȱitȱgoodȱtoȱairȱeveryone’sȱobjectivesȱupȱ front.ȱ Inȱ someȱ cases,ȱ individualȱ objectivesȱ mayȱ beȱ incompatibleȱ withȱeachȱother.ȱThisȱisȱbestȱdiscoveredȱatȱtheȱveryȱbeginningȱratherȱ thanȱ laterȱ onȱ whenȱ realȱ moneyȱ hasȱ beenȱ committed.ȱ Notȱ allȱ incompatibilitiesȱ areȱ showȱ stoppersȱ soȱ theȱ earlierȱ conflictsȱ areȱ recognised,ȱ theȱ easierȱ theyȱ areȱ toȱ dealȱ withȱ andȱ accommodate.ȱ Anȱ obviousȱandȱcommonȱexampleȱisȱtheȱdesireȱofȱacademicȱpartnersȱtoȱ publishȱ theȱ resultsȱ ofȱ theirȱ workȱ andȱ theȱ desireȱ ofȱ aȱ commercialȱ partnerȱ toȱ retainȱ intellectualȱ propertyȱ andȱ tradeȱ secrets.ȱ Byȱ airingȱ theȱ objectivesȱ atȱ theȱ veryȱ start,ȱ theȱ termsȱ ofȱ theȱ consortiumȱ agreementȱ canȱ beȱ draftedȱ toȱ accommodateȱ bothȱ wishesȱ andȱ theȱ project’sȱ intellectualȱ propertyȱ protectionȱ policyȱ canȱ beȱ designedȱ toȱ protectȱnewȱinnovationsȱbeforeȱpublicationsȱareȱreleased.ȱ

3.1ȱTheȱbusinessȱcaseȱȱȱȱȱȱ51ȱ

Stakeholders’ȱworkshopȱ Whilstȱ itȱ isȱ possibleȱ toȱ collectȱ individualȱ partner’sȱ objectivesȱ byȱ emailȱ orȱ byȱ theȱ projectȱ managerȱ talkingȱ toȱ everyoneȱ individually,ȱ itȱ isȱ aȱ goodȱ ideaȱ toȱ bringȱ allȱ theȱ projectȱ teamȱ togetherȱ toȱ talkȱ aboutȱ theirȱ objectives.ȱ Gettingȱ allȱ theȱ stakeholdersȱtogetherȱallowsȱdiscussionsȱtoȱtakeȱplaceȱstraightȱ awayȱtoȱovercomeȱanyȱconflicts.ȱ Youȱ shouldȱ tryȱ toȱ bringȱ seniorȱ managementȱ andȱ marketingȱ executivesȱalongȱtoȱthisȱmeetingȱsoȱthatȱtheyȱunderstandȱwhatȱ youȱ areȱ tryingȱ toȱ achieveȱ andȱ soȱ theyȱ canȱ agreeȱ onȱ anyȱ compromisesȱwithoutȱyouȱhavingȱtoȱcontinuallyȱreferȱbackȱtoȱ theȱoffice.ȱThisȱalsoȱallowsȱtheȱtechnologistsȱtoȱunderstandȱtheȱ commercialȱ reasonsȱ forȱ carryingȱ outȱ theȱ projectȱ andȱ forȱ theȱ businessȱ peopleȱ toȱ understandȱ whatȱ mightȱ beȱ technicallyȱ possibleȱasȱaȱresultȱofȱtheȱproject.ȱ Itȱ mayȱ notȱ beȱ worthwhileȱ holdingȱ aȱ meetingȱ solelyȱ toȱ talkȱ aboutȱobjectives,ȱbutȱitȱshouldȱcertainlyȱbeȱanȱagendaȱitemȱatȱ anȱearlyȱscopingȱorȱplanningȱmeeting.ȱ

Qualitative and quantitative objectives Theȱ objectivesȱ thatȱ youȱ andȱ yourȱ partnersȱ haveȱ forȱ carryingȱ outȱ aȱ collaborativeȱprojectȱwillȱfallȱintoȱtwoȱcategories.ȱThoseȱthatȱhaveȱnoȱ directȱ orȱ tangibleȱ financialȱ benefitȱ areȱ qualitativeȱ objectives.ȱ Thoseȱ thatȱareȱmeasurableȱinȱtermsȱofȱaȱfinancialȱreturnȱareȱquantitative.ȱȱ Qualitativeȱobjectivesȱmightȱinclude:ȱ x theȱ opportunityȱ toȱ workȱ withȱ aȱ largerȱ companyȱ inȱ theȱ market,ȱ x theȱ opportunityȱ toȱ disseminateȱ researchȱ resultsȱ toȱ aȱ widerȱ audience,ȱ x improvingȱ theȱ publicȱ imageȱ ofȱ theȱ organisationȱ byȱ supportingȱaȱworthyȱproject,ȱ


x x x x

investigatingȱaȱnewȱpotentialȱmarketȱspaceȱorȱsupplyȱchain,ȱ reducingȱtheȱenvironmentalȱimpactȱofȱaȱproductȱorȱprocess,ȱ carryingȱoutȱorȱsupportingȱbasicȱresearch,ȱorȱ developingȱ skillsȱ orȱ providingȱ newȱ careerȱ developmentȱ opportunitiesȱforȱstaff.ȱ

Quantitativeȱobjectivesȱmightȱinclude:ȱ x developingȱaȱnewȱproductȱorȱservice,ȱ x improvingȱtheȱefficiencyȱofȱaȱproductionȱorȱserviceȱdeliveryȱ process,ȱ x assessingȱtheȱpotentialȱofȱaȱnewȱtechnology,ȱorȱ x developingȱnewȱlicenceȱopportunities.ȱȱȱ Whenȱ developingȱ theȱ businessȱ caseȱ forȱ aȱ project,ȱ itȱ isȱ necessaryȱ toȱ understandȱtheȱworthȱofȱtheȱobjectives,ȱsoȱthatȱtheyȱcanȱbeȱbalancedȱ againstȱ theȱ costsȱ andȱ risksȱ ofȱ carryingȱ outȱ theȱ project.ȱ Theȱ qualitativeȱ objectives,ȱ havingȱ noȱ directȱ financialȱ return,ȱ areȱ veryȱ subjectiveȱandȱeachȱorganisationȱwillȱneedȱtoȱfindȱtheirȱownȱwayȱofȱ justifyingȱtheȱspendingȱinvolvedȱinȱachievingȱthem.ȱȱ Inȱjustifyingȱtheȱquantitativeȱobjectivesȱhowever,ȱweȱcanȱbeȱaȱlittleȱ moreȱsystematic.ȱȱ Analysing the benefits Forȱeachȱofȱtheȱproject’sȱquantitativeȱobjectives,ȱaȱbusinessȱanalysisȱ needsȱtoȱbeȱcarriedȱout.ȱYouȱneedȱtoȱknowȱwhoȱtheȱcustomersȱare,ȱ whatȱ problemsȱ youȱ areȱ goingȱ toȱ solveȱ forȱ themȱ andȱ whatȱ scaleȱ ofȱ returnȱ youȱ canȱ expectȱ onȱ yourȱ investment.ȱ Thisȱ analysisȱ willȱ beȱ repeatedȱ andȱ goneȱ intoȱinȱ moreȱ depthȱ asȱ theȱ projectȱ proceedsȱ andȱ asȱ youȱ developȱ yourȱ exploitationȱ strategiesȱ andȱ plans.ȱ Forȱ nowȱ though,ȱ youȱ needȱ enoughȱ ofȱ anȱ ideaȱ toȱ giveȱ everyoneȱ theȱ confidenceȱtoȱproceed.ȱȱ Atȱ thisȱ stageȱ weȱ areȱ interestedȱ inȱ theȱ widestȱ possibleȱ setȱ ofȱ opportunitiesȱthatȱtheȱprojectȱcanȱopenȱup.ȱThisȱmeansȱthatȱweȱneedȱ


toȱanalyseȱallȱtheȱpossibleȱcustomerȱgroupsȱforȱeachȱofȱtheȱproject’sȱ commercialȱpartners.ȱȱ Define the customers Theȱfirstȱstepȱisȱtoȱcreateȱaȱlistȱofȱtheȱpotentialȱcustomerȱgroupsȱthatȱ couldȱ benefitȱfromȱ theȱoutcomesȱofȱtheȱproject.ȱItȱdoesn’tȱ matterȱifȱ noneȱ ofȱ theȱ partnersȱ canȱ accessȱ aȱ particularȱ group,ȱ becauseȱ thisȱ mightȱ leadȱ toȱ newȱ licenceȱ opportunities.ȱ Aȱ littleȱ researchȱ willȱ beȱ requiredȱ forȱ eachȱ setȱ ofȱ customersȱ youȱ define.ȱ Youȱ needȱ toȱ knowȱ howȱlargeȱaȱgroupȱtheyȱareȱatȱbothȱtheȱnationalȱandȱglobalȱlevelȱandȱ ifȱpossibleȱwhatȱtheyȱspendȱonȱproductsȱorȱservicesȱofȱtheȱtypeȱyouȱ intendȱtoȱdevelop.ȱȱ Thisȱ listȱ ofȱ potentialȱ customersȱ couldȱ beȱ usedȱ toȱ formȱ aȱ setȱ ofȱ useȱ cases.ȱWeȱwillȱlookȱinȱmoreȱdetailȱatȱuseȱcasesȱinȱchapterȱ8.ȱ CustomersȱareȱoftenȱreferredȱtoȱasȱendȬusersȱinȱR&Dȱprojectȱcirclesȱ andȱ upȱ toȱ nowȱ Iȱ haveȱ referredȱ themȱ thisȱ way.ȱ Iȱ doȱ findȱ however,ȱ thatȱ itȱ isȱ betterȱ toȱ thinkȱ ofȱ themȱ fromȱ theȱ outsetȱ asȱ customersȱ asȱ itȱ helpsȱ toȱ focusȱ yourȱ mindȱ onȱ theȱ factȱ thatȱ theyȱ haveȱ aȱ choiceȱ whetherȱ toȱ useȱ theȱ resultsȱ ofȱ yourȱ projectȱ orȱ not.ȱ Theȱ moreȱ youȱ thinkȱ ofȱ themȱ asȱ customersȱ theȱ moreȱ youȱ acceptȱ thatȱ youȱ haveȱ toȱ sellȱ toȱ themȱ andȱ satisfyȱ themȱ inȱ orderȱ toȱ realiseȱ aȱ financialȱ returnȱ fromȱyourȱproject.ȱ Analysing the problems to be solved Atȱ firstȱ glance,ȱ thisȱ headingȱ mightȱ makeȱ youȱ thinkȱ aboutȱ theȱ technicalȱissuesȱthatȱneedȱtoȱbeȱovercomeȱifȱyouȱareȱtoȱsuccessfullyȱ meetȱtheȱobjectivesȱofȱtheȱproject.ȱThisȱisȱnotȱhoweverȱtheȱcase.ȱForȱ nowȱ weȱ needȱ toȱ analyseȱ theȱ problemsȱ facedȱ byȱ yourȱ customers,ȱ whichȱtheȱprojectȱoutcomesȱwillȱovercomeȱforȱthem.ȱ Allȱ commercialȱ productsȱ andȱ servicesȱ relyȱ onȱ customersȱ handingȱ overȱtheirȱhardȱearnedȱcashȱtoȱsuppliersȱinȱreturnȱforȱthemȱsolvingȱaȱ


problemȱ forȱ them.ȱ Thisȱ simpleȱ ruleȱ appliesȱ toȱ everyȱ quantitativeȱ objectiveȱ thatȱ yourȱ projectȱ isȱ likelyȱ toȱ have.ȱ Toȱ achieveȱ theȱ bestȱ results,ȱ youȱ needȱ toȱ understandȱ howȱ bigȱ aȱ problemȱ youȱ areȱ addressingȱ andȱ thereforeȱ howȱ muchȱ theȱ customerȱ isȱ goingȱ toȱ beȱ willingȱtoȱpayȱyouȱtoȱovercomeȱit.ȱ Imagineȱaȱprojectȱthatȱcouldȱimproveȱtheȱefficiencyȱofȱaȱproductionȱ processȱtoȱtheȱextentȱthatȱrawȱmaterialȱwastageȱisȱreducedȱbyȱ50%.ȱ Theȱ problemȱ beingȱ addressedȱ isȱ thatȱ theȱ currentȱ processȱ resultsȱ inȱ materialȱwaste.ȱHoweverȱtoȱunderstandȱhowȱbigȱaȱproblemȱweȱareȱ addressingȱ weȱ needȱ toȱ knowȱ whatȱ proportionȱ ofȱ materialȱ useȱ isȱ currentlyȱ wastedȱ andȱ howȱ muchȱ thisȱ costs.ȱ Ifȱ theȱ currentȱ systemȱ resultsȱ inȱ 20%ȱ wasteȱ andȱ weȱ areȱ goingȱ toȱ reduceȱ thisȱ toȱ 10%,ȱ thisȱ willȱreduceȱmaterialȱcostsȱbyȱ8%.ȱHoweverȱifȱcurrentȱwastageȱisȱjustȱ 2%ȱandȱweȱreduceȱitȱtoȱ 1%,ȱthisȱwillȱonlyȱreduceȱmaterialȱcostsȱbyȱ 0.8%.ȱ Theȱ scaleȱ ofȱ theȱ problemȱ isȱ quiteȱ different.ȱ Theȱ valueȱ ofȱ theȱ materialȱ wastedȱ isȱ alsoȱ aȱ factor.ȱ Ifȱ theȱ annualȱ materialȱ costsȱ areȱ $1million,ȱ theȱ 8%ȱ savingȱ equatesȱ toȱ $80,000ȱ perȱ year,ȱ butȱ onlyȱ $8,000ȱ perȱ yearȱ forȱ theȱ0.8%ȱ saving.ȱ Ifȱ howeverȱ theȱ materialsȱ costsȱ areȱ $10millionȱ perȱ year,ȱ theȱ 0.8%ȱ savingȱ nowȱ providesȱ anȱ $80,000ȱ return.ȱIfȱtheȱprojectȱcostsȱ$10,000ȱtoȱrun,ȱitȱisȱstillȱveryȱworthȱwhileȱ carryingȱitȱout.ȱ Forȱ eachȱ ofȱ yourȱ potentialȱ customerȱ groups,ȱ defineȱ whatȱ problemȱ youȱareȱgoingȱtoȱableȱtoȱsolveȱforȱthemȱandȱhowȱgreatȱaȱproblemȱitȱ isȱtoȱthem.ȱInȱmanyȱcasesȱyouȱwillȱbeȱableȱtoȱuseȱempathyȱorȱyourȱ team’sȱknowledgeȱofȱtheȱcustomerȱbase,ȱbutȱmuchȱbetterȱresultsȱcanȱ beȱachievedȱthroughȱtalkingȱtoȱthemȱfaceȱtoȱface.ȱȱ Talkingȱtoȱcustomersȱ Talkingȱ toȱ theȱ project’sȱ potentialȱ customersȱ canȱ haveȱ manyȱ rewards.ȱ Firstlyȱ itȱ isȱ anȱ excellentȱ wayȱ ofȱ understandingȱ theȱ problemȱyouȱwantȱtoȱsolveȱandȱtheirȱdemandȱforȱit.ȱItȱcanȱalsoȱ beȱ anȱ excellentȱ opportunityȱ forȱ yourȱ salesȱ andȱ marketingȱ teamsȱ toȱ getȱ involvedȱ withȱ theȱ projectȱ andȱ bringȱ theirȱ


thoughtsȱ toȱ theȱ table.ȱ Itȱ showsȱ yourȱ customersȱ thatȱ youȱ careȱ aboutȱthemȱandȱareȱadvancingȱyourȱproductsȱandȱtechnologyȱ inȱexcitingȱareas.ȱ Customersȱ thatȱ showȱ aȱ keenȱ interestȱ inȱ theȱ projectȱ andȱ itsȱ resultsȱ shouldȱ beȱ keptȱ upȱ toȱ dateȱ withȱ theȱ progressȱ ofȱ theȱ project,ȱ eitherȱ informallyȱ orȱ throughȱ theȱ creationȱ ofȱ anȱ advisoryȱorȱuserȱgroup.ȱ Itȱ isȱ notȱ uncommonȱ forȱ customersȱ toȱ wantȱ toȱ joinȱ aȱ goodȱ projectȱthatȱaddressesȱtheirȱneeds.ȱThisȱisȱanȱexcellentȱresultȱifȱ youȱ canȱ achieveȱ it.ȱ Endȱ userȱ partnersȱ oftenȱ provideȱ valuableȱ resourcesȱsuchȱasȱrealȱdata,ȱmaterialsȱorȱtestingȱopportunities.ȱ Theyȱalsoȱprovideȱaȱreadyȱmarketȱandȱtestimonials.ȱ

The market opportunities Nowȱthatȱyouȱhaveȱaȱlistȱofȱpotentialȱcustomerȱgroups,ȱyouȱneedȱtoȱ findȱ outȱ howȱ manyȱ customersȱ thereȱ areȱ inȱ each.ȱ Thisȱ isȱ simpleȱ marketȱ researchȱ andȱ inȱ manyȱ casesȱ theȱ commercialȱ partnersȱ willȱ haveȱ thisȱ informationȱ toȱ handȱ already.ȱ Atȱ thisȱ stageȱ weȱ areȱ notȱ tryingȱtoȱestimateȱsalesȱorȱmarketȱpenetration,ȱweȱareȱsimplyȱtryingȱ toȱ measureȱ theȱ opportunitiesȱ thatȱ theȱ projectȱ couldȱ openȱ up.ȱ Forȱ exampleȱ ifȱ oneȱ ofȱ theȱ customerȱ groupsȱ isȱ UKȱ generalȱ medicalȱ practitioners,ȱ youȱ needȱ toȱ knowȱ thatȱ thereȱ areȱ 32,000ȱ ofȱ them,ȱ arrangedȱintoȱ152ȱpurchasingȱgroups.ȱ Thisȱ analysisȱ isȱ veryȱ importantȱ inȱ shapingȱ theȱ directionȱ ofȱ theȱ projectȱtowardsȱtheȱbestȱ opportunities.ȱWeȱ needȱtoȱ knowȱ theȱscaleȱ ofȱ eachȱ opportunityȱ inȱ orderȱ toȱ aimȱ theȱ projectȱ towardsȱ theȱ onesȱ withȱtheȱbestȱpotentialȱreturn.ȱȱ Theȱdynamicsȱofȱeachȱpotentialȱmarketȱalsoȱneedȱinvestigating.ȱTryȱ toȱestablishȱhowȱtheȱmarketȱhasȱchangedȱoverȱtheȱlastȱfiveȱyearsȱandȱ howȱexperts,ȱsuchȱasȱmarketȱanalysts,ȱpredictȱitȱisȱgoingȱtoȱbehaveȱ


inȱtheȱfuture.ȱIfȱtheȱmarketȱisȱforecastȱtoȱdecline,ȱthereȱmayȱbeȱlittleȱ pointȱinȱyouȱcarryingȱoutȱaȱprojectȱthatȱtriesȱtoȱexploitȱit.ȱ Youȱalsoȱneedȱtoȱconsiderȱhowȱaccessibleȱeachȱofȱtheȱopportunitiesȱ isȱ forȱ theȱ partnership.ȱ Opportunitiesȱ inȱ existingȱ marketsȱ willȱ beȱ muchȱmoreȱeasilyȱaddressedȱthanȱonesȱinȱnewȱandȱunfamiliarȱareas.ȱ Finally,ȱrankȱtheȱopportunitiesȱbyȱtheirȱattractivenessȱbasedȱonȱtheirȱ size,ȱ levelȱ ofȱ customerȱ demand,ȱ likelyȱ futureȱ growthȱ andȱ accessibility.ȱ Theȱ finalȱ listȱ shouldȱ containȱ atȱ leastȱ oneȱ targetȱ customerȱgroupȱforȱeachȱcommercialȱpartnerȱwithinȱtheȱproject.ȱ The project deliverables Nowȱ thatȱ weȱ knowȱ aȱ littleȱ moreȱ aboutȱ theȱ intendedȱ targetȱ customers,ȱ itȱ isȱ possibleȱ toȱ defineȱ theȱ idealȱ outcomesȱ andȱ deliverablesȱthatȱtheȱprojectȱshouldȱachieveȱinȱorderȱtoȱbestȱsatisfyȱ them.ȱ Byȱcomingȱatȱtheȱprojectȱplanȱfromȱthisȱdirection,ȱyouȱdefineȱwhatȱ youȱ wantȱ fromȱ theȱ projectȱ fromȱ theȱ perspectiveȱ ofȱ theȱ targetȱ customers.ȱ Thisȱ canȱ oftenȱ leadȱ toȱ aȱ projectȱ thatȱ isȱ quiteȱ differentȱ fromȱ yourȱ firstȱ thoughts,ȱ butȱ oneȱ thatȱ willȱ beȱ betterȱ receivedȱ andȱ potentiallyȱmuchȱmoreȱworthwhile.ȱȱ Potential returns Weȱnowȱneedȱtoȱputȱaȱvalueȱonȱtheȱbenefitsȱofȱtheȱprojectȱsoȱthatȱitȱ canȱbeȱcomparedȱtoȱtheȱcostsȱandȱrisksȱinvolvedȱinȱcarryingȱitȱout.ȱ Weȱ knowȱ theȱ potentialȱ marketȱ sizes;ȱ weȱnowȱ needȱ theȱ price,ȱ costsȱ andȱtheȱpenetrationȱrate.ȱȱ Thereȱ isȱ noȱrocketȱ scienceȱ involvedȱ here,ȱ weȱ simplyȱ needȱ toȱ guessȱ whatȱtheȱcustomerȱwouldȱbeȱwillingȱtoȱpayȱandȱthenȱguessȱwhatȱitȱ willȱ costȱ toȱ deliver.ȱ Theȱ differenceȱ isȱ grossȱ profitȱ perȱ sale.ȱ Getȱ theȱ bestȱ adviceȱ youȱ canȱ forȱ theseȱ estimates,ȱ ideallyȱ fromȱ theȱ salesȱ andȱ


marketingȱ teamsȱ asȱ wellȱ asȱ theȱ technologistsȱ fromȱ theȱ commercialȱ partners.ȱ Ifȱ youȱ haveȱ anȱ advisoryȱ groupȱ orȱ ‘tame’ȱ customersȱ askȱ themȱwhatȱtheyȱwouldȱexpectȱtoȱpay.ȱ Nowȱ weȱ haveȱ theȱ marketȱ sizeȱ andȱ theȱ unitȱ profit,ȱ butȱ simplyȱ multiplyingȱ themȱ togetherȱ wouldȱ yieldȱ anȱ unrealisticȱ total.ȱ Aȱ sensibleȱ penetrationȱ rateȱ isȱ required.ȱ Theȱ penetrationȱ rateȱ isȱ theȱ proportionȱ ofȱ theȱ totalȱ availableȱ marketȱ thatȱ couldȱ reasonablyȱ beȱ expectedȱtoȱbuyȱfromȱyou.ȱAgainȱthisȱisȱaȱguess,ȱbutȱratherȱthanȱjustȱ sayȱ 10%,ȱ itȱ isȱ betterȱ toȱ useȱ aȱ forecastingȱ methodologyȱ suchȱ asȱ theȱ AIDAȱmodelȱillustratedȱinȱfigureȱ3.1.ȱ AIDAȱisȱanȱabbreviationȱof:ȱ x Awarenessȱ –ȱ whatȱ proportionȱ ofȱ theȱ marketȱ canȱ youȱ makeȱ awareȱofȱyourȱproduct.ȱ x Interestȱ –ȱ ofȱ these,ȱ howȱ manyȱ willȱ beȱ interestedȱ inȱ yourȱ product.ȱ x Decisionȱ–ȱofȱthese,ȱhowȱmanyȱwillȱdecideȱtoȱbuyȱit.ȱ x Achievementȱ–ȱofȱthese,ȱhowȱmanyȱwillȱyouȱactuallyȱachieveȱ aȱsaleȱfrom.ȱ ȱ

ȱ Fig.ȱ3.1.ȱTheȱAIDAȱmodelȱofȱcustomerȱpenetrationȱȱ

TakingȱtheȱUKȱGPȱmarketȱasȱanȱexample,ȱimagineȱaȱnewȱdiagnosticȱ tool.ȱ Theȱ totalȱ marketȱ potentialȱ isȱ 32,000,ȱ ifȱ weȱ sayȱ weȱ canȱ makeȱ


20%ȱawareȱofȱit,ȱthat’sȱ6,400.ȱOfȱthese,ȱ50%ȱwillȱbeȱinterested,ȱthat’sȱ 3,200.ȱ Ofȱ these,ȱ 20%ȱ willȱ decideȱ toȱ buyȱ it,ȱ that’sȱ 640.ȱ Ofȱ these,ȱ weȱ willȱ achieveȱ 75%ȱ satisfactoryȱ completion,ȱ that’sȱ 480.ȱ Theȱ penetrationȱ isȱ thereforeȱ 480/32,000ȱ orȱ 1.5%ȱ asȱ illustratedȱ inȱ Figureȱ 3.1ȱabove.ȱ Ifȱweȱestimateȱthatȱweȱcouldȱsellȱtheȱproductȱforȱ$2,000ȱandȱitȱwillȱ costȱusȱ$1,000ȱtoȱmake,ȱthenȱtheȱpotentialȱreturnȱisȱ$480,000ȱforȱthisȱ marketȱplace.ȱ Eachȱ partnerȱ willȱ needȱ toȱ doȱ theirȱ ownȱ calculationsȱ toȱ estimateȱ whatȱreturnsȱcouldȱbeȱpossibleȱforȱthem.ȱEachȱpartnerȱthenȱneedsȱtoȱ compareȱtheȱpotentialȱreturnȱwithȱtheȱcostsȱofȱbeingȱinvolvedȱinȱtheȱ project.ȱ Potentialȱreturnȱpitfallsȱ Thereȱareȱaȱnumberȱofȱcommonȱmistakesȱoftenȱmadeȱbyȱgrantȱ applicantsȱ inȱ estimatingȱ potentialȱ returns.ȱ Tryȱ toȱ avoidȱ theȱ followingȱtopȱ3ȱmistakes:ȱ 1.ȱTheȱreturnsȱareȱbasedȱonȱmarketȱsizesȱmeasuredȱfinanciallyȱ ratherȱthanȱinȱpotentialȱsalesȱorȱnumbersȱofȱcustomers.ȱ‘Thisȱisȱ aȱ $10billionȱ market,ȱ ifȱ weȱ onlyȱ getȱ 1%ȱ weȱ willȱ beȱ rich’.ȱ Youȱ shouldȱ estimateȱ marketȱ penetrationȱ throughȱ numbersȱ ofȱ customersȱratherȱthanȱtheseȱbroadȱnumbersȱthatȱoftenȱincludeȱ vastȱareasȱthatȱyourȱproductȱorȱserviceȱwillȱnotȱcompeteȱin.ȱ 2.ȱ Notȱ knowingȱ theȱ marketȱ numbersȱ atȱ all.ȱ Thisȱ couldȱ beȱ aȱ fatalȱ problemȱ forȱ yourȱ project.ȱ Ifȱ yourȱ consortiumȱ doesȱ notȱ knowȱorȱunderstandȱtheȱmarketȱtheyȱareȱtryingȱtoȱexploit,ȱyouȱ doȱnotȱhaveȱtheȱrightȱconsortium.ȱ 3.ȱ Theȱ projectȱ willȱ speedȱ upȱ aȱ process,ȱ suchȱ asȱ testing,ȱ thusȱ savingȱaȱlargeȱamountȱofȱmoneyȱforȱtheȱcustomer.ȱFirstlyȱtheȱ potentialȱ savingȱ doesȱ notȱ equateȱ toȱ theȱ priceȱ someoneȱ willȱ payȱ toȱ makeȱ theȱ saving.ȱ Secondlyȱ makeȱ sureȱ yourȱ customerȱ


wantsȱtoȱsaveȱmoney,ȱtheyȱmayȱpreferȱtoȱcarryȱoutȱmoreȱtestsȱ fromȱ theȱ sameȱ budget.ȱ Youȱ stillȱ haveȱ aȱ competitiveȱ advantage,ȱbutȱtheȱsellingȱpointȱisȱtestȱspeedȱratherȱthanȱcostȱ reduction.ȱThisȱwillȱinfluenceȱtheȱapproachȱyourȱprojectȱtakes.ȱ Ifȱitȱisȱlikelyȱtoȱcostȱmoreȱtoȱrunȱtheȱprojectȱthanȱtheȱreturnȱthatȱcanȱ beȱ generated,ȱ thenȱ theȱ projectȱ isȱ notȱ worthȱ doingȱ forȱ theȱ quantitativeȱobjectivesȱalone.ȱȱ Theȱprojectȱriskȱalsoȱneedsȱtoȱbeȱtakenȱintoȱaccount.ȱIfȱtheȱprojectȱisȱ ofȱhighȱrisk,ȱaȱsimpleȱreturnȱgreaterȱthanȱtheȱcostsȱisȱnotȱsufficientȱtoȱ justifyȱtheȱproject.ȱAȱriskȱpremiumȱneedsȱtoȱbeȱappliedȱtoȱtheȱprojectȱ costsȱtoȱproduceȱaȱhigherȱjustificationȱthreshold.ȱForȱexample,ȱifȱtheȱ projectȱcostsȱ$100,000ȱbutȱisȱofȱlowȱrisk,ȱyouȱcouldȱapplyȱaȱ50%ȱriskȱ premiumȱsoȱthatȱtheȱreturnȱwouldȱneedȱtoȱbeȱgreaterȱthanȱ1.5ȱtimesȱ theȱprojectȱcosts,ȱorȱ$150,000,ȱbeforeȱitȱcouldȱbeȱjustified.ȱHighȱriskȱ projectsȱ mightȱ haveȱ riskȱ premiumsȱ ofȱ 200ȱ orȱ evenȱ 500%.ȱ Youȱ willȱ needȱtoȱaskȱseniorȱmanagementȱwhatȱkindȱofȱreturnȱtheyȱwillȱacceptȱ toȱjustifyȱyourȱproject.ȱ Youȱ mayȱ alsoȱ wantȱ toȱ takeȱ intoȱ accountȱ thatȱ theȱ returnȱ onȱ investmentȱisȱbasedȱonȱfutureȱsales.ȱAccountingȱtechniquesȱsuchȱasȱ NetȱPresentȱValueȱ(NPV)ȱcalculationsȱmayȱbeȱusedȱtoȱworkȱoutȱtheȱ currentȱ valueȱ ofȱ futureȱ salesȱ soȱ thatȱ thisȱ valueȱ isȱ usedȱ inȱ theȱ justification.ȱ Do you have a project? Atȱthisȱpointȱitȱisȱworthȱtakingȱstockȱandȱaskingȱyourselfȱifȱyouȱstillȱ haveȱ aȱ project.ȱ Inȱ orderȱ toȱ proceedȱ youȱ andȱ yourȱ partnersȱ needȱ toȱ beȱ convincedȱ thatȱ thereȱ isȱ aȱ marketȱ demandȱ forȱ theȱ projectȱ outcomes,ȱ thereȱ isȱ aȱ significantȱ andȱ achievableȱ financialȱ opporȬ tunityȱandȱthatȱallȱyourȱotherȱobjectivesȱcanȱbeȱmet.ȱȱ


Atȱthisȱpointȱhowever,ȱyouȱdon’tȱreallyȱknowȱhowȱmuchȱtheȱprojectȱ willȱcostȱtoȱcarryȱout,ȱsoȱtheȱnextȱstepȱisȱtoȱcreateȱaȱprojectȱplanȱandȱ findȱout.ȱ

3.2 Collaborative project planning Withinȱ anyȱ project,ȱ gettingȱ theȱ commitmentȱ andȱ enthusiasmȱ ofȱ allȱ theȱ participantsȱ isȱ essential.ȱ Whenȱ peopleȱ areȱ highlyȱ motivated,ȱ theyȱworkȱhardȱtoȱdeliverȱonȱtime,ȱonȱbudgetȱandȱtoȱscope.ȱWithinȱ collaborativeȱprojectsȱitȱisȱevenȱmoreȱimportantȱbecauseȱtheȱworkȱisȱ normallyȱ distributedȱ betweenȱ theȱ partners,ȱ whoȱ canȱ frequentlyȱ beȱ hundredsȱorȱevenȱthousandsȱofȱmilesȱapart.ȱTheȱprojectȱmanagerȱisȱ notȱ ableȱ toȱ monitorȱ theȱ projectȱ quiteȱ asȱ closelyȱ asȱ ifȱ theyȱ wereȱ allȱ workingȱonȱtheȱsameȱsite.ȱHoldingȱweeklyȱfaceȱtoȱfaceȱmeetingsȱisȱ seldomȱpossible,ȱsoȱtheȱprojectȱmanagerȱmustȱthereforeȱlargelyȱtrustȱ eachȱpartnerȱtoȱbeȱfollowingȱtheȱplan.ȱ Itȱ isȱ thereforeȱ essentialȱ thatȱ theȱ planȱ hasȱ theȱ commitmentȱ andȱ understandingȱofȱeveryȱmemberȱofȱtheȱconsortium.ȱThisȱcannotȱbeȱ achievedȱbyȱhavingȱaȱprojectȱmanagerȱdeviseȱaȱplanȱinȱisolationȱandȱ thenȱ toȱ imposeȱ itȱ onȱ everyoneȱ else.ȱ Theȱ processȱ ofȱ creatingȱ theȱ projectȱplanȱhasȱtoȱinvolveȱtheȱwholeȱteamȱsoȱthatȱitȱisȱunderstoodȱ byȱ everyoneȱ andȱ mostȱ importantlyȱ ‘boughtȱ inȱ to’ȱ byȱ theȱ wholeȱ consortium.ȱ Theȱfollowingȱmethodologyȱcanȱbeȱusedȱtoȱachieveȱthis.ȱTheȱprocessȱ canȱ easilyȱ beȱ achievedȱ inȱ halfȱ aȱ dayȱ forȱ mostȱ projects,ȱ orȱ aȱ wholeȱ dayȱforȱlargeȱorȱcomplexȱprojects.ȱȱ First,ȱ arrangeȱ aȱ dateȱ onȱ whichȱ theȱ wholeȱ consortiumȱ canȱ attendȱ aȱ planningȱ workshop.ȱ Encourageȱ eachȱ partnerȱ toȱ bringȱ theȱ keyȱ technicalȱpeopleȱthatȱwillȱbeȱworkingȱonȱtheȱproject,ȱbutȱtryȱtoȱkeepȱ theȱ totalȱ numberȱ ofȱ delegatesȱ toȱ aȱ maximumȱ ofȱ 15ȱ orȱ so.ȱ Ifȱ theȱ projectȱ isȱ grantȱ fundedȱ andȱ aȱ monitoringȱ officerȱ hasȱ beenȱ appointed,ȱyouȱmightȱconsiderȱinvitingȱthemȱalongȱtoȱhelp,ȱprovideȱ

3.2ȱCollaborativeȱprojectȱplanningȱȱȱȱȱȱ61ȱ

adviceȱ andȱ getȱ toȱ knowȱ theȱ team.ȱ Toȱ runȱ theȱ workshop,ȱ youȱ willȱ needȱplentyȱofȱspace,ȱatȱleastȱoneȱlargeȱwhiteȱboard,ȱlotsȱofȱstickiesȱ (suchȱasȱPostȬit®ȱpads),ȱpens,ȱaȱdigitalȱcameraȱandȱofȱcourseȱaȱgoodȱ supplyȱofȱcoffeeȱandȱchocolateȱbiscuits.ȱ Theȱ objectivesȱ andȱ businessȱ caseȱ shouldȱ beȱ wellȱ understoodȱ byȱ everyoneȱatȱthisȱstageȱsoȱtheȱtaskȱforȱtheȱdayȱisȱmainlyȱtoȱdevelopȱaȱ projectȱ planȱ thatȱ willȱ satisfyȱ thoseȱ objectives.ȱ Itȱ mightȱ howeverȱ beȱ usefulȱ toȱ setȱ theȱ sceneȱ byȱ remindingȱ everyoneȱ ofȱ theȱ projectȱ andȱ partners’ȱobjectives.ȱ Youȱwillȱneedȱtoȱappointȱaȱfacilitatorȱforȱtheȱworkshop.ȱIdeallyȱthisȱ shouldȱbeȱtheȱprojectȱmanagerȱwhoȱwillȱbeȱresponsibleȱforȱtheȱdayȱ toȱ dayȱ coordinationȱ ofȱ theȱ projectȱ andȱ reportingȱ toȱ theȱ steeringȱ committee.ȱ Stepȱ1ȱ Theȱ firstȱ stepȱ isȱ toȱ generateȱ aȱ listȱ ofȱ allȱ theȱ tasksȱ thatȱ needȱ toȱ beȱ carriedȱoutȱduringȱtheȱproject.ȱThisȱisȱachievedȱbyȱtheȱwholeȱgroupȱ brainstormingȱ andȱ callingȱ outȱ tasksȱ asȱ theyȱ occurȱ toȱ them.ȱ Theȱ facilitatorȱ writesȱ theȱ taskȱ onȱ aȱ stickyȱ andȱ slapsȱ itȱ ontoȱ theȱ whiteȱ board.ȱ Theȱ positionȱ isȱ notȱ importantȱ atȱ thisȱ stage,ȱ justȱ thatȱ itȱ isȱ recorded.ȱȱ Asȱtheȱfacilitator,ȱleadȱtheȱgenerationȱofȱtasksȱthroughȱeachȱareaȱofȱ theȱ project,ȱ poseȱ questionsȱ suchȱ asȱ ‘doȱ weȱ needȱ to…’,ȱ ‘howȱ willȱ we…’ȱandȱsoȱon.ȱDon’tȱforgetȱareasȱlikeȱmarketȱresearchȱandȱprojectȱ management.ȱ Whenȱ theȱ boardȱ isȱ gettingȱ fullȱ andȱ theȱ flowȱ ofȱ suggestionsȱ isȱ startingȱtoȱdryȱup,ȱstop.ȱDon’tȱworryȱifȱthereȱareȱgaps,ȱtheseȱwillȱgetȱ filledȱinȱveryȱquicklyȱinȱtheȱfollowingȱfewȱsteps.ȱȱ Yourȱ whiteȱ boardȱ shouldȱ resembleȱ figureȱ 3.2,ȱ aȱ massȱ ofȱ unstructuredȱtasksȱthatȱallȱneedȱtoȱtakeȱplaceȱduringȱtheȱproject.ȱ


ȱ

ȱ Fig.ȱ3.2.ȱTheȱboardȱafterȱstepȱ1ȱ

Stepȱ2ȱ Next,ȱarrangeȱtheȱstickiesȱintoȱgroupsȱ thatȱ describeȱ theȱmainȱ areasȱ ofȱworkȱwithinȱtheȱproject.ȱTheȱobjectiveȱisȱtoȱtryȱandȱarrangeȱthemȱ intoȱaȱsmallȱnumberȱ ofȱ groups,ȱ betweenȱ 4ȱ andȱ 8ȱ isȱ ideal,ȱalthoughȱ someȱ mayȱ haveȱ subȬgroupings.ȱ Againȱ theȱ activityȱ isȱ ledȱ byȱ theȱ facilitator.ȱ Youȱ canȱ writeȱ theȱ areaȱ ofȱ workȱ headingsȱ downȱ theȱ leftȱ handȱsideȱofȱtheȱwhiteȱboardȱandȱmoveȱtheȱstickiesȱintoȱtheȱcorrectȱ row.ȱ Involveȱ theȱwholeȱ teamȱ inȱ theȱ definitionȱ ofȱ eachȱ areaȱ ofȱ workȱ andȱ whatȱtasksȱgoȱwhereȱonȱtheȱboard.ȱIfȱnewȱtasksȱareȱthoughtȱof,ȱwriteȱ themȱonȱaȱstickyȱandȱaddȱthemȱtoȱtheȱappropriateȱrow.ȱȱ Thisȱisȱquiteȱaȱrapidȱstepȱasȱtheȱseparationȱofȱtasksȱintoȱtheseȱareasȱ ofȱ workȱ normallyȱ becomesȱ veryȱ obvious.ȱ Whenȱ theȱ stepȱ isȱ complete,ȱyourȱwhiteȱboardȱshouldȱresembleȱfigureȱ3.3.ȱ


ȱ


Stepȱ3ȱ Withinȱeachȱareaȱofȱwork,ȱarrangeȱtheȱtaskȱstickiesȱintoȱtheȱcorrectȱ logicalȱchronologicalȱorder.ȱȱHereȱagain,ȱnewȱtasksȱareȱlikelyȱtoȱbeȱ generatedȱasȱtheȱgapsȱbetweenȱtheȱexistingȱtasksȱareȱrecognised.ȱȱ Workȱ throughȱ eachȱ areaȱ ofȱ work,ȱ oneȱ atȱ aȱ time,ȱ stillȱ involvingȱ theȱ wholeȱgroup,ȱevenȱifȱsomeȱofȱthemȱareȱnotȱlikelyȱtoȱbeȱinvolvedȱinȱ allȱtheȱareasȱofȱwork.ȱItȱisȱimportantȱthatȱtheyȱunderstandȱwhatȱelseȱ willȱbeȱgoingȱonȱwithinȱtheȱproject.ȱ Again,ȱ thisȱ stepȱ isȱ fairlyȱ rapid.ȱ Figureȱ 3.4ȱ showsȱ theȱ stateȱ yourȱ boardȱshouldȱbeȱinȱbyȱnow.ȱ



Stepȱ4ȱ Theȱ nextȱ stepȱ isȱ toȱ defineȱ theȱ dependenciesȱ betweenȱ eachȱ ofȱ theȱ tasks.ȱ Theseȱ willȱ existȱ bothȱ withinȱ andȱ acrossȱ eachȱ ofȱ theȱ areasȱ ofȱ work.ȱ Dependenciesȱ betweenȱ tasksȱ existȱ when,ȱ forȱ exampleȱ aȱ taskȱ cannotȱbeȱstartedȱuntilȱaȱprecedingȱtaskȱisȱcompleted.ȱȱ Thereȱareȱfourȱbasicȱtypesȱofȱdependency:ȱ x Finishȱ toȱ Startȱ –ȱ thisȱ isȱ theȱ mostȱ commonȱ dependencyȱ andȱ meansȱ thatȱ aȱ precedingȱ taskȱ hasȱ toȱ beȱ finishedȱ beforeȱ theȱ nextȱtaskȱcanȱstart.ȱForȱexampleȱtheȱpaintingȱofȱcomponentsȱ mustȱhaveȱbeenȱfinishedȱbeforeȱassemblyȱcanȱstart.ȱ x StartȱtoȱStartȱ–ȱthisȱdependencyȱstatesȱthatȱtwoȱorȱmoreȱtasksȱ mustȱstartȱtogether,ȱthisȱisȱnecessaryȱwhen,ȱforȱexampleȱtwoȱ testingȱtasksȱuseȱaȱcommonȱtestingȱenvironment.ȱ x FinishȱtoȱFinishȱ–ȱthisȱappliesȱtoȱtwoȱorȱmoreȱtasksȱthatȱmustȱ finishȱ together.ȱ Forȱ exampleȱ theȱ preparationȱ ofȱ perishableȱ specimensȱ thatȱ areȱ toȱ beȱ analysedȱ together.ȱ Theȱ analysisȱ cannotȱ startȱ untilȱ theyȱ areȱ bothȱ readyȱ butȱ oneȱ cannotȱ beȱ


x

allowedȱtoȱdeteriorateȱwaitingȱforȱtheȱotherȱtoȱbeȱprepared.ȱ Theȱtwoȱpreparationȱtasksȱmustȱfinishȱtogether.ȱ Startȱ toȱ Finishȱ –ȱ thisȱ dependencyȱ isȱ employedȱ whenȱ aȱ taskȱ cannotȱcompleteȱuntilȱanotherȱhasȱstarted,ȱakinȱtoȱpassingȱaȱ batonȱ inȱ aȱ race,ȱ youȱ can’tȱ stopȱ runningȱ untilȱ theȱ nextȱ teamȱ memberȱhasȱtakenȱtheȱbatonȱfromȱyou.ȱ

Forȱ eachȱ task,ȱ workȱ throughȱ what,ȱ ifȱ any,ȱ dependenciesȱ existȱ withȱ otherȱtasks,ȱbothȱinȱtheȱsameȱareaȱofȱworkȱandȱinȱtheȱothers.ȱTheseȱ canȱbeȱdrawnȱontoȱtheȱboardȱbetweenȱtheȱstickies.ȱIfȱthereȱisȱspace,ȱ moveȱtheȱstickiesȱfromȱleftȱtoȱrightȱsoȱthatȱtheyȱstartȱtoȱlineȱupȱwithȱ eachȱotherȱaccordingȱtoȱtheirȱdependencies.ȱ Again,ȱmoreȱtasksȱmayȱbeȱgeneratedȱatȱthisȱstageȱandȱtheseȱshouldȱ beȱaddedȱasȱappropriate.ȱNowȱisȱalsoȱaȱtimeȱtoȱrationaliseȱsomeȱofȱ theȱtasks,ȱtoȱcombineȱveryȱcloseȱtasksȱintoȱoneȱandȱsoȱon.ȱWhenȱthisȱ happens,ȱreplaceȱtheȱtwoȱoldȱstickiesȱwithȱaȱnewȱone.ȱ



Theȱresultȱisȱstartingȱtoȱlookȱlikeȱaȱprojectȱplan.ȱItȱisȱnotȱaȱfullȱGanttȱ chartȱ justȱ yetȱ thoughȱ becauseȱ thereȱ isȱ noȱ durationȱ informationȱ knownȱaboutȱanyȱofȱtheȱtasks.ȱWhatȱyouȱhaveȱcreatedȱthoughȱisȱtheȱ project’sȱstructuralȱchart.ȱItȱshouldȱresembleȱfigureȱ3.5.ȱ Stepȱ5ȱ Nowȱ thatȱ weȱ haveȱ aȱ fairlyȱ stableȱ setȱ ofȱ tasks,ȱ it’sȱ timeȱ toȱ numberȱ themȱ andȱ takeȱ someȱ notes.ȱ Firstly,ȱ allocateȱ lettersȱ toȱ eachȱ ofȱ theȱ areasȱofȱwork.ȱYouȱcouldȱsimplyȱuseȱA,B,Cȱandȱsoȱon,ȱbutȱitȱmightȱ makeȱmoreȱsenseȱtoȱuseȱtheȱtaskȱinitial,ȱforȱexampleȱifȱtheȱareasȱofȱ workȱwereȱDesign,ȱBuildȱandȱTest,ȱyouȱcouldȱuseȱD,BȱandȱT.ȱ Nextȱ allocateȱ aȱ numberȱ toȱ eachȱ taskȱ inȱ theirȱ logicalȱ order,ȱ startingȱ withȱ1ȱforȱeachȱareaȱofȱwork,ȱsoȱthatȱtasksȱareȱnumberedȱD1,ȱD2,ȱD3,ȱ B1,ȱ B2ȱ andȱ soȱ on.ȱ Writeȱ theȱ relevantȱ taskȱ numberȱ inȱ theȱ topȱ leftȱ handȱcornerȱofȱeachȱofȱtheȱstickies.ȱȱ

ȱ Fig.ȱ3.6.ȱAȱtypicalȱstickieȱshowingȱitsȱtaskȱnumberȱandȱdependenciesȱ

Finallyȱinȱtheȱbottomȱleftȱhandȱcornerȱofȱeachȱsticky,ȱwriteȱtheȱtaskȱ numbersȱ ofȱ anyȱ tasksȱ thatȱ thisȱ oneȱ isȱ dependentȱ upon,ȱ andȱ inȱ theȱ bottomȱ rightȱ corner,ȱ writeȱ theȱ taskȱ numbersȱ ofȱ anyȱ tasksȱ thatȱ areȱ dependentȱuponȱthisȱone.ȱEachȱstickyȱshouldȱlookȱlikeȱfigureȱ3.6.ȱ


Stepȱ5.5ȱ Byȱ thisȱ timeȱ everybodyȱ willȱ needȱ aȱ break.ȱ Pauseȱ forȱ aȱ whileȱ andȱ allowȱ everyoneȱ toȱ takeȱ aȱ comfortȱ break,ȱ refillȱ theirȱ mugs,ȱ checkȱ theirȱ messagesȱ andȱ soȱ on.ȱ Beforeȱ theȱ nextȱ step,ȱ takeȱ aȱ fewȱ photographsȱofȱtheȱboard.ȱȱ Stepȱ6ȱ Theȱ nextȱ stepȱ isȱ toȱ workȱ inȱ detailȱ onȱ eachȱ ofȱ theȱ areasȱ ofȱ work.ȱ Itȱ mayȱ beȱ possibleȱ toȱ splitȱ theȱ groupȱ upȱ toȱ workȱ onȱ eachȱ areaȱ inȱ parallel,ȱbutȱonlyȱifȱsufficientȱrepresentationȱisȱavailableȱfromȱeachȱ partnerȱtoȱcoverȱeachȱofȱtheȱareasȱtheyȱareȱgoingȱtoȱbeȱinvolvedȱin.ȱ Eachȱ taskȱ stickyȱ nowȱ needsȱ toȱ beȱ furtherȱ definedȱ intoȱ aȱ workȱ packageȱ description.ȱ Toȱ doȱ thisȱ additionalȱ informationȱ isȱ requiredȱ aboutȱitȱsuchȱas:ȱ x Whatȱtheȱworkȱpackageȱobjectivesȱare,ȱ x Whatȱtheȱdeliverablesȱorȱoutcomesȱofȱtheȱworkȱpackageȱwillȱ be,ȱ x Whatȱ eachȱ partner’sȱ contributionȱ toȱ theȱ workȱ packageȱ willȱ be,ȱ x Howȱ muchȱ workȱ isȱ requiredȱ andȱ whatȱ resourcesȱ willȱ beȱ madeȱavailable,ȱ x Howȱlongȱtheȱworkȱpackageȱwillȱtakeȱtoȱcomplete,ȱ x Whatȱequipment,ȱfacilitiesȱorȱmaterialsȱwillȱbeȱrequired,ȱ x Whoȱwillȱtakeȱresponsibilityȱforȱtheȱworkȱpackage,ȱ x Whatȱtheȱmainȱtechnicalȱrisksȱare.ȱ Workingȱ throughȱ theȱ workȱ packagesȱ oneȱ byȱ one,ȱ defineȱ eachȱ oneȱ usingȱ aȱ formȱ likeȱ theȱ oneȱ shownȱ inȱ figureȱ 3.7ȱ toȱ captureȱ theȱ information.ȱYouȱmayȱfindȱthatȱtasksȱmergeȱatȱthisȱstageȱtoȱbecomeȱ largerȱworkȱpackages;ȱthisȱisȱfineȱasȱlongȱasȱtheȱworkȱpackagesȱdoȱ notȱbecomeȱtooȱbig.ȱAsȱaȱguide,ȱifȱtheirȱresultingȱdurationȱbecomesȱ longerȱ thanȱ 6ȱ monthsȱ orȱ theirȱ totalȱ effortȱ becomesȱ moreȱ thanȱ oneȱ personȬyear,ȱtheyȱshouldȱnotȱbeȱmerged.ȱWhenȱtasksȱareȱmerged,ȱȱ


ȱ Fig.ȱ3.7.ȱWorkȱpackageȱdescriptionȱtemplateȱ

ȱ


ȱ Fig.ȱ3.8.ȱPartnerȱcommitmentȱformȱtemplateȱ

ȱ


replaceȱ theȱ originalȱ stickiesȱ onȱ theȱ boardȱ withȱ theȱ newȱ combinedȱ one,ȱgivingȱitȱtheȱnumberȱofȱtheȱfirstȱremovedȱtask.ȱȱ Inȱ additionȱ eachȱ partnerȱ shouldȱ keepȱ aȱ tallyȱ ofȱ theȱ resourcesȱ theyȱ commitȱ toȱ eachȱ workȱ packageȱ usingȱ aȱ commitmentȱ formȱ likeȱ theȱ oneȱinȱfigureȱ3.8.ȱIfȱtheȱresourceȱisȱlabour,ȱnoteȱtheȱeffortȱcommittedȱ inȱpersonȱdays,ȱifȱtheȱroleȱisȱnotȱfullȱtime,ȱaddȱaȱutilisationȱfactorȱtoȱ helpȱcalculateȱtheȱactualȱcosts.ȱ Stepȱ6.5ȱ Timeȱ forȱ anotherȱ break,ȱ youȱ canȱ reassureȱ everyoneȱ thatȱ theyȱ areȱ nearlyȱthereȱnow!ȱ Stepȱ7ȱ Nowȱ thatȱ theȱ durationȱ andȱ resourceȱ requirementsȱ areȱ knownȱ forȱ eachȱ workȱ package,ȱ youȱ canȱ convertȱ theȱ structuralȱ chartȱ intoȱ theȱ finalȱGanttȱchart.ȱ Dependingȱ onȱ theȱ facilitator’sȱ skillsȱ withȱ projectȱ managementȱ software,ȱ thisȱ nextȱ stepȱ couldȱ beȱ doneȱ usingȱ aȱ computerȱ andȱ LCDȱ projectorȱorȱyouȱcouldȱcarryȱonȱusingȱtheȱwhiteȱboardȱandȱdoȱtheȱITȱ bitȱlaterȱon.ȱ Startȱwithȱaȱfreshȱwhiteȱboard.ȱRemoveȱallȱtheȱstickiesȱcarefully,ȱyouȱ haveȱ notȱ finishedȱ withȱ themȱ yet,ȱ andȱ cleanȱ theȱ dependenceȱ lines.ȱ Markȱnewȱtimeȱlinesȱasȱverticalȱlinesȱdownȱtheȱwholeȱlengthȱofȱtheȱ board,ȱ useȱ quarterȱ yearsȱ andȱ addȱ asȱ manyȱ asȱ youȱ thinkȱ youȱ willȱ need.ȱȱ Nextȱ bringȱ theȱ wholeȱ groupȱ togetherȱ andȱ workȱ throughȱ eachȱ areaȱ ofȱ work,ȱ repositioningȱ eachȱ stickyȱ onȱ theȱ timeȱ lineȱ inȱ theȱ positionȱ thatȱtheȱworkȱpackageȱshouldȱstart.ȱIndicateȱtheȱdurationȱofȱtheȱtaskȱ asȱaȱhorizontalȱlineȱofȱtheȱappropriateȱlengthȱimmediatelyȱbelowȱtheȱ sticky.ȱDrawȱinȱdependenciesȱbetweenȱtheȱtasksȱasȱtheyȱoccur.ȱTheȱ finishedȱplanȱwillȱlookȱsomethingȱlikeȱfigureȱ3.9.ȱȱ



Whenȱ youȱ haveȱ finished,ȱ theȱ resultingȱ chartȱ isȱ aȱ potentialȱ Ganttȱ chartȱ forȱ yourȱ project.ȱ Howeverȱ thereȱ isȱ stillȱ oneȱ moreȱ stepȱ beforeȱ youȱhaveȱcompletelyȱfinished.ȱ Stepȱ8ȱ Theȱresultingȱplanȱfromȱtheȱpreviousȱstepȱwillȱonlyȱworkȱifȱthereȱareȱ sufficientȱresourcesȱandȱpeopleȱavailableȱtoȱcarryȱoutȱallȱtheȱtasksȱatȱ theȱ timesȱ theyȱ areȱ shown.ȱ Theȱ finalȱ stepȱ isȱ toȱ examineȱ whatȱ resourcesȱ areȱ requiredȱ forȱ eachȱ taskȱ andȱ adjustȱ theirȱ timingȱ toȱ smoothȱ outȱ theȱ peeksȱ andȱ troughsȱ inȱ overallȱ effort.ȱ Inȱ projectȱ managementȱcirclesȱthisȱisȱknownȱasȱresourceȱlevellingȱandȱseeksȱtoȱ ensureȱthat,ȱforȱexampleȱyouȱareȱnotȱcommittedȱ200%ȱforȱthisȱweek,ȱ butȱidleȱtheȱfollowingȱweek.ȱ Workȱ acrossȱ theȱ planȱ fromȱ theȱ start.ȱ Forȱ eachȱ monthȱ orȱ quarterȱ dependingȱonȱtheȱresolutionȱofȱyourȱ plan,ȱletȱeachȱpartnerȱ addȱ upȱ theirȱ commitmentȱ toȱ theȱ activeȱ workȱ packagesȱ usingȱ theirȱ commitmentȱforms.ȱWhereȱresourcesȱareȱoverȱcommitted,ȱworkingȱ


asȱ aȱ group,ȱ moveȱ theȱ workȱ packagesȱ backȱ andȱ forth,ȱ withinȱ theirȱ dependenceȱconstraints,ȱtoȱsmoothȱoutȱtheȱissues.ȱȱ Continueȱ untilȱ everyoneȱ isȱ happyȱ withȱ theȱ plan.ȱ Thisȱ mayȱ notȱ beȱ easyȱandȱinȱsomeȱcasesȱyouȱwillȱhaveȱtoȱextendȱtheȱdurationȱofȱtheȱ wholeȱprojectȱtoȱachieveȱaȱplanȱthatȱisȱworkable.ȱ Everyoneȱ canȱ nowȱ relaxȱ aȱ bit,ȱ exceptȱ forȱ theȱ facilitatorȱ whoȱ mustȱ nowȱcollectȱallȱtheȱworkȱpackageȱdefinitionsȱandȱprepareȱtoȱconvertȱ themȱ andȱ theȱ contentsȱ ofȱ theȱ boardȱ intoȱ aȱ formalȱ projectȱ planȱ document.ȱ Takeȱ plentyȱ ofȱ photographsȱ ofȱ theȱ boardȱ toȱ makeȱ sureȱ youȱdon’tȱloseȱanyȱofȱtheȱvitalȱlinksȱandȱpositions.ȱCheckȱthatȱtheyȱ canȱbeȱreadȱclearlyȱbeforeȱwipingȱtheȱboardȱthough!ȱ Stepȱ9ȱ IȱknowȱIȱsaidȱstepȱ8ȱwouldȱbeȱtheȱlastȱone,ȱbutȱactuallyȱtheȱlastȱstepȱ isȱ toȱ congratulateȱ everyoneȱ forȱ bringingȱ togetherȱ aȱ planȱ thatȱ isȱ thoroughlyȱthoughtȱout,ȱthatȱeveryoneȱinȱtheȱteamȱunderstandsȱandȱ mostȱimportantly,ȱaȱplanȱthatȱeverybodyȱinȱtheȱteamȱbelievesȱinȱandȱ isȱcommittedȱto.ȱ Takeȱaȱteamȱphotoȱtoo.ȱ FollowȬupȱworkȱ Itȱ isȱ importantȱ toȱ getȱ allȱ theȱ informationȱ intoȱ aȱ formalȱ planȱ theirȱ approval.ȱ However,ȱ thereȱ mayȱ beȱ additionalȱ informationȱ requiredȱ fromȱeachȱpartnerȱtoȱcompleteȱthisȱwork.ȱ Aȱ spendȱ profileȱ isȱ veryȱ oftenȱ requiredȱ byȱ fundingȱ bodiesȱ toȱ visualiseȱ theȱ budgetȱ ofȱ theȱ projectȱ andȱ theȱ commitmentȱ beingȱ putȱ intoȱeachȱworkȱpackage.ȱEvenȱifȱaȱfundingȱbodyȱisȱnotȱinvolved,ȱaȱ projectȱ budgetȱ showsȱ everyoneȱ whoȱ isȱ spendingȱ whatȱ withinȱ theȱ project.ȱ


Creatingȱ theȱ spendȱ profileȱ isȱ relativelyȱ straightȱ forward.ȱ Eachȱ partnerȱ hasȱ theirȱ commitmentȱ formȱ whichȱ showsȱ whatȱ resourcesȱ theyȱ expectȱ toȱ commitȱ onȱ eachȱ ofȱ theȱ workȱ packagesȱ theyȱ areȱ involvedȱin.ȱTheyȱalsoȱhaveȱaȱcopyȱofȱtheȱprojectȱGanttȱchartȱwhichȱ showsȱwhenȱeachȱworkȱpackageȱstartsȱandȱhowȱlongȱitȱwillȱlast.ȱTheȱ spendȱ profileȱ simplyȱ addsȱ allȱ theȱ activeȱ workȱ packageȱ spendsȱ inȱ eachȱmonthȱorȱquarterȱtoȱcreateȱaȱtotalȱcommitmentȱforȱeachȱperiod.ȱ Onceȱ theȱ pureȱ workȱ packageȱ commitmentsȱ areȱ done,ȱ addȱ inȱ additionalȱ expensesȱ suchȱ asȱ attendanceȱ atȱ projectȱ meetings,ȱ reporting,ȱ equipmentȱ andȱ materialȱ purchasesȱ andȱ soȱ on,ȱ toȱ createȱ theȱ finishedȱ spendȱ profile.ȱ Useȱ aȱ spreadsheetȱ toȱ enterȱ allȱ theȱ data.ȱ Theȱ projectȱ managerȱ shouldȱ createȱ aȱ templateȱ forȱ eachȱ partnerȱ toȱ completeȱsoȱthatȱallȱtheȱdataȱwillȱbeȱcompatibleȱwhenȱitȱisȱcollated.ȱ Theȱprojectȱmanagerȱshouldȱcollectȱtheȱspendȱprofilesȱfromȱeachȱofȱ theȱ partnersȱ toȱ createȱ aȱ masterȱ spendȱ profileȱ forȱ theȱ entireȱ project.ȱ Thisȱ canȱ thenȱ becomeȱ theȱ projectȱ budgetȱ andȱ beȱ usedȱ toȱ monitorȱ projectȱspendȱasȱtheȱworkȱprogresses.ȱȱ Do you still have a project? Whenȱ youȱ completedȱ theȱ businessȱ case,ȱ youȱ knewȱ whatȱ theȱ potentialȱ returnȱ onȱ theȱ projectȱ couldȱ be.ȱ Youȱ nowȱ knowȱ whatȱ theȱ projectȱ willȱ costȱ inȱ termsȱ ofȱ timeȱ andȱ resources.ȱ Youȱ canȱ nowȱ compareȱtheȱnumbers,ȱapplyȱaȱsensibleȱriskȱpremiumȱandȱseeȱifȱyouȱ canȱjustifyȱtheȱproject.ȱȱ Ifȱtheȱprojectȱisȱjustifiableȱonȱtheȱquantitativeȱobjectivesȱaloneȱthenȱ thisȱ isȱ greatȱ news.ȱ Ifȱ not,ȱ eachȱ partnerȱ willȱ needȱ toȱ considerȱ theȱ worthȱ ofȱ theirȱ qualitativeȱ objectivesȱ inȱ orderȱ toȱ fullyȱ justifyȱ theirȱ involvementȱinȱtheȱproject.ȱ Ifȱ applicable,ȱ grantȱ contributionsȱ shouldȱ beȱ includedȱ inȱ theȱ justificationȱ calculations.ȱ Ifȱ youȱ areȱ expectingȱ aȱ grantȱ contributionȱ ofȱ 50%,ȱ reduceȱ yourȱ projectȱ costsȱ byȱ 50%ȱ beforeȱ applyingȱ theȱ riskȱ


premiumȱ andȱ comparingȱ itȱ toȱ theȱ justificationȱ threshold.ȱ Theseȱ calculationsȱcouldȱformȱpartȱofȱtheȱadditionalityȱcaseȱforȱyourȱgrantȱ application.ȱForȱexample,ȱ‘toȱjustifyȱaȱprojectȱwithȱthisȱlevelȱofȱrisk,ȱ weȱ wouldȱ needȱ toȱ seeȱ aȱ returnȱ ofȱ 300%ȱ onȱ ourȱ investment,ȱ thisȱ isȱ onlyȱpossibleȱwithȱgrantȱsupportȱequalȱtoȱ35%ȱofȱprojectȱcosts.’ȱ ȱ Thereȱ youȱ haveȱ it,ȱ aȱ soundȱ businessȱ caseȱ andȱ aȱ completeȱ projectȱ plan,ȱnowȱallȱyouȱhaveȱtoȱdoȱisȱmakeȱsureȱeveryoneȱfollowsȱit!ȱ

3.3 So in conclusion 1.ȱTwoȱkeyȱpiecesȱofȱworkȱareȱrequiredȱbeforeȱtheȱprojectȱcanȱstart.ȱ Theseȱareȱtheȱcreationȱof:ȱ x Aȱbusinessȱcaseȱ x Aȱprojectȱplanȱ 2.ȱTheȱbusinessȱcaseȱshouldȱincludeȱanȱanalysisȱof:ȱ x Theȱobjectivesȱofȱtheȱpartnersȱ x Theȱbenefitsȱexpectedȱfromȱtheȱprojectȱ x TheȱcustomersȱorȱendȬusersȱofȱtheȱprojectȱoutcomesȱ x Theȱproblemsȱsolvedȱbyȱtheȱprojectȱoutcomesȱ x Theȱmarketȱopportunitiesȱ x Theȱdesiredȱprojectȱdeliverablesȱ x Theȱpotentialȱreturnsȱonȱinvestmentȱ 3.ȱWithinȱcollaborativeȱprojects,ȱtheȱprojectȱplanȱmustȱbe:ȱ x Understoodȱbyȱeveryoneȱinȱtheȱconsortiumȱ x Boughtȱinȱtoȱbyȱeachȱpartnerȱ x Committedȱtoȱbyȱeachȱpartnerȱ 4.ȱ Theȱ projectȱ planȱ canȱ beȱ createdȱ inȱ aȱ workshopȱ usingȱ theȱ followingȱsteps:ȱ x Generateȱaȱlistȱofȱtasksȱ x Defineȱtheȱprincipalȱareasȱofȱworkȱ


x x x x x x x ȱ

Orderingȱtheȱtasksȱwithinȱeachȱareaȱ Definingȱtheȱinterdependenciesȱbetweenȱtheȱtasksȱ Numberingȱtheȱtasksȱ Carryingȱoutȱdetailȱplanningȱofȱeachȱtaskȱ Definingȱtheȱdurationȱandȱeffortȱrequiredȱforȱeachȱtaskȱ CreatingȱandȱsmoothingȱaȱGanttȱchartȱ Creatingȱaȱspendȱprofileȱ

4 Maintaining momentum

Thisȱ chapterȱ isȱ intendedȱ toȱ helpȱ youȱ runȱ yourȱ project.ȱ Iȱ haveȱ alreadyȱ saidȱ thatȱ Iȱ don’tȱ intendȱ thisȱ bookȱ toȱ coverȱ theȱ basicsȱ ofȱ projectȱ management;ȱ thereȱ areȱ anyȱ numbersȱ ofȱ excellentȱ resourcesȱ toȱ helpȱ youȱ withȱ that.ȱ Thereȱ areȱ however,ȱ someȱ aspectsȱ ofȱ collaborativeȱprojectsȱthatȱneedȱspecialȱattention.ȱȱ Firstly,ȱyourȱprojectȱcollaboratorsȱareȱcomingȱtogetherȱasȱaȱcoalitionȱ ofȱequals.ȱThisȱmeansȱthatȱyouȱcannotȱbossȱthemȱaboutȱinȱtheȱwayȱ thatȱ youȱ mightȱ withȱ subȬcontractors.ȱ Youȱ willȱ needȱ toȱ establishȱ aȱ democracyȱwhereȱeachȱcompany’sȱvoiceȱisȱheardȱandȱyouȱwillȱneedȱ toȱmeetȱregularlyȱtoȱmonitorȱandȱcontrolȱtheȱprogress.ȱ Detailedȱ planningȱ isȱ alsoȱ veryȱ importantȱ inȱ collaborativeȱ projectsȱ whereȱtheȱworkȱisȱdistributedȱandȱkeepingȱtoȱtimeȱandȱbudgetȱareȱ essential.ȱ Riskȱmanagementȱisȱaȱkeyȱpartȱofȱmanagingȱanyȱproject,ȱbutȱthisȱisȱ oneȱareaȱthatȱisȱoftenȱneglectedȱinȱcollaborativeȱR&Dȱprojects.ȱȱ Leadingȱ aȱ collaborativeȱ projectȱ isȱ aȱ nonȬtrivialȱ exercise.ȱ Whoeverȱ takesȱ overallȱ responsibilityȱ forȱ theȱ managementȱ ofȱ theȱ projectȱ willȱ requireȱaȱspecialȱskillȱsetȱandȱpersonality.ȱ Finally,ȱ ifȱ yourȱ projectȱ isȱ supportedȱ byȱ outsideȱ fundingȱ suchȱ asȱ aȱ grant,ȱ theȱ chancesȱ areȱ youȱ willȱ haveȱ aȱ monitoringȱ officerȱ putȱ intoȱ placeȱ toȱ monitorȱ progressȱ onȱ behalfȱ ofȱ theȱ fundingȱ body.ȱ Theȱ projectȱ managerȱ willȱ needȱ toȱ workȱ closelyȱ withȱ theȱ monitoringȱ officer.ȱ Ifȱ thisȱ relationshipȱ isȱ wellȱ managedȱ theȱ monitorȱ canȱ oftenȱ addȱgoodȱvalueȱtoȱtheȱproject.ȱ

78ȱȱȱȱȱȱ4ȱMaintainingȱmomentumȱ

4.1 Project control Figureȱ4.1ȱshowsȱaȱtypicalȱmanagementȱstructureȱforȱaȱcollaborativeȱ project.ȱ Theȱ steeringȱ committeeȱ takesȱ overallȱ responsibilityȱ forȱ theȱ directionȱofȱtheȱproject,ȱbutȱtheȱdayȱtoȱdayȱmanagementȱisȱdelegatedȱ toȱ aȱ projectȱ manager.ȱ Theȱ individualȱ workȱ packageȱ leadersȱ allȱ reportȱ toȱ theȱ projectȱ manager.ȱ Inȱ additionȱ variousȱ subȬcommitteesȱ canȱ beȱ establishedȱ toȱ lookȱ atȱ specificȱ issuesȱ suchȱ asȱ exploitation,ȱ publicationȱapprovalȱandȱsoȱon.ȱ

ȱ Fig.ȱ4.1.ȱCollaborativeȱprojectȱmanagementȱstructureȱ

Theȱ projectȱ managerȱ willȱ needȱ toȱ imposeȱ aȱ reportingȱ regimeȱ onȱ eachȱ ofȱ theȱ workȱ packages.ȱ Inȱ theȱ caseȱ ofȱ manyȱ grantȱ fundedȱ projects,ȱ reportingȱ templatesȱ areȱ imposedȱ onȱ theȱ projectȱ byȱ theȱ fundingȱ body.ȱ Ifȱ not,ȱ theȱ projectȱ managerȱ willȱ needȱ toȱ deviseȱ aȱ reportingȱsystemȱwhichȱincludesȱtheȱfollowingȱbasicȱelements:ȱ x Aȱ shortȱ statementȱ aboutȱ theȱ progressȱ andȱ achievementsȱ made,ȱ x Aȱ statementȱ aboutȱ theȱ progressȱ towardsȱ theȱ relevantȱ deliverablesȱandȱmilestones,ȱ x Aȱ reviewȱ andȱ updateȱ ofȱ theȱ risksȱ involvedȱ inȱ theȱ workȱ package,ȱ

4.1ȱProjectȱcontrolȱȱȱȱȱȱ79ȱ

x x x

Aȱdescriptionȱofȱanyȱissuesȱthatȱhaveȱarisen,ȱ Aȱ statementȱ ofȱ theȱ resourcesȱ andȱ costsȱ expendedȱ toȱ thisȱ pointȱwithinȱtheȱworkȱpackageȱandȱȱ Anȱ updateȱ ofȱ theȱ estimatedȱ remainingȱ timeȱ andȱ resourcesȱ requiredȱtoȱcompleteȱtheȱworkȱpackage.ȱ

Itȱ isȱ importantȱ toȱ keepȱ theȱ lengthȱ ofȱ theseȱ reportsȱ asȱ shortȱ asȱ possible,ȱ ideallyȱ toȱ aȱ singleȱ pageȱ perȱ workȱ package.ȱ Youȱ needȱ theȱ workȱ packageȱ leadersȱ toȱ beȱ workingȱ onȱ theȱ projectȱ ratherȱ thanȱ spendingȱ allȱ theirȱ timeȱ writingȱ reports.ȱ Howeverȱ goodȱ commȬ unicationȱ isȱ aȱ vitalȱ partȱ ofȱ projectȱ managementȱ andȱ isȱ essentialȱ inȱ collaborativeȱ projectsȱ whereȱ otherȱ meansȱ ofȱ communicationȱ betweenȱtheȱdifferentȱpartnersȱmayȱnotȱexist.ȱ Theȱ projectȱ managerȱ shouldȱ requestȱ reportsȱ fromȱ eachȱ workȱ packageȱ atȱ regularȱ intervalsȱ andȱ priorȱ toȱ eachȱ steeringȱ committeeȱ meeting.ȱ Dependingȱ onȱ theȱ scaleȱ ofȱ theȱ project,ȱ youȱ mightȱ expectȱ thereȱtoȱbeȱaȱseriesȱofȱworkȱpackageȱmeetingsȱtoȱagreeȱtheȱcontentsȱ ofȱtheȱreportsȱbeforeȱtheyȱareȱsubmittedȱtoȱtheȱprojectȱmanager.ȱ Steering committees Likeȱanyȱdemocraticȱsociety,ȱyourȱcollaborativeȱprojectȱwillȱneedȱtoȱ beȱ runȱ throughȱ aȱ seriesȱ ofȱ committeeȱ meetings.ȱ Atȱ theȱ topȱ ofȱ theȱ systemȱ thereȱ shouldȱ beȱ aȱ Steeringȱ Committeeȱ thatȱ takesȱ overallȱ responsibilityȱforȱtheȱproject.ȱȱ Theȱ steeringȱ committee’sȱ roleȱ isȱ similarȱ toȱ thatȱ ofȱ aȱ boardȱ ofȱ directorsȱ inȱ aȱ company.ȱ Theȱ committeeȱ appointsȱ theȱ projectȱ managerȱandȱotherȱexecutiveȱrolesȱwithinȱtheȱproject,ȱapprovesȱtheȱ projectȱ plans,ȱ monitorsȱ progressȱ againstȱ themȱ andȱ allocatesȱ theȱ resourcesȱrequiredȱtoȱachieveȱtheȱprojectȱobjectives.ȱInȱadditionȱtheȱ steeringȱ committeeȱ hasȱ theȱ rightȱ toȱ removeȱ partnersȱ fromȱ theȱ consortiumȱandȱinviteȱnewȱpartnersȱtoȱjoin.ȱ


Theȱ Consortiumȱ Agreementȱ documentȱ shouldȱ defineȱ theȱ structureȱ andȱ votingȱ rightsȱ ofȱ theȱ committee.ȱ Typicallyȱ thisȱ willȱ includeȱ theȱ rightȱ forȱ eachȱ consortiumȱ memberȱ toȱ haveȱ oneȱ seatȱ onȱ theȱ committee,ȱwithȱoneȱvoteȱperȱseat.ȱȱ Puttingȱitȱtoȱtheȱvoteȱ Althoughȱ theȱ steeringȱ committeeȱ hasȱ votingȱ rights,ȱ beingȱ forcedȱ toȱ putȱ issuesȱ toȱ theȱ voteȱ isȱ aȱ signȱ thatȱ allȱ isȱ notȱ wellȱ withinȱyourȱproject.ȱItȱisȱfarȱbetterȱforȱallȱtheȱpartiesȱtoȱreachȱ agreementȱ onȱ allȱ theȱ issuesȱ throughȱ discussionȱ andȱ negotiation.ȱ Thisȱ willȱ leadȱ toȱ aȱ muchȱ moreȱ supportiveȱ andȱ collaborativeȱenvironment.ȱȱ Theȱonlyȱtimeȱwhenȱyouȱmightȱwantȱtoȱformallyȱtakeȱaȱvoteȱisȱ whenȱdealingȱwithȱtheȱremovalȱorȱadditionȱofȱpartnersȱwithinȱ theȱconsortium,ȱtheȱvoteȱbeingȱrecordedȱinȱtheȱminutes.ȱ Theȱ steeringȱ committeeȱ shouldȱ meetȱ regularlyȱ throughoutȱ theȱ project.ȱ Dependingȱ onȱ theȱ scaleȱ andȱ durationȱ ofȱ theȱ project,ȱ thisȱ mightȱ meanȱ monthlyȱ orȱ quarterly.ȱ Youȱ canȱ ofȱ courseȱ increaseȱ theȱ frequencyȱduringȱtimesȱofȱincreasedȱactivityȱorȱimportanceȱandȱanyȱ memberȱshouldȱhaveȱtheȱrightȱtoȱcallȱaȱsteeringȱcommitteeȱmeetingȱ ifȱ theyȱ haveȱ aȱ burningȱ issueȱ thatȱ theyȱ considerȱ needsȱ urgentȱ attention.ȱ Steeringȱcommitteeȱmeetingsȱshouldȱnotȱbeȱrushed.ȱInȱmanyȱcases,ȱ representativesȱhaveȱtoȱtravelȱtoȱreachȱtheȱmeetingȱandȱwillȱwantȱtoȱ spendȱ timeȱ understandingȱ howȱ theȱ projectȱ isȱ progressing,ȱ especiallyȱ inȱ theȱ areasȱ inȱ whichȱ theyȱ areȱ notȱ directlyȱ involved.ȱ Aȱ typicalȱmeetingȱmightȱstartȱatȱ10amȱtoȱallowȱpeopleȱtoȱarriveȱinȱtimeȱ andȱ concludeȱ byȱ midȱ afternoon.ȱ Allowȱ plentyȱ ofȱ timeȱ forȱ lunchȱ asȱ thisȱ isȱ aȱ greatȱ opportunityȱ forȱ peopleȱ toȱ chatȱ informallyȱ aboutȱ theȱ projectȱandȱotherȱopportunitiesȱthatȱmightȱbeȱrelevant.ȱȱ Itȱisȱalsoȱaȱgoodȱideaȱtoȱrotateȱtheȱvenueȱofȱtheȱsteeringȱcommitteeȱ meetingsȱ aroundȱ theȱ projectȱ partners.ȱ Thisȱ allowsȱ eachȱ partnerȱ toȱ

4.1ȱProjectȱcontrolȱȱȱȱȱȱ81ȱ

actȱ asȱ hostȱ andȱ forȱ everyoneȱ toȱ getȱ aȱ chanceȱ toȱ lookȱ aroundȱ eachȱ othersȱfacilities.ȱItȱisȱalsoȱaȱgoodȱideaȱtoȱagreeȱtheȱdatesȱandȱvenueȱaȱ longȱtimeȱinȱadvanceȱasȱgettingȱeverybody’sȱdiariesȱtogetherȱwithȱaȱ weekȱ toȱ goȱ isȱ unlikelyȱ toȱ work.ȱ Planningȱ theȱ datesȱ ofȱ meetingsȱ aȱ yearȱaheadȱcanȱsaveȱyouȱaȱlotȱofȱtrouble.ȱ Theȱagendaȱforȱtheȱsteeringȱmeetingȱisȱofȱcourseȱupȱtoȱyou.ȱYouȱwillȱ probablyȱ wantȱ toȱ includeȱ theȱ usualȱ itemsȱ toȱ reviewȱ previousȱ minutes,ȱ discussȱ mattersȱ arisingȱ andȱ receiveȱ updatesȱ fromȱ eachȱ ofȱ theȱworkȱpackageȱleaders.ȱHoweverȱyouȱmightȱalsoȱlikeȱtoȱconsiderȱ theȱfollowingȱasȱstandardȱagendaȱitems:ȱ x Aȱreviewȱofȱtheȱstatusȱofȱmilestonesȱandȱdeliverables.ȱIfȱyouȱ presentȱ theseȱ asȱ aȱ completeȱ listȱ andȱ colourȱ codeȱ themȱ soȱ that,ȱforȱexample,ȱlateȱitemsȱareȱshownȱred,ȱcompletedȱitemsȱ asȱgreenȱandȱimminentȱitemsȱasȱblue,ȱitȱisȱeasyȱforȱeveryoneȱ toȱquicklyȱappreciateȱhowȱtheȱprojectȱisȱprogressing.ȱ x Aȱreviewȱofȱtheȱriskȱregister,ȱ x Aȱreviewȱofȱprojectȱspendingȱandȱresources,ȱ x Aȱreviewȱofȱtheȱuseȱandȱgenerationȱofȱintellectualȱproperty.ȱ Thisȱ couldȱ includeȱ updatesȱ onȱtheȱuseȱ ofȱ backgroundȱIPȱasȱ wellȱasȱtheȱnotificationȱofȱnewȱIPȱandȱitsȱownership,ȱ x Aȱreviewȱofȱprojectȱpublicationsȱandȱdissemination,ȱ x Anȱupdateȱofȱtheȱprojectȱbusinessȱcaseȱandȱtheȱdevelopmentȱ ofȱexploitationȱplans,ȱ x Ifȱtheȱprojectȱhasȱaȱmonitoringȱofficer,ȱaskȱthemȱforȱfeedbackȱ onȱhowȱtheyȱseeȱtheȱprogressȱofȱtheȱproject.ȱ Theȱuseȱofȱlogsȱȱ Logsȱ areȱ anȱ excellentȱ wayȱ ofȱ keepingȱ trackȱ ofȱ importantȱ informationȱthatȱwillȱsaveȱaȱlotȱofȱtimeȱandȱeffortȱatȱtheȱendȱofȱ theȱ project.ȱ Anȱ IPȱ logȱ forȱ exampleȱ thatȱ recordsȱ theȱ useȱ ofȱ backgroundȱ IPȱ andȱ theȱ creationȱ ofȱ newȱ foregroundȱ IPȱ willȱ greatlyȱ aidȱ theȱ licensingȱ negotiationsȱ whenȱ theȱ commȬ ercialisationȱofȱtheȱresultsȱisȱplanned.ȱ


Theȱ logȱ documentȱ canȱ beȱ aȱ simpleȱ tableȱ butȱ allȱ partnersȱ shouldȱhaveȱreadȱaccessȱtoȱit.ȱTheȱprojectȱmanagerȱshouldȱbeȱ responsibleȱ forȱ addingȱ newȱ entriesȱ onȱ notificationȱ byȱ theȱ partners.ȱ

4.2 Detailed planning Theȱprojectȱplanȱcreatedȱinȱtheȱlastȱchapterȱisȱaȱtopȱlevelȱviewȱofȱtheȱ project.ȱItȱtellsȱtheȱsteeringȱcommitteeȱwhatȱisȱhappeningȱandȱwhenȱ withinȱtheȱproject.ȱUnlessȱtheȱworkȱpackagesȱareȱveryȱsimple,ȱthereȱ mayȱ beȱ aȱ needȱ toȱ carryȱ outȱ moreȱ detailedȱ planningȱ withinȱ eachȱ individualȱworkȱpackage.ȱ Fortunatelyȱ exactlyȱ theȱ sameȱ processȱ canȱ beȱ usedȱ toȱ createȱ workȱ packageȱ plans.ȱ Justȱ beforeȱ theȱ workȱ packageȱ isȱ dueȱ toȱ start,ȱ theȱ teamȱassemblesȱandȱworksȱthoughȱallȱtheȱindividualȱtasksȱthatȱareȱ requiredȱ toȱ deliverȱ theȱ workȱ package.ȱ Theȱ sameȱ templatesȱ canȱ beȱ usedȱasȱtaskȱdescriptionsȱasȱwereȱpreviouslyȱusedȱforȱworkȱpackageȱ descriptions.ȱȱ Inȱorderȱtoȱmaximizeȱtheȱbenefitȱofȱthisȱdetailedȱplanningȱprocess,ȱitȱ shouldȱ beȱ carriedȱ outȱ asȱ eachȱ newȱ workȱ packageȱ starts.ȱ Thisȱ wayȱ theȱworkȱpackageȱcanȱbeȱplannedȱusingȱtheȱveryȱlatestȱinformationȱ fromȱ theȱ precedingȱ workȱ andȱ theȱ mostȱ accurateȱ estimatesȱ ofȱ realisticȱworkȱrates.ȱThisȱisȱknownȱasȱ‘rollingȱwave’ȱplanningȱasȱtheȱ plansȱdevelopȱasȱtheȱprojectȱrollsȱforward.ȱ Someȱpeopleȱcomplainȱthatȱtheyȱdon’tȱhaveȱtimeȱtoȱcarryȱoutȱallȱthisȱ planningȱandȱclaimȱitȱisȱunnecessary,ȱhoweverȱtheyȱoftenȱseemȱtoȱbeȱ ableȱtoȱfindȱtheȱtimeȱtoȱdoȱtheȱworkȱtwiceȱwhenȱitȱgoesȱwrong!ȱ

4.3ȱManagingȱriskȱȱȱȱȱȱ83ȱ

4.3 Managing risk Theȱ managementȱ ofȱ riskȱ isȱ anȱ importantȱ partȱ ofȱ anyȱ projectȱ manager’sȱ roleȱ butȱ inȱ collaborativeȱ R&Dȱ projects,ȱ theȱ assessment,ȱ avoidanceȱandȱmitigationȱofȱrisksȱareȱevenȱmoreȱimportant.ȱ TwoȱaspectsȱofȱcollaborativeȱR&Dȱprojectsȱaddȱsignificantlyȱtoȱtheirȱ risk.ȱFirstlyȱtheyȱareȱcollaborativeȱandȱsecondlyȱtheyȱinvolveȱR&D.ȱ Thisȱ mayȱ seemȱ aȱ bitȱ flippantȱ andȱ obviousȱ butȱ traditionallyȱ theȱ managementȱofȱriskȱisȱanȱareaȱthatȱisȱoftenȱatȱbestȱneglected,ȱandȱatȱ worstȱignoredȱallȱtogetherȱinȱtheseȱtypesȱofȱproject.ȱ Types of risk Whenȱweȱthinkȱofȱrisks,ȱweȱtendȱtoȱthinkȱaboutȱthingsȱgoingȱwrong,ȱ howeverȱwithinȱprojects,ȱrisksȱcanȱbeȱdividedȱintoȱoperationalȱrisksȱ thatȱhaveȱanȱupȱasȱwellȱasȱaȱdownȱside,ȱandȱinsurableȱrisksȱthatȱonlyȱ haveȱaȱdownside.ȱ Operational risks Mostȱrisksȱwithinȱaȱprojectȱwillȱbeȱoperationalȱrisks.ȱTheseȱinclude:ȱ x theȱperformanceȱofȱtechnologyȱ x theȱavailabilityȱofȱresourcesȱ x responseȱofȱtheȱmarketȱtoȱtheȱnewȱideaȱ x andȱsometimesȱtheȱenvironmentȱorȱweatherȱ Theȱ expectationȱ isȱ thatȱ theȱ affectsȱ ofȱ theȱ riskȱ willȱ moreȱ oftenȱ beȱ negativeȱratherȱthanȱpositive.ȱForȱexampleȱtheȱimpactȱofȱtheȱlowestȱ possibleȱresponseȱofȱtheȱmarketȱtoȱtheȱproductȱwillȱbeȱgreaterȱthenȱ theȱmostȱpositive.ȱWeatherȱcanȱactȱinȱtheȱsameȱway.ȱWeatherȱcouldȱ stopȱfieldȱworkȱorȱevenȱdestroyȱpreviouslyȱinstalledȱequipmentȱbutȱ isȱunlikelyȱtoȱbeȱgoodȱenoughȱtoȱallowȱyouȱtoȱproceedȱatȱtwiceȱtheȱ expectedȱrate.ȱȱ Theȱ projectȱ planȱ shouldȱ reflectȱ theȱ bestȱ guessȱ ofȱ howȱ operationalȱ risksȱ areȱ mostȱ likelyȱ toȱ playȱ outȱ butȱ includeȱ contingencyȱplansȱ forȱ deviationsȱfromȱthisȱposition.ȱ


Insurable risks Insurableȱrisksȱleadȱtoȱdownsideȱonly.ȱTheyȱareȱcalledȱinsurableȱbutȱ theyȱ areȱ notȱ alwaysȱ coveredȱ byȱ theȱ partners’ȱ insuranceȱ policies.ȱ Insurableȱrisksȱinclude:ȱ x propertyȱorȱfacilityȱdamageȱ x consequentialȱlossesȱ x legalȱliabilityȱissuesȱ x personalȱlossȱorȱinjuryȱ Propertyȱdamageȱmayȱbeȱcausedȱbyȱfire,ȱfloodȱorȱdamageȱcausedȱtoȱ equipmentȱ duringȱ transportationȱ orȱ delivery.ȱ Consequentialȱ lossesȱ includeȱlostȱtimeȱdueȱtoȱfacilitiesȱbeingȱunavailableȱorȱthroughȱstaffȱ illness.ȱLegalȱliabilitiesȱmayȱariseȱfromȱlossȱorȱdamageȱofȱproperty,ȱ negligenceȱ onȱ theȱ partȱ ofȱ suppliers,ȱ orȱ injuryȱ toȱ aȱ thirdȱ party.ȱ Liabilitiesȱ mayȱ alsoȱ ariseȱ fromȱ contractualȱ problemsȱ betweenȱ theȱ partners.ȱFinallyȱthereȱareȱtheȱrisksȱassociatedȱwithȱmembersȱofȱtheȱ teamȱ orȱ generalȱ publicȱ beingȱ injuredȱ orȱ havingȱ propertyȱ damagedȱ throughȱtheȱrunningȱofȱexperimentsȱorȱtrials.ȱ Risk management Riskȱ managementȱ isȱ concernedȱ withȱ theȱ identificationȱ ofȱ risksȱ andȱ minimizingȱ theirȱ impactȱ onȱ theȱ project.ȱ Thereȱ areȱ fourȱ basicȱ stepsȱ involved:ȱȱ 1.ȱȱidentificationȱofȱtheȱsourcesȱofȱriskȱwithinȱtheȱprojectȱ 2.ȱȱdeterminationȱ ofȱ theȱ impactȱ andȱ likelihoodȱ ofȱ theȱ risksȱ occurringȱ 3.ȱȱdevelopingȱstrategiesȱforȱforecastingȱriskȱlikelihoodȱ 4.ȱȱdevelopingȱ strategiesȱ forȱ mitigatingȱ theȱ affectsȱ ofȱ theȱ risksȱ shouldȱtheyȱoccurȱ Identification of risks Unfortunatelyȱ thisȱ isȱ notȱ aȱ timeȱ toȱ beȱ optimistic.ȱ Youȱ needȱ toȱ identifyȱallȱtheȱthingsȱthatȱcanȱgoȱwrongȱwithȱtheȱproject.ȱHopefullyȱ theȱworkȱpackageȱleadersȱwillȱhaveȱmadeȱaȱgoodȱstartȱandȱwillȱhaveȱ


identifiedȱ theȱ mainȱ technicalȱ risksȱ thatȱ areȱ associatedȱ withȱ eachȱ workȱ package.ȱ Asȱ aȱ groupȱ youȱ willȱ alsoȱ needȱ toȱ lookȱ atȱ theȱ technicalȱ risksȱ associatedȱ withȱ theȱ transferȱ ofȱ workȱ fromȱ workȬ packageȱtoȱworkȱpackage.ȱȱ Theȱ technicalȱ risksȱ areȱ perhapsȱ theȱ easiestȱ toȱ consider,ȱ especiallyȱ whenȱtheȱprojectȱisȱtechnicalȱinȱnature.ȱHoweverȱinȱaddition,ȱthereȱ areȱ alsoȱ commercialȱ risks,ȱ managerialȱ risksȱ andȱ environmentalȱ risks.ȱ Commercialȱ risksȱ mayȱ includeȱ shiftingȱ marketȱ dynamicsȱ orȱ theȱ responseȱ ofȱtheȱ customersȱ toȱ yourȱ ideas.ȱ Forȱ exampleȱ whatȱ wouldȱ yourȱstrategyȱbeȱifȱyourȱuserȱgroup’sȱresponseȱtoȱtheȱideasȱwasȱpoorȱ orȱevenȱcritical?ȱHowȱwouldȱyouȱmanageȱtheȱsituation?ȱ Managerialȱrisksȱmightȱincludeȱstaffȱorȱresourceȱavailabilityȱissues,ȱ communicationȱ issuesȱ betweenȱ theȱ partnersȱ orȱ issuesȱ involvedȱ inȱ makingȱgrantȱclaims.ȱȱ Environmentalȱ risksȱ mightȱ includeȱ impactsȱ causedȱ byȱ climateȱ orȱ pollutionȱ whichȱ affectsȱ yourȱ workȱ orȱ itȱ mayȱ involveȱ yourȱ projectȱ creatingȱ environmentalȱ orȱ socialȱ problemsȱ forȱ others.ȱ Howȱ wouldȱ youȱ avoidȱ orȱ dealȱ withȱ complaintsȱ aboutȱ yourȱ fieldȱ trialsȱ thatȱ involvedȱ erectingȱ semiȬpermanentȱ structuresȱ orȱ createdȱ aȱ disturbanceȱorȱnuisanceȱforȱsomeoneȱelse?ȱ Whenȱ itȱ comesȱ toȱ identifyingȱ theȱ listȱ ofȱ risks,ȱ aȱ numberȱ ofȱ techniquesȱareȱavailable.ȱTheȱsimplestȱformȱofȱriskȱidentificationȱisȱ simplyȱ toȱ useȱ yourȱ expertȱ judgement,ȱ yourȱ intuitionȱ andȱ experience.ȱThisȱmayȱbeȱsufficientȱforȱsimpleȱprojectsȱbutȱforȱmoreȱ complexȱsituationsȱaȱmoreȱstructuredȱapproachȱwillȱbeȱrequired.ȱ Planȱdecompositionȱisȱaȱtechniqueȱthatȱinvolvesȱtheȱexaminationȱofȱ allȱ theȱ deliverables,ȱ workȱ packageȱ startsȱ andȱ endsȱ andȱ theȱ milestonesȱthatȱindicateȱtheȱbringingȱtogetherȱofȱaȱnumberȱofȱprojectȱ strands.ȱTheȱrisksȱassociatedȱwithȱsuccessfullyȱachievingȱeachȱpointȱ areȱthenȱconsidered.ȱ


Bothȱtheseȱtechniquesȱareȱgreatlyȱenhancedȱthroughȱbrainstormingȱ withȱtheȱwholeȱteam.ȱȱ Impact analysis Theȱ purposeȱ ofȱ impactȱ analysisȱ isȱ toȱ calculateȱ aȱ scoreȱ forȱ eachȱ ofȱ yourȱ identifiedȱ risksȱ soȱ thatȱ theyȱ canȱ beȱ rankȱ orderedȱ andȱ addressedȱinȱpriorityȱorder.ȱ Theȱ impactȱ ofȱ aȱ riskȱ isȱ oftenȱ calculatedȱ byȱ multiplyingȱ togetherȱ aȱ scoreȱforȱtheȱlikelihoodȱofȱtheȱriskȱoccurringȱandȱtheȱconsequenceȱofȱ theȱriskȱtoȱtheȱproject.ȱThisȱhasȱtheȱbenefitȱthatȱrisksȱthatȱareȱhighlyȱ unlikelyȱorȱofȱnoȱrealȱconsequenceȱareȱdemotedȱwhereȱasȱrisksȱthatȱ areȱbothȱlikelyȱandȱdamagingȱcanȱbeȱgivenȱpriority.ȱForȱexampleȱtheȱ riskȱ ofȱ aȱ meteorȱ strikingȱ yourȱ laboratoryȱ wouldȱ scoreȱ highlyȱ forȱ impactȱ (sorry!)ȱ butȱ veryȱ lowlyȱ forȱ likelihoodȱ andȱ wouldȱ thereforeȱ notȱ requireȱ furtherȱ thought.ȱ Deliveryȱ delaysȱ forȱ specialistȱ equipmentȱpurchasesȱmightȱscoreȱhighlyȱonȱbothȱcountsȱandȱwouldȱ thereforeȱbeȱmoreȱworthȱworryingȱabout.ȱ Scoringȱriskȱȱ Theȱ likelihoodȱ andȱ impactȱ shouldȱ bothȱ beȱ scoredȱ outȱ ofȱ 5ȱ resultingȱ inȱ riskȱ scoresȱ betweenȱ 1ȱ andȱ 25.ȱ Thisȱ shouldȱ beȱ sufficientȱtoȱprovideȱaȱsensibleȱrankȱorderȱofȱrisk.ȱAȱrangeȱofȱ5ȱ isȱ alsoȱ easyȱ toȱ discussȱ inȱ termsȱ ofȱ veryȱ lowȱ toȱ veryȱ highȱ (VL/L/M/H/VH).ȱ Theȱ scoresȱ forȱ eachȱ riskȱ shouldȱ beȱ reassessedȱ atȱ everyȱ reportingȱ periodȱ andȱ theȱ topȱ 10ȱ discussedȱ atȱ theȱ steeringȱ committeeȱmeeting.ȱ Forecasting risk Itȱ isȱ usefulȱ toȱ extendȱ theȱ riskȱ likelihoodȱ analysisȱ toȱ includeȱ aȱ forecastingȱ strategy.ȱ Forecastingȱ impliesȱ thatȱ youȱ haveȱ someȱ methodȱofȱpredictingȱwhetherȱaȱriskȱisȱmoreȱorȱlessȱlikelyȱinȱorderȱ


toȱ provideȱ aȱ warningȱ andȱ anȱ opportunityȱ toȱ instigateȱ yourȱ mitigationȱstrategy.ȱȱ Imagineȱ youȱ needȱ toȱ erectȱ anȱ instrumentȱ towerȱ thatȱ requiresȱ planningȱpermission.ȱThereȱisȱaȱriskȱthatȱplanningȱpermissionȱmayȱ beȱrefused.ȱTheȱimpactȱonȱtheȱprojectȱwouldȱbeȱhigh,ȱlet’sȱsayȱ4.ȱTheȱ likelihoodȱisȱmediumȱsoȱ3.ȱThisȱgivesȱaȱscoreȱofȱ12ȱwhichȱisȱworthyȱ ofȱ consideration.ȱ Aȱ simpleȱ forecastingȱ strategyȱ wouldȱ involveȱ discussingȱtheȱcaseȱwithȱtheȱauthoritiesȱandȱkeepingȱinȱcontactȱwithȱ themȱthroughoutȱtheȱapplicationȱprocess.ȱThatȱwayȱyouȱcanȱgaugeȱ yourȱchancesȱofȱsuccessȱasȱtheȱapplicationȱproceeds.ȱ Mitigating risk Thereȱareȱthreeȱtypesȱofȱriskȱmitigationȱstrategy:ȱ x Avoidanceȱ x Deflectionȱ x Contingencyȱ Byȱ wayȱ ofȱ example,ȱ imagineȱ aȱ sensitiveȱ fieldȱ instrumentȱ thatȱ doesn’tȱlikeȱexposureȱtoȱtheȱrain.ȱIfȱitȱisȱinȱplaceȱandȱbadȱweatherȱisȱ forecastȱ youȱ haveȱ threeȱ choices.ȱ Youȱ canȱ bringȱ itȱ indoorsȱ (avoidance),ȱcoverȱitȱupȱ(deflection)ȱorȱleaveȱitȱwhereȱitȱisȱandȱfixȱitȱ ifȱitȱdoesȱgetȱdamagedȱ(contingency).ȱ AvoidanceȱstrategiesȱareȱthoseȱthatȱinvolveȱyouȱreȬplanningȱaspectsȱ ofȱtheȱprojectȱsoȱthatȱtheȱrisksȱareȱneverȱrealized.ȱSuchȱstrategiesȱareȱ requiredȱwhereȱtheȱimpactȱisȱveryȱhighȱorȱevenȱfatalȱtoȱtheȱproject.ȱ Youȱmayȱbeȱableȱtoȱdevelopȱ avoidanceȱstrategiesȱ thatȱalthoughȱ doȱ notȱ reduceȱ theȱ impact,ȱ doȱ reduceȱ theȱ likelihoodȱ thusȱ loweringȱ theȱ overallȱriskȱscore.ȱ Deflectionȱ isȱ aȱ commonȱ techniqueȱ inȱ traditionalȱ projectȱ manȬ agementȱ andȱ involvesȱ deflectingȱ theȱ riskȱ outsideȱ ofȱ theȱ projectȱ eitherȱtoȱanȱinsuranceȱproviderȱorȱsomeȱotherȱthirdȱparty,ȱtypicallyȱ theȱ client.ȱ Deflectionȱ strategiesȱ areȱ thereforeȱ lessȱ commonȱ inȱ


collaborativeȱ R&Dȱ projectsȱ whereȱ thereȱ areȱ limitedȱ opportunitiesȱ forȱ‘passingȱtheȱbuck’.ȱ ContingencyȱplanningȱisȱperhapsȱmoreȱappropriateȱtoȱR&Dȱprojectsȱ thanȱ traditionalȱ projects.ȱ Traditionalȱ projectsȱ preferȱ toȱ avoidȱ risksȱ byȱusingȱwellȱunderstoodȱtechnologiesȱandȱprocesses.ȱR&Dȱprojectsȱ byȱ theirȱ veryȱ natureȱ involveȱ useȱ ofȱ unknownȱ technologiesȱ andȱ processesȱandȱtreatȱtheȱresultantȱrisksȱareȱwhollyȱacceptable.ȱȱ Theȱapproachȱsimplyȱinvolvesȱcreatingȱalternative,ȱorȱcontingency,ȱ plansȱ thatȱ areȱ actionedȱ shouldȱ aȱ riskȱ occur.ȱ Thisȱ canȱ eitherȱ beȱ carriedȱ outȱ atȱ theȱ workȱ packageȱ levelȱ orȱ atȱ theȱ projectȱ levelȱ dependingȱonȱtheȱrisk.ȱ

4.4 Project leadership Theȱ taskȱ ofȱ leadingȱ aȱ collaborativeȱ projectȱ shouldȱ neverȱ beȱ takenȱ lightly.ȱAȱtypicalȱprojectȱinvolvingȱsayȱfiveȱpartners,ȱthreeȱindustrialȱ andȱtwoȱacademic,ȱtoȱrunȱforȱthreeȱyearsȱwithȱaȱbudgetȱofȱ$1millionȱ willȱ requireȱ anȱ experiencedȱ projectȱ managerȱ devotingȱ atȱ leastȱ halfȱ ofȱtheirȱtimeȱtoȱtheȱrole.ȱIfȱtheȱprojectȱisȱmoreȱcomplexȱorȱinvolvesȱ collaborationsȱ thatȱ crossȱ nationalȱ boundaries,ȱ suchȱ asȱ aȱ Europeanȱ Frameworkȱ project,ȱ thenȱ theȱ positionȱ ofȱ projectȱ managerȱ willȱ beȱ aȱ fullȱtimeȱjob.ȱInȱadditionȱtoȱtheȱheavyȱtimeȱrequirements,ȱtheȱprojectȱ managerȱ alsoȱ needsȱ aȱ certainȱ degreeȱ ofȱ gravitasȱ orȱ cloutȱ thatȱ willȱ allowȱthemȱtoȱcontrolȱtheȱprojectȱandȱdealȱwithȱallȱtheȱpartners.ȱTheȱ projectȱ managerȱ needsȱ toȱ beȱ takenȱ seriouslyȱ byȱ theȱ wholeȱ team.ȱ Therefore,ȱalthoughȱitȱisȱtemptingȱtoȱgiveȱtheȱjobȱtoȱaȱjuniorȱmemberȱ ofȱstaff,ȱ betterȱresultsȱ willȱ comeȱfromȱtheȱappointmentȱofȱsomeoneȱ withȱ experienceȱ andȱ whoȱ commandsȱ theȱ respectȱ ofȱ allȱ theȱ consortiumȱmembers.ȱ Theȱprojectȱmanagerȱisȱresponsibleȱtoȱtheȱsteeringȱcommitteeȱforȱtheȱ dayȱtoȱdayȱrunningȱofȱtheȱproject.ȱTheȱmostȱvisibleȱaspectȱofȱthisȱisȱ reportingȱprogressȱbackȱtoȱtheȱsteeringȱcommitteeȱandȱtoȱanyȱofȱtheȱ

4.4ȱProjectȱleadershipȱȱȱȱȱȱ89ȱ

otherȱ stakeholdersȱ suchȱ asȱ fundingȱ bodies.ȱ Theȱ idealȱ personȱ willȱ thereforeȱbeȱsomeoneȱwithȱanȱeyeȱforȱdetail,ȱgoodȱinterpersonalȱandȱ organizationalȱskillsȱandȱwhoȱisȱcapableȱofȱwritingȱclearȱreports.ȱȱ Communication Theȱ secretȱ toȱ goodȱ collaborativeȱ projectȱ managementȱ isȱ goodȱ communicationȱ betweenȱ theȱ partners.ȱ Inȱ factȱ monitoringȱ officersȱ oftenȱ useȱ theȱ stateȱ ofȱ theȱ communicationsȱ withinȱ aȱ projectȱ asȱ aȱ gaugeȱtoȱhowȱwellȱtheȱprojectȱisȱworking,ȱsinceȱanȱearlyȱindicatorȱofȱ problemsȱisȱoftenȱaȱbreakdownȱofȱcommunications.ȱ Regularȱ technicalȱ meetingsȱ inȱ additionȱ toȱ theȱ mainȱ steeringȱ meetingsȱ areȱ anȱ excellentȱ wayȱ ofȱ managingȱ progressȱ butȱ thisȱ canȱ sometimesȱ beȱ inefficientȱ ifȱ partnersȱ areȱ notȱ localȱ toȱ eachȱ other.ȱ Whenȱ faceȱ toȱ faceȱ meetingsȱ areȱ notȱ practical,ȱ regularȱ videoȱ conferencingȱorȱvoiceȱconferenceȱcallingȱisȱaȱgoodȱwayȱofȱensuringȱ regularȱconversations.ȱȱ Electronicȱ communicationsȱ areȱ alsoȱ anȱ excellentȱ wayȱ ofȱ keepingȱ everyoneȱinformedȱofȱprogress.ȱȱ Inȱadditionȱtoȱaȱprojectȱwebsiteȱthatȱmightȱcontainȱaȱ‘partnersȱonly’ȱ areaȱforȱpostingȱprogressȱinformation,ȱmanyȱprojectsȱcreateȱaȱWikiȱ onȱ whichȱ allȱ theȱ projectȱ membersȱ canȱ quicklyȱ chatȱ andȱ leaveȱ messagesȱ andȱ notesȱ aboutȱ issuesȱ withinȱ theȱ project.ȱ Emailȱ groupsȱ andȱ instantȱmessagingȱareȱ alsoȱ commonȱ toolsȱ inȱ addressingȱ issuesȱ andȱkeepingȱeveryoneȱupȱtoȱdate.ȱ Keepingȱ upȱ toȱ dateȱ milestoneȱ andȱ deliverableȱ statusȱ informationȱ andȱaȱcopyȱofȱtheȱriskȱregisterȱonȱaȱprivateȱwebsiteȱorȱWikiȱisȱalsoȱ anȱexcellentȱwayȱofȱkeepingȱeveryoneȱawareȱofȱtheȱpressingȱissuesȱ andȱdeadlinesȱwithinȱtheȱproject.ȱ


4.5 Working with monitoring officers Monitoringȱofficersȱareȱoftenȱappointedȱbyȱfundingȱbodiesȱtoȱensureȱ thatȱ grantȱ fundsȱ areȱ beingȱ spentȱ appropriatelyȱ andȱ toȱ supportȱ theȱ projectȱinȱtheirȱdealingsȱwithȱtheȱfundingȱbody.ȱȱ Inȱ theȱ vastȱ majorityȱ ofȱ cases,ȱ theȱ monitoringȱ ofȱ theȱ projectȱ isȱ supportiveȱ andȱ positive.ȱ Thereȱ isȱ littleȱ pointȱ inȱ aȱ fundingȱ bodyȱ supportingȱyourȱprojectȱonlyȱtoȱhaveȱaȱmonitoringȱofficerȱtryȱtoȱtripȱ youȱ upȱ andȱ findȱ reasonsȱ toȱ cutȱ theȱ funding.ȱ Itȱ isȱ inȱ everyone’sȱ interestsȱ forȱ theȱ projectȱ toȱ succeedȱ andȱ theȱ monitoringȱ officerȱ shouldȱbeȱseenȱasȱaȱhelpfulȱadditionȱtoȱtheȱteam.ȱ Monitoringȱ officersȱ areȱ selectedȱ byȱ theȱ fundingȱ bodyȱ forȱ theirȱ experienceȱ andȱ knowledge,ȱ notȱ onlyȱ ofȱ projectȱ management,ȱ butȱ veryȱoftenȱforȱtheirȱtechnicalȱunderstandingȱofȱyourȱprojectȱareaȱasȱ well.ȱTheȱchancesȱareȱtheyȱhaveȱcomeȱacrossȱmanyȱofȱtheȱproblemsȱ youȱareȱ likelyȱtoȱencounterȱandȱwillȱ beȱ ableȱ toȱhelpȱ youȱ overcomeȱ them.ȱȱ Monitoringȱ officersȱ alsoȱ haveȱ theirȱownȱ objectivesȱ forȱ yourȱ projectȱ andȱ theyȱ areȱ worthȱ consideringȱ too.ȱ Mostȱ fundingȱ bodiesȱ useȱ externalȱ monitoringȱ staff.ȱ Thatȱ isȱ theyȱ areȱ notȱ employeesȱ ofȱ theȱ fundingȱ body,ȱ theyȱ areȱ consultantsȱ whoȱ haveȱ toȱ competeȱ forȱ theȱ opportunitiesȱ available.ȱ Beingȱ aȱ successfulȱ monitorȱ thereforeȱ reliesȱ onȱworkingȱwithȱsuccessfulȱprojectsȱandȱonȱpositiveȱfeedbackȱfromȱ theȱsupportedȱprojectȱaboutȱtheȱaddedȱvalueȱandȱsupportȱprovidedȱ byȱ theirȱ monitor.ȱ Itȱ isȱ thereforeȱ inȱ theȱ monitor’sȱ interestsȱ alsoȱ thatȱ theȱprojectȱdoesȱwellȱandȱthatȱtheirȱcontributionȱisȱappreciated.ȱȱ Whatȱallȱthisȱmeansȱisȱthatȱyouȱshouldȱkeepȱtheȱmonitoringȱofficerȱ fullyȱinformedȱaboutȱtheȱprogressȱofȱtheȱprojectȱandȱnotȱbeȱafraidȱtoȱ askȱforȱadviceȱandȱfeedbackȱasȱyouȱneedȱit.ȱ Weȱ willȱ lookȱ atȱ theȱ managementȱ ofȱ projectȱ problemsȱ inȱ chapterȱ 7,ȱ butȱ itȱ goesȱ withoutȱ sayingȱ thatȱ inȱ virtuallyȱ everyȱ scenario,ȱ theȱ


monitoringȱ officerȱ willȱ playȱ aȱ keyȱ roleȱ inȱ helpingȱ youȱ throughȱ theȱ problem.ȱKeepingȱthemȱupȱtoȱdateȱandȱhonestlyȱinformedȱcanȱonlyȱ beȱofȱbenefit.ȱ

4.6 So in conclusion 1.ȱ Soundȱ projectȱ managementȱ isȱ especiallyȱ importantȱ inȱ collȬ aborativeȱproject.ȱOfȱparticularȱimportanceȱare:ȱ x Projectȱcontrolȱ x Properȱplanningȱ x Theȱmanagementȱofȱriskȱ x Projectȱleadershipȱ x Workingȱwithȱmonitoringȱofficersȱ 2.ȱProjectȱcontrolȱisȱachievedȱthrough:ȱ x Aȱsteeringȱcommitteeȱstructureȱ x Theȱappointmentȱofȱanȱexperiencedȱprojectȱmanagerȱ 3.ȱDetailedȱplanningȱshouldȱbeȱcarriedȱoutȱonȱeachȱworkȱpackageȱasȱ itȱstarts,ȱtheȱsameȱplanningȱtechniquesȱdescribedȱinȱchapterȱ3ȱcanȱbeȱ usedȱforȱthisȱ‘rollingȱwave’ȱplanning.ȱ 4.ȱProjectȱrisksȱconsistȱofȱtwoȱtypes:ȱ x Operationalȱrisksȱ x Insurableȱrisksȱ 5.ȱTheȱmanagementȱofȱriskȱinvolves:ȱ x Theȱidentificationȱofȱrisksȱ x Impactȱanalysisȱ x Developingȱstrategiesȱforȱforecastingȱriskȱ x Developingȱstrategiesȱforȱmitigatingȱriskȱ 6.ȱProjectȱleadershipȱisȱessentialȱandȱrequires:ȱ x Aȱcompetentȱprojectȱmanagerȱ x Goodȱcommunicationȱbetweenȱtheȱpartnersȱ


7.ȱMonitoringȱofficersȱareȱaȱgoodȱsourceȱof:ȱ x Experienceȱ x Contactsȱ x Problemȱsolvingȱabilityȱ ȱ

5 Working with academics

Aȱ greatȱ manyȱ collaborativeȱ projectsȱ involveȱ academicȱ partnersȱ asȱ theȱ sourceȱ ofȱ newȱ technologyȱ orȱ toȱ exploitȱ aȱ specialistȱ skillȱ set,ȱ resourceȱorȱfacility.ȱThisȱchapterȱisȱprovidedȱtoȱbenefitȱindustrialistsȱ whoȱ haveȱ notȱ workedȱ withȱ academicsȱ before.ȱ Itȱ isȱ notȱ thatȱ academicsȱareȱstrange,ȱitȱisȱjustȱthatȱtheyȱhaveȱdifferentȱmotivationsȱ andȱ attitudesȱ fromȱ industrialȱ orȱ commercialȱ partners.ȱ Onceȱ understoodȱhowever,ȱtheyȱareȱformidableȱpartnersȱandȱaȱsourceȱofȱ outstandingȱcapability.ȱ Inȱorderȱtoȱconveyȱthisȱinformation,ȱIȱamȱgoingȱtoȱhaveȱtoȱgeneraliseȱ aȱ fairȱ bit.ȱ Iȱ doȱ notȱ wantȱ toȱ offendȱ anyȱ academicsȱ inȱ theȱ process,ȱ Iȱ usedȱtoȱbeȱoneȱandȱhaveȱworkedȱwithȱaȱgreatȱmanyȱoverȱtheȱyears.ȱIȱ hopeȱ youȱ canȱ useȱ thisȱ informationȱ toȱ recogniseȱ andȱ understandȱ certainȱtraitsȱsoȱthatȱyouȱareȱfirstlyȱnotȱsurprised,ȱandȱsecondlyȱcanȱ harnessȱ theȱ capabilitiesȱ thatȱ academicsȱ offerȱ asȱ effectivelyȱ asȱ possible.ȱ

5.1 Academic objectives Oneȱ ofȱ theȱ firstȱ thingsȱ thatȱ standȱ outȱ aboutȱ theȱ objectivesȱ ofȱ academicsȱforȱbeingȱinvolvedȱwithȱcollaborativeȱprojectsȱisȱthatȱtheȱ majorityȱofȱthemȱareȱqualitative.ȱThatȱisȱtheyȱtendȱtoȱfocusȱonȱtopicsȱ suchȱas:ȱ x Findingȱaȱusefulȱapplicationȱforȱtheirȱresearch,ȱ x ProvidingȱopportunitiesȱforȱPhDȱandȱpostȬdoctoralȱstudy,ȱ x Improvingȱtheirȱ personalȱ standingȱandȱtheȱ prestigeȱ ofȱ theirȱ institution,ȱ

94ȱȱȱȱȱȱ5ȱWorkingȱwithȱacademicsȱ

x x

Findingȱ aȱ mechanismȱ byȱ whichȱ toȱ furtherȱ theirȱ researchȱ interests,ȱ Publishingȱapplicationȱbasedȱpapersȱonȱtheirȱwork.ȱ

Whereȱfinancialȱobjectivesȱareȱinvolved,ȱtheyȱtendȱnotȱtoȱbeȱrelatedȱ toȱ profitȱ orȱ incomeȱ asȱ muchȱ asȱ toȱ fundȱ PhDȱ studentsȱ orȱ researchȱ staff.ȱȱ Thisȱ isȱ notȱ toȱ sayȱ thatȱ academicȱ institutionsȱ areȱ notȱ interestedȱ inȱ seeingȱ aȱ financialȱ returnȱ fromȱ theirȱ involvementȱ inȱ aȱ project.ȱ Universitiesȱ areȱ becomingȱ increasinglyȱ interestedȱ andȱ demandingȱ ofȱaȱfinancialȱreturn.ȱManyȱinstitutionsȱhaveȱsophisticatedȱcontractsȱ andȱ technologyȱtransferȱ departmentsȱwhichȱ workȱ hardȱtoȱ secureȱ aȱ fairȱreturnȱonȱprojectȱresultsȱinȱtheȱformȱofȱroyalties.ȱȱ Soȱ whatȱ doesȱ thisȱ meanȱ forȱ yourȱ relationshipȱ withȱ anȱ academicȱ partner?ȱ Firstlyȱ itȱ meansȱ thatȱ theȱ individualȱ academicȱ staffȱ youȱ workȱwithȱwillȱnotȱbeȱmotivatedȱbyȱtheȱmarketabilityȱofȱtheȱresultsȱ asȱ muchȱ asȱ theȱ researchȱ processȱ itself.ȱ Thisȱ meansȱ thatȱ inȱ orderȱ toȱ getȱtheȱmostȱoutȱofȱtheirȱinvolvement,ȱyouȱwillȱneedȱtoȱkeepȱthemȱ interestedȱ inȱ theȱ projectȱ workȱ andȱ technology,ȱ ratherȱ thanȱ theȱ eventualȱresultsȱorȱtheirȱexploitation.ȱ Givenȱthisȱinitialȱlackȱofȱinterestȱinȱtheȱexploitationȱofȱtheȱproject,ȱitȱ isȱ veryȱ importantȱ thatȱ theȱ academicȱ membersȱ ofȱ yourȱ teamȱ fullyȱ understandȱ theȱ widerȱ objectivesȱ ofȱ theȱ collaborativeȱ projectȱ andȱ howȱ theirȱ workȱ fitsȱ intoȱ achievingȱ them.ȱ Theȱ bestȱ resultsȱ areȱ achievedȱ whenȱ thisȱ extendsȱ toȱ theȱ researchȱ staffȱ andȱ studentsȱ inȱ additionȱtoȱtheȱprincipalȱinvestigatorsȱandȱprofessors.ȱ Inȱatȱtheȱdeepȱendȱ Arrangeȱ forȱ allȱ theȱ researchȱ staffȱ toȱ spendȱ someȱ timeȱ atȱ theȱ industrialȱ partners’ȱ premises,ȱ gettingȱ asȱ closeȱ asȱ possibleȱ toȱ theȱ workȱ theȱ projectȱ isȱ designedȱ toȱ assist.ȱ Iȱ don’tȱ meanȱ giveȱ themȱ aȱ tourȱ oneȱ afternoon,ȱ butȱ actuallyȱ haveȱ themȱ spendȱ aȱ

5.1ȱAcademicȱobjectivesȱȱȱȱȱȱ95ȱ

weekȱorȱtwoȱ immersedȱinȱ theȱenvironment.ȱTheȱ benefitsȱ thisȱ canȱreapȱforȱtheȱprojectȱcanȱbeȱprofound.ȱȱ Forȱexample,ȱyearsȱagoȱIȱranȱaȱcollaborativeȱprojectȱtoȱdevelopȱ intelligentȱ ultrasonicȱ diagnosticȱ technologiesȱ forȱ theȱ nonȬ destructiveȱtestingȱofȱsteelȱweldedȱjoints.ȱInȱtheȱfirstȱmonthȱofȱ theȱ threeȱ yearȱ project,ȱ weȱ arrangedȱ forȱ theȱ PhDȱ studentȱ workingȱ onȱ theȱ projectȱ toȱ doȱ aȱ 2ȱ weekȱ residentialȱ trainingȱ courseȱ toȱ becomeȱ aȱ certifiedȱ ultrasonicȱ testingȱ practitioner.ȱ Theȱ understandingȱ ofȱ theȱ processȱ andȱ theȱ knowledgeȱ ofȱ theȱ issuesȱ thatȱ heȱ cameȱ backȱ withȱ hadȱ aȱ profoundȱ effectȱ onȱ theȱ directionȱofȱtheȱprojectȱandȱitsȱeventualȱsuccess.ȱ Evenȱ ifȱ aȱ baptismȱ ofȱ thisȱ natureȱ isȱ notȱ practical,ȱ aȱ deepȱ understandingȱ ofȱ theȱ problemȱ andȱ theȱ formationȱ ofȱ goodȱ workingȱ relationshipsȱ canȱ stillȱ beȱ achievedȱ withȱ shortȱ termȱ secondmentsȱ orȱ shadowing.ȱ Tryȱ placingȱ theȱ researchȱ staffȱ inȱ theȱindustrialȱpartners’ȱdevelopmentȱcentreȱorȱshopȱfloorȱforȱaȱ week.ȱ Allowȱ themȱ toȱ workȱ onȱ fireȱ fightingȱ projectsȱ orȱ inȱ qualityȱ controlȱ whereȱ theyȱ canȱ seeȱ forȱ themselvesȱ theȱ issuesȱ thatȱareȱbeingȱfacedȱbyȱtheirȱindustrialȱandȱcommercialȱteamȱ mates.ȱ

Publications Publicationsȱareȱaȱveryȱimportantȱpartȱofȱacademicȱlife.ȱIndividualsȱ andȱdepartmentsȱareȱoftenȱjudgedȱonȱtheirȱpublicationȱrecord.ȱYourȱ academicȱ partnersȱ willȱ thereforeȱ beȱ veryȱ keenȱ toȱ writeȱ papersȱ forȱ conferencesȱ andȱ journalsȱ aboutȱ theȱ workȱ theyȱ areȱ doingȱ withȱ you.ȱ Fortunatelyȱmanyȱunderstandȱtheȱimpactȱthatȱpublicationsȱcanȱhaveȱ onȱ patentȱ protectionȱ andȱ commercialȱ success.ȱ Itȱ isȱ howeverȱ veryȱ worthwhileȱ toȱ writeȱ termsȱ intoȱ theȱ consortiumȱ agreementȱ thatȱ describeȱ theȱ publicationȱ processȱ toȱ allowȱ industrialȱ partnersȱ toȱ suggestȱ editsȱ orȱ evenȱ vetoȱ disseminationȱ thatȱ couldȱ damageȱ theirȱ prospects.ȱ


AȱbriefȱdiscussionȱofȱupȬcomingȱpublicationsȱshouldȱbeȱaȱstandardȱ agendaȱitemȱatȱsteeringȱcommitteeȱmeetings.ȱ

5.2 Attitude to risk Mostȱacademics’ȱtoleranceȱtoȱtechnicalȱriskȱisȱveryȱhigh.ȱItȱhasȱtoȱbeȱ inȱ orderȱ toȱ continuallyȱ pushȱ theȱ boundariesȱ ofȱ scienceȱ andȱ technology.ȱ Inȱ mostȱ cases,ȱ theirȱ toleranceȱ toȱ riskȱ willȱ beȱ muchȱ greaterȱthanȱtheirȱindustrialȱcounterparts.ȱMostȱresearchȱisȱpaidȱforȱ byȱ grantsȱ andȱ soȱ thereȱ isȱ veryȱ littleȱ financialȱ riskȱ involvedȱ inȱ aȱ projectȱ thatȱ failsȱ toȱ achieveȱ itsȱ technicalȱ objectives.ȱ Mostȱ researchȱ fundingȱ bodiesȱ areȱ happyȱ toȱ acceptȱ genuineȱ technicalȱ failuresȱ asȱ legitimate,ȱ allowingȱ staffȱ andȱ institutionsȱ toȱ continueȱ receivingȱ grantsȱevenȱafterȱpreviousȱprojectsȱhaveȱfailed.ȱ Itȱ isȱ importantȱ thereforeȱ thatȱ theȱ industrialȱ partnersȱ fullyȱ understandȱ theȱ levelȱ ofȱ technicalȱ riskȱ involvedȱ inȱ theȱ researchȱ aspectsȱofȱtheȱprojectȱ thatȱtheȱ academicsȱ willȱ carryȱout.ȱThisȱ couldȱ beȱ aȱ matterȱ ofȱ semantics,ȱ lowȱ riskȱ toȱ anȱ academicȱ mayȱ beȱ unacceptablyȱ highȱ toȱ anȱ industrialistȱ committingȱ theirȱ ownȱ scarceȱ resourcesȱtoȱtheȱproject.ȱȱ Financialȱ riskȱ onȱ theȱ otherȱ hand,ȱ isȱ aȱ completelyȱ differentȱ story.ȱ Mostȱacademicȱinstitutionsȱareȱincrediblyȱriskȱaverseȱwhenȱitȱcomesȱ toȱ funding.ȱ Aȱ commonȱ manifestationȱ ofȱ thisȱ canȱ beȱ seenȱ inȱ theȱ refusalȱofȱacademicȱinstitutionsȱtoȱevenȱadvertiseȱaȱjobȱpositionȱuntilȱ allȱ theȱ offerȱ lettersȱ andȱ consortiumȱ agreementsȱ haveȱ beenȱ signed.ȱ Thisȱcanȱcauseȱsevereȱdelaysȱatȱtheȱstartȱofȱaȱprojectȱasȱtheȱprocessȱ canȱ takeȱ severalȱ months.ȱ Lookingȱ inȱ fromȱ theȱ outside,ȱ industrialȱ partnersȱoftenȱdespairȱaboutȱtheȱtimeȱthisȱtakesȱandȱtheȱapparentlyȱ avoidableȱdelaysȱthatȱareȱcaused.ȱUnderstandingȱthisȱlimitationȱupȱ frontȱ isȱ thereforeȱ anȱ importantȱ partȱ ofȱ theȱ planningȱ process,ȱ beȱ realisticȱ aboutȱ howȱ quicklyȱ theȱ projectȱ canȱ startȱ afterȱ theȱ contractsȱ areȱsigned.ȱ

5.3ȱAgilityȱȱȱȱȱȱ97ȱ

5.3 Agility Industrialȱcompaniesȱareȱoftenȱhighlyȱagileȱandȱcapableȱofȱchangingȱ directionȱ andȱ focusȱ toȱ suitȱ aȱ newȱ marketȱ opportunity.ȱ Academicȱ partnersȱmayȱnotȱbeȱquiteȱsoȱwillingȱtoȱchangeȱdirectionȱsoȱreadily.ȱȱ Inȱmanyȱcases,ȱtheȱworkȱwillȱactuallyȱbeȱcarriedȱoutȱbyȱMastersȱorȱ PhDȱ students.ȱ Inȱ theseȱ cases,ȱ theȱ programmeȱ ofȱ studyȱ hasȱ beenȱ carefullyȱworkedȱoutȱandȱapprovedȱasȱbeingȱofȱsufficientȱtechnicalȱ andȱ academicȱ meritȱ toȱ allowȱ themȱ toȱ achieveȱ theirȱ qualification.ȱ Anyȱ changesȱ ofȱ directionȱ thatȱ couldȱ downgradeȱ theȱ meritȱ ofȱ theȱ workȱwillȱthereforeȱcauseȱconcernȱtoȱtheȱstudentȱandȱtheirȱacademicȱ supervisors.ȱȱ Usingȱ postȬdoctoralȱ researchȱ staffȱ doesȱ notȱ entirelyȱ avoidȱ thisȱ problemȱ asȱ theyȱ tendȱ toȱ wantȱ toȱ workȱ onȱ projectsȱ thatȱ canȱ leadȱ toȱ theirȱ firstȱ lectureshipȱ andȱ launchȱ theirȱ academicȱ careers.ȱ Ifȱ theȱ projectȱ changesȱ toȱ suchȱ anȱ extentȱ thatȱ itȱ noȱ longerȱ allowsȱ themȱ toȱ carryȱ outȱ valuableȱ academicȱ researchȱ orȱ toȱ produceȱ highȱ qualityȱ publications,ȱtheyȱareȱlikelyȱtoȱresistȱtheȱchangeȱorȱevenȱmoveȱawayȱ toȱanotherȱopportunity.ȱ Changesȱthatȱalterȱtheȱscaleȱofȱtheȱworkȱtoȱbeȱcarriedȱoutȱalsoȱcauseȱ significantȱproblemsȱforȱacademics.ȱResearchȱgroupsȱareȱfundedȱbyȱ manyȱ projectsȱ andȱ grants.ȱ Normallyȱ eachȱ individualȱ studentȱ orȱ researchȱassistantȱwillȱbeȱfundedȱbyȱaȱspecificȱproject.ȱIfȱtheȱdemandȱ fromȱ theȱ projectȱ wereȱ toȱ half,ȱ thereȱ isȱ notȱ normallyȱ anyȱ spareȱ fundingȱavailableȱwithȱwhichȱtoȱcoverȱtheȱremainderȱofȱtheirȱsalaryȱ costs.ȱEquallyȱifȱdemandȱwereȱtoȱincrease,ȱthereȱisȱseldomȱanyȱspareȱ resourceȱthatȱcouldȱtakeȱonȱtheȱwork.ȱAppointingȱnewȱstaffȱtoȱcarryȱ outȱtheȱadditionalȱworkȱwouldȱinvolveȱtheȱrecruitmentȱprocessȱonceȱ again,ȱ whichȱ couldȱ notȱ startȱ untilȱ theȱ increaseȱ wasȱ contractuallyȱ binding.ȱ Changesȱ toȱ theȱ durationȱ ofȱ projectsȱ areȱ alsoȱ problematic.ȱ Mostȱ universitiesȱ willȱ notȱ allowȱ aȱ PhDȱ studentȱ toȱ startȱ workȱ ifȱ thereȱ isȱ


insufficientȱ contractedȱ timeȱ availableȱ forȱ themȱ toȱ completeȱ theirȱ studies.ȱMostȱacademicȱemploymentȱcontractsȱareȱthereforeȱforȱlongȱ periods,ȱtypicallyȱ1ȱtoȱ4ȱyearsȱandȱusuallyȱcoverȱtheȱentireȱplannedȱ durationȱ ofȱ theȱ project.ȱ Ifȱ aȱ projectȱ isȱ shortened,ȱ theȱ institutionȱ isȱ unableȱ toȱ shortenȱ theirȱ employmentȱ contractȱ andȱ willȱ thereforeȱ beȱ exposedȱtoȱcostsȱitȱcannotȱrecoup.ȱItȱalsoȱfollowsȱthatȱpracticesȱsuchȱ asȱprobationaryȱperiodsȱorȱtheȱreplacementȱofȱstaffȱthatȱdon’tȱworkȱ outȱasȱhopedȱareȱveryȱdifficultȱtoȱimplement.ȱȱ Theȱ prospectȱ ofȱterminatingȱaȱfailingȱprojectȱwillȱnotȱ beȱlookedȱonȱ favourablyȱ byȱ academicȱ partners.ȱ Ifȱ theyȱ haveȱ issuedȱ longȱ termȱ employmentȱcontractsȱtoȱtheirȱstaff,ȱtheyȱareȱlikelyȱtoȱstronglyȱresistȱ earlyȱ terminationȱ ofȱ theȱ project.ȱ Itȱ isȱ forȱ thisȱ reasonȱ thatȱ industrialȱ partnersȱ mayȱ requireȱ theȱ consortiumȱ agreementȱ toȱ allowȱ terminationȱonȱtheȱunanimousȱvoteȱofȱtheȱindustrialȱpartnersȱonly.ȱ Industrialȱ partnersȱ wouldȱ notȱ wantȱ toȱ beȱ forcedȱ toȱ continueȱ toȱ investȱinȱaȱfailedȱprojectȱjustȱbecauseȱtheȱacademicȱpartnerȱwantsȱtoȱ coverȱtheirȱemploymentȱliabilities.ȱ

5.4 Academic seasons Theȱ academicȱ yearȱ isȱ highlyȱ seasonal.ȱ Theȱ yearȱ startsȱ inȱ Octoberȱ whenȱ theȱ newȱ intakeȱ ofȱ studentsȱ arriveȱ andȱ mostȱ academicsȱ areȱ thereforeȱ extremelyȱ busyȱ fromȱ midȱ Septemberȱ throughȱ toȱ December.ȱ Theȱ periodȱ fromȱ Januaryȱ toȱ Aprilȱ isȱ aȱ littleȱ easierȱ althoughȱthereȱisȱaȱlotȱofȱteachingȱgoingȱon.ȱMayȱtoȱlateȱJuneȱisȱtheȱ periodȱ whenȱ mostȱ examinationsȱ takeȱ placeȱ andȱ thereforeȱ manyȱ academicsȱareȱbusyȱwithȱmarkingȱandȱmoderatingȱactivities.ȱComeȱ Julyȱ andȱ Augustȱ andȱ youȱ hitȱ theȱ holidayȱ seasonȱ whichȱ runsȱ intoȱ September.ȱ Thisȱ timeȱ isȱ popularȱ forȱ conferencesȱ andȱ ofȱ courseȱ summerȱ schools.ȱ Findingȱ aȱ goodȱ timeȱ toȱ getȱ academics’ȱ completeȱ attentionȱcanȱthereforeȱbeȱaȱlittleȱdifficult,ȱbutȱunderstandingȱtheseȱ seasonsȱisȱtheȱfirstȱstepȱtoȱcopingȱwithȱthem.ȱ

5.5ȱOwnershipȱofȱIPRȱȱȱȱȱȱ99ȱ

Theȱ factȱ thatȱ aȱ largeȱ proportionȱ ofȱ projectsȱ involveȱ postȬgraduateȱ andȱ postȬdoctoralȱ studentsȱ alsoȱ presentsȱ limitationsȱ onȱ whenȱ projectsȱ canȱ actuallyȱ start.ȱ Mostȱ degreeȱ programmesȱ finishȱ inȱ theȱ earlyȱ summerȱ soȱ candidatesȱ forȱ researchȱ workȱ areȱ availableȱ forȱ aȱ limitedȱ period.ȱ Recruitingȱ inȱ theȱ springȱ willȱ beȱ tooȱ earlyȱ forȱ theȱ currentȱ cohortȱ andȱ theȱ goodȱ onesȱ fromȱ lastȱ yearȱ willȱ alreadyȱ beȱ employed.ȱ Forȱ thisȱ reason,ȱ academicȱ projectsȱ tendȱ toȱ startȱ inȱ lateȱ summerȱ orȱ earlyȱ autumn.ȱ Itȱ isȱ notȱ uncommonȱ forȱ collaborativeȱ projectsȱtoȱbeȱforcedȱtoȱfitȱinȱwithȱthisȱtimetableȱtoȱsuitȱtheȱacademicȱ recruitmentȱcycle.ȱ Oneȱ moreȱ observationȱ aboutȱ theȱ useȱ ofȱ postȱ doctoralȱ studentsȱ isȱ thatȱunlikeȱdegreeȱprogrammes,ȱtheirȱPhDȱstudyȱisȱseldomȱrunȱtoȱaȱ strictȱtimetable.ȱYouȱmayȱfindȱthatȱwhenȱtheȱstudentȱstartsȱworkingȱ onȱ yourȱ project,ȱ theyȱ areȱ stillȱ writingȱ upȱ theirȱ thesisȱ inȱ theirȱ spareȱ time.ȱ Activitiesȱ suchȱ asȱ finalȱ experimentsȱ andȱ vivasȱ couldȱ eatȱ intoȱ yourȱplannedȱresources.ȱThisȱisȱstandardȱpracticeȱandȱsoȱneedsȱtoȱbeȱ factoredȱintoȱtheȱplanningȱofȱtheȱproject.ȱ

5.5 Ownership of IPR Academicȱ institutionsȱ areȱ oftenȱ veryȱ keenȱ toȱ retainȱ theȱ intellectualȱ propertyȱrightsȱtoȱanyȱinventionsȱcreatedȱwithinȱtheirȱprojects.ȱTheȱ reasonsȱ forȱ thisȱ areȱ thatȱ developmentsȱ goȱ onȱ toȱ beȱ usedȱ inȱ theirȱ teachingȱ activitiesȱ andȱ asȱ backgroundȱ IPȱ forȱ futureȱ researchȱ projects.ȱ Thisȱ canȱ sometimesȱ causeȱ issuesȱ withȱ commercialȱ collaboratorsȱ whoȱ seeȱ theȱ ownershipȱ ofȱ IPRȱ asȱ crucialȱ forȱ theirȱ securityȱandȱinȱtheȱcaseȱofȱsmallȱcompanies,ȱtoȱassistȱinȱtheȱraisingȱ ofȱcapital.ȱ Whenȱ aȱ licenseȱ hasȱ beenȱ issuedȱ byȱ anȱ institution,ȱ itȱ willȱ expectȱ aȱ royaltyȱpaymentȱtoȱbeȱmadeȱonceȱtheȱIPȱisȱexploited.ȱThisȱwillȱstillȱ beȱ theȱ caseȱ evenȱ whenȱ theȱ institutionȱ hasȱ hadȱ allȱ itsȱ costsȱ paidȱ throughȱaȱgrant.ȱOneȱofȱtheȱfewȱexceptionsȱtoȱthisȱruleȱwouldȱbeȱifȱaȱ companyȱ wasȱ payingȱ anȱ academicȱ toȱ carryȱ outȱ workȱ asȱ aȱ


subcontractorȱ orȱ consultant.ȱ Inȱ theseȱ casesȱ itȱ isȱ usualȱ forȱ theȱ companyȱtoȱobtainȱanyȱIPRȱcreated.ȱHowever,ȱitȱisȱworthȱensuringȱ thisȱisȱtheȱcaseȱbyȱwritingȱitȱintoȱtheȱcontract.ȱȱ AcademicȱinstitutionsȱdoȱsometimesȱagreeȱtoȱtransferȱorȱassignȱIPRȱ toȱ collaboratingȱ companiesȱ toȱ assistȱ inȱ theȱ exploitationȱ butȱ oftenȱ requireȱsomeȱformȱofȱinsuranceȱinȱcaseȱtheȱcompanyȱfailsȱtoȱexploitȱ it.ȱ Inȱ theseȱ casesȱ itȱ isȱ possibleȱ forȱ theȱ institutionȱ toȱ grantȱ anȱ exclusiveȱrightȱtoȱtheȱIPȱinitiallyȱandȱcommitȱtoȱassignȱtheȱfullȱrightsȱ onceȱtheȱcompanyȱhasȱachievedȱsomeȱreasonableȱmilestone,ȱsuchȱasȱ theȱlaunchȱofȱaȱproduct.ȱ

5.6 Academic finance offices Inȱ general,ȱ cashȱ flowȱ isȱ notȱ somethingȱ thatȱ academicȱ institutionsȱ worryȱ aboutȱ aȱ greatȱ deal.ȱ Itȱ followsȱ thatȱ thereȱ isȱ seldomȱ greatȱ pressureȱ appliedȱ inȱ makingȱ timelyȱ grantȱ claimsȱ orȱ financialȱ expenditureȱstatements.ȱ Nowȱ thisȱisȱ aȱ generalisationȱ andȱ Iȱ haveȱ toȱ sayȱthatȱinȱmyȱexperience,ȱsomeȱinstitutionsȱareȱhighlyȱprofessionalȱ andȱefficient.ȱOnȱtheȱotherȱhand,ȱsomeȱareȱabsolutelyȱappallingȱandȱ seemȱ incapableȱ ofȱ makingȱ anȱ errorȱ freeȱ claimȱ withinȱ aȱ yearȱ ofȱ theȱ workȱbeingȱcarriedȱout.ȱ Theȱ riskȱ isȱ thatȱ grantȱ paymentsȱ toȱ industrialȱ partners,ȱ andȱ otherȱ academicȱ institutionsȱ forȱthatȱmatter,ȱcouldȱ beȱseriouslyȱdelayedȱ ifȱ youȱareȱunluckyȱwithȱyourȱacademicȱpartner’sȱfinanceȱoffice.ȱ Itȱ couldȱ beȱ veryȱ worthwhileȱ arrangingȱ aȱ meetingȱ betweenȱ theȱ projectȱ managerȱ andȱ theȱ financeȱ departmentsȱ ofȱ theȱ academicȱ partnersȱtoȱmakeȱsureȱtheyȱareȱbriefedȱonȱexactlyȱwhatȱisȱexpectedȱ fromȱ themȱ andȱ when.ȱ Ifȱ thereȱ isȱ anȱ appointedȱ monitoringȱ officerȱ attachedȱtoȱtheȱproject,ȱtheyȱmayȱhelpȱwithȱthisȱprocessȱasȱtheyȱmayȱ beȱ ableȱ toȱ defineȱ theȱ claimsȱ procedureȱ andȱ rulesȱ withȱ moreȱ authorityȱthanȱtheȱprojectȱmanager.ȱ


5.7 So in conclusion 1.ȱTheȱfollowingȱaspectsȱofȱworkingȱwithȱacademicȱpartnersȱshouldȱ beȱunderstood:ȱ x Theirȱobjectivesȱareȱmainlyȱqualitativeȱ x Theirȱtoleranceȱofȱtechnicalȱriskȱisȱhigh,ȱbutȱtheirȱtoleranceȱofȱ financialȱriskȱisȱveryȱlowȱ x Theirȱagilityȱisȱsometimesȱlimitedȱ x Theirȱyearȱisȱhighlyȱseasonalȱ x OwnershipȱofȱIPRȱisȱimportantȱtoȱthemȱ x Academicȱ financeȱ officesȱ differȱ inȱ qualityȱ andȱ mayȱ requireȱ briefingȱtoȱavoidȱdelaysȱ 2.ȱTheirȱobjectivesȱareȱlikelyȱtoȱinclude:ȱ x Findingȱapplicationsȱforȱtheirȱresearchȱ x ProvidingȱopportunitiesȱforȱPhDȱstudyȱ x Personalȱandȱinstitutionȱprestigeȱ x Furtheringȱresearchȱinterestsȱ x Publishingȱpapersȱonȱtheȱprojectȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ

6 Working with industrialists

Thisȱ chapterȱ isȱ providedȱ toȱ benefitȱ academicsȱ whoȱ haveȱ notȱ previouslyȱ workedȱ withȱ industrialȱ orȱ commercialȱ partnersȱ onȱ aȱ collaborativeȱproject.ȱAgainȱinȱorderȱtoȱconveyȱtheȱinformationȱIȱamȱ goingȱtoȱhaveȱtoȱgeneraliseȱaȱlittle.ȱȱ

6.1 Commercial motivations Beingȱinȱbusinessȱisȱaboutȱmakingȱmoney.ȱCompaniesȱexistȱinȱorderȱ toȱ provideȱ theirȱ shareholdersȱ withȱ aȱ returnȱ onȱ theirȱ investment,ȱ eitherȱ inȱ theȱ formȱ ofȱ regularȱ dividendȱ paymentsȱ whichȱ distributeȱ profits,ȱ orȱ inȱ theȱ formȱ ofȱ increasesȱ inȱ theȱ valueȱ ofȱ theirȱ shares.ȱ Companyȱ directors’ȱ firstȱ dutyȱ isȱ toȱ actȱ inȱ theȱ bestȱ interestsȱ ofȱ theȱ shareholders,ȱ inȱ otherȱ wordsȱ toȱ ensureȱ thatȱ theȱ companyȱ makesȱ themȱmoney.ȱȱ Itȱstandsȱtoȱreasonȱthereforeȱthatȱcompaniesȱwillȱonlyȱgetȱinvolvedȱ inȱ collaborativeȱ R&Dȱ projectsȱ ifȱ thereȱ isȱ aȱ returnȱ toȱ beȱ madeȱ thatȱ willȱbenefitȱtheirȱshareholders.ȱThisȱexplainsȱwhyȱtheȱcommonȱandȱ principleȱ objectivesȱ ofȱ companiesȱ withinȱ R&Dȱ projectsȱ areȱ predominantlyȱquantitative.ȱȱ Theȱ directors’ȱ dutyȱ toȱ actȱ inȱ theȱ interestsȱ ofȱ theȱ shareholdersȱ extendsȱ toȱ theȱ runningȱofȱ theȱ projectȱ afterȱ theȱ initialȱ commitmentsȱ haveȱ beenȱ made.ȱ Theȱ companyȱ shouldȱ continuallyȱ reviewȱ theȱ relevanceȱofȱtheȱprojectȱtoȱtheȱdirectionȱofȱtheȱcompanyȱandȱensureȱ thatȱtheȱoutcomesȱwillȱstillȱbeȱofȱbenefit.ȱIfȱtheȱprojectȱstartsȱtoȱfailȱorȱ losesȱitsȱrelevance,ȱthenȱitȱisȱtheȱdutyȱofȱtheȱdirectorsȱtoȱeitherȱmakeȱ changesȱ toȱ theȱ directionȱ ofȱ theȱ projectȱ toȱ keepȱ itȱ alignedȱ withȱ theȱ

104ȱȱȱȱȱȱ6ȱWorkingȱwithȱindustrialistsȱ

directionȱ ofȱ theȱ company,ȱ orȱ toȱ ceaseȱ investingȱ inȱ it.ȱ Itȱ isȱ notȱ uncommonȱ forȱ companiesȱ toȱ pullȱ outȱ ofȱ projectsȱ forȱ theseȱ reasonsȱ andȱweȱwillȱlookȱatȱhowȱtoȱdealȱwithȱthisȱinȱtheȱnextȱchapter.ȱ

6.2 Agility Inȱ generalȱ companiesȱ findȱ itȱ muchȱ easierȱ toȱ changeȱ directionȱ andȱ respondȱ toȱ newȱ opportunitiesȱ thanȱ doȱ academicȱ partners.ȱ Mostȱ contractsȱ ofȱ employmentȱ requireȱ onlyȱ aȱ oneȱ monthȱ noticeȱ periodȱ andȱ thereȱ isȱ seldomȱ aȱ problemȱ switchingȱ individualsȱ betweenȱ differentȱ projectsȱ andȱ activities.ȱ Newȱ staffȱ areȱ normallyȱ givenȱ aȱ probationaryȱ periodȱ inȱ whichȱ toȱ proveȱ themselvesȱ andȱ secureȱ longerȱ termȱ contracts.ȱ Theȱ abilityȱ ofȱ companiesȱ toȱ quicklyȱ expandȱ andȱ contractȱ toȱ suitȱ bothȱ theirȱ commercialȱ andȱ projectȱ needsȱ isȱ thereforeȱgreatlyȱenhanced.ȱ Thereȱisȱhoweverȱaȱdownsideȱtoȱthisȱlevelȱofȱagility.ȱCompaniesȱcanȱ beȱ easilyȱ distracted.ȱ Itȱ isȱ notȱ uncommonȱ toȱ findȱ thatȱ someoneȱ youȱ thoughtȱ wasȱ dedicatedȱ fullȱ timeȱ toȱ theȱ project,ȱ hasȱ actuallyȱ beenȱ draggedȱ offȱ toȱ workȱ onȱ somethingȱ moreȱ pressingȱ withȱ littleȱ orȱ noȱ notice.ȱThisȱisȱparticularlyȱtrueȱinȱsmallȱcompaniesȱwhereȱtechnicalȱ personnelȱ areȱ oftenȱ calledȱ uponȱ toȱ fixȱ productȱ problemsȱ orȱ helpȱ satisfyȱaȱlargeȱorder.ȱȱ Goodȱ communicationsȱ areȱ thereforeȱ veryȱ importantȱ toȱ ensureȱ thatȱ everyoneȱisȱawareȱofȱtheȱcompany’sȱfocusȱandȱtheȱcontinuedȱeffortȱ thatȱeveryoneȱisȱableȱtoȱprovide.ȱTheȱprojectȱmanagerȱshouldȱkeepȱ themselvesȱ awareȱ ofȱ whoȱ isȱ workingȱ onȱ theȱ projectȱ toȱ ensureȱ thatȱ theyȱ receiveȱ allȱ theȱ relevantȱ informationȱ andȱ resourcesȱ theyȱ need.ȱ Newȱ participantsȱ shouldȱ beȱ includedȱ inȱ anyȱ meetingsȱ withȱ otherȱ partnersȱ asȱ soonȱ asȱ possibleȱ toȱ introduceȱ themȱ toȱ theȱ restȱ ofȱ theȱ teamȱ andȱ toȱ ensureȱ theyȱ fullyȱ understandȱ theȱ objectivesȱ ofȱ theȱ project.ȱ

6.3ȱCashȱflowȱȱȱȱȱȱ105ȱ

6.3 Cash flow Inȱ business,ȱ cashȱ isȱ king!ȱ Ifȱ aȱ companyȱ runsȱ outȱ ofȱ cashȱ andȱ isȱ unableȱtoȱpayȱitsȱsuppliersȱandȱcreditors,ȱitȱbecomesȱinsolventȱandȱ hasȱ toȱ callȱ inȱ theȱ receivers.ȱ Aȱ lotȱ ofȱ effortȱ andȱ carefulȱ attentionȱ isȱ thereforeȱpaidȱtoȱtheȱaccountsȱandȱtheȱflowȱofȱcashȱinȱandȱoutȱofȱtheȱ company.ȱObviouslyȱtheȱsmallerȱtheȱcompanyȱtheȱmoreȱsusceptibleȱ theyȱ canȱ beȱ toȱ theȱ problem,ȱ butȱ cashȱ flowȱ isȱ importantȱ toȱ allȱ businesses.ȱ Problemsȱ canȱ occurȱ withȱ cashȱ flowȱ evenȱ inȱ apparentlyȱ highlyȱ successfulȱandȱprofitableȱcompanies.ȱTheȱprincipleȱdriversȱcomeȱnotȱ fromȱtheȱmarginsȱaȱcompanyȱcanȱmake,ȱnorȱtheirȱsalesȱsuccess,ȱbutȱ inȱtheȱtimeȱthatȱelapsesȱbetweenȱthemȱhavingȱtoȱpayȱtheirȱsuppliersȱ andȱ themȱ receivingȱ paymentȱ fromȱ theirȱ customers.ȱ Imagineȱ aȱ companyȱ thatȱ makesȱ widgetsȱ forȱ $5ȱ andȱ sellsȱ themȱ forȱ $10.ȱ Ifȱ theȱ customerȱ paysȱ upȱ frontȱ andȱ theȱ rawȱ materialȱ suppliersȱ areȱ paidȱ later,ȱthenȱthereȱisȱnoȱproblemȱatȱall.ȱHoweverȱifȱtheȱsuppliersȱneedȱ payingȱ upȱ frontȱ butȱ theȱ customersȱ don’tȱ payȱ untilȱ 30ȱ daysȱ afterȱ delivery,ȱtheȱcompanyȱisȱleftȱwithȱaȱcashȱshortageȱbetweenȱtheȱtwoȱ events.ȱSuddenȱlargeȱordersȱorȱsustainedȱsalesȱgrowthȱcanȱputȱhugeȱ demandsȱ onȱ cashȱ flow.ȱ Companiesȱ needȱ toȱ haveȱ anȱ healthyȱ cashȱ balanceȱorȱworkingȱcapitalȱinȱorderȱtoȱsurvive.ȱ Grantȱ paymentsȱ areȱ normallyȱ madeȱ inȱ arrearsȱ andȱ typicallyȱ onlyȱ onceȱperȱquarter.ȱThisȱmeansȱthatȱtheȱcompanyȱwillȱbeȱspendingȱitsȱ ownȱ moneyȱ onȱ salaries,ȱ materials,ȱ evenȱ largeȱ capitalȱ equipmentȱ purchases,ȱ oftenȱ upȱ toȱ sixȱ monthsȱ beforeȱ theyȱ willȱ receiveȱ theirȱ grantȱ contribution.ȱ Thisȱ hasȱ twoȱ importantȱ ramifications.ȱ Firstly,ȱ eachȱcompanyȱinȱtheȱconsortiumȱneedsȱtoȱbeȱcashȱrichȱenoughȱtoȱbeȱ ableȱ toȱ affordȱ toȱ takeȱ partȱ inȱ theȱ project.ȱ Secondly,ȱ theȱ processȱ ofȱ claimingȱ forȱ theȱ grantȱ eachȱ quarterȱ needsȱ toȱ runȱ likeȱ clockworkȱ ifȱ unȬdueȱstrainȱisȱnotȱtoȱbeȱexertedȱonȱtheȱcommercialȱpartners.ȱ ȱ


Gettingȱtouchȱonȱclaimsȱ Inȱmanyȱcases,ȱgrantȱclaimsȱareȱmadeȱbyȱaȱleadȱpartnerȱwho,ȱ onceȱ paid,ȱ distributesȱ theȱ grantȱ toȱ theȱ others.ȱ Ifȱ theȱ claimȱ isȱ delayedȱdueȱtoȱoneȱpartnerȱbeingȱslowȱwithȱtheirȱclaimȱdata,ȱ everyoneȱhasȱtoȱwait.ȱ Putȱ pressureȱ onȱ theȱ partnersȱ byȱ settingȱ aȱ deadlineȱ byȱ whichȱ allȱ claimȱ dataȱ isȱ required.ȱ Thoseȱ thatȱ areȱ lateȱ missȱ theȱ boatȱ andȱ haveȱ toȱ waitȱ untilȱ theȱ nextȱ claimȱ period.ȱ Thisȱ willȱ allowȱ theȱ efficientȱ partnersȱ toȱ beȱ paidȱ withoutȱ delayȱ andȱ focusȱ theȱ attentionȱofȱtheȱslowerȱones.ȱ Toȱ operateȱ aȱ schemeȱ likeȱ this,ȱ youȱ mayȱ needȱ toȱ writeȱ theȱ detailsȱ intoȱ theȱ termsȱ ofȱ yourȱ consortiumȱ agreement.ȱ Thatȱ wayȱallȱtheȱpartnersȱareȱfullyȱawareȱofȱitȱandȱhaveȱgivenȱtheirȱ approval.ȱ Theȱcommercialȱattitudeȱtoȱcashȱflowȱisȱinȱdirectȱcontradictionȱtoȱtheȱ attitudeȱofȱacademicȱinstitutions.ȱItȱisȱthereforeȱveryȱimportantȱthatȱ allȱ partnersȱ withinȱ yourȱ consortiumȱ understandȱ theȱ pressuresȱ andȱ workȱ togetherȱ toȱ ensureȱ thatȱ grantȱ claimsȱ areȱ madeȱ inȱ aȱ timelyȱ manner.ȱȱ

6.4 Micro companies Microȱcompaniesȱincludeȱveryȱsmallȱ startȬupsȱ withȱ onlyȱ aȱ handfulȱ ofȱ employees,ȱ specialistȱ contractingȱ groupsȱ andȱ individualȱ selfȱ employedȱ consultants.ȱ Itȱ isȱ notȱ uncommonȱ toȱ haveȱ suchȱ smallȱ enterprisesȱ involvedȱ inȱ R&Dȱ projectsȱ becauseȱ theyȱ tendȱ toȱ offerȱ excitingȱ newȱ technologiesȱ orȱ specialistȱ skillsȱ notȱ easilyȱ foundȱ elsewhere.ȱ Microȱ companyȱ involvementȱ inȱ collaborativeȱ projectsȱ canȱ beȱ veryȱ valuable,ȱ howeverȱ theyȱ areȱ evenȱ moreȱ sensitiveȱ toȱ theȱ agilityȱ andȱ cashȱflowȱissuesȱmentionedȱaboveȱthanȱnormal.ȱ

6.4ȱMicroȱcompaniesȱȱȱȱȱȱ107ȱ

Technologyȱ basedȱ startȬupȱ companiesȱ tendȱ notȱ toȱ haveȱ revenueȱ streamsȱ fromȱ productȱ orȱ serviceȱ sales.ȱ Theyȱ mightȱ haveȱ ventureȱ capitalȱ investmentȱ orȱ areȱ beingȱ supportedȱ byȱ theirȱ directorsȱ ownȱ funds.ȱ Itȱ isȱ onlyȱ fairȱ thatȱ theȱ otherȱ membersȱ ofȱ theȱ consortiumȱ satisfyȱ themselvesȱ thatȱ theyȱ haveȱ theȱ financialȱ strengthȱ toȱ beȱ involvedȱinȱtheȱprojectȱandȱthatȱtheyȱwillȱbeȱableȱtoȱdeliverȱagainstȱ theirȱ promises.ȱ Thisȱ mightȱ extendȱ toȱ theirȱ abilityȱ toȱ exploitȱ theȱ resultsȱasȱwellȱasȱsimplyȱcarryingȱoutȱtheȱprojectȱwork.ȱ Toȱbeȱinvolvedȱinȱtheȱproject,ȱtheȱoutcomesȱmustȱbeȱ100%ȱalignedȱtoȱ aȱstartȬupȱcompany’sȱbusinessȱplans.ȱAȱstartȬupȱthatȱhopsȱfromȱoneȱ excitingȱ projectȱ toȱ theȱ nextȱ willȱ notȱ stayȱ inȱ businessȱ forȱ long.ȱ Theȱ otherȱ partnersȱ mayȱ thereforeȱ wishȱ toȱ understandȱ theȱ motivationsȱ andȱobjectivesȱofȱveryȱsmallȱcompaniesȱbeforeȱcommittingȱtoȱworkȱ withȱthem.ȱ Smallȱ consultingȱ groupsȱ andȱ individualsȱ canȱ alsoȱ beȱ aȱ causeȱ ofȱ concern.ȱWhilstȱtheyȱoftenȱbringȱaȱspecialistȱknowledgeȱorȱskillȱsetȱ toȱtheȱproject,ȱyouȱwillȱneedȱtoȱbeȱsureȱthatȱtheyȱcanȱcopeȱwithȱtheȱ cashȱ flowȱ issuesȱ mentionedȱ aboveȱ andȱ thatȱ theyȱ haveȱ sufficientȱ additionalȱ incomeȱorȱresourcesȱ toȱbeȱ ableȱ toȱprovideȱtheirȱshareȱ ofȱ theȱinvestmentȱinȱtheȱproject.ȱ Itȱ isȱ notȱ uncommonȱ toȱ seeȱ consultantsȱ claimingȱ thatȱ theirȱ timeȱ isȱ theirȱcontribution.ȱForȱexampleȱtheyȱmayȱsayȱthatȱtheirȱrateȱisȱ$500ȱaȱ dayȱ andȱ thatȱ theyȱ willȱ putȱ inȱ 100ȱ daysȱ ofȱ effort,ȱ thusȱ makeȱ aȱ contributionȱ ofȱ $50,000.ȱ Grantȱ fundingȱ bodiesȱ oftenȱ takeȱ exceptionȱ toȱ thisȱ kindȱ ofȱ arrangement,ȱ especiallyȱ whenȱ theyȱ areȱ expectedȱ toȱ payȱgrantȱagainstȱit.ȱTheȱconcernȱisȱthatȱtheȱconsultantȱisȱnotȱpayingȱ themselvesȱ $500ȱ perȱ dayȱ butȱ isȱ actuallyȱ survivingȱ onȱ theȱ grantȱ alone.ȱ Effectivelyȱ theȱ consultantȱ isȱ notȱ investingȱ anythingȱ inȱ theȱ projectȱ themselvesȱ exceptȱ aȱ nebulousȱ ‘lossȱ ofȱ potentialȱ income’.ȱ Fundingȱ bodiesȱ areȱ thereforeȱ particularlyȱ cautiousȱ ofȱ newȱ consultantsȱ withȱ noȱ tradingȱ historyȱ orȱ otherȱ visibleȱ meansȱ ofȱ support.ȱȱ


Theȱ sameȱ issuesȱ canȱ sometimesȱ beȱ foundȱ inȱ veryȱ smallȱ companiesȱ whereȱtheȱdirectorsȱandȱstaffȱareȱpaidȱveryȱsmallȱsalariesȱbutȱgivenȱ generousȱ shareȱ optionsȱ orȱ dividends,ȱ oftenȱ forȱ taxȱ efficiencyȱ reasons.ȱ Fundingȱ bodiesȱ doȱ notȱ oftenȱ acceptȱ sharesȱ andȱ dividendsȱ asȱ aȱ directȱ salaryȱ costȱ asȱ strictlyȱ speakingȱ theyȱ areȱ aȱ profitȱ distributionȱ andȱ thereforeȱ ineligibleȱ asȱ aȱ projectȱ expense.ȱ Thisȱ canȱ meanȱ thatȱ theȱ grantȱ isȱ severelyȱ reduced.ȱ Forȱ exampleȱ imagineȱ aȱ directorȱofȱaȱsmallȱcompanyȱwhoȱtakesȱaȱsalaryȱofȱ$5,000ȱbutȱisȱthenȱ paidȱ $45,000ȱ inȱ dividends.ȱ Theyȱ mightȱ claimȱ thatȱ theirȱ salaryȱ isȱ basedȱonȱtheȱtotalȱ$50,000ȱresultingȱinȱaȱdayȱrateȱ(fromȱtableȱ1.1)ȱofȱ $258.ȱ Ifȱ theyȱ doȱ 100ȱ daysȱ workȱ thatȱ wouldȱ beȱ aȱ costȱ ofȱ $25,800ȱ ofȱ whichȱtheyȱcouldȱgetȱaȱ50%ȱgrantȱworthȱ$12,900.ȱTheȱfundingȱbodyȱ wouldȱtakeȱaȱdifferentȱviewȱsayingȱthatȱtheȱeligibleȱsalaryȱwasȱjustȱ $5,000,ȱ theȱ dayȱ rateȱ $25.80ȱ andȱ thereforeȱ theȱ grantȱ wouldȱ beȱ justȱ $1,290.ȱThisȱdropȱinȱgrantȱisȱlikelyȱtoȱoutȱwayȱanyȱtaxȱadvantages.ȱ PartnerȱorȱsubȬcontractor?ȱ Thereȱareȱpotentialȱsolutionsȱtoȱtheȱproblemsȱassociatedȱwithȱ involvingȱ microȬcompaniesȱ inȱ yourȱ project.ȱ Usingȱ aȱ conȬ sultantȱorȱstartȬupȱasȱaȱsubȬcontractorȱratherȱthanȱaȱpartnerȱisȱ oneȱ ofȱ them.ȱ Asȱ aȱ subȬcontractorȱ theyȱ couldȱ receiveȱ fullȱ paymentȱforȱtheirȱinvolvementȱinȱtheȱproject.ȱOfȱcourseȱthereȱ hasȱtoȱbeȱaȱtradeȱoffȱandȱthisȱ oftenȱcomesȱ inȱ theȱformȱ ofȱlessȱ beneficialȱ accessȱ toȱ theȱ projectȱ resultsȱ orȱ newȱ IPR.ȱ Thereȱ isȱ potentialȱ forȱ negotiationȱ however,ȱ betweenȱ accessȱ toȱ theȱ projectȱresultsȱandȱtheȱratesȱpaidȱforȱtheȱwork.ȱForȱexampleȱifȱ theȱsubȬcontractorȱcarriedȱoutȱtheȱworkȱat,ȱorȱevenȱbelowȱcost,ȱ theyȱ couldȱ haveȱ accessȱ toȱ moreȱ ofȱ theȱ benefitsȱ thanȱ ifȱ theyȱ chargedȱfullȱcommercialȱrates.ȱ Itȱ mightȱ alsoȱ beȱ possibleȱ toȱ mixȱ theȱ roleȱ ofȱ partnerȱ andȱ subȬ contractor.ȱTheyȱcouldȱbeȱfullyȱpaidȱforȱsomeȱaspectsȱofȱtheirȱ workȱbutȱactȱasȱcostȱsharingȱpartnersȱforȱotherȱaspects.ȱTheirȱ accessȱtoȱbeȱprojectȱbenefitsȱwouldȱthenȱbeȱlimitedȱtoȱtheȱcostȱ sharingȱaspects.ȱ


6.5 So in conclusion 1.ȱTheȱfollowingȱaspectsȱofȱworkingȱwithȱIndustrialȱpartnersȱshouldȱ beȱunderstood:ȱ x Theirȱobjectivesȱareȱmainlyȱquantitativeȱ x Theirȱagilityȱcanȱbeȱveryȱhighȱ x Cashȱflowȱisȱveryȱimportantȱ 2.ȱMicroȱcompaniesȱpresentȱspecialȱissuesȱforȱcollaborativeȱprojectsȱ including:ȱ x Limitedȱorȱnoȱrevenueȱstreamsȱ x Easeȱofȱdistractionȱ x Commercialȱvulnerabilityȱ x Exploitationȱstrengthȱ ȱ

7 Managing problems

Projectsȱalwaysȱcarryȱrisks.ȱR&Dȱprojectsȱareȱparticularlyȱriskyȱdueȱ toȱ theȱ factȱ thatȱ theȱ innovationsȱ mightȱ notȱ workȱ asȱ hoped.ȱ Inȱ additionȱtoȱthisȱ fundamentalȱrisk,ȱ collaborativeȱ projectsȱalsoȱsufferȱ fromȱ theirȱ ownȱ uniqueȱ setȱ ofȱ issuesȱ andȱ problems.ȱ Thisȱ chapterȱ coversȱsomeȱofȱtheȱcommonȱpitfallsȱandȱprovidesȱguidanceȱonȱhowȱ toȱspot,ȱmanageȱandȱhopefullyȱovercomeȱthem.ȱ Theȱfirstȱthingȱtoȱrecogniseȱisȱthatȱproblemsȱareȱcommonȱplaceȱandȱ youȱ willȱ needȱ toȱ beȱ vigilantȱ toȱ spotȱ themȱ andȱ dealȱ withȱ themȱ inȱ time.ȱ

7.1 Partner problems Itȱ mayȱ comeȱ asȱ aȱ surprise,ȱ butȱ oneȱ ofȱ theȱ mostȱ commonȱ problemsȱ encounteredȱ byȱ collaborativeȱ projectsȱ isȱ theȱ withdrawalȱ ofȱ oneȱ ofȱ theȱ partners.ȱ Evenȱ moreȱ surprisingly,ȱ oneȱ ofȱ theȱ mostȱ dangerousȱ timesȱforȱpartnerȱlossȱisȱbeforeȱtheȱprojectȱhasȱevenȱstarted.ȱ Aȱ commonȱ causeȱ ofȱ partnersȱ failingȱ toȱ startȱ aȱ projectȱ isȱ thatȱ theȱ consortiumȱ cannotȱ agreeȱ theȱ termsȱ ofȱ theȱ consortiumȱ agreement.ȱ Areasȱ suchȱ asȱ theȱ ownershipȱ andȱ accessȱ toȱ theȱ newȱ intellectualȱ propertyȱ andȱ theȱ shareȱ ofȱ liabilitiesȱ areȱ oftenȱ areasȱ ofȱ contentionȱ betweenȱpartners.ȱItȱisȱthereforeȱveryȱimportantȱtoȱstartȱdiscussionsȱ aboutȱ theȱ consortiumȱ agreementȱ asȱ earlyȱ asȱ possibleȱ andȱ certainlyȱ beforeȱanyȱgrantȱapplicationsȱareȱmade.ȱ ȱ

112ȱȱȱȱȱȱ7ȱManagingȱproblemsȱ

Whenȱtoȱbringȱinȱtheȱlawyers?ȱ Theȱconsortiumȱagreementȱisȱaȱlegalȱdocumentȱthatȱbindsȱtheȱ partnersȱ andȱ thereforeȱ allȱ partnersȱ mustȱ seekȱ legalȱ adviceȱ inȱ itsȱ draftingȱ andȱ agreement.ȱ However,ȱ theȱ pointȱ atȱ whichȱ theȱ lawyersȱgetȱinvolvedȱshouldȱbeȱcarefullyȱmanaged.ȱTooȱearlyȱ andȱ theyȱ canȱ createȱ argumentsȱ andȱ badȱ feelingsȱ withinȱ yourȱ nascentȱconsortiumȱbeforeȱanyȱworkȱhasȱevenȱstarted.ȱȱ Inȱ myȱ experienceȱ itȱ isȱ bestȱ forȱ theȱ partnersȱ themselvesȱ toȱ discussȱandȱagreeȱtheȱbasicȱtermsȱofȱtheȱagreementȱfirst,ȱthenȱ bringȱinȱtheȱlawyersȱtoȱpaperȱitȱupȱproperlyȱandȱcheckȱforȱanyȱ problems.ȱ Anotherȱ causeȱ ofȱ failureȱ atȱ anȱ earlyȱ stageȱ isȱ lackȱ ofȱ internalȱ companyȱ communications.ȱ Sometimesȱ theȱ technicalȱ staffȱ canȱ getȱ veryȱ excitedȱ aboutȱ aȱ projectȱ andȱ pursueȱ theȱ negotiationsȱ andȱ planningȱ withoutȱ gettingȱ theȱ fullȱ approvalȱ ofȱ theirȱ seniorȱ managementȱ orȱ board.ȱ Whenȱ theȱ projectȱ isȱ finallyȱ broughtȱ toȱ theȱ attentionȱ ofȱtheȱ seniorȱ management,ȱ itȱ canȱ comeȱ asȱ aȱ severeȱ shockȱ whenȱ theyȱ decideȱ toȱ passȱ onȱ theȱ opportunity.ȱ Quiteȱ obviously,ȱ goodȱcommunicationsȱcanȱhelpȱavoidȱthisȱproblem.ȱMakeȱsureȱbothȱ youȱ andȱ yourȱ partnersȱ areȱ keepingȱ allȱ theȱ keyȱ purseȬholdersȱ informedȱwithȱwhatȱyouȱareȱplanning,ȱwhyȱyouȱareȱplanningȱitȱandȱ howȱmuchȱitȱisȱgoingȱtoȱcost.ȱȱ Thisȱ appliesȱ toȱ academicȱ partnersȱ too.ȱ Universityȱ researchȱ officesȱ veryȱ oftenȱ haveȱ toȱ signȱ offȱ onȱ costsȱ andȱ contracts.ȱ Anȱ individualȱ academicȱ mayȱ sayȱ theyȱ canȱ carryȱ outȱ workȱ forȱ oneȱ price,ȱ onlyȱ toȱ findȱ thatȱ theȱ researchȱ officeȱ insistsȱ onȱ fullȱ overheadȱ recoveryȱ andȱ theȱ costsȱ areȱ actuallyȱ quiteȱ different.ȱ Makeȱ sureȱ theseȱ officesȱ areȱ involvedȱearlyȱtoȱavoidȱanyȱconfusion.ȱ Onceȱ theȱ projectȱ isȱ underway,ȱ partnerȱ problemsȱ canȱ unfortunatelyȱ stillȱ occur.ȱ Thereȱ areȱ manyȱ potentialȱ reasonsȱ forȱ partnersȱ toȱ loseȱ interestȱinȱtheȱproject.ȱSomeȱofȱtheȱmostȱcommonȱinclude:ȱ

7.1ȱPartnerȱproblemsȱȱȱȱȱȱ113ȱ

x x x x

Changesȱ inȱ companyȱ structureȱ orȱ theȱ movementȱ ofȱ personnelȱ Mergerȱandȱacquisitionȱactivityȱ Changesȱinȱbusinessȱdirectionȱorȱmotivationȱ Theȱcompanyȱfallingȱonȱhardȱtimesȱ

Whenȱ companiesȱ goȱ throughȱ structuralȱ changes,ȱ theȱ rationalȱ andȱ commitmentȱ toȱ carryȱ outȱ existingȱ projectsȱ oftenȱ needsȱ toȱ beȱ reȬ established.ȱThisȱisȱparticularlyȱtrueȱwhenȱtheȱresponsibilityȱforȱtheȱ projectȱ movesȱ fromȱ oneȱ departmentȱ orȱ divisionȱ toȱ another.ȱ Theȱ situationȱ isȱ madeȱ worseȱ stillȱ ifȱ theȱ reȬstructuringȱ necessitatesȱ changesȱ inȱ theȱ personnelȱ workingȱ onȱ theȱ project,ȱ particularlyȱ theȱ project’sȱ championȱ withinȱ theȱ business.ȱ Thisȱ canȱ beȱ aȱ veryȱ dangerousȱtimeȱforȱaȱpartner’sȱroleȱinȱyourȱproject.ȱȱ Oneȱ wayȱ ofȱ copingȱ withȱ theȱ changeȱ isȱ toȱ recogniseȱ asȱ earlyȱ asȱ possibleȱ thatȱ itȱ isȱ happeningȱ andȱ toȱ proȬactivelyȱ workȱ withȱ yourȱ contactsȱ inȱ theȱ organisationȱ toȱ makeȱ theȱ transitionȱ asȱ smoothȱ asȱ possible.ȱ Theȱ existingȱ championȱ willȱ firstlyȱ needȱ toȱ reaffirmȱ theȱ objectivesȱ ofȱ theȱ partnerȱ forȱ beingȱ inȱ theȱ projectȱ andȱ confirmȱ withȱ seniorȱ managementȱ thatȱ theyȱ remainȱ validȱ andȱ important.ȱ Ifȱ aȱ changeȱ inȱ personnelȱ isȱ involved,ȱ theȱ existingȱ champion,ȱ togetherȱ withȱ theȱ projectȱ manager,ȱ shouldȱ meetȱ theȱ intendedȱ replacementȱ andȱ‘sell’ȱthemȱonȱtheȱproject,ȱitsȱprogressȱtoȱdateȱandȱtheȱobjectives.ȱ Theȱ moreȱ theȱ newȱ peopleȱ understandȱ aboutȱ theȱ projectȱ andȱ itsȱ benefits,ȱtheȱbetterȱtheȱchancesȱofȱaȱsmoothȱtransition.ȱ Thisȱ isȱ howeverȱ likelyȱ toȱ beȱ aȱ veryȱ busy,ȱ ifȱ notȱ stressfulȱ timeȱ forȱ bothȱ theȱ existingȱ andȱ newȱ personnel.ȱ Findingȱ timeȱ toȱ talkȱ aboutȱ legacyȱprojectsȱmayȱnotȱbeȱeasy,ȱsoȱtheȱprojectȱmanagerȱhasȱaȱroleȱinȱ ensuringȱ itȱ happensȱ andȱ helpingȱ toȱ facilitateȱ theȱ handȱ over.ȱ Itȱ isȱ afterȱ all,ȱ importantȱ thatȱ theȱ projectȱ managerȱ quicklyȱ formsȱ aȱ goodȱ workingȱrelationshipȱwithȱtheȱnewȱpersonnel.ȱ Similarȱ pressuresȱ occurȱ whenȱ aȱ partnerȱ isȱ takenȱ overȱ orȱ mergesȱ withȱ anotherȱ organisation.ȱ Afterȱ anȱ acquisition,ȱ theȱ newȱ ownersȱ


tendȱ toȱ makeȱ sweepingȱ changesȱ throughoutȱ theȱ organisationȱ andȱ oftenȱ thisȱ affectsȱ legacyȱ projectsȱ thatȱ theȱ companyȱ isȱ involvedȱ in.ȱ Theȱprocessȱtoȱdealȱwithȱthisȱisȱveryȱsimilarȱtoȱtheȱprocessȱdescribedȱ aboveȱ forȱ reȬstructuring.ȱ Theȱ internalȱ projectȱ championȱ needsȱ toȱ firstȱ reȬaffirmȱ theȱ projectȱ objectivesȱ andȱ tryȱ toȱ structureȱ themȱ inȱ aȱ wayȱ thatȱ willȱ beȱ attractiveȱ toȱ theȱ newȱ owners.ȱ Onceȱ achieved,ȱ theȱ championȱ andȱ projectȱ managerȱ shouldȱ meetȱ withȱ theȱ newȱ manȬ agementȱ andȱ ‘sell’ȱ theȱ projectȱ toȱ themȱ toȱ gainȱ theirȱ commitment.ȱ Someȱchangesȱtoȱtheȱfocusȱofȱtheȱprojectȱmayȱbeȱrequiredȱtoȱsuitȱtheȱ newȱowner’sȱnewȱobjectivesȱforȱtheȱcompany.ȱ Changesȱinȱbusinessȱdirectionȱareȱmuchȱharderȱtoȱcopeȱwith.ȱInȱthisȱ scenarioȱ theȱ companyȱ shiftsȱ itsȱ focusȱ inȱ suchȱ aȱ wayȱ thatȱ theirȱ objectivesȱ forȱ beingȱ inȱ theȱ projectȱ canȱ diminishedȱ orȱ disappearȱ entirely.ȱ Thisȱ couldȱ beȱ causedȱ byȱ allȱ mannerȱ ofȱ commercialȱ orȱ technicalȱreasonsȱsuchȱas:ȱ x theȱemergenceȱofȱaȱcheaperȱalternativeȱtechnology,ȱ x theȱneedȱtoȱfocusȱresourcesȱonȱaȱmoreȱpressingȱproblem,ȱ x aȱ changeȱ inȱ theȱ marketȱ dynamicsȱ thatȱ adverselyȱ affectsȱ theȱ commercialȱopportunitiesȱofȱtheȱproject,ȱ x theȱemergenceȱofȱaȱmoreȱexcitingȱopportunityȱelsewhere…ȱ Ifȱthisȱoccurs,ȱtheȱonlyȱchanceȱforȱtheirȱcontinuedȱinvolvementȱisȱtoȱ changeȱtheȱprojectȱinȱsuchȱaȱwayȱasȱtoȱmakeȱitȱattractiveȱagain.ȱThisȱ isȱ moreȱ easilyȱ saidȱ thanȱ doneȱ however,ȱ asȱ theȱ otherȱ partnersȱ mayȱ notȱ wishȱ toȱ seeȱ theȱ projectȱ changeȱ tooȱ much.ȱ Inȱ theseȱ casesȱ theȱ projectȱmanagerȱneedsȱtoȱworkȱcloselyȱwithȱallȱtheȱpartnersȱtoȱtryȱtoȱ refocusȱtheȱprojectȱtoȱeveryone’sȱsatisfaction.ȱAȱsteeringȱcommitteeȱ meetingȱ shouldȱ beȱ calledȱ asȱ soonȱ asȱ possibleȱ toȱ discussȱ theȱ issueȱ andȱagreeȱanyȱchangesȱinȱtheȱproject’sȱdirection.ȱ Ifȱaȱpartnerȱcompanyȱfallsȱonȱhardȱtimes,ȱperhapsȱthroughȱdecliningȱ salesȱ orȱ otherȱ failures,ȱ theyȱ mayȱ feelȱ theȱ needȱ toȱ cutȱ backȱ onȱ activitiesȱthatȱareȱnotȱgeneratingȱimmediateȱincomeȱorȱprofit.ȱR&Dȱ projectsȱ areȱ oftenȱ highȱ onȱ theȱ listȱ ofȱ ‘nonȬessential’ȱ activitiesȱ thatȱ canȱ beȱ cutȱ backȱ on.ȱ Inȱ thisȱ situationȱ itȱ mayȱ beȱ possibleȱ forȱ theȱ


partnerȱtoȱremainȱinȱtheȱprojectȱbutȱreduceȱtheirȱcommitmentȱtoȱit,ȱ eitherȱ temporarilyȱ orȱ permanently.ȱ Callȱ aȱ steeringȱ committeeȱ meetingȱtoȱdiscussȱhowȱbestȱtoȱmoveȱforward.ȱ Knowȱwhenȱtoȱcallȱitȱaȱdayȱȱ Upȱ toȱ aȱ pointȱ itȱ isȱ bestȱ inȱ allȱ theseȱ circumstancesȱ toȱ tryȱ toȱ resolveȱ partnerȱ issuesȱ byȱ sellingȱ theȱ projectȱ toȱ newȱ management,ȱ changingȱ theȱ focusȱ ofȱ theȱ projectȱ toȱ suitȱ changingȱsituations,ȱorȱadjustingȱtheȱlevelȱofȱinvolvementȱforȱ particularȱ partners.ȱ However,ȱ thereȱ comesȱ aȱ pointȱ whenȱ theȱ changesȱ requiredȱinȱorderȱtoȱkeepȱaȱ partnerȱ interestedȱ inȱtheȱ projectȱ becomeȱ tooȱ muchȱ forȱ theȱ restȱ ofȱ theȱ consortiumȱ toȱ bear.ȱȱ Forcingȱ aȱ partnerȱ toȱ stayȱ withȱ aȱ projectȱ becauseȱ theyȱ signedȱ anȱ agreementȱ isȱ likelyȱ toȱ beȱ highlyȱ counterproductive.ȱ Withoutȱtheȱproperȱmotivation,ȱtheirȱ contributionȱ isȱ unlikelyȱ toȱ beȱ helpfulȱ orȱ productiveȱ toȱ theȱ project.ȱ Moraleȱ withinȱ theȱ otherȱpartnersȱwillȱalsoȱsufferȱasȱaȱresult.ȱ Ifȱthereȱisȱnoȱreasonableȱwayȱtoȱkeepȱaȱpartnerȱinvolvedȱinȱtheȱ project,ȱ theȱ restȱ ofȱ youȱ shouldȱ letȱ themȱ go.ȱ Theȱ consortiumȱ agreementȱ shouldȱ allowȱ thisȱ toȱ takeȱ placeȱ andȱ describeȱ theȱ process.ȱYouȱshouldȱthenȱworkȱtogetherȱtoȱeitherȱreȬdistributeȱ theȱworkȱorȱfindȱaȱreplacementȱpartner.ȱ Ifȱ aȱ partnerȱ doesȱ decideȱ toȱ pullȱ outȱ ofȱ theȱ project,ȱ theȱ projectȱ managerȱshouldȱcallȱanȱemergencyȱprojectȱsteeringȱmeetingȱasȱsoonȱ asȱpossible.ȱTheȱimplicationsȱtoȱtheȱprojectȱshouldȱbeȱdiscussedȱandȱ understoodȱandȱaȱrecoveryȱplanȱputȱintoȱeffect.ȱ Theȱfirstȱthingȱtoȱlookȱatȱisȱtheȱramificationsȱtoȱtheȱexistingȱprojectȱ plan.ȱ Allȱ theȱ tasksȱ thatȱ theȱ departingȱ partnerȱ wasȱ goingȱ toȱ beȱ involvedȱ inȱ willȱ needȱ toȱ beȱ identifiedȱ andȱ examinedȱ inȱ turnȱ toȱ decide:ȱ


x

x x

ifȱtheȱtaskȱisȱstillȱrelevant,ȱitȱmayȱbeȱthatȱitȱonlyȱsatisfiedȱtheȱ objectivesȱofȱtheȱdepartingȱpartner,ȱinȱwhichȱcaseȱitȱcouldȱbeȱ deletedȱfromȱtheȱplan,ȱ ifȱitȱisȱstillȱrelevant,ȱhowȱwillȱtheȱtaskȱbeȱaffected,ȱ andȱwhatȱworkȱcouldȱbeȱreȬdistributedȱtoȱtheȱotherȱpartners,ȱ

Ifȱ itȱ isȱ possibleȱ toȱ completelyȱ redistributeȱ theȱ workȱ betweenȱ theȱ remainingȱ consortiumȱ membersȱ withoutȱ adverselyȱ affectingȱ theȱ projectȱ outcomes,ȱ andȱ providedȱ theȱ partnersȱ haveȱ theȱ resources,ȱ thenȱ thisȱ isȱ theȱ bestȱ approachȱ toȱ take.ȱ Ifȱ howeverȱ theȱ partnersȱ cannotȱfillȱinȱallȱtheȱgapsȱthenȱanȱalternativeȱwillȱneedȱtoȱbeȱfound.ȱ Ifȱ theȱ projectȱ isȱ grantȱ fundedȱ itȱ isȱ importantȱ thatȱ youȱ notifyȱ theȱ fundingȱ organisationȱ andȱ anyȱ monitoringȱ officerȱ atȱ thisȱ point,ȱ firstlyȱ toȱ keepȱ themȱ informed,ȱ andȱ secondlyȱ toȱ askȱ forȱ theirȱ assistanceȱinȱlookingȱforȱaȱsolution.ȱ Providingȱrelationsȱwithȱtheȱdepartingȱpartnerȱareȱnotȱtooȱstrainedȱ byȱthisȱstage,ȱoneȱpossibilityȱmightȱbeȱtoȱaskȱthemȱifȱtheyȱwouldȱbeȱ preparedȱ toȱ doȱ theȱ workȱ asȱ subȬcontractors.ȱ Obviouslyȱ theyȱ couldȱ notȱ shareȱ inȱ theȱ benefitsȱ orȱ anyȱ newȱ intellectualȱ propertyȱ butȱ theyȱ mightȱ beȱ willingȱ toȱ atȱ leastȱ carryȱ outȱ theirȱ remainingȱ workȱ forȱ aȱ reasonableȱfee.ȱȱ Ifȱthisȱisȱnotȱpossible,ȱthenȱaȱnewȱpartnerȱwillȱneedȱtoȱbeȱfoundȱandȱ broughtȱintoȱtheȱproject.ȱItȱmayȱbeȱnecessaryȱtoȱhaltȱtheȱprojectȱuntilȱ aȱ replacementȱ partnerȱ canȱ beȱ found.ȱ Thisȱ mayȱ causeȱ difficultyȱ forȱ partnersȱwithȱdedicatedȱprojectȱstaffȱthatȱcannotȱbeȱtemporarilyȱreȬ deployedȱandȱsoȱwillȱneedȱtoȱdiscussedȱandȱagreedȱbyȱtheȱsteeringȱ committee.ȱ Finding replacement partners Theȱprocessȱofȱfindingȱaȱreplacementȱpartnerȱisȱratherȱlikeȱrepeatingȱ theȱprocessȱofȱbuildingȱtheȱconsortiumȱinȱtheȱfirstȱplace.ȱItȱisȱbestȱtoȱ involveȱallȱtheȱremainingȱpartnersȱinȱgeneratingȱaȱlistȱofȱpotentialsȱ


andȱ seeingȱ ifȱ anybodyȱ hasȱ anyȱ contactsȱ thatȱ couldȱ beȱ usefulȱ inȱ makingȱ anȱ approach.ȱ Ifȱ theȱ projectȱ isȱ grantȱ fundedȱ youȱ shouldȱ involveȱ theȱ monitoringȱ officerȱ too,ȱ theyȱ mayȱ haveȱ goodȱ contactsȱ thatȱmightȱbeȱhelpful.ȱ Theȱ approachȱ toȱ aȱ newȱ potentialȱ partnerȱ willȱ beȱ aȱ littleȱ differentȱ fromȱnormalȱasȱtheȱworkȱisȱalreadyȱunderwayȱandȱyouȱareȱlookingȱ forȱsomeoneȱtoȱgetȱinvolvedȱasȱquicklyȱasȱpossible.ȱOnȱyourȱsideȱisȱ theȱ factȱ thatȱ theȱ projectȱ isȱ alreadyȱ runningȱ andȱ thatȱ aȱ newȱpartnerȱ couldȱthereforeȱbenefitȱfromȱtheȱworkȱthatȱhasȱalreadyȱtakenȱplace.ȱ Thereȱmayȱalsoȱbeȱguaranteedȱgrantȱcontributionsȱavailable.ȱȱ Youȱwillȱneedȱtoȱhaveȱaȱconvincingȱargumentȱreadyȱtoȱexplainȱwhyȱ theȱ oldȱ partnerȱ leftȱ theȱ project.ȱ Theȱ newȱ partnerȱ willȱ wantȱ toȱ reassureȱthemselvesȱthatȱtheyȱareȱnotȱmakingȱaȱmistakeȱbyȱjumpingȱ intoȱaȱprojectȱthatȱothersȱhaveȱmanagedȱtoȱescape.ȱYouȱmayȱevenȱbeȱ ableȱ toȱ arrangeȱ forȱ theȱ oldȱ partnerȱ toȱ placeȱ aȱ callȱ explainingȱ theirȱ reasons,ȱjustȱtoȱputȱtheirȱmindsȱatȱrest.ȱ Sinceȱ theȱprojectȱ isȱ alreadyȱ underway,ȱconfidentialityȱ mayȱ beȱ veryȱ important.ȱYouȱshouldȱhaveȱpotentialȱpartnersȱsignȱnonȬdisclosureȱ agreementsȱ beforeȱ youȱ tellȱ themȱ tooȱ muchȱ aboutȱ theȱ projectȱ andȱ yourȱearlyȱresults.ȱ Whenȱ theȱ newȱ partnerȱ joins,ȱ theȱ projectȱ plansȱ willȱ usuallyȱ requireȱ someȱmodificationȱtoȱsuitȱtheȱresourcesȱandȱmotivationsȱofȱtheȱnewȱ partner.ȱ Itȱ isȱ bestȱ toȱ involveȱ allȱ theȱ partnersȱ inȱthisȱ processȱ soȱ thatȱ everybodyȱ canȱ understandȱ andȱ approveȱ theȱ necessaryȱ changes.ȱ Holdȱaȱfullȱsteeringȱcommitteeȱmeetingȱinvitingȱtheȱnewȱpartnerȱtoȱ meetȱ theȱ wholeȱ teamȱ andȱ getȱ involvedȱ straightȱ away.ȱ Treatȱ theȱ meetingȱ asȱ aȱ celebrationȱ ofȱ theirȱ involvementȱ andȱ spendȱ plentyȱ ofȱ timeȱ describingȱ theȱ workȱ carriedȱ outȱ toȱ dateȱ toȱ bringȱ themȱ upȱ toȱ speed.ȱ Describeȱ theȱ aspectsȱ ofȱ theȱ projectȱ planȱ thatȱ theyȱ areȱ toȱ beȱ involvedȱinȱthenȱrunȱaȱreȬplanningȱworkshopȱtoȱmodifyȱandȱupdateȱ theȱprojectȱplan.ȱȱ


Fortunately,ȱ academicȱ partnersȱ doȱ notȱ oftenȱ pullȱ outȱ ofȱ collȬ aborativeȱ projects.ȱ Theirȱ motivationsȱ andȱ focusȱ areȱ notȱ easilyȱ shiftedȱ andȱ evenȱ reȬstructuringȱ isȱ unlikelyȱ toȱ affectȱ aȱ runningȱ project.ȱ Thereȱ areȱ howeverȱ occasionsȱ whenȱ aȱ keyȱ academicȱ mightȱ moveȱ institutionsȱ inȱ theȱ middleȱ ofȱ aȱ project.ȱ Ifȱ thisȱ happensȱ thereȱ areȱ twoȱ basicȱ alternatives.ȱ Aȱ differentȱ academicȱ inȱ theȱ sameȱ institutionȱmightȱbeȱableȱtoȱtakeȱonȱtheȱproject.ȱIfȱthisȱisȱtheȱcase,ȱtheȱ projectȱ managerȱ shouldȱ meetȱ withȱ themȱ toȱ ensureȱ theyȱ areȱ bothȱ competentȱandȱcommittedȱtoȱtheȱproject.ȱ Theȱ alternativeȱ isȱ forȱ theȱ projectȱ toȱ moveȱ withȱ theȱ academic.ȱ Inȱ otherȱ words,ȱ forȱ theȱ academic’sȱ newȱ institutionȱ toȱ replaceȱ theȱ oldȱ oneȱinȱtheȱconsortium.ȱThisȱisȱmoreȱcomplexȱandȱwouldȱrelyȱonȱtheȱ oldȱ institutionȱbeingȱhappyȱ toȱloseȱ theirȱ interestȱinȱ theȱprojectȱandȱ anyȱ potentialȱ intellectualȱ propertyȱ thatȱ mightȱ beȱ generated.ȱ Theȱ researchȱsupportȱofficesȱofȱbothȱinstitutionsȱwillȱneedȱtoȱbeȱinvolvedȱ inȱthisȱnegotiation.ȱAgainȱtheȱprojectȱmanagerȱneedsȱtoȱgetȱinvolvedȱ toȱ helpȱ negotiateȱ aȱ transitionȱ thatȱ isȱ beneficialȱ toȱ theȱ smoothȱ progressȱofȱtheȱproject.ȱ Justȱ oneȱ furtherȱ thoughtȱ onȱ partnerȱ problems.ȱ Sometimesȱ itȱ isȱ theȱ project’sȱ leadȱ partnerȱ thatȱ isȱ theȱ oneȱ toȱ loseȱ interestȱ inȱ theȱ project.ȱ Toȱbeȱfairȱtoȱtheȱotherȱpartners,ȱasȱsoonȱasȱaȱchangeȱisȱrecognised,ȱaȱ steeringȱcommitteeȱmeetingȱshouldȱbeȱcalledȱandȱtheȱrolesȱofȱprojectȱ leadȱandȱprojectȱmanagerȱtransferredȱtoȱoneȱofȱtheȱotherȱpartnersȱifȱ necessary.ȱȱ

7.2 Relationship breakdowns Itȱisȱaȱsadȱfactȱofȱlifeȱthatȱoccasionallyȱpartnersȱcanȱfallȱout.ȱThisȱcanȱ happenȱatȱanȱindividualȱlevelȱwhereȱthereȱisȱaȱclashȱofȱpersonalitiesȱ orȱmisunderstandingsȱorȱatȱtheȱcorporateȱlevel.ȱȱ Corporateȱ levelȱ disagreementsȱ couldȱ comeȱ fromȱ anywhereȱ andȱ beȱ aboutȱanything.ȱTheyȱmightȱrangeȱfrom:ȱ

7.2ȱRelationshipȱbreakdownsȱȱȱȱȱȱ119ȱ

x x x x x

theȱbreakdownȱofȱanotherȱprojectȱthatȱspillsȱoverȱintoȱyours,ȱ legalȱactionȱbeingȱtakenȱbetweenȱthemȱ competitionȱinȱtheȱmarketplace,ȱ aȱnegativeȱadvertisingȱcampaign,ȱ aȱproblemȱoverȱcommonȱstandardsȱadoption.ȱ

Theȱ projectȱ managerȱ shouldȱ beȱ onȱ theȱ lookoutȱ forȱ signsȱ ofȱ suchȱ problems.ȱ Ifȱ theȱ conflictȱ isȱ atȱ aȱ seniorȱ managementȱ orȱ boardȱ levelȱ thereȱ willȱ beȱ littleȱ thatȱ theȱ projectȱ canȱ doȱ toȱ calmȱ thingsȱ down,ȱ exceptȱ itȱ mightȱ beȱ usefulȱ toȱ remindȱ theȱ partiesȱ ofȱ theȱ goodȱ workȱ theyȱareȱdoingȱtogether.ȱ Theȱ poachingȱ ofȱ staffȱ canȱ alsoȱ causeȱ conflictȱ betweenȱ partners.ȱ Inȱ thisȱ scenarioȱ oneȱ partnerȱ triesȱ toȱ recruitȱ theȱ keyȱ technicalȱ staffȱ ofȱ another.ȱ Thisȱ canȱ causeȱsuchȱ severeȱ resentmentȱandȱ problemsȱ thatȱ someȱ projectsȱ buildȱ aȱ nonȬsolicitationȱ clauseȱ intoȱ theirȱ consortiumȱ agreementȱtoȱprohibitȱsuchȱactions.ȱ Conflictsȱbetweenȱindividualsȱinȱtheȱprojectȱcanȱbeȱjustȱasȱdamagingȱ butȱ fortunatelyȱ areȱ easierȱ toȱ dealȱ with.ȱ Againȱ theȱ projectȱ managerȱ shouldȱ tryȱ toȱ identifyȱ whenȱ problemsȱ mayȱ beȱ occurring,ȱ sitȱ theȱ partiesȱdownȱandȱtryȱtoȱbrokerȱaȱtruce.ȱȱ Identifyingȱconflictsȱȱ Theȱ firstȱ signsȱ thatȱ aȱ projectȱ mayȱ beȱ sufferingȱ fromȱ aȱ breakdownȱ inȱ relationsȱ areȱ theȱ levelȱ andȱ spiritȱ ofȱ communicationȱ betweenȱ theȱ partners.ȱ Ifȱ theȱ partnersȱ areȱ regularlyȱ communicatingȱ andȱ allȱ contributingȱ toȱ groupȱ discussionȱboards,ȱthenȱthingsȱareȱprobablyȱgoingȱwell.ȱIfȱoneȱ orȱ moreȱ partnersȱ appearȱ toȱ beȱ distantȱ fromȱ theȱ restȱ orȱ youȱ startȱtoȱhearȱcommentsȱsuchȱas;ȱ‘Whoȱknowsȱwhatȱthey’reȱupȱ to’;ȱ ‘I’veȱ beenȱ waitingȱ forȱ theȱ widgetȱ forȱ months,ȱ butȱ youȱ knowȱwhatȱthey’reȱlike’;ȱorȱ‘Iȱtellȱyouȱwhat,ȱI’mȱnotȱworkingȱ withȱthemȱagain’;ȱthenȱthingsȱareȱprobablyȱnotȱgoingȱsoȱwell.ȱ


Asȱaȱprojectȱmanager,ȱtalkȱtoȱeachȱpartyȱandȱfindȱoutȱwhatȱtheȱ situationȱis.ȱTryȱtoȱbrokerȱaȱcompromiseȱandȱbringȱtheȱpartiesȱ backȱtogetherȱagain.ȱ Poorȱ orȱ deviousȱ reportingȱ ofȱ progressȱ isȱ alsoȱ aȱ veryȱ goodȱ indicatorȱ thatȱ somethingȱ isȱ notȱ quiteȱ right.ȱ Ifȱ youȱ haveȱ difficultyȱgettingȱaȱresponseȱfromȱaȱpartnerȱorȱifȱtheirȱreportsȱ ofȱprogressȱareȱvague,ȱpushȱthemȱforȱanȱanswerȱorȱevenȱvisitȱ themȱ toȱ findȱ outȱ ifȱ thereȱ isȱ aȱ problem.ȱ Onceȱ identified,ȱ helpȱ themȱtoȱresolveȱit.ȱ Projectȱ meetingsȱ shouldȱ alwaysȱ involveȱ lunch.ȱ Thisȱ providesȱ theȱ projectȱ managerȱ andȱ anyȱ monitoringȱ officerȱ anȱ oppȬ ortunityȱ toȱ judgeȱ theȱ spiritȱ ofȱ theȱ collaborationȱ andȱ spotȱ anyȱ issuesȱthatȱmayȱbeȱbrewingȱbetweenȱtheȱpartners.ȱȱ

7.3 Delays and overspends Delaysȱ oftenȱ causeȱ stressȱ toȱ theȱ relationshipsȱ betweenȱ partners,ȱ especiallyȱ whereȱ oneȱ partnerȱ isȱ waitingȱ toȱ startȱ theirȱ activityȱ andȱ can’tȱbecauseȱoneȱofȱtheȱdependentȱtasksȱisȱnotȱcompletedȱonȱtime.ȱ Againȱ goodȱ andȱ regularȱ communicationȱ ofȱ progressȱ willȱ giveȱ everyoneȱanȱinsightȱintoȱwhenȱmilestonesȱwillȱbeȱreachedȱandȱtasksȱ completed.ȱ Veryȱ oftenȱ ifȱ theȱ othersȱareȱ awareȱ ofȱ aȱ delay,ȱ theyȱ willȱ pitchȱinȱtoȱhelpȱbringȱtheȱtaskȱbackȱonȱtrackȱorȱbeȱableȱtoȱscheduleȱ theirȱplansȱtoȱaccommodateȱtheȱdelay.ȱ Atȱtheȱbeginningȱofȱtheȱproject,ȱyouȱcreateȱtheȱprojectȱplanȱthatȱyouȱ intendȱtoȱfollow.ȱTheȱplanȱisȱyourȱbestȱguessȱatȱtheȱtimeȱasȱtoȱhowȱ longȱthingsȱwillȱtakeȱandȱhowȱmuchȱtheyȱwillȱcost.ȱWhenȱyouȱmadeȱ theȱplanȱyouȱmayȱhaveȱbuiltȱinȱsomeȱcontingencyȱandȱerredȱonȱtheȱ sideȱofȱcautionȱaȱbit,ȱbutȱinevitablyȱsomeȱthingsȱwillȱtakeȱlongerȱandȱ costȱmoreȱthanȱyouȱthought.ȱ

7.3ȱDelaysȱandȱoverspendsȱȱȱȱȱȱ121ȱ

Itȱisȱveryȱimportantȱtoȱtrackȱtimeȱandȱcostȱasȱtheȱprojectȱprogresses.ȱ Thisȱ willȱ enableȱ youȱ toȱ gaugeȱ whetherȱ yourȱ initialȱ estimatesȱ wereȱ accurateȱ andȱ whatȱ implicationsȱ thereȱ areȱ likelyȱ toȱ beȱ ifȱ theyȱ wereȱ not.ȱ Theȱ mechanismȱ forȱ thisȱ isȱ theȱ regularȱ monthlyȱ orȱ quarterlyȱ progressȱ reportingȱ thatȱ wasȱ describedȱ inȱ chapterȱ 4.ȱ Askȱ allȱ theȱ partnersȱtoȱdeclareȱtheȱresourcesȱtheyȱhaveȱcommittedȱandȱcompareȱ themȱtoȱtheirȱinitialȱplan.ȱIfȱtheyȱtendedȱtoȱunderestimate,ȱaskȱthemȱ toȱ reviseȱ theirȱ estimatesȱ forȱ futureȱ tasksȱ andȱ assessȱ theȱ impactȱ onȱ theȱrestȱofȱtheȱplan.ȱȱ Asȱ alreadyȱ mentionedȱ itȱ isȱ veryȱ importantȱ toȱ keepȱ everyoneȱ informedȱ ofȱ progress,ȱ especiallyȱ theȱ partnersȱwhoȱ willȱ beȱ workingȱ onȱdependentȱtasks.ȱIfȱtheyȱknowȱinȱplentyȱofȱtimeȱthatȱtheyȱmayȱbeȱ delayed,ȱtheyȱwillȱmoreȱeasilyȱbeȱableȱtoȱreȬscheduleȱtheȱresourcesȱ orȱswitchȱtheȱorderȱofȱtheirȱotherȱtasksȱtoȱaccommodateȱtheȱdelay.ȱ ReȬplanningȱ ReȬplanningȱisȱaȱcommonȱoccurrenceȱinȱmanyȱprojectsȱandȱisȱ requiredȱafterȱdelays,ȱpartnerȱchangesȱorȱsimplyȱtoȱmakeȱuseȱ ofȱtheȱbestȱcurrentȱinformation.ȱȱ Ifȱ youȱ areȱ employingȱ theȱ rollingȱ waveȱ detailedȱ planningȱ approach,ȱthenȱprojectȱlevelȱreȬplanningȱmayȱbeȱnecessaryȱasȱ theȱ latestȱ estimatesȱ ofȱ futureȱ workȱ packageȱ durationsȱ areȱ produced.ȱ Theȱ reȬplanningȱ processȱ isȱ noȱ differentȱ fromȱ theȱ originalȱ planningȱ processȱ exceptȱ thatȱ theȱ basicȱ tasksȱ andȱ milestonesȱ areȱ usuallyȱ stillȱ appropriate.ȱ Itȱ isȱ worthwhileȱ thoughȱ goingȱ backȱ overȱ themȱ allȱ toȱ ensureȱ thatȱ theȱ earlyȱ assumptionsȱ areȱ stillȱ validȱ andȱ toȱ addȱ anyȱ additionalȱ tasksȱ thatȱ mayȱ haveȱ becomeȱ apparent.ȱ Whenȱ thinkingȱ aboutȱ eachȱ one,ȱ askȱ questionsȱlikeȱ‘givenȱourȱprogressȱtoȱdate,ȱareȱtheseȱresourcesȱ andȱtimesȱrealistic?’ȱandȱ‘howȱcanȱweȱbetterȱcontrolȱtheȱfutureȱ workȱsoȱthatȱweȱdon’tȱgetȱintoȱtheȱsameȱtroubleȱagain?’ȱ


Whenȱdelaysȱdoȱoccur,ȱitȱisȱimportantȱtoȱbringȱtheȱteamȱtogetherȱtoȱ adjustȱ theȱ projectȱ planȱ inȱ orderȱ toȱ recoverȱ theȱ situationȱ andȱ ifȱ necessaryȱagreeȱonȱanȱextensionȱtoȱtheȱoverallȱlengthȱofȱtheȱproject.ȱ Thisȱwillȱhaveȱimplicationsȱforȱtheȱcostsȱandȱspendȱprofilesȱforȱeachȱ partner.ȱUpdatedȱplansȱshouldȱbeȱagreedȱunanimouslyȱtoȱmaintainȱ theȱcommonȱcommitmentȱofȱallȱtheȱpartners.ȱ

7.4 Technical failures Allȱ researchȱ andȱ developmentȱ projectsȱ areȱ riskyȱ becauseȱ theyȱ containȱ elementsȱ ofȱ innovationȱ thatȱ stretchȱ theȱ currentȱ stateȱ ofȱ theȱ art.ȱ Itȱ isȱ unfortunatelyȱ inevitableȱ therefore,ȱ thatȱ fromȱ timeȱ toȱ time,ȱ tasksȱ willȱ failȱ becauseȱ itȱ isȱ notȱ technicallyȱ possibleȱ toȱ solveȱ theȱ problemȱbeingȱaddressedȱinȱtheȱwayȱanticipated.ȱȱ Suchȱ failuresȱ areȱ knownȱ asȱ legitimateȱ failuresȱ becauseȱ theyȱ areȱ nobody’sȱfault.ȱTheȱsteeringȱ committeeȱmustȱ meetȱtoȱ discussȱwhatȱ shouldȱhappenȱnext.ȱTheȱvariousȱalternativesȱmightȱinclude:ȱȱ x employingȱaȱdifferentȱtechnologyȱtoȱbyȬpassȱtheȱproblem,ȱ x changingȱtheȱobjectivesȱofȱtheȱprojectȱtoȱreduceȱtheȱscope,ȱ x developingȱtheȱpartialȱresultsȱachievedȱtoȱdate,ȱ x orȱwindingȱtheȱprojectȱup.ȱ Anyȱ fundingȱ bodyȱ andȱ monitoringȱ officerȱ shouldȱ beȱ informedȱ immediately.ȱ

7.5 Market changes Theȱoriginalȱraisonȱd’êtreȱforȱtheȱprojectȱwasȱbasedȱonȱaȱcommercialȱ opportunityȱ describedȱ inȱ theȱ project’sȱ businessȱ case.ȱ Ifȱ theȱ marketȱ opportunityȱ thatȱ wasȱ describedȱ changesȱ duringȱ theȱ lifeȱ ofȱ theȱ project,ȱ theȱ projectȱ mustȱ eitherȱ adaptȱ orȱ itsȱ terminationȱ shouldȱ beȱ considered.ȱȱ

7.6ȱHowȱtoȱavoidȱproblemsȱȱȱȱȱȱ123ȱ

Itȱstandsȱtoȱreasonȱthereforeȱthatȱtheȱbusinessȱcaseȱdevelopmentȱandȱ exploitationȱplanningȱshouldȱbeȱcarriedȱoutȱasȱaȱparallelȱexerciseȱtoȱ theȱtechnicalȱworkȱratherȱthanȱleavingȱitȱuntilȱtheȱendȱofȱtheȱproject.ȱ Whenȱproblemsȱareȱdetected,ȱtheyȱmustȱbeȱbroughtȱtoȱtheȱattentionȱ ofȱtheȱsteeringȱcommitteeȱtoȱdecideȱwhatȱactionȱisȱrequired.ȱ Theȱsteeringȱcommitteeȱ mayȱdecideȱ thatȱ reportingȱ onȱtheȱ evolvingȱ marketȱ understandingȱ andȱ exploitationȱ plansȱ shouldȱ beȱ aȱ regularȱ agendaȱitemȱinȱorderȱtoȱmaintainȱfocusȱonȱthisȱcriticalȱaspectȱofȱtheȱ projectȱwork.ȱ

7.6 How to avoid problems It’sȱaȱbitȱofȱanȱoldȱcliché,ȱbutȱtheȱbestȱwayȱtoȱgetȱoutȱofȱtroubleȱisȱnotȱ toȱgetȱintoȱitȱinȱtheȱfirstȱplace.ȱWithinȱcollaborativeȱR&Dȱprojects,ȱaȱ lotȱ ofȱ troubleȱ canȱ beȱ avoidedȱ throughȱ strongȱ projectȱ managementȱ andȱgoodȱcommunications.ȱ Iȱ hopeȱ thisȱ chapterȱ hasȱ highlightedȱ furtherȱ theȱ importanceȱ ofȱ theȱ roleȱ ofȱtheȱ projectȱmanager.ȱItȱisȱaȱseriousȱ oneȱ thatȱ shouldȱonlyȱbeȱ takenȱ onȱ byȱ anȱ individualȱ withȱ theȱ experienceȱ andȱ charismaȱ toȱ beȱ ableȱ toȱ pullȱ itȱ off.ȱ Theȱ projectȱ managerȱ needsȱ toȱ commandȱ theȱ respectȱ ofȱ theȱ partners,ȱ beȱ ableȱ toȱ brokerȱ compromisesȱ whenȱ partnersȱ disagree,ȱ beȱ ableȱ toȱ spotȱ problemsȱ andȱ dealȱ withȱ themȱ rapidlyȱ andȱ maintainȱ aȱ goodȱ spiritȱ withinȱ theȱ projectȱ atȱ allȱ times.ȱ Theȱ projectȱ managerȱ shouldȱ alsoȱ notȱ fearȱ callingȱ aȱ steeringȱ committeeȱ meetingȱ shouldȱ theyȱ feelȱ thingsȱ needȱ toȱ beȱ discussed.ȱ Aboveȱallȱtheȱprojectȱmanagerȱneedsȱtoȱbeȱallocatedȱsufficientȱtimeȱ toȱbeȱableȱtoȱcarryȱoutȱtheȱrole.ȱȱ Aȱ wellȱ definedȱ projectȱ planȱ isȱ alsoȱ aȱ keyȱ aspectȱ ofȱ strongȱ projectȱ management.ȱIfȱtheȱplanȱisȱtooȱlooseȱorȱtheȱdeliverablesȱareȱpoorlyȱ defined,ȱthereȱisȱaȱgreaterȱchanceȱofȱmisunderstandingȱandȱfailures.ȱ Theȱ moreȱ effortȱ putȱ intoȱ theȱ preparation,ȱ theȱ moreȱ smoothlyȱ theȱ projectȱisȱlikelyȱtoȱrun.ȱ


Ifȱ theȱprojectȱhasȱaȱmonitoringȱofficerȱ appointed,ȱthisȱ individualȱ isȱ likelyȱtoȱhaveȱaȱwealthȱofȱexperienceȱandȱcanȱactȱasȱaȱgoodȱsourceȱofȱ supportȱforȱ theȱprojectȱmanagerȱinȱbothȱ spottingȱ andȱ dealingȱ withȱ problems.ȱ Aȱ goodȱ monitoringȱ officerȱ canȱ alsoȱ actȱ asȱ anȱ ‘honestȱ broker’ȱ inȱ dealingȱ withȱ conflictsȱ betweenȱ partners.ȱ Itȱ isȱ thereforeȱ importantȱthatȱyourȱreportingȱtoȱthemȱisȱopen,ȱhonestȱandȱtimely.ȱ Goodȱ communicationsȱ areȱ essentialȱ toȱ successfulȱ collaborativeȱ projects.ȱNewsgroups,ȱWikis,ȱregularȱmeetingsȱandȱwhatȱeverȱotherȱ mechanismsȱ youȱ employȱ willȱ haveȱ aȱ significantȱ impactȱ onȱ yourȱ chancesȱofȱdeliveringȱtheȱprojectȱonȱtime,ȱonȱscopeȱandȱtoȱbudget.ȱ

7.7 So in conclusion 1.ȱProblemsȱcanȱoccurȱwithinȱprojectsȱforȱmanyȱreasonsȱincluding:ȱ x Partnersȱleavingȱtheȱconsortiumȱ x Relationshipȱproblemsȱbetweenȱpartnersȱ x Delaysȱandȱoverspendsȱ x Technicalȱfailuresȱ x Marketȱchangesȱ 2.ȱ Partnersȱ canȱ leaveȱ theȱ consortiumȱ beforeȱ theȱ projectȱ hasȱ evenȱ startedȱdueȱto:ȱ x Disagreementȱoverȱtheȱconsortiumȱagreementȱtermsȱ x Problemsȱwithȱtheȱgrantȱofferȱletterȱtermsȱ x Poorȱinternalȱcommunicationsȱ 3.ȱPartnersȱleavingȱaȱprojectȱmidȱwayȱcanȱbeȱdueȱto:ȱ x Changesȱinȱcompanyȱstructureȱ x Movementȱofȱkeyȱpersonnelȱ x Changesȱinȱbusinessȱdirectionȱorȱmotivationȱ x Theȱcompanyȱfallingȱonȱhardȱtimesȱ ȱ


4.ȱ Whenȱ aȱ partnerȱ leavesȱ theȱ project,ȱ eachȱ affectedȱ workȱ packageȱ needsȱtoȱanalysedȱinȱorderȱtoȱdetermine:ȱ x Ifȱtheȱtaskȱisȱstillȱrelevantȱ x Howȱitȱwillȱbeȱaffectedȱ x WhatȱworkȱcanȱbeȱreȬdistributedȱ x Isȱaȱreplacementȱpartnerȱrequiredȱ 5.ȱRelationsȱbetweenȱtheȱpartnersȱcanȱbreakdownȱthrough:ȱ x Corporateȱlevelȱdisagreementȱorȱconflictȱ x Personalityȱclashesȱbetweenȱindividualsȱ x Delaysȱ orȱ overȬspendsȱ thatȱ areȱ notȱ communicatedȱ adequatelyȱ 6.ȱTechnicalȱfailuresȱareȱoftenȱlegitimateȱbutȱactionsȱcouldȱinclude:ȱ x Employingȱaȱdifferentȱtechnologyȱ x Redefiningȱtheȱscopeȱofȱtheȱprojectȱ x Developmentȱofȱtheȱpartialȱresultsȱ x Windingȱtheȱprojectȱupȱ 7.ȱStrategiesȱtoȱavoidȱproblemsȱinclude:ȱ x Soundȱprojectȱmanagementȱtechniquesȱandȱreportingȱ x Goodȱcommunicationȱbetweenȱpartnersȱ x Appointingȱaȱstrongȱprojectȱmanagerȱ x Workingȱwithȱtheȱmonitoringȱofficerȱ ȱ ȱ ȱ ȱȱ

8 Exploiting the results

Althoughȱthisȱisȱtheȱpenultimateȱchapterȱinȱtheȱbook,ȱexploitationȱisȱ somethingȱthatȱyouȱneedȱtoȱbeȱthinkingȱaboutȱrightȱfromȱtheȱstart.ȱ Thereȱisȱveryȱlittleȱpointȱcarryingȱoutȱtheȱprojectȱunlessȱitȱbringsȱyouȱ someȱ formȱ ofȱ benefit.ȱ Exploitationȱ isȱ aboutȱ howȱ youȱ achieveȱ andȱ capitaliseȱonȱthatȱbenefit.ȱ Theȱ exploitationȱ methodologyȱ describedȱ hereȱ isȱ basedȱ onȱ threeȱ distinctȱ stagesȱ thatȱ startȱ duringȱ theȱ projectȱ planningȱ phaseȱ andȱ continueȱthroughoutȱandȱbeyondȱtheȱproject.ȱBeforeȱweȱcanȱgetȱintoȱ theȱ exploitationȱ methodologyȱ however,ȱ weȱ needȱ toȱ understandȱ whatȱformsȱexploitationȱcanȱtake.ȱ

8.1 What counts as exploitation? Theȱ preciseȱ natureȱ ofȱ theȱ exploitationȱ ofȱ yourȱ projectȱ isȱ likelyȱ toȱ varyȱ considerablyȱ betweenȱ youȱ andȱ yourȱ partners.ȱ Youȱ eachȱ haveȱ differentȱ motivesȱ forȱ carryingȱ outȱ theȱ projectȱ andȱ differentȱ objectivesȱthatȱyouȱwantȱtoȱachieve.ȱ Theȱmostȱcommonȱformsȱofȱexploitationȱare:ȱ x Designingȱaȱnewȱproductȱ x Developingȱaȱnewȱserviceȱ x Enteringȱaȱnewȱmarketȱ x Implementingȱaȱnewȱprocessȱ x Licensingȱtechnologyȱtoȱthirdȱpartiesȱȱ x Publishingȱtheȱresultsȱ x Creatingȱopportunitiesȱforȱfurtherȱdevelopmentȱworkȱ x Winningȱfurtherȱgrantsȱ

128ȱȱȱȱȱȱ8ȱExploitingȱtheȱresultsȱ

Developingȱaȱnewȱproductȱorȱserviceȱusingȱtheȱresultsȱofȱtheȱprojectȱ isȱ aȱ whollyȱ appropriateȱ exploitationȱ routeȱ andȱ oneȱ thatȱ canȱ yieldȱ significantȱreturnsȱonȱinvestment.ȱEquallyȱexploitingȱprojectȱresultsȱ throughȱtheȱexpansionȱofȱanȱexistingȱproductȱorȱserviceȱintoȱaȱnewȱ marketȱcanȱbeȱhighlyȱbeneficial.ȱ Manyȱ projectsȱ developȱ techniquesȱ andȱ processesȱ thatȱ improveȱ productionȱ andȱ serviceȱ deliveryȱ processes.ȱ Projectsȱ thatȱ resultȱ inȱ reducedȱ wasteȱ andȱ emissionsȱ areȱ alsoȱ becomingȱ increasingȱ attractiveȱ asȱ awarenessȱ ofȱ theȱ causesȱ ofȱ climateȱ changeȱ improves.ȱ Hereȱ theȱ exploitationȱ isȱ centredȱ onȱ greaterȱ efficiency,ȱ improvedȱ capacityȱ orȱ higherȱ qualityȱ whichȱ canȱ allȱ leadȱ toȱ betterȱ marginsȱ orȱ theȱabilityȱtoȱcompeteȱmoreȱaggressivelyȱinȱtheȱmarket.ȱȱ Licensingȱopportunitiesȱoccurȱwhenȱtheȱresultsȱofȱtheȱprojectȱareȱnotȱ exclusivelyȱusefulȱtoȱtheȱpartners.ȱWhereȱtheȱresultsȱcouldȱbeȱusefulȱ toȱ otherȱ companiesȱ andȱ theirȱ activitiesȱ wouldȱ notȱ createȱ competitionȱ withȱ theȱ originalȱ partnersȱ youȱ shouldȱ considerȱ licensingȱ theȱ technology.ȱ Normally,ȱ theȱ resultsȱ canȱ beȱ licensedȱ inȱ returnȱ forȱ aȱ royaltyȱ stream.ȱ Benefitsȱ ofȱ thisȱ kindȱ areȱ sometimesȱ referredȱtoȱasȱ‘spillȬoverȱbenefits’.ȱ Licensingȱ alsoȱ occursȱ withinȱ theȱ originalȱ consortiumȱ toȱ allowȱ individualȱpartner’sȱIPRȱtoȱbeȱusedȱbyȱtheȱothersȱinȱorderȱtoȱexploitȱ theirȱ results.ȱ Academicȱ institutionsȱ inȱ particularȱ areȱ increasinglyȱ keenȱ toȱ seeȱ aȱ royaltyȱ streamȱ generatedȱ fromȱ theirȱ collaborativeȱ projectsȱthroughȱlicensingȱtheirȱresultsȱtoȱtheirȱpartners.ȱ Publishingȱtheȱresultsȱofȱresearchȱprojectsȱisȱanȱimportantȱaspectȱofȱ exploitationȱ forȱ academicȱ partnersȱ andȱ someȱ industrialȱ partnersȱ includingȱ technologyȱ companies,ȱ researchȱ andȱ technologyȱ organȬ isationsȱ (RTOs)ȱ andȱ charities.ȱ Publishingȱ resultsȱ helpsȱ toȱ addȱ credibilityȱ toȱ theȱ organisationȱ andȱ improvesȱ theirȱ standingȱ inȱ theȱ community.ȱȱ

8.3ȱBusinessȱcaseȱȱȱȱȱȱ129ȱ

Individualȱacademicsȱandȱtheirȱdepartmentsȱareȱoftenȱappraisedȱonȱ theirȱ publicationȱ recordȱ forȱ promotionȱ decisionsȱ andȱ budgetȱ allocations.ȱ Ifȱyourȱbusinessȱisȱresearchȱbased,ȱthenȱusingȱtheȱprojectȱresultsȱtoȱ feedȱfutureȱresearchȱisȱanȱimportantȱdeliverable.ȱItȱhelpsȱtoȱsustainȱ yourȱbusinessȱandȱresearchȱdepartment.ȱAgainȱthisȱisȱmostȱcommonȱ inȱtheȱcaseȱofȱacademicȱandȱresearchȱorganisations,ȱalthoughȱmanyȱ largeȱ corporateȱ researchȱ laboratoriesȱ alsoȱ siteȱ thisȱ asȱ anȱ importantȱ deliverable.ȱ Exploitingȱtheȱresultsȱthroughȱtheȱwinningȱofȱfurtherȱgrantȱfundingȱ isȱ oftenȱ theȱ caseȱ whenȱ theȱ originalȱ projectȱ wasȱ highlyȱ preȬ competitiveȱ orȱ farȱ fromȱ market.ȱ Theȱ originalȱ projectȱ mayȱ haveȱ provedȱ aȱ conceptȱ andȱ providedȱ theȱ credibilityȱ andȱ confidenceȱ toȱ applyȱ forȱ largerȱ grantsȱ toȱ takeȱ theȱ projectȱ toȱ theȱ nextȱ stageȱ inȱ itsȱ evolution.ȱȱ

8.2 When and what to plan Theȱexploitationȱmethodologyȱcontainsȱthreeȱdistinctȱactivitiesȱthatȱ runȱ fromȱ theȱ initialȱ planningȱ stageȱ rightȱ throughȱ toȱ theȱ pointȱ ofȱ achievingȱtheȱobjectivesȱofȱtheȱproject.ȱTheȱthreeȱactivitiesȱare:ȱȱ x theȱbusinessȱcaseȱ x developingȱmarketȱunderstandingȱȱ x theȱexploitationȱplanȱ Figureȱ8.1ȱshowsȱtheȱthreeȱactivitiesȱoverlappingȱoverȱtheȱcourseȱofȱ theȱproject.ȱ

8.3 Business case TheȱbusinessȱcaseȱwasȱintroducedȱinȱChapterȱ3ȱbecauseȱtheȱmajorityȱ ofȱtheȱactivityȱtakesȱplaceȱbeforeȱtheȱprojectȱactuallyȱstarts.ȱBuildingȱ theȱbusinessȱcaseȱisȱanȱessentialȱfirstȱstepȱbecauseȱtheȱfindingsȱwillȱ


heavilyȱ influenceȱ theȱ directionȱ thatȱ theȱ projectȱ takesȱ andȱ largelyȱ determinesȱtheȱlistȱofȱobjectivesȱandȱrequiredȱdeliverables.ȱ

ȱ Fig.ȱ8.1.ȱExploitationȱmethodologyȱ

Aȱ keyȱ partȱ ofȱ theȱ businessȱ caseȱ isȱ theȱ analysisȱ ofȱ theȱ marketȱ opportunity.ȱ Theȱ analysisȱ coversȱ whoȱ theȱ potentialȱ customersȱ are,ȱ theȱ problemsȱ thatȱ theyȱ currentlyȱ experienceȱ andȱ whichȱ theȱ projectȱ willȱ overcome,ȱ andȱ theȱ potentialȱ scaleȱ ofȱ theȱ marketȱ opportunity.ȱ Allȱofȱwhichȱareȱbuiltȱonȱduringȱtheȱproject.ȱ

8.4 Market understanding Whileȱ theȱ projectȱ isȱ running,ȱ itȱ isȱ essentialȱ toȱ continueȱ theȱ earlyȱ marketȱanalysisȱandȱunderstandingȱworkȱinȱparallelȱtoȱtheȱtechnicalȱ activity.ȱTheȱreasonsȱforȱthisȱareȱveryȱclear.ȱYouȱandȱyourȱpartnersȱ areȱinvestingȱvaluableȱtimeȱandȱresourcesȱinȱtheȱprojectȱinȱorderȱtoȱ achieveȱaȱbusinessȱbenefit.ȱTheȱearlierȱyouȱdiscoverȱwhatȱtheȱmarketȱ wantsȱfromȱyouȱtheȱeasierȱitȱisȱtoȱfocusȱtheȱprojectȱtoȱbestȱsuitȱyourȱ

8.4ȱMarketȱunderstandingȱȱȱȱȱȱ131ȱ

objectives.ȱ Evenȱ seeminglyȱ trivialȱ decisions,ȱ likeȱ theȱ choiceȱ ofȱ scenariosȱ forȱ anȱ experimentȱ orȱ demonstrator,ȱ canȱ influenceȱ theȱ exploitability.ȱ Ifȱ itȱ makesȱ noȱ technicalȱ difference,ȱ letȱ theȱ marketȱ understandingȱ decideȱ whoȱ toȱ targetȱ theȱ demonstratorsȱ towards.ȱ Projectȱ monitoringȱ officersȱ oftenȱ struggleȱ toȱ encourageȱ projectsȱ toȱ carryȱoutȱmarketȱunderstandingȱandȱexploitationȱplanningȱearlyȱinȱ theȱproject,ȱonlyȱtoȱ hearȱ laterȱon:ȱ‘ifȱ onlyȱ weȱhadȱ thoughtȱ ofȱthisȱ aȱ yearȱago,ȱweȱcouldȱhave…’ȱ Theȱmarketȱunderstandingȱstageȱcomprisesȱofȱthreeȱparts:ȱ x analysingȱtheȱmarketȱopportunityȱ x understandingȱtheȱmarketȱdynamicsȱ x understandingȱtheȱindustrialȱforcesȱ Analysing the market opportunity Theȱ marketȱ analysisȱ isȱ theȱ moreȱ complexȱ toȱ carryȱ out,ȱ butȱ itȱ isȱ arguablyȱtheȱmostȱimportantȱofȱtheȱthreeȱparts.ȱWithoutȱcustomersȱ youȱ willȱ neverȱ achieveȱ yourȱ commercialȱ objectives.ȱ Don’tȱ worryȱ thoughȱbecauseȱyouȱ madeȱ aȱ goodȱstartȱonȱ thisȱanalysisȱ duringȱ theȱ businessȱcaseȱwork.ȱTheȱanalysisȱcanȱbeȱcarriedȱoutȱthroughȱaskingȱ aȱseriousȱofȱquestions.ȱȱ Theȱ firstȱ setȱ ofȱ questionsȱ addressesȱ theȱ marketȱ needȱ forȱ yourȱ developments.ȱ Thisȱ isȱ aȱ detailedȱ lookȱ atȱ whoȱ yourȱ customersȱ areȱ andȱwhatȱtheyȱwantȱfromȱyou:ȱ What problem are you going to solve? Asȱ alreadyȱ discussed,ȱ whateverȱ projectȱ youȱ areȱ workingȱ on,ȱ theȱ exploitationȱwillȱrelyȱonȱyourȱcustomersȱgivingȱyouȱtheirȱmoneyȱinȱ returnȱforȱsomeȱbenefitȱthatȱyouȱareȱgoingȱtoȱprovideȱforȱthem.ȱToȱ makeȱthemȱdoȱthis,ȱyouȱareȱgoingȱtoȱhaveȱtoȱsatisfyȱaȱneedȱforȱthemȱ andȱ oneȱ ofȱ theȱ bestȱ waysȱ ofȱ understandingȱ thisȱ needȱ isȱ byȱ describingȱ theȱ problemȱ youȱ areȱ goingȱ toȱ solveȱ forȱ them.ȱ Anȱ


excellentȱ wayȱ toȱ achieveȱ thisȱ isȱ toȱ buildȱ aȱ setȱ ofȱ ‘useȱ cases’ȱ forȱ theȱ targetȱcustomersȱthatȱyouȱidentifiedȱatȱtheȱBusinessȱCaseȱstage.ȱȱ Use cases Useȱ casesȱ areȱ smallȱ documentsȱ thatȱ describeȱ inȱ detailȱ anȱ intendedȱ customer,ȱtheirȱneedsȱforȱtheȱbenefitsȱyourȱprojectȱwillȱprovideȱandȱ exactlyȱhowȱtheyȱwillȱdeployȱyourȱsolution.ȱ Theȱ customersȱ orȱ endȱ usersȱ mayȱ beȱ representedȱ withinȱ theȱ consortiumȱ orȱ advisoryȱ group,ȱ inȱ whichȱ caseȱ itȱ shouldȱ beȱ possibleȱ toȱ describeȱ inȱ considerableȱ detailȱ theȱ problemsȱ theyȱ faceȱ andȱ theȱ requirementsȱ thatȱ mustȱ beȱ met.ȱ Ifȱ thisȱ isȱ theȱ case,ȱ considerȱ secondingȱ researchȱ staffȱ intoȱ theȱ customerȱ organisationȱ forȱ aȱ shortȱ whileȱsoȱthatȱtheyȱcanȱreallyȱunderstandȱtheȱissues.ȱ Ifȱ theȱ intendedȱ customersȱ areȱ externalȱ toȱ theȱ consortium,ȱ youȱ willȱ haveȱ toȱ relyȱ onȱ marketȱ researchȱ andȱ empathyȱ toȱ understandȱ theirȱ needs.ȱȱ Theȱ useȱ caseȱ shouldȱ includeȱ shortȱ statementsȱ underȱ eachȱ ofȱ theȱ followingȱheadings:ȱ x Descriptionȱ ofȱ theȱ Customerȱ –ȱ whoȱ areȱ they,ȱ whatȱ marketȱ andȱindustryȱsectorsȱdoȱtheyȱoperateȱin.ȱ x Whatȱ problemȱ doȱ theyȱ haveȱ –ȱ describeȱ inȱ reasonableȱ detailȱ theȱproblemȱtheyȱfaceȱthatȱyouȱhopeȱtoȱsolve.ȱ x Howȱbigȱanȱissueȱisȱitȱ–ȱhowȱseriousȱisȱtheȱproblemȱyouȱareȱ tryingȱtoȱsolveȱandȱhowȱoftenȱdoesȱitȱoccur.ȱWhatȱalternativeȱ solutionsȱcouldȱbeȱemployed?ȱHowȱareȱtheyȱcopingȱwithȱtheȱ problemȱtoday?ȱ x Howȱ willȱ theirȱ behaviourȱ changeȱ –ȱ describeȱ howȱ theȱ customersȱ willȱ doȱ thingsȱ differentlyȱ onceȱ yourȱ intendedȱ solutionȱ isȱ inȱ use.ȱ Takeȱ careȱ toȱ describeȱ bothȱ positiveȱ andȱ negativeȱ changes,ȱ forȱ exampleȱ areȱ theirȱ cost,ȱ responsibilityȱ orȱstandardsȱimplications?ȱ x Stakeholderȱ analysisȱ –ȱ whoȱ andȱ whatȱ isȱ involvedȱ inȱ theȱ buyingȱdecision?ȱ


How will the customer’s behaviour change? Thisȱ sectionȱ ofȱ theȱ useȱ caseȱ isȱ veryȱ importantȱ andȱ needsȱ toȱ beȱ explainedȱ carefullyȱ becauseȱ changingȱ customer’sȱ behaviourȱ isȱ normallyȱaȱbadȱthing.ȱ Whatȱweȱareȱlookingȱforȱhereȱisȱanȱunderstandingȱofȱtheȱimpactȱthatȱ yourȱ projectȱ outcomesȱ areȱ goingȱ toȱ haveȱ onȱ yourȱ customers.ȱ Theȱ widerȱtheȱimpact,ȱtheȱmoreȱchangesȱareȱrequiredȱtoȱaccommodateȱit,ȱ theȱ moreȱ resistanceȱ thereȱ willȱ beȱ toȱ acceptȱ it.ȱ Putȱ simplyȱ –ȱ noȱ oneȱ likesȱchange.ȱTheȱmoreȱchangesȱ yourȱsolutionȱ requiresȱonȱ theȱpartȱ ofȱ theȱ customers,ȱ theȱ biggerȱ theȱ benefitsȱ haveȱ toȱ beȱ toȱ outweighȱ them.ȱ Takeȱ theȱ exampleȱ ofȱ television.ȱ Whenȱ colourȱ televisionȱ wasȱ introduced,ȱ theȱ designersȱ wereȱ veryȱ carefulȱ toȱ introduceȱ aȱ technologyȱ thatȱ didȱ notȱ disruptȱ existingȱ customersȱ withȱ blackȱ andȱ whiteȱreceiversȱandȱprovidedȱaȱsmoothȱtransitionȱasȱpeopleȱboughtȱ intoȱ theȱ newȱ technology.ȱ Theyȱ offeredȱ aȱ systemȱ forȱ newȱ colourȱ receiversȱwithȱvirtuallyȱnoȱchangeȱinȱuserȱbehaviourȱatȱall.ȱTheȱnewȱ receiversȱtookȱupȱtheȱsameȱspaceȱinȱtheȱhome,ȱusedȱtheȱsameȱpowerȱ supply,ȱtheȱsameȱaerialȱandȱgaveȱaccessȱtoȱtheȱsameȱprogramming.ȱ Theȱ customersȱ adoptedȱ theȱ newȱ technologyȱ withoutȱ muchȱ fuss,ȱ thereȱwasȱaȱclearȱbenefitȱwithȱminimalȱbehaviourȱchange.ȱȱ Satelliteȱ televisionȱ wasȱ aȱ differentȱproposition,ȱ toȱ benefitȱ fromȱ thisȱ innovationȱ youȱ neededȱ anȱ extraȱ box,ȱ moreȱ remoteȱ controls,ȱ aȱ differentȱ(andȱugly)ȱaerial,ȱyouȱevenȱhadȱtoȱpayȱforȱtheȱchannelsȱinȱaȱ differentȱway.ȱInitiallyȱtakeȱupȱwasȱslowȱandȱevenȱnowȱtheȱindustryȱ hasȱ toȱ offerȱ moreȱ andȱ moreȱ channelsȱ andȱ servicesȱ toȱ attractȱ newȱ customers.ȱ Theȱ benefitsȱ haveȱ hadȱ toȱ beȱ largeȱ toȱ overcomeȱ theȱ disruptionȱ andȱ costs.ȱ Howȱ difficultȱ doȱ youȱ thinkȱ itȱ willȱ beȱ toȱ convinceȱusȱallȱtoȱbuyȱhighȱdefinitionȱtelevisionȱ servicesȱandȱ whatȱ benefitsȱ willȱ theyȱ haveȱ toȱ offerȱ toȱ convinceȱ usȱ toȱ buy?ȱ Ironicallyȱ theyȱ areȱ revertingȱ toȱ theȱ originalȱ model,ȱ byȱ providingȱ highȱ definitionȱ televisionȱ throughȱ existingȱ satelliteȱ andȱ cableȱ deliveryȱ


systems.ȱ Theȱ disruptionȱ forȱ existingȱ satelliteȱ customersȱ canȱ onceȱ againȱbeȱminimised.ȱ So,ȱwhatȱchangesȱinȱbehaviourȱwillȱyourȱcustomersȱneedȱtoȱmakeȱinȱ orderȱ toȱ makeȱ useȱ ofȱ yourȱ projectȱ outcomes?ȱ Withinȱ eachȱ ofȱ yourȱ useȱ cases,ȱ createȱ aȱ listȱ andȱ ask:ȱ Doȱ theȱ benefitsȱ makeȱ allȱ thisȱ worthwhile?ȱ Itȱ isȱ inȱ askingȱ questionsȱ likeȱ thisȱ thatȱ makesȱ theȱ creationȱ ofȱ anȱ advisoryȱ groupȱ invaluable.ȱ Theyȱ shouldȱ beȱ ableȱ toȱ tellȱyouȱexactlyȱhowȱyourȱsolutionsȱwillȱchangeȱtheirȱbehaviourȱandȱ whetherȱtheyȱfeelȱitȱwillȱbeȱworthwhile.ȱ Next,ȱ youȱ needȱ toȱ compareȱ theȱ benefitsȱ toȱ theȱ listȱ ofȱ behaviourȱ changesȱinȱeachȱcase.ȱDoȱtheyȱoccurȱinȱtheȱsameȱplace?ȱForȱexampleȱ ifȱyourȱsolutionȱisȱsoldȱtoȱanȱorganisation,ȱdoȱtheȱbenefitsȱaccrueȱtoȱ theȱ sameȱ individualȱ orȱ departmentȱ asȱ willȱ needȱ toȱ makeȱ theȱ necessaryȱ changesȱ toȱ accommodateȱ it?ȱ Ifȱ not,ȱ youȱ couldȱ beȱ inȱ bigȱ trouble.ȱToȱfindȱoutȱweȱneedȱtoȱlookȱatȱallȱtheȱstakeholdersȱinȱthatȱ purchasingȱdecision.ȱ Who else is affected? Aȱ stakeholderȱ inȱ thisȱ contextȱ isȱ anyoneȱ thatȱ isȱ affectedȱ byȱ theȱ purchaseȱandȱuseȱofȱyourȱsolution.ȱLet’sȱtakeȱtheȱexampleȱofȱaȱnewȱ telemedicineȱ deviceȱ thatȱ willȱ allowȱ patientsȱ toȱ monitorȱ theirȱ ownȱ conditionȱandȱregulateȱtheirȱownȱtreatmentȱatȱhome.ȱTheȱimmediateȱ stakeholdersȱareȱgoingȱtoȱbeȱtheȱpatients,ȱtheȱdiseaseȱspecialistȱandȱ theȱ familyȱ doctor.ȱ Atȱ firstȱ glanceȱ thisȱ canȱ onlyȱ beȱ aȱ goodȱ idea,ȱ theȱ patientȱdoesn’tȱneedȱtoȱvisitȱtheȱspecialistȱsoȱoftenȱandȱtheȱspecialistȱ andȱ familyȱ doctorȱ areȱ ableȱ trackȱ theirȱ patients’ȱ conditionȱ moreȱ closelyȱandȱreceiveȱearlyȱwarningsȱofȱpotentialȱproblems.ȱButȱifȱweȱ lookȱatȱtheȱchangesȱinȱbehaviourȱaȱlittleȱmoreȱcarefullyȱweȱfindȱthatȱ allȱthreeȱwillȱneedȱtoȱmakeȱsignificantȱchangesȱtoȱtheȱwayȱtheyȱworkȱ andȱlive.ȱTheȱpatientȱisȱtakingȱonȱmoreȱresponsibilityȱforȱtheirȱownȱ management,ȱ includingȱ theȱ operationȱ ofȱ testȱ equipment.ȱ Theȱ specialistȱ isȱ relyingȱ moreȱ onȱ remoteȱ dataȱ andȱ lessȱ onȱ physicalȱ examinationsȱ toȱ makeȱ treatmentȱ andȱ careȱ decisions.ȱ Theȱ familyȱ


doctorȱ isȱ alsoȱ moreȱ involvedȱ thanȱ previouslyȱ andȱ takesȱ onȱ aȱ responsibilityȱtoȱviewȱandȱactȱonȱsomeȱofȱtheȱdataȱbeingȱgenerated.ȱ Willȱ theȱ benefitsȱ ofȱ providingȱ betterȱ patientȱ careȱ outweighȱ theseȱ changesȱinȱbehaviourȱandȱresponsibility?ȱȱ Perhapsȱusingȱtheȱtelemedicineȱdevicesȱalsoȱrequiresȱsomeȱattentionȱ fromȱtheȱdistrictȱorȱcommunityȱnurse,ȱwillȱtheyȱneedȱtraining,ȱandȱ doȱtheyȱhaveȱtime?ȱIsȱthereȱanȱadditionalȱadministrativeȱburdenȱonȱ theȱhealthcareȱprovider?ȱWhatȱareȱtheȱITȱimplications?ȱWhatȱdoȱtheȱ healthcareȱ authoritiesȱ think,ȱ willȱ theyȱ divertȱ fundingȱ fromȱ theȱ hospitalȱ toȱ theȱ familyȱ practiceȱ toȱ payȱ forȱ theȱ equipmentȱ orȱ itsȱ runningȱ costs?ȱ Beforeȱ weȱ knowȱ whereȱ weȱare,ȱweȱ haveȱ aȱ growingȱ listȱofȱstakeholdersȱthatȱincludesȱtheȱpatient,ȱtheȱfamilyȱdoctor,ȱtheȱ nurse,ȱ theȱ administrator,ȱ theȱ healthcareȱ authority,ȱ theȱ hospitalȱ consultant,ȱ theȱ hospitalȱ administrators,ȱ patientȱ supportȱ groups,ȱ charities,ȱ efficacyȱ bodiesȱ evenȱ theȱ insuranceȱ companies.ȱ Imagineȱ themȱallȱsittingȱroundȱaȱtableȱdiscussingȱwhetherȱtoȱbuyȱtheȱserviceȱ forȱtheȱpatients.ȱWhoȱwillȱbeȱforȱitȱandȱwhoȱwillȱbeȱagainstȱit,ȱandȱ why?ȱ Thisȱisȱaȱcomplexȱexample,ȱbutȱitȱdoesȱillustrateȱtheȱpointȱthatȱveryȱ oftenȱ aȱ buyingȱ decisionȱ isȱ aȱ complexȱ matter,ȱ soȱ howȱ canȱ youȱ analyseȱ itȱ allȱ properly?ȱ Firstȱ drawȱ outȱ aȱ diagram,ȱ likeȱ theȱ oneȱ shownȱ inȱ figureȱ 8.2,ȱ showingȱ everyȱ linkȱ inȱ theȱ chainȱ betweenȱ youȱ andȱ theȱ variousȱ stakeholders.ȱ Forȱ eachȱ one,ȱ writeȱ downȱ whatȱ youȱ thinkȱ theirȱ reactionȱ toȱ theȱ purchaseȱ willȱ beȱ andȱ why.ȱ Tryȱ toȱ thinkȱ howȱyouȱcouldȱconvinceȱthemȱthatȱitȱisȱaȱgoodȱthingȱforȱthemȱthatȱ theȱ purchaseȱ takesȱ place.ȱ Areȱ anyȱ ofȱ themȱ likelyȱ toȱ haveȱ aȱ vetoȱ orȱ raiseȱanȱargumentȱthatȱwillȱ stopȱtheȱ purchase?ȱ Ifȱ soȱ theirȱ concernsȱ becomeȱ yourȱ highestȱ priority.ȱ Itȱ mayȱ beȱ thatȱ inȱ orderȱ toȱ satisfyȱ everybodyȱyouȱhaveȱtoȱchangeȱorȱexpandȱtheȱdeliverablesȱfromȱtheȱ project.ȱThisȱwillȱbeȱveryȱworthwhileȱifȱyouȱcanȱachieveȱaȱsituationȱ whereȱ asȱ manyȱ stakeholdersȱ asȱ possibleȱ areȱ supportiveȱ ofȱ theȱ buyingȱdecisionȱandȱtheȱremainderȱareȱneutral.ȱ


ȱ Figȱ8.2.ȱStakeholderȱanalysisȱ

Asȱalwaysȱitȱisȱbestȱtoȱtestȱyourȱassumptionsȱonȱrealȱpeople.ȱInȱtheȱ exampleȱ above,ȱ itȱ wouldȱ beȱ veryȱ worthwhileȱ havingȱ repressȬ entativesȱ fromȱ theȱ mainȱ boxesȱ onȱ theȱ advisoryȱ group.ȱ Meetingsȱ shouldȱbeȱarrangedȱwithȱrepresentativesȱfromȱtheȱotherȱgroupsȱtoo.ȱ Rememberȱ youȱ canȱ neverȱ understandȱ tooȱ muchȱ aboutȱ yourȱ customersȱ andȱ theȱ problemȱ youȱ areȱ tryingȱ toȱ solveȱ forȱ them.ȱ Collectingȱ theȱ viewsȱ ofȱ allȱ yourȱ stakeholdersȱ isȱ aȱ veryȱ importantȱ partȱofȱthisȱprocess.ȱȱ Stakeholderȱanalysesȱmayȱneedȱtoȱbeȱcarriedȱoutȱindependentlyȱforȱ differentȱterritories.ȱInȱourȱhealthcareȱexample,ȱtheȱanalysisȱisȱveryȱ differentȱ forȱ theȱ USȱ marketȱ thanȱ itȱ isȱ forȱ anyȱ ofȱ theȱ Europeanȱ markets,ȱeachȱofȱwhichȱdifferȱsignificantlyȱfromȱeachȱotherȱtoo.ȱ Atȱthisȱpointȱitȱisȱworthȱtakingȱstockȱandȱaskingȱifȱyouȱstillȱbelieveȱ thatȱtheȱprojectȱisȱrelevantȱtoȱthisȱuseȱcase.ȱToȱrecap,ȱyouȱneedȱtoȱbeȱ convincedȱ thatȱ theȱ problemȱ youȱ areȱ goingȱ toȱ solveȱ forȱ yourȱ customersȱ isȱ realȱ andȱ serious,ȱ seriousȱ enoughȱ forȱ themȱ toȱ spendȱ moneyȱ onȱ yourȱ solution.ȱ Youȱ needȱ toȱ believeȱ thatȱ yourȱ projectȱ


outcomesȱwillȱbringȱthemȱbenefitȱandȱvalueȱforȱmoney.ȱFinallyȱyouȱ needȱtoȱbeȱsureȱthatȱtheȱdisruptionȱyourȱsolutionȱwillȱcauseȱwillȱbeȱ acceptableȱtoȱallȱtheȱstakeholdersȱthatȱwillȱbeȱaffectedȱbecauseȱofȱtheȱ largerȱbenefitsȱthatȱwillȱaccrue.ȱIfȱnotȱ youȱ shouldȱ considerȱ makingȱ changesȱtoȱtheȱcourseȱofȱtheȱproject,ȱtheȱscopeȱofȱtheȱdeliverablesȱorȱ lookingȱforȱalternativeȱcustomerȱorȱendȱuserȱgroups.ȱ Quantifying the market opportunity Theȱ nextȱ setȱ ofȱ questionsȱ addressesȱ theȱ marketȱ potentialȱ forȱ yourȱ idea.ȱ Essentiallyȱ weȱ areȱ goingȱ toȱ getȱ aȱ betterȱ feelȱ forȱ theȱ numbersȱ youȱ firstȱ createdȱ duringȱ theȱ businessȱ caseȱ work.ȱ Weȱ willȱ estimateȱ howȱ bigȱ aȱ marketȱ youȱ haveȱ andȱ howȱ muchȱ moneyȱ youȱ canȱ makeȱ fromȱit.ȱȱ Where are your customers and how many are there? Soȱ far,ȱ weȱ understandȱ yourȱ aspirationsȱ forȱ theȱ project,ȱ weȱ haveȱ aȱ listȱ ofȱyourȱ potentialȱ customerȱgroupsȱandȱ weȱknowȱ whatȱyouȱareȱ goingȱ toȱ haveȱ toȱ doȱ toȱ satisfyȱ theirȱ demandȱ forȱ aȱ solutionȱ toȱ theirȱ problem.ȱNowȱweȱneedȱtoȱknowȱhowȱmanyȱofȱthemȱthereȱareȱandȱ whereȱtheyȱcanȱbeȱfound.ȱAtȱthisȱstageȱweȱareȱlookingȱforȱtheȱtotalȱ potentialȱmarketȱsize.ȱȱ Dependingȱ onȱ theȱ scopeȱ ofȱ yourȱ projectȱ andȱ theȱ reachȱ ofȱ theȱ collaboration,ȱ youȱ willȱ needȱ toȱ findȱ outȱ theseȱ numbersȱ forȱ theȱ region,ȱcountry,ȱtradingȱblockȱorȱevenȱglobally.ȱIfȱyouȱareȱgoingȱtoȱ developȱaȱproductȱ withȱpotentialȱ globalȱ demand,ȱyouȱwillȱ needȱtoȱ knowȱtheȱmarketȱsizesȱinȱeachȱofȱtheȱmajorȱterritoriesȱthatȱcouldȱbeȱ ofȱinterestȱtoȱyouȱandȱyourȱpartners.ȱ Forȱeachȱofȱtheȱcustomerȱgroupsȱyouȱhaveȱidentified,ȱfindȱoutȱhowȱ manyȱthereȱareȱwithinȱyourȱrange.ȱIfȱweȱuseȱtheȱearlierȱtelemedicineȱ example,ȱ youȱ willȱ needȱ toȱ knowȱ howȱ manyȱ patientsȱ wouldȱ beȱ suitableȱ forȱ theȱ product,ȱ andȱ howȱ manyȱ familyȱ doctors’ȱ surgeriesȱ thereȱareȱinȱtheȱcountry.ȱYouȱwouldȱalsoȱneedȱtoȱknowȱhowȱmanyȱ


hospitalȱ departmentsȱ weȱ willȱ beȱ affectingȱ andȱ howȱ manyȱ healthȱ authoritiesȱthereȱare.ȱȱ Mostȱ ofȱ theȱ informationȱ canȱ beȱ gleanedȱ fromȱ theȱ internet.ȱ Informationȱ onȱ theȱ generalȱ publicȱ canȱ beȱ foundȱ onȱ localȱ governmentȱ websites.ȱ Inȱ theȱ UK,ȱ theȱ Officeȱ ofȱ Nationalȱ Statisticsȱ (ONS)ȱ websiteȱ hasȱ aȱ wealthȱ ofȱ demographicȱ andȱ socioȬeconomicȱ data.ȱ Variousȱ otherȱ governmentȱ publicationsȱ andȱ websitesȱ containȱ usefulȱ information,ȱ especiallyȱ theȱ Departmentȱ ofȱ Tradeȱ andȱ Industryȱandȱinȱtheȱcaseȱofȱourȱmedicalȱexample,ȱtheȱDepartmentȱofȱ Healthȱ andȱ Nationalȱ Healthȱ Servicesȱ websites.ȱ Tradeȱ associationsȱ oftenȱ publishȱ detailedȱ statisticsȱ andȱ reportsȱ onȱ theȱ stateȱ ofȱ theirȱ sectors.ȱ Professionalȱ institutionsȱ suchȱ asȱ theȱ Instituteȱ ofȱ Marketingȱ andȱInstituteȱofȱDirectorsȱhaveȱexcellentȱlibrariesȱthatȱcontainȱupȱtoȱ dateȱreportsȱandȱmarketȱdata.ȱȱ Helpȱ canȱ alsoȱ beȱ soughtȱ fromȱ localȱ andȱ regionalȱ governmentȱ servicesȱ suchȱ asȱ regionalȱ developmentȱ agenciesȱ thatȱ offerȱ advice,ȱ localȱ marketȱ intelligenceȱ andȱ maintainȱ listsȱ ofȱ servicesȱ andȱ specialists.ȱ Someȱ evenȱ offerȱ grantȱ supportȱ toȱ commissionȱ marketȱ researchȱwork.ȱ How is the market size changing? Whenȱ youȱ areȱ lookingȱ forȱ marketȱ sizeȱ data,ȱ tryȱ toȱ getȱ asȱ muchȱ informationȱaboutȱhowȱtheȱmarketȱhasȱchangedȱoverȱtheȱlastȱ5ȱyearsȱ orȱsoȱandȱifȱpossibleȱcollectȱpredictionsȱaboutȱhowȱitȱwillȱchangeȱinȱ theȱ future.ȱ Thisȱ marketȱ dynamicȱ informationȱ willȱ beȱ aȱ veryȱ usefulȱ indicatorȱasȱtoȱtheȱhealthȱofȱtheȱmarket.ȱ Marketȱdynamicsȱareȱimportantȱbecauseȱtheyȱtellȱyouȱwhetherȱthereȱ willȱ stillȱ beȱ anȱ opportunityȱ waitingȱ byȱ theȱ timeȱ youȱ haveȱ finishedȱ yourȱ project.ȱ Ideallyȱ youȱ onlyȱ wantȱ toȱ exploitȱ yourȱ resultsȱ inȱ marketsȱthatȱareȱgrowingȱorȱareȱlargeȱandȱstable.ȱDecliningȱmarketsȱ shouldȱ beȱ avoidedȱ allȱ togetherȱ asȱ theyȱ areȱ unlikelyȱ toȱ beȱ ableȱ toȱ provideȱyouȱwithȱaȱsuitableȱreturnȱonȱyourȱinvestment,ȱorȱanyȱlongȱ termȱpotential.ȱ


What trends are likely to affect your business? Theȱworldȱisȱnotȱaȱstaticȱplaceȱandȱmanyȱofȱtheȱchangingȱtrendsȱthatȱ existȱmayȱaffectȱyourȱproject,ȱsomeȱofȱthemȱpositively.ȱȱ Oneȱofȱtheȱbiggestȱeconomicȱchangesȱaffectingȱusȱoverȱtheȱnextȱfewȱ yearsȱ willȱ beȱ theȱ agingȱ population.ȱ Theȱ proportionȱ ofȱ theȱ populationȱ thatȱ areȱ retiredȱ isȱ theȱ largestȱ itȱ hasȱ everȱ beenȱ andȱ theȱ trendȱ isȱ setȱ toȱ increaseȱ dramaticallyȱ overȱ theȱ nextȱ decade.ȱ Ifȱ yourȱ projectȱ isȱ relatedȱ toȱ thisȱ groupȱ thenȱ yourȱ marketȱ sizeȱ isȱ goingȱ toȱ expandȱ dramatically.ȱ Thisȱ changeȱ willȱ haveȱ implicationsȱ forȱ healthcare,ȱ entertainment,ȱ housingȱ andȱ manyȱ otherȱ sectors.ȱ Howȱ willȱitȱaffectȱyourȱprojectȱobjectives?ȱCollectȱdataȱfromȱtheȱOfficeȱofȱ Nationalȱ Statisticsȱ toȱ helpȱ predictȱ theȱ scaleȱ ofȱ theȱ changeȱ toȱ theȱ marketȱdataȱyouȱhaveȱcollectedȱalready.ȱ Thereȱ areȱ otherȱ trendsȱ suchȱ asȱ climateȱ changeȱ whichȱ willȱ haveȱ anȱ effectȱ onȱ manyȱ sectors.ȱ Milderȱ wintersȱ andȱ dryerȱ summersȱ willȱ affectȱ energyȱ use,ȱ sportsȱ andȱ recreation,ȱ agricultureȱ andȱ retailȱ demand.ȱ Moreȱ aggressiveȱ weatherȱ systemsȱ willȱ increaseȱ demandȱ forȱdisasterȱrecoveryȱandȱpreventionȱtechnologies.ȱ Technologicalȱ developmentsȱ alsoȱ actȱ asȱ trends,ȱ theȱ proliferationȱ ofȱ mobileȱ dataȱ communications,ȱ universalȱ broadbandȱ internetȱ access,ȱ andȱtheȱreducedȱsizeȱandȱpowerȱrequirementsȱofȱelectronicȱdevicesȱ areȱtrendsȱthatȱmayȱwellȱhaveȱanȱeffectȱonȱyourȱprojectȱoutcomes.ȱ Regulatoryȱ changesȱ haveȱ dramaticȱ effectsȱ onȱ markets.ȱ Theȱ introȬ ductionȱ ofȱ requirementsȱ forȱ wasteȱ managementȱ andȱ sustainabilityȱ hasȱ drivenȱ aȱ wholeȱ newȱ industryȱ inȱ mobileȱ telephoneȱ recycling.ȱ Whatȱisȱtheȱregulatoryȱenvironmentȱlikeȱforȱyourȱsectorȱandȱhowȱisȱ itȱlikelyȱtoȱchangeȱinȱtheȱfuture?ȱȱ Let’sȱ takeȱ stockȱ again.ȱ Inȱ orderȱ toȱ proceedȱ withȱ thisȱ useȱ case,ȱ youȱ nowȱ needȱ toȱ beȱ convincedȱ thatȱ thereȱ areȱ enoughȱ potentialȱ customersȱ withinȱ yourȱ reachȱ toȱ achieveȱ yourȱ ambitions,ȱ thatȱ theȱ marketȱisȱgrowingȱsufficientlyȱtoȱprovideȱaȱsuitableȱreturnȱonȱyourȱ


investmentȱ andȱ thatȱ anyȱ trendsȱ thatȱ youȱ haveȱ identifiedȱ willȱ supportȱtheȱmarketȱandȱnotȱthreatenȱyourȱhardȱwork.ȱIfȱtheȱanswersȱ toȱthisȱpointȱareȱpositive,ȱthenȱthatȱisȱveryȱgoodȱnews.ȱItȱisȱnowȱtimeȱ toȱtakeȱaȱlookȱatȱtheȱIndustryȱforcesȱyouȱmayȱbeȱworkingȱin.ȱ Understanding the industry forces Inȱ manyȱ ifȱ notȱ mostȱ cases,ȱ theȱ projectȱ outcomesȱ willȱ beȱ exploitedȱ withinȱ theȱ partnerȱ organisations’ȱ existingȱ industryȱ sectors.ȱ Thereȱ willȱ beȱ someȱ casesȱ howeverȱ whereȱ theȱ projectȱ willȱ leadȱ toȱ theȱ potentialȱ toȱ penetrateȱ newȱ industryȱ sectors.ȱ Inȱ theseȱ casesȱ itȱ isȱ importantȱ thatȱ anȱ understandingȱ ofȱ howȱ theȱ newȱ industryȱ sectorȱ worksȱisȱdeveloped.ȱ Theȱtermsȱindustryȱsectorȱandȱmarketȱsectorȱareȱoftenȱinterchanged.ȱ Howeverȱ theyȱ areȱ quiteȱ different.ȱ Industriesȱ consistȱ ofȱ sellersȱ andȱ marketsȱ consistȱ ofȱ customers.ȱ Soȱ farȱ weȱ haveȱ concentratedȱ onȱ analysingȱtheȱmarketȱopportunitiesȱcreatedȱbyȱtheȱcustomers.ȱȱ Whatȱ weȱ needȱ toȱ lookȱ atȱ nextȱ isȱ theȱ sellingȱ environment.ȱ Thisȱ includesȱallȱtheȱaspectsȱofȱdoingȱbusinessȱthatȱaffectȱyourȱabilityȱtoȱ deliverȱ yourȱ projectȱ resultsȱ toȱ yourȱ customers.ȱ Overȱ thirtyȱ yearsȱ ago,ȱMichaelȱPorterȱidentifiedȱfiveȱforcesȱthatȱaffectȱtheȱprofitabilityȱ ofȱ anȱ industryȱ andȱ theȱ basicȱ principlesȱ stillȱ holdȱ trueȱ inȱ today’sȱ economies.ȱTheȱfiveȱforcesȱare:ȱ x EaseȱofȱEntryȱ x SupplierȱPowerȱ x BuyerȱPowerȱ x Threatȱofȱsubstitutesȱ x Competitiveȱrivalryȱ How easy will it be to enter the sector? Thisȱisȱaȱcomplexȱquestionȱandȱoneȱthatȱbreaksȱdownȱtoȱaȱnumberȱ ofȱ elements.ȱ Itȱ hasȱ toȱ doȱ withȱ theȱ conservativenessȱ ofȱ theȱ marketȱ andȱwhetherȱbrandȱloyaltyȱisȱstrong.ȱItȱhasȱtoȱdoȱwithȱtheȱpositionȱ


ofȱtheȱexistingȱsellersȱandȱifȱthereȱisȱaȱdominantȱmonopolyȱinȱplace.ȱ Itȱ hasȱ toȱ doȱ withȱ theȱ regulatoryȱ environmentȱ ofȱ theȱ industry,ȱ whetherȱ thereȱ areȱ standardsȱ andȱ accreditationsȱ toȱ beȱ achievedȱ beforeȱyouȱcanȱofferȱyourȱproductȱandȱitȱhasȱtoȱdoȱwithȱtheȱuseȱofȱ intellectualȱproperty.ȱȱ Let’sȱ takeȱ eachȱ aspectȱ inȱ turn.ȱ Marketȱ conservatismȱ isȱ somethingȱ youȱ willȱ haveȱ toȱ judgeȱ fromȱ yourȱ conversationsȱ withȱ potentialȱ customers.ȱ Tryȱ toȱ findȱ outȱ whoȱ theyȱ buyȱ fromȱ currentlyȱ andȱ forȱ howȱlongȱtheyȱhaveȱdoneȱso.ȱAskȱthemȱwhatȱitȱwouldȱtakeȱforȱthemȱ toȱ switchȱ supplier.ȱ Hopefullyȱ theȱ answersȱ willȱ haveȱ toȱ doȱ withȱ quality,ȱreliability,ȱconvenienceȱandȱtheȱsuperiorityȱofȱyourȱsolutionȱ toȱ theirȱ problem.ȱ Ifȱ soȱ thenȱ youȱ areȱ likelyȱ toȱ haveȱ aȱ goodȱ competitiveȱ advantage.ȱ Ifȱ theȱ answersȱ areȱ allȱ toȱ doȱ withȱ priceȱ andȱ brand,ȱ thenȱ itȱ mayȱ beȱ moreȱ difficultȱ forȱ you.ȱ Competingȱ onȱ priceȱ aloneȱisȱveryȱhardȱtoȱachieve.ȱ Brandȱloyaltyȱcanȱbeȱveryȱimportantȱinȱsomeȱindustries.ȱCustomersȱ haveȱbuiltȱupȱaȱlevelȱofȱtrustȱwithȱtheirȱsuppliersȱandȱmovingȱthemȱ away,ȱ especiallyȱ toȱ aȱ newȱ unknownȱ brandȱ canȱ beȱ veryȱ difficult.ȱ Itȱ mayȱevenȱbeȱthatȱyouȱwouldȱstandȱaȱbetterȱchanceȱbyȱincludingȱanȱ existingȱ supplierȱ withinȱ theȱ consortiumȱ andȱ exploitingȱ theȱ resultsȱ throughȱthem,ȱratherȱthenȱcompetingȱwithȱthemȱdirectly.ȱLicensingȱ theȱ technologyȱ toȱ existingȱ suppliersȱ isȱ alsoȱ anȱ optionȱ inȱ theseȱ circumstances.ȱ Industriesȱ thatȱ areȱ inhabitedȱ byȱ aȱ dominantȱ monopolyȱ areȱ exceedinglyȱ difficultȱ toȱ penetrate.ȱ Theȱ monopolyȱ isȱ likelyȱ toȱ strenuouslyȱresistȱnewcomersȱandȱtheyȱwillȱhaveȱtheȱpowerȱtoȱbeatȱ youȱ onȱ priceȱ andȱ promotionalȱ activityȱ toȱ suchȱ anȱ extentȱ thatȱ evenȱ reachingȱpotentialȱcustomersȱcouldȱbeȱdifficult.ȱImagineȱhowȱhardȱitȱ wouldȱ beȱ toȱ launchȱ aȱ completelyȱ newȱ supermarketȱ chainȱ atȱ theȱ moment.ȱȱ Mostȱ industriesȱ areȱ regulatedȱ inȱ someȱ way.ȱ Theȱ vastȱ majorityȱ ofȱ productsȱ requireȱ safetyȱ andȱ conformityȱ certificationȱ andȱ liabilityȱ


insurances.ȱ Manyȱ servicesȱ areȱ alsoȱ regulatedȱ withȱ theȱ serviceȱ providerȱ beingȱ requiredȱ toȱ belongȱ toȱ professionalȱ associationsȱ whichȱ accreditȱ theȱ qualityȱ andȱ standardsȱ ofȱ theȱ service.ȱ Youȱ willȱ needȱ toȱ understandȱ andȱ conformȱ toȱ allȱ theseȱ requirementsȱ beforeȱ youȱcanȱsellȱyourȱfirstȱproductȱorȱserviceȱandȱinȱmanyȱcasesȱyouȱwillȱ beȱrequiredȱtoȱhaveȱsomeȱqualityȱsystemsȱinȱplaceȱevenȱduringȱtheȱ designȱ andȱ developmentȱ stagesȱ ofȱ theȱ project.ȱ Theȱ Internationalȱ OrganisationȱforȱStandardizationȱ(ISO)ȱisȱaȱgoodȱplaceȱtoȱstartȱyourȱ searchȱofȱrelevantȱstandardsȱthatȱmightȱapplyȱtoȱyou.ȱ Finallyȱ youȱ needȱ toȱ beȱ sureȱ thatȱ youȱ areȱ entitledȱ toȱ provideȱ yourȱ productȱ orȱ serviceȱ withoutȱ infringingȱ someoneȱ else’sȱ intellectualȱ propertyȱrights.ȱMaintainingȱanȱIPȱlogȱduringȱtheȱprojectȱwillȱhelpȱ toȱidentifyȱbackgroundȱIPȱthatȱyouȱrelyȱonȱbutȱyouȱwillȱalsoȱneedȱtoȱ beȱ sureȱ thatȱ whatȱ youȱ considerȱ toȱ beȱ yourȱ innovationsȱ haveȱ notȱ alreadyȱbeenȱinventedȱandȱprotectedȱbyȱsomeoneȱelse.ȱ Industryȱ sectorsȱ withȱ highȱ barriersȱ toȱ entryȱ areȱ notȱ entirelyȱ badȱ however,ȱ becauseȱ ifȱ youȱ haveȱ aȱ particularȱ innovationȱ thatȱ allowsȱ youȱ toȱ enter,ȱ itȱ doesȱ atȱ leastȱ protectȱ youȱ fromȱ otherȱ newȱ entrantsȱ thatȱmightȱwantȱtoȱfollowȱyou.ȱȱ What power do your suppliers have over you? Toȱanswerȱthisȱquestionȱweȱneedȱtoȱlookȱatȱallȱtheȱplayersȱthatȱareȱ involvedȱ betweenȱ yourȱ takingȱ anȱ orderȱ fromȱ aȱ customerȱ andȱ completingȱ delivery.ȱ Thisȱ couldȱ includeȱ suppliersȱ ofȱ partsȱ orȱ components,ȱ deliveryȱ companies,ȱ otherȱ serviceȱ providers,ȱ subȬ contractors,ȱ anybodyȱ thatȱ youȱ relyȱ onȱ inȱ theȱ processȱ ofȱ satisfyingȱ thatȱorder.ȱMakeȱaȱlistȱofȱthemȱall.ȱ Nowȱforȱeachȱone,ȱwriteȱdownȱwhetherȱwhatȱtheyȱsupplyȱyouȱwithȱ isȱ uniqueȱ orȱ ifȱ youȱ couldȱ getȱ anȱ equivalentȱ fromȱ somewhereȱ else.ȱ Anyȱ thatȱ areȱ uniqueȱ areȱ ofȱ concern–ȱ whatȱ wouldȱ youȱ doȱ ifȱ theyȱ suddenlyȱ increasedȱ theirȱ prices,ȱ demandedȱ moreȱ cashȱ upȱ frontȱ orȱ toldȱ youȱ theyȱ couldȱ notȱ satisfyȱ yourȱ demand?ȱ Thinkȱ howȱ youȱ canȱ


multiȬsourceȱasȱmanyȱofȱyourȱsuppliesȱasȱpossible.ȱYouȱmayȱneverȱ needȱto,ȱbutȱitȱwillȱhelpȱtoȱkeepȱyourȱsuppliersȱhonest.ȱ What power do your customers have over you? Thisȱisȱcloselyȱrelatedȱtoȱtheȱpreviousȱquestionȱbutȱthisȱtimeȱweȱareȱ lookingȱatȱwhoȱsetsȱtheȱtermsȱofȱsale,ȱyouȱorȱyourȱcustomer.ȱInȱsomeȱ cases,ȱyouȱwillȱbeȱableȱtoȱgetȱcustomersȱtoȱpayȱatȱtheȱtimeȱofȱorderȱ orȱ atȱ theȱ pointȱ ofȱ delivery,ȱ butȱ inȱ manyȱ businessȱ toȱ businessȱ transactionsȱyouȱwillȱhaveȱtoȱinvoiceȱandȱhopeȱforȱpaymentȱwithinȱ 30ȱdaysȱorȱso.ȱȱ Anotherȱ aspectȱ ofȱ thisȱ questionȱ isȱ theȱ extentȱ toȱ whichȱ yourȱ customersȱareȱsensitiveȱtoȱprice.ȱObviouslyȱnoȱoneȱlikesȱtoȱpayȱmoreȱ thanȱnecessaryȱbutȱ forȱ exampleȱ ifȱ youȱwereȱtoȱsetȱ yourȱ pricesȱ10%ȱ higher,ȱwhatȱeffectȱwouldȱthatȱhaveȱonȱyourȱcustomersȱdecisionȱtoȱ buyȱfromȱyou?ȱȱ Oneȱfinalȱelementȱtoȱthisȱquestionȱisȱtoȱfindȱoutȱhowȱwellȱinformedȱ yourȱcustomersȱareȱtoȱtheȱalternativesȱandȱtoȱtheȱmarketȱasȱaȱwhole.ȱ Doȱtheyȱcontinuallyȱcompareȱdifferentȱsuppliersȱorȱareȱtheyȱcontentȱ toȱplaceȱlongȱstandingȱordersȱwithȱyou?ȱThisȱwillȱhaveȱanȱeffectȱonȱ theirȱcontrolȱoverȱyourȱbusiness.ȱ How strong is the threat of people copying your idea? Thisȱquestionȱrelatesȱtoȱhowȱyouȱareȱableȱtoȱprotectȱtheȱforegroundȱ IPȱthatȱtheȱprojectȱgenerates.ȱYouȱwillȱalsoȱneedȱtoȱthinkȱaboutȱhowȱ elseȱ theȱ competitionȱ couldȱ solveȱ theȱ customer’sȱ problem.ȱ Putȱ yourselfȱinȱtheȱcompetition’sȱposition,ȱhowȱwouldȱyouȱreactȱtoȱyourȱ newȱideaȱandȱhowȱwouldȱyouȱtryȱtoȱcompeteȱwithȱit?ȱ What is the competitive environment like within the industry? Thisȱ isȱ aȱ difficultȱquestionȱ toȱgaugeȱ fromȱ theȱoutsideȱ butȱ thereȱ areȱ someȱcluesȱthatȱyouȱcanȱlookȱfor.ȱFirstlyȱhowȱmanyȱcompaniesȱareȱ inȱtheȱsector?ȱIfȱtheȱanswerȱisȱlotsȱthenȱitȱisȱlikelyȱthatȱtheyȱhaveȱtoȱ competeȱstronglyȱwithȱeachȱotherȱforȱbusiness.ȱ


Howȱfastȱisȱtheȱindustryȱsectorȱgrowing?ȱAsȱweȱhaveȱseenȱalready,ȱ ifȱ theȱ sectorȱ isȱ growingȱ well,ȱ rivalryȱ willȱ beȱ reducedȱ asȱ companiesȱ willȱ stillȱ beȱ ableȱ toȱ growȱ withoutȱ stealingȱ marketȱ shareȱ fromȱ theȱ competition.ȱ Howȱmuchȱdifferentiationȱisȱthereȱbetweenȱtheȱexistingȱplayersȱandȱ betweenȱ theirȱ plansȱ andȱ yours?ȱ Theȱ higherȱ theȱ differentiationȱ theȱ moreȱlikelyȱitȱisȱthatȱeverybodyȱisȱtargetingȱslightlyȱdifferentȱnichesȱ andȱ thatȱ competitionȱ willȱ beȱ onȱ specification,ȱ performanceȱ andȱ qualityȱratherȱthanȱprice.ȱ Howȱeasyȱisȱitȱforȱcustomersȱtoȱswitchȱsuppliers?ȱTheȱeasierȱitȱisȱforȱ customersȱ toȱ change,ȱ theȱ moreȱ rivalryȱ thereȱ willȱ beȱ betweenȱ theȱ suppliers.ȱ Anotherȱindicatorȱofȱrivalryȱisȱhowȱmuch,ȱifȱany,ȱcollaborativeȱworkȱ goesȱ onȱ betweenȱ theȱ differentȱ companiesȱ inȱ theȱ sector.ȱ Doȱ theyȱ collaborateȱ inȱ theȱ settingȱ ofȱ standardsȱ forȱ theȱ industry,ȱ isȱ thereȱ aȱ vibrantȱtradeȱassociationȱthatȱsharesȱbestȱpracticeȱandȱareȱthereȱanyȱ collaborativeȱ researchȱ andȱ developmentȱ programmesȱ thatȱ areȱ extendingȱ theȱ technologyȱ usedȱ inȱ theȱ sector?ȱ Ifȱ soȱ theȱ rivalryȱ isȱ probablyȱ relativelyȱ lowȱ andȱ ifȱ youȱ areȱ enteringȱ theȱ sectorȱ withȱ aȱ newȱ advance,ȱ youȱ couldȱ findȱ thatȱ thereȱ areȱ licenseȱ opportunities,ȱ evenȱ investmentȱ interestȱ fromȱ theȱ largerȱ players,ȱ inȱ additionȱ toȱ directȱ salesȱ withinȱ theȱ market.ȱ Howȱ easyȱ wouldȱ itȱ beȱ forȱ youȱ toȱ attractȱoneȱofȱtheȱexistingȱplayersȱtoȱjoinȱyourȱproject?ȱȱ Soȱwhatȱdoȱyouȱthinkȱofȱtheȱnewȱindustryȱyouȱareȱgoingȱtoȱexpandȱ into?ȱ Willȱ itȱ letȱ youȱ competeȱ onȱ theȱ basisȱ ofȱ theȱ brillianceȱ andȱ noveltyȱofȱyourȱprojectȱresultsȱorȱisȱitȱgoingȱtoȱbeȱbattleȱtoȱsurvive,ȱ drivenȱentirelyȱbyȱprice?ȱYourȱresponseȱhereȱisȱjustȱasȱimportantȱasȱ theȱ earlierȱ analysisȱ ofȱ theȱ marketȱ needȱ forȱ yourȱ product.ȱ Ifȱ theȱ answersȱ areȱ worrying,ȱ itȱ isȱ veryȱ worthȱ whileȱ lookingȱ forȱ moreȱ partnersȱ whoȱ alreadyȱ haveȱ aȱ footȱ holdȱ inȱ theȱ sectorȱ orȱ stickingȱ toȱ yourȱexistingȱsector.ȱ

8.5ȱExploitationȱplanȱȱȱȱȱȱ145ȱ

8.5 Exploitation plan Theȱthirdȱactivityȱinȱtheȱprocessȱshouldȱtakeȱplaceȱtowardsȱtheȱendȱ ofȱtheȱprojectȱasȱitȱdevelopsȱtheȱplanȱforȱexploitingȱtheȱresultsȱafterȱ theȱ projectȱ hasȱ finished.ȱ Theȱ exploitationȱ planȱ isȱ essentiallyȱ aȱ businessȱplanȱthatȱexplainsȱallȱtheȱpartners’ȱactivitiesȱandȱtasksȱthatȱ areȱrequiredȱtoȱseeȱaȱreturnȱonȱtheirȱinvestment.ȱ Writingȱtheȱexploitationȱplanȱwillȱrequireȱaȱlittleȱmoreȱthoughtȱandȱ analysisȱ andȱ isȱ alsoȱ likelyȱ toȱ benefitȱ fromȱ theȱ involvementȱ ofȱ theȱ partners’ȱ marketingȱ andȱ corporateȱ personnelȱ asȱ wellȱ asȱ theȱ technicalȱteamȱthatȱhaveȱbeenȱworkingȱonȱtheȱproject.ȱ Dependingȱ onȱ theȱ complexityȱ ofȱ theȱ projectȱ objectives,ȱ youȱ mayȱ findȱ thatȱ youȱ needȱ toȱ createȱ moreȱ thanȱ oneȱ exploitationȱ plan,ȱ oneȱ forȱeachȱofȱtheȱmajorȱmarketȱopportunitiesȱthatȱtheȱconsortiumȱwishȱ toȱ explore.ȱ Inȱ factȱ someȱ partnersȱ mayȱ wishȱ toȱ developȱ theirȱ ownȱ plansȱunilaterally.ȱȱ Theȱ planȱ needȱ notȱ beȱ aȱ formalȱ document,ȱ howeverȱ youȱ willȱ findȱ thatȱcreatingȱaȱformalȱdocumentȱwillȱbeȱhighlyȱbeneficialȱasȱitȱhelpsȱ toȱ identifyȱ theȱ issuesȱ andȱ ensureȱ thatȱ crucialȱ aspectsȱ areȱ notȱ neglected.ȱȱ Theȱstructureȱofȱtheȱexploitationȱplanȱisȱdownȱtoȱyouȱasȱitȱwillȱdifferȱ fromȱopportunityȱtoȱopportunity,ȱbutȱinȱmostȱcasesȱitȱshouldȱatȱleastȱ includeȱtheȱfollowingȱsections;ȱȱ x Theȱmarketȱopportunityȱȱ x Theȱintendedȱrouteȱtoȱmarketȱ x Additionalȱdevelopmentȱrequirementsȱ x Standardsȱandȱaccreditationȱ x Theȱplanȱforȱtheȱfutureȱ Considerȱwhoȱtheȱaudienceȱwillȱbeȱforȱtheȱdocument:ȱWillȱitȱbeȱreadȱ byȱ seniorȱ management,ȱ fundingȱ organisationsȱ orȱ potentialȱ exploitȬ


ationȱpartners?ȱTheȱanswerȱwillȱdetermineȱhowȱmuchȱintroductionȱ andȱbackgroundȱinformationȱwillȱbeȱrequired.ȱ The market opportunity Setȱoutȱtheȱ marketȱopportunityȱthatȱ youȱ haveȱ analysedȱ duringȱ theȱ project.ȱOutlineȱtheȱmarketȱsectorȱinȱtermsȱofȱsize,ȱperformanceȱandȱ characteristics.ȱ Describeȱ theȱ customersȱ youȱ haveȱ identifiedȱ andȱ setȱ outȱ theȱ scaleȱ ofȱ theȱ opportunity.ȱ Youȱ canȱ précisȱ yourȱ useȱ casesȱ toȱ explainȱhowȱtheseȱcustomersȱwillȱbenefitȱfromȱtheȱprojectȱresults.ȱItȱ mightȱalsoȱbeȱworthȱincludingȱtheȱfullȱuseȱcasesȱasȱanȱannex.ȱ The route to market Describeȱ theȱ marketingȱ approachȱ andȱ strategyȱ thatȱ willȱ beȱ employedȱ toȱ reachȱ theȱ customers.ȱ Ifȱ theȱ marketȱ isȱ veryȱ large,ȱ describeȱ howȱ youȱ planȱ toȱ segmentȱ it,ȱ describeȱ theȱ firstȱ fewȱ segmentsȱyouȱplanȱtoȱaddressȱandȱjustifyȱyourȱchoice.ȱ Finallyȱ describeȱ theȱ marketȱ reachȱ thatȱ theȱ projectȱ partnersȱ have,ȱ identifyȱ anyȱ gapsȱ thatȱ existȱ andȱ explainȱ howȱ theyȱ willȱ beȱ filled,ȱ eitherȱthroughȱtheȱexpansionȱofȱtheȱprojectȱteamȱorȱthroughȱlicenceȱ dealsȱwithȱotherȱorganisationsȱinȱtheȱsupplyȱchain.ȱȱ Additional development requirements Manyȱcollaborativeȱprojects,ȱespeciallyȱthoseȱthatȱareȱgrantȱfunded,ȱ areȱ preȬcompetitiveȱ andȱ thereforeȱ stopȱ shortȱ ofȱ developingȱ aȱ productȱ orȱ processȱ thatȱ canȱ beȱ implementedȱ immediately.ȱ Veryȱ oftenȱthereȱwillȱbeȱfurtherȱdevelopmentȱthatȱneedsȱtoȱbeȱcarriedȱoutȱ andȱ thisȱ needsȱ toȱ beȱ explainedȱ inȱ thisȱ sectionȱ ofȱ theȱ exploitationȱ plan.ȱ SetȱoutȱtheȱobjectivesȱofȱtheȱfollowȬonȱprojectȱthatȱwillȱbeȱrequiredȱ toȱdevelopȱtheȱresultsȱtoȱtheȱpointȱofȱexploitation.ȱ

8.5ȱExploitationȱplanȱȱȱȱȱȱ147ȱ

Standards and accreditation Describeȱ theȱ processȱ byȱ whichȱ relevantȱ standardsȱ needȱ toȱ beȱ met.ȱ Forȱ example,ȱ newȱ medicalȱ devicesȱ willȱ needȱ toȱ satisfyȱ variousȱ standardsȱ andȱ passȱ safetyȱ testsȱ beforeȱ theyȱ canȱ beȱ CEȱ markedȱ inȱ Europeȱ orȱ FDAȱ approvedȱ inȱ theȱ US.ȱ Provideȱ estimatesȱ ofȱ theȱ timeȱ andȱeffortȱthisȱwillȱtakeȱandȱwhoȱwillȱbeȱresponsibleȱforȱtheȱprocess.ȱ The plan for the future Inȱ essenceȱ thisȱ sectionȱ describesȱ theȱ planȱ forȱ whatȱ happensȱ next.ȱ Thisȱshouldȱbeȱconsideredȱandȱdevelopedȱinȱexactlyȱtheȱsameȱwayȱ asȱtheȱoriginalȱprojectȱplanȱandȱinȱfactȱyouȱcanȱuseȱexactlyȱtheȱsameȱ methodologyȱasȱthatȱdescribedȱinȱChapterȱ3.ȱȱ Theȱ documentȱ shouldȱ containȱ aȱ Ganttȱ chartȱ showingȱ theȱ activitiesȱ orȱ workȱpackagesȱthatȱ areȱ involvedȱ inȱtakingȱ theȱprojectȱ resultsȱtoȱ market,ȱtheȱrisksȱassociatedȱwithȱtheȱprocessȱandȱtheȱresourcesȱandȱ timeȱthatȱwillȱbeȱrequired.ȱ Theȱplanȱshouldȱalsoȱdescribeȱhowȱtheȱprocessȱwillȱbeȱmanagedȱandȱ whatȱ responsibilitiesȱ eachȱ ofȱ theȱ partnersȱ willȱ take.ȱ Notȱ allȱ theȱ partnersȱ mayȱ beȱ involvedȱ inȱ thisȱ stage,ȱ forȱ exampleȱ anyȱ academicȱ partnersȱ mayȱ haveȱ contributedȱ allȱ theyȱ canȱ byȱ thisȱ stage.ȱ Itȱ isȱ alsoȱ worthȱ consideringȱ whetherȱ theȱ consortiumȱ agreementȱ needsȱ toȱ beȱ amendedȱ orȱ extendedȱ toȱ coverȱ theȱ commercialisationȱ activities.ȱ Detailsȱsuchȱasȱtheȱexactȱscheduleȱofȱroyaltiesȱtoȱbeȱpaidȱmayȱnowȱ needȱtoȱfinalised.ȱ Presentation Dependingȱ onȱ theȱ audience,ȱ youȱ mightȱ alsoȱ wishȱ toȱ includeȱ anȱ executiveȱ summaryȱ andȱ presentȱ theȱ documentȱ inȱ aȱ boundȱ fashionȱ asȱ oneȱ ofȱ theȱ projectȱ deliverables.ȱ Theȱ sameȱ rulesȱ applyȱ toȱ theȱ presentationȱ ofȱ anȱ exploitationȱ planȱ asȱ toȱ regularȱ businessȱ plans.ȱ Keepȱ theȱ languageȱ clear,ȱ includeȱ diagramsȱ andȱ picturesȱ toȱ helpȱ


illustrateȱtheȱpointsȱyouȱareȱmakingȱandȱpresentȱtheȱdocumentȱinȱaȱ smart,ȱbutȱnotȱtooȱostentatiousȱbinding.ȱ

8.6 Licensing Sortingȱ outȱ theȱ licensingȱ isȱ aȱ veryȱ importantȱ partȱ ofȱ planningȱ theȱ exploitationȱ ofȱ yourȱ projectȱ results.ȱ Theȱ moreȱ youȱ canȱ agreeȱ andȱ writeȱ intoȱ theȱ consortiumȱ agreementȱ atȱ theȱ startȱ ofȱ theȱ projectȱ theȱ easierȱitȱwillȱbeȱatȱtheȱend.ȱ Itȱ isȱ notȱ uncommonȱ forȱ theȱ consortiumȱ agreementȱ enteredȱ intoȱ inȱ orderȱ toȱ manageȱ theȱ projectȱ isȱ replacedȱ duringȱ theȱ exploitationȱ stageȱ withȱ aȱ commercialȱ agreementȱ thatȱ definesȱ eachȱ partner’sȱ accessȱ toȱ theȱ projectȱ intellectualȱ propertyȱ andȱ whatȱ commercialȱ termsȱ willȱ beȱ usedȱ toȱ shareȱ theȱ benefits.ȱ Licencesȱ andȱ royaltyȱ paymentsȱareȱtheȱmostȱcommonȱmechanismsȱtoȱachieveȱtheseȱgoals.ȱ Access to background intellectual property Backgroundȱ IPȱ includesȱ allȱ theȱ protectedȱ intellectualȱ propertyȱ thatȱ wasȱoriginallyȱownedȱbyȱmembersȱofȱtheȱconsortiumȱatȱtheȱstartȱofȱ theȱprojectȱandȱwhichȱwillȱbeȱusedȱinȱtheȱexploitationȱofȱtheȱresults.ȱ TypicallyȱeachȱpartnerȱwillȱhaveȱbroughtȱbackgroundȱIPȱwithȱthemȱ whenȱtheyȱjoinedȱtheȱconsortiumȱandȱwillȱhaveȱallowedȱtheȱothersȱ freeȱ accessȱ andȱ useȱ ofȱ itȱ duringȱ theȱ project’sȱ developmentȱ work.ȱ Thisȱwillȱhaveȱ beenȱ carriedȱoutȱ underȱtheȱtermsȱ ofȱtheȱconsortiumȱ agreement.ȱ Atȱtheȱexploitationȱstage,ȱaccessȱtoȱthisȱIPȱneedsȱtoȱbeȱreȬȱagreedȱinȱ orderȱthatȱtheȱresultsȱcanȱbeȱexploitedȱcommerciallyȱbyȱtheȱprojectȱ partners.ȱ Typicallyȱ thisȱ willȱ involveȱ theȱ grantingȱ ofȱ nonȬexclusiveȱ licensesȱinȱreturnȱforȱroyaltyȱpayments.ȱ

8.7ȱExploitationȱvehiclesȱȱȱȱȱȱ149ȱ

TheȱprocessȱisȱmadeȱaȱlotȱeasierȱifȱanȱIPȱlogȱhasȱbeenȱmaintainedȱofȱ allȱtheȱbackgroundȱIPȱthatȱhasȱbeenȱusedȱduringȱtheȱprojectȱandȱwillȱ beȱrequiredȱforȱtheȱsubsequentȱexploitation.ȱȱ Ownership of foreground intellectual property Foregroundȱ IPȱ includesȱ allȱ theȱ innovationsȱ andȱ inventionsȱ madeȱ duringȱ theȱ project.ȱ Theȱ consortiumȱ agreementȱ shouldȱ defineȱ whoȱ ownsȱandȱhasȱtheȱrightȱtoȱregisterȱandȱprotectȱtheseȱnewȱinventionsȱ andȱ howȱ theȱ otherȱ partnersȱ areȱallowedȱ accessȱ toȱ themȱduringȱ theȱ project.ȱ Again,ȱaccessȱtoȱthisȱIPȱneedsȱtoȱbeȱformallyȱagreedȱandȱifȱnecessaryȱ theȱexactȱnatureȱofȱroyaltyȱpaymentsȱdefinedȱinȱtheȱnewȱcommercialȱ agreementȱtoȱallowȱexploitation.ȱȱ Third party licensing Inȱ someȱ casesȱ youȱ mayȱ wishȱ toȱ licenceȱ theȱ technologyȱ toȱ aȱ thirdȱ party,ȱsomeoneȱwhoȱwasȱnotȱinvolvedȱinȱtheȱproject,ȱbutȱwhoȱmayȱ haveȱ accessȱ toȱ otherȱ marketsȱ orȱ territoriesȱ thatȱ theȱ originalȱ consortiumȱcannotȱreach.ȱAllȱtheȱpartnersȱwouldȱneedȱtoȱagreeȱtheȱ termsȱ ofȱ suchȱ aȱ licenceȱ andȱ theȱ shareȱ ofȱ royaltiesȱ orȱ otherȱ benefitsȱ thatȱtheyȱcouldȱreceive.ȱ

8.7 Exploitation vehicles Anȱincreasinglyȱcommonȱmethodȱofȱexploitingȱcollaborativeȱprojectȱ resultsȱisȱtoȱcreateȱaȱnewȱcompanyȱtoȱactȱasȱanȱexploitationȱvehicle.ȱ TheȱforegroundȱIPȱisȱassignedȱtoȱtheȱnewȱcompanyȱandȱlicencesȱforȱ backgroundȱ IPȱ areȱ providedȱ toȱ allowȱ theȱ companyȱ toȱ fullyȱ exploitȱ theȱresults.ȱȱ Ownershipȱofȱtheȱcompanyȱisȱsharedȱbetweenȱtheȱprojectȱpartners,ȱ eitherȱ inȱ equalȱ shareȱ orȱ byȱ proportionȱ toȱ theȱ valueȱ ofȱ resourcesȱ


committedȱbyȱeachȱpartnerȱtoȱtheȱproject.ȱAȱshareholdersȱagreementȱ commitsȱ eachȱ partnerȱ toȱ supportȱ theȱ newȱ companyȱ andȱ itsȱ activities.ȱ Thisȱ approachȱ mightȱ beȱ worthȱ consideringȱ ifȱ theȱ projectȱ resultsȱ inȱ newȱproductsȱorȱprocessesȱthatȱdoȱnotȱimmediatelyȱfitȱwithȱanyȱofȱ theȱexistingȱpartners’ȱportfolios.ȱItȱalsoȱprotectsȱeachȱofȱtheȱpartnersȱ fromȱ relyingȱ onȱ aȱ singleȱ exploitationȱ partnerȱ thatȱ couldȱ switchȱ commercialȱ focusȱ awayȱ fromȱ theȱ project,ȱ loseȱ interestȱ inȱ theȱ opportunityȱorȱgoȱintoȱliquidation.ȱ Theȱrisksȱofȱthisȱapproachȱareȱthatȱtheȱnewȱcompanyȱwillȱnotȱhaveȱaȱ trackȱ recordȱ inȱ theȱ marketȱ orȱ anyȱ brandȱ loyaltyȱ withȱ theȱ intendedȱ customers.ȱ Thereȱ isȱ alsoȱ theȱ riskȱ thatȱ ifȱ theȱ vehicleȱ failed,ȱ theȱ IPRȱ wouldȱ beȱ lostȱ withȱ it.ȱ Oneȱ potentialȱ safeguardȱ wouldȱ beȱ forȱ eachȱ partnerȱ toȱ provideȱ exclusiveȱ licencesȱ toȱ theȱ necessaryȱ foregroundȱ andȱ backgroundȱ IPRȱ toȱ theȱ vehicleȱ companyȱ initiallyȱ andȱ onlyȱ assignȱitȱpermanentlyȱwhenȱcommercialȱtargetsȱhadȱbeenȱreached.ȱȱ

8.8 Dissemination Disseminationȱ isȱ aȱ veryȱ importantȱ partȱ ofȱ manyȱ collaborativeȱ projects,ȱespeciallyȱwhenȱacademicȱpartnersȱareȱinvolved.ȱȱ Iȱjustȱwantedȱtoȱremindȱyouȱthatȱdisseminationȱneedsȱtoȱbeȱplannedȱ carefullyȱasȱitȱcanȱhaveȱaȱdamagingȱeffectȱonȱtheȱprotectionȱofȱnewȱ IP.ȱWithȱtheȱexceptionȱofȱtheȱUS,ȱpatentȱprotectionȱisȱonlyȱpossibleȱifȱ theȱ inventionȱ hasȱ notȱ previouslyȱ beenȱ disclosedȱ toȱ theȱ public.ȱ Conferenceȱ presentationsȱ andȱ journalȱ articlesȱ countȱ asȱ publicationȱ toȱtheȱpublicȱandȱcanȱpreventȱpatentsȱfromȱbeingȱgranted.ȱYouȱandȱ yourȱpartnersȱwouldȱbeȱpowerlessȱtoȱpreventȱanyoneȱfromȱcopyingȱ yourȱ projectȱ resultsȱ andȱ sellingȱ themȱ inȱ competitionȱ withȱ youȱ anywhereȱinȱtheȱworld.ȱ Mostȱ consortiumȱ agreementsȱ stipulateȱ thatȱ anyȱ proposedȱ presentationȱorȱpublicationȱbeȱshownȱtoȱallȱtheȱpartnersȱinȱadvanceȱ


toȱallowȱthemȱtoȱeditȱorȱvetoȱitsȱrelease.ȱThisȱshouldȱcontinueȱtoȱbeȱ theȱ caseȱ afterȱ theȱ projectȱ hasȱ endedȱ andȱ duringȱ theȱ runȱ upȱ toȱ exploitation,ȱatȱleastȱuntilȱtheȱinventionsȱhaveȱbeenȱprotected.ȱ

8.9 So in conclusion 1.ȱExploitationȱisȱtheȱprocessȱyouȱgoȱthroughȱtoȱachieveȱtheȱdesiredȱ benefitsȱfromȱtheȱproject.ȱItȱmightȱincludeȱ x Launchingȱaȱnewȱproduct,ȱprocessȱorȱserviceȱ x Enteringȱaȱnewȱmarketȱ x Creatingȱlicenseȱopportunitiesȱ x Publishingȱpapersȱ x Carryingȱoutȱfurtherȱdevelopmentȱ x Winningȱfurtherȱgrantsȱ 2.ȱTheȱexploitationȱmethodologyȱconsistsȱofȱthreeȱstages:ȱ x Developingȱaȱbusinessȱcaseȱforȱtheȱprojectȱ x Developingȱmarketȱunderstandingȱ x Creatingȱanȱexploitationȱplanȱ 3.ȱDevelopingȱaȱmarketȱunderstandingȱconsistsȱof:ȱ x Analyzingȱtheȱmarketȱopportunityȱ x Understandingȱtheȱmarketȱdynamicsȱ x Understandingȱtheȱindustryȱforcesȱ 4.ȱ Analysingȱ theȱ marketȱ opportunityȱ consistsȱ ofȱ askingȱ theȱ followingȱquestions:ȱ x Whatȱproblemȱisȱbeingȱsolvedȱ x Howȱwillȱcustomerȱbehaviourȱchangeȱ x Whoȱelseȱisȱaffectedȱ 5.ȱ Understandingȱ theȱ marketȱ dynamicsȱ consistsȱ ofȱ askingȱ theȱ followingȱquestions:ȱ x Whereȱareȱtheȱcustomersȱ x Howȱmanyȱareȱthereȱ x Howȱisȱtheȱmarketȱsizeȱchangingȱ


x

Whatȱtrendsȱaffectȱtheȱbusinessȱopportunityȱ

6.ȱThereȱareȱfiveȱindustryȱforces:ȱ x Easeȱofȱentryȱ x Supplierȱpowerȱ x Buyerȱpowerȱ x Threatȱofȱsubstitutesȱ x Competitiveȱrivalryȱ 7.ȱTheȱexploitationȱplanȱshouldȱconsistȱof:ȱ x Theȱmarketȱopportunityȱ x Theȱintendedȱrouteȱtoȱmarketȱ x Additionalȱdevelopmentȱrequirementsȱ x Standardsȱandȱaccreditationȱissuesȱ x Planȱforȱtheȱfutureȱ 8.ȱLicensingȱissuesȱneedȱtoȱbeȱaddressedȱthatȱimpact:ȱ x AssessȱtoȱbackgroundȱIPRȱ x OwnershipȱofȱforegroundȱIPRȱ x Accessȱbyȱthirstȱpartiesȱ ȱ

9 Project completion

Theȱ finalȱ stagesȱ ofȱ theȱ projectȱ areȱ veryȱ importantȱ andȱ haveȱ aȱ disproportionalȱ affectȱ onȱ theȱ overallȱ successȱ ofȱ theȱ project.ȱ Yourȱ consortiumȱwillȱneedȱtoȱremainȱvigilantȱtoȱanyȱremainingȱrisksȱandȱ ensureȱ thatȱ allȱ outstandingȱ workȱ isȱ completedȱ satisfactorily.ȱ Thisȱ willȱ beȱ anȱ particularlyȱ busyȱ periodȱ forȱ theȱ projectȱ managerȱ especiallyȱifȱgrantȱfundingȱisȱinvolvedȱandȱtheȱfundingȱorganisationȱ requiresȱ theȱ preparationȱ ofȱ detailedȱ finalȱ reportsȱ andȱ evaluations.ȱ Evenȱ ifȱ thisȱ isȱ notȱ theȱ case,ȱ thereȱ willȱ beȱ internalȱ reviewsȱ andȱ lessonsȱtoȱbeȱlearnedȱfromȱanȱanalysisȱofȱtheȱprojectsȱperformance.ȱ Theȱ partners’ȱ focusȱ shouldȱ shiftȱ backȱ toȱ theȱ originalȱ objectivesȱ forȱ theȱproject.ȱDuringȱtheȱexecutionȱstagesȱitȱisȱeasyȱtoȱforgetȱaboutȱtheȱ objectivesȱandȱsimplyȱconcentrateȱonȱdeliveringȱtheȱworkȱpackages.ȱ Nowȱ theȱreasonsȱforȱcarryingȱoutȱtheȱprojectȱmustȱbeȱrestatedȱandȱ anyȱadditionalȱtasksȱrequiredȱtoȱfullyȱmeetȱtheȱobjectivesȱwillȱneedȱ toȱbeȱplannedȱandȱimplemented.ȱȱ Theȱsocialȱaspectsȱofȱtheȱprojectȱalsoȱneedȱconsidering.ȱSomeȱofȱtheȱ partnersȱ willȱ notȱ beȱ carryingȱ onȱ intoȱ theȱ exploitationȱ stagesȱ andȱ someȱ membersȱ ofȱ theȱ teamȱ willȱ beȱ disbandingȱ toȱ workȱ onȱ newȱ projects.ȱSomeȱsortȱofȱendȱofȱprojectȱpartyȱorȱdinnerȱisȱprobablyȱinȱ order.ȱ

9.1 Reaching the finishing line Asȱtheȱprojectȱdrawsȱtoȱaȱclose,ȱtheȱpartnersȱwillȱneedȱtoȱpayȱspecialȱ attentionȱtoȱoutstandingȱtasksȱtoȱensureȱthatȱtheyȱareȱcompletedȱbyȱ

154ȱȱȱȱȱȱ9ȱProjectȱcompletionȱ

theȱendȱofȱtheȱproject.ȱThereȱareȱaȱnumberȱofȱspecialȱactionsȱthatȱcanȱ beȱtakenȱtoȱhelpȱwithȱthisȱprocess:ȱ x Produceȱandȱreviewȱchecklistsȱofȱoutstandingȱworkȱ x Planȱtheȱremainingȱtasksȱtoȱaȱfinerȱlevelȱofȱdetailȱtoȱprovideȱ tighterȱcontrolȱ x Holdȱmoreȱsteeringȱcommitteeȱmeetingsȱtoȱensureȱproblemsȱ areȱ identified,ȱ understoodȱ andȱ solutionsȱ actionedȱ withoutȱ delayȱ x Creatingȱ aȱ taskȱ forceȱ withȱ specialȱ responsibilitiesȱ forȱ completingȱoutstandingȱworkȱ x Closingȱ contractsȱ withȱ suppliersȱ andȱ subcontractorsȱ toȱ ensureȱunnecessaryȱcostsȱareȱcontainedȱ x Provideȱadditionalȱsupportȱtoȱtheȱprojectȱmanagerȱ Checklistsȱ ofȱ theȱ outstandingȱ workȱ shouldȱ beȱ createdȱ atȱ aȱ workȱ packageȱandȱprojectȱlevel.ȱTheyȱshouldȱdescribeȱtheȱworkȱrequiredȱ andȱ identifyȱ whoȱ isȱ responsibleȱ forȱ finishingȱ it.ȱ Theȱ steeringȱ committeeȱ canȱ thenȱ reviewȱ progressȱ andȱ tickȱ offȱ theȱ tasksȱ asȱ theyȱ areȱcompleted.ȱ Byȱplanningȱtheȱremainingȱtasksȱinȱfinerȱdetail,ȱtheȱremainingȱworkȱ isȱbetterȱunderstoodȱandȱstandsȱaȱbetterȱchanceȱofȱbeingȱcompletedȱ byȱ theȱ deadline.ȱ Ifȱ youȱ haveȱ notȱ beenȱ carryingȱ outȱ aȱ rollingȱ waveȱ planningȱprocessȱsoȱfar,ȱthenȱthisȱisȱtheȱtimeȱtoȱstart.ȱDuringȱtheȱlastȱ quarterȱ orȱ twoȱ ofȱ theȱ project,ȱ allȱ remainingȱ workȱ packagesȱ shouldȱ beȱplannedȱtoȱaȱresolutionȱofȱweeks.ȱ Steeringȱcommitteeȱmeetingsȱshouldȱbeȱrampedȱupȱtowardsȱtheȱendȱ ofȱtheȱproject.ȱIfȱtheyȱareȱnormallyȱheldȱonceȱaȱquarter,ȱthisȱshouldȱ increaseȱtoȱtwiceȱinȱtheȱpenultimateȱquarterȱandȱcouldȱevenȱneedȱtoȱ beȱ increasedȱ furtherȱ toȱ monthlyȱ duringȱ theȱ finalȱ quarter.ȱ Theȱ committeeȱ willȱ alsoȱ beȱ ableȱ toȱ reviewȱ progressȱ ofȱ theȱ exploitationȱ plansȱoverȱtheȱsameȱperiod.ȱȱ Itȱ mayȱ alsoȱ beȱ worthȱ consideringȱ providingȱ theȱ projectȱ managerȱ withȱaȱdeputyȱtoȱhelpȱduringȱthisȱstageȱofȱtheȱproject.ȱAnȱindividualȱ

9.2ȱDocumentationȱȱȱȱȱȱ155ȱ

withȱ finishingȱ skillsȱ andȱ anȱ eyeȱ forȱ detailȱ couldȱ beȱ invaluableȱ toȱ helpȱlargeȱandȱcomplexȱprojectsȱfinishȱsuccessfully.ȱ

9.2 Documentation Inȱ casesȱ whereȱ theȱ projectȱ hasȱ resultedȱ inȱ aȱ prototypeȱ orȱ demonstrator,ȱitsȱoperationȱandȱdesignȱisȱlikelyȱtoȱrequireȱdetailedȱ documentationȱ toȱ allowȱ othersȱ toȱ operateȱ andȱ understandȱ it.ȱ Documentationȱworkȱtendsȱtoȱuseȱupȱaȱlotȱofȱtimeȱtowardsȱtheȱendȱ ofȱ R&Dȱ projectsȱ butȱ isȱ essentialȱ forȱ theȱ exploitationȱ ofȱ theȱ results.ȱ Makeȱsureȱthatȱyouȱplanȱsufficientȱtimeȱforȱtheseȱactivitiesȱandȱthatȱ theȱqualityȱofȱreportsȱremainsȱhigh.ȱȱ Writingȱ documentationȱ isȱ notȱ everyone’sȱ ideaȱ ofȱ funȱ andȱ writingȱ skillsȱ mayȱ varyȱ soȱ itȱ mightȱ beȱ worthȱ consideringȱ creatingȱ aȱ documentationȱ chiefȱ orȱ smallȱ teamȱ thatȱ takesȱ basicȱ technicalȱ informationȱ fromȱ theȱ projectȱ developmentȱ teamsȱ andȱ createsȱ goodȱ quality,ȱconsistentȱreportsȱandȱinstructions.ȱ Grantȱ fundingȱ bodiesȱ almostȱ alwaysȱ requireȱ thatȱ aȱ finalȱ reportȱ isȱ preparedȱ thatȱ explainsȱ howȱ theȱ projectȱ succeededȱ inȱ meetingȱ theȱ originalȱ objectivesȱ andȱ howȱ theirȱ fundingȱ wasȱ spent.ȱ Ifȱ thisȱ isȱ theȱ caseȱyouȱshouldȱfindȱoutȱfromȱtheȱfundingȱbodyȱtheȱexactȱnatureȱofȱ theȱdocumentȱtheyȱareȱexpecting.ȱSomeȱrequireȱdetailedȱreportsȱthatȱ willȱ takeȱ youȱ manyȱ weeksȱ toȱ writeȱ whileȱ othersȱ mayȱ provideȱ youȱ withȱ aȱ templateȱ orȱ otherȱ guidanceȱ toȱ helpȱ you.ȱ Itȱ isȱ worthȱ notingȱ thatȱ ifȱ youȱ leaveȱ theȱ preparationȱ ofȱ thisȱ documentȱ untilȱ afterȱ theȱ officialȱendȱdateȱofȱtheȱproject,ȱyouȱareȱunlikelyȱtoȱbeȱableȱtoȱclaimȱ theȱtimeȱitȱtakesȱtoȱwriteȱasȱanȱeligibleȱcostȱofȱtheȱproject.ȱ Finalȱ reportsȱ areȱ oftenȱ writtenȱ inȱ anȱ upbeatȱ way,ȱ celebratingȱ theȱ successesȱ ofȱ theȱ projectȱ butȱ itȱ shouldȱ remainȱ factualȱ andȱ realisticȱ aboutȱtheȱachievements.ȱTheȱlessonsȱlearnedȱfromȱtheȱmanagementȱ ofȱtheȱprojectȱasȱwellȱasȱtheȱtechnicalȱworkȱshouldȱbeȱincluded.ȱȱ


9.3 Post completion reviews Thereȱareȱmanyȱgoodȱreasonsȱforȱcarryingȱoutȱaȱreviewȱatȱtheȱendȱofȱ theȱproject.ȱTheseȱinclude:ȱ x Developingȱ anȱ understandingȱ ofȱ whatȱ objectivesȱ wereȱ achievedȱ andȱ ofȱ thoseȱ notȱ achieved,ȱ theȱ reasonsȱ forȱ theȱ disappointment.ȱ x Developingȱanȱunderstandingȱofȱhowȱtheȱfinalȱcostsȱdifferedȱ fromȱ theȱ originalȱ plan.ȱ Thisȱ couldȱ beȱ usefulȱ forȱ futureȱ planningȱpurposesȱ x Aȱ reviewȱ ofȱ theȱ successesȱ andȱ failuresȱ ofȱ theȱ projectȱ toȱ provideȱlessonsȱforȱfutureȱprojectsȱandȱactivities.ȱ Ifȱ grantȱ fundingȱ wasȱ providedȱ forȱ theȱ projectȱ thereȱ isȱ aȱ veryȱ highȱ chanceȱ thatȱ theȱ fundingȱ organisationȱ willȱ requireȱ aȱ reviewȱ ofȱ theȱ expenditureȱ andȱ theȱ benefitsȱ achievedȱ byȱ theȱ project.ȱ Thisȱ isȱ oftenȱ containedȱwithinȱaȱfinalȱreportȱbutȱmanyȱfundingȱbodiesȱretainȱtheȱ rightȱ toȱ reȬvisitȱ theȱ partnersȱ inȱ theȱ yearsȱ followingȱ theȱ projectȱ inȱ orderȱtoȱlearnȱhowȱtheȱprojectȱprovidedȱlongȱtermȱbusinessȱbenefitsȱ forȱtheȱpartners.ȱMakeȱsureȱyouȱunderstandȱwhatȱisȱexpectedȱinȱtheȱ finalȱ reportingȱ soȱ thatȱ sufficientȱ resourceȱ canȱ beȱ plannedȱ toȱ accommodateȱit.ȱ

9.4 Project close meeting & festivities Theȱprojectȱcloseȱ meetingȱisȱinȱsomeȱ waysȱjustȱ asȱ importantȱasȱtheȱ launchȱ meetingȱ allȱ thoseȱ yearsȱ before.ȱ Itȱ allowsȱ everyoneȱ toȱ comeȱ together,ȱpossiblyȱforȱtheȱlastȱtimeȱandȱcelebrateȱtheȱsuccessesȱofȱtheȱ project.ȱȱ Theȱ meetingȱ shouldȱ reviewȱ bothȱ theȱ positiveȱ andȱ negativeȱ aspectsȱ ofȱ theȱ project.ȱ Achievementsȱ shouldȱ beȱ celebratedȱ andȱ rewardedȱ andȱ underȬachievementsȱ understoodȱ andȱ possiblyȱ chastised.ȱ ȱ Theȱ lessonsȱlearnedȱshouldȱbeȱdiscussedȱandȱagreedȱuponȱasȱtheseȱwillȱ


notȱonlyȱbeȱcarriedȱforwardȱtoȱtheȱexploitationȱworkȱbutȱgoȱwithȱtheȱ individualsȱtoȱtheirȱnextȱprojectsȱasȱtheȱteamȱdisbands.ȱ Theȱ exploitationȱ plansȱ shouldȱ alsoȱ beȱ reviewedȱ andȱ launchedȱ soȱ thatȱ everybodyȱ understandsȱ whatȱ isȱ toȱ happenȱ withȱ theȱ results,ȱ evenȱifȱtheyȱwillȱnotȱpersonallyȱbeȱinvolved.ȱ Thereȱshouldȱalsoȱbeȱaȱsocialȱeventȱtoȱmarkȱtheȱendȱofȱtheȱproject.ȱAȱ dinnerȱ mightȱ beȱ appropriateȱ orȱ perhapsȱ somethingȱ moreȱ fittingȱ withȱtheȱprojectȱarea.ȱYouȱwillȱknowȱtheȱteamȱwellȱenoughȱbyȱnowȱ toȱ pickȱ anȱ appropriateȱ celebration.ȱ Someȱ largeȱ projectsȱ evenȱ provideȱsmallȱgiftsȱorȱmemorabiliaȱtoȱallȱtheȱprojectȱparticipantsȱasȱ somethingȱ toȱ rememberȱ theȱ projectȱ by.ȱ Theȱ partnersȱ mightȱ alsoȱ wantȱtoȱbuyȱtheȱprojectȱmanagerȱaȱbottleȱofȱsomethingȱappropriateȱ toȱshowȱtheirȱgratitudeȱforȱallȱtheirȱhardȱwork.ȱ

9.5 So in conclusion 1.ȱTheȱkeyȱrequirementsȱforȱachievingȱsuccessfulȱprojectȱcompletionȱ are:ȱ x Finishingȱtheȱworkȱ x Ensuringȱtheȱoutcomesȱareȱfullyȱdocumentedȱ x Reviewingȱtheȱprogressȱachievedȱ x Closingȱtheȱprojectȱandȱdisbandingȱtheȱpartnershipȱ 2.ȱ Theȱ workȱ mustȱ beȱ finishedȱ inȱ aȱ timelyȱ andȱ efficientȱ way.ȱ Theȱ followingȱcanȱhelp:ȱ x Checklistsȱofȱoutstandingȱworkȱ x Finerȱplanningȱofȱlaterȱtasksȱ x Moreȱfrequentȱsteeringȱcommitteeȱmeetingsȱ x Creationȱofȱtaskȱforcesȱ x EfficientlyȱclosingȱsubȬcontractsȱ x Supportingȱtheȱprojectȱmanagerȱ 3.ȱDocumentationȱneedsȱtoȱbeȱcompleted.ȱThisȱcanȱbeȱaidedȱthroughȱ nominatingȱ aȱ documentationȱ chief.ȱ Theȱ requirementsȱ ofȱ anyȱ finalȱ


reportȱ shouldȱ beȱ understoodȱ wellȱ inȱ advanceȱ toȱ allowȱ timeȱ forȱ itsȱ preparationȱbeforeȱtheȱteamȱdisbands.ȱ 4.ȱPostȱcompletionȱreviewsȱshouldȱbeȱheldȱto:ȱ x Documentȱwhatȱhasȱbeenȱachievedȱ x Compareȱtheȱplannedȱcostsȱwithȱtheȱactualȱcostsȱ x Generateȱaȱsetȱofȱlessonsȱlearnedȱfromȱtheȱprojectȱ 5.ȱTheȱprojectȱcloseȱmeetingȱisȱanȱimportantȱpartȱofȱtheȱprojectȱandȱ shouldȱinclude:ȱ x Positiveȱandȱnegativeȱaspectsȱofȱtheȱprojectȱ x Lessonsȱlearnedȱ x Exploitationȱofȱtheȱresultsȱ x Aȱsocialȱeventȱorȱpartyȱ ȱ

10 Closing remarks

Lookȱ backȱ overȱ theȱ groundȱ weȱ haveȱ coveredȱ inȱ thisȱ book.ȱ Weȱ startedȱ withȱ aȱ lookȱ atȱ theȱ fundingȱ andȱ legalȱ arrangementsȱ ofȱ collaborativeȱ R&Dȱ projects.ȱ Gettingȱ theseȱ basicsȱ rightȱ canȱ makeȱ aȱ bigȱdifferenceȱtoȱtheȱsmoothȱrunningȱofȱtheȱprojectȱandȱinȱwinningȱ financialȱsupport.ȱ Weȱ lookedȱ atȱ buildingȱ yourȱ projectȱ onȱ theȱ soundȱ foundationsȱ ofȱ aȱ strongȱbusinessȱcaseȱandȱaȱrobustȱprojectȱplan.ȱBothȱofȱtheseȱaspectsȱ areȱstandardȱinȱprojectȱmanagementȱbutȱareȱaȱlittleȱmoreȱcomplexȱinȱ theȱ caseȱ ofȱ collaborativeȱ projects.ȱ Firstlyȱ allȱ theȱ partnersȱ haveȱ differentȱ motivesȱ forȱ beingȱ involvedȱ andȱ theseȱ needȱ toȱ beȱ consideredȱcarefullyȱtoȱensureȱthatȱeveryoneȱremainsȱcommittedȱtoȱ theȱproject.ȱSecondlyȱtheȱpartnersȱareȱoftenȱbasedȱhundredsȱofȱmilesȱ apartȱandȱsoȱtheȱplanningȱandȱcommunicationsȱissuesȱneedȱspecialȱ consideration.ȱ Weȱthenȱlookedȱatȱtheȱgeneralȱrunningȱofȱtheȱprojectȱtoȱensureȱthatȱ theȱ momentumȱ isȱ keptȱ andȱ thatȱ everyoneȱ worksȱ wellȱ together.ȱ Manyȱ grantȱ fundedȱ projectsȱ areȱ monitoredȱ externallyȱ andȱ weȱ lookedȱ atȱ howȱ bestȱ toȱ workȱ withȱ monitoringȱ officersȱ andȱ toȱ useȱ theirȱinvolvementȱtoȱaddȱvalueȱtoȱtheȱproject.ȱ Nextȱ weȱ lookedȱ atȱ theȱ differentȱ motivationsȱ andȱ workingȱ characteristicsȱ ofȱ academicȱ andȱ industrialȱ partners.ȱ Theseȱ chaptersȱ wereȱ writtenȱ toȱ helpȱ introduceȱ eachȱ typeȱ ofȱ partnerȱ toȱ theȱ other.ȱ Iȱ hadȱ toȱ generaliseȱ aȱ littleȱ bit,ȱ butȱ havingȱ workedȱ asȱ bothȱ myself,ȱ Iȱ canȱgetȱawayȱwithȱit.ȱ

160ȱȱȱȱȱȱ10ȱClosingȱremarksȱ

Weȱ thenȱ tookȱ aȱ lookȱ atȱ whatȱ canȱ goȱ wrongȱ withȱ collaborativeȱ projectsȱ andȱ howȱ toȱ bestȱ dealȱ withȱ theȱ specialȱ problemsȱ theyȱ canȱ create.ȱ Thisȱ includedȱ theȱ issuesȱ createdȱ whenȱ aȱ partnerȱ leavesȱ theȱ projectȱ midȱ wayȱ through,ȱ whichȱ unfortunatelyȱ isȱ notȱ anȱ unȬ commonȱsituation.ȱȱ Next,ȱandȱperhapsȱmostȱimportantly,ȱweȱlookedȱatȱtheȱexploitationȱ ofȱ allȱ theȱ hardȱ work.ȱ Exploitationȱ isȱ theȱ raisonȱ d’êtreȱ ofȱ theȱ collaborativeȱ projectȱ andȱ aȱ methodologyȱ wasȱ presentedȱ inȱ threeȱ stages.ȱ Theȱ firstȱ stageȱ involvedȱ theȱ businessȱ caseȱ whichȱ providesȱ theȱ justificationȱ forȱ theȱ project.ȱ Developingȱ aȱ soundȱ marketȱ understandingȱ thenȱ helpsȱ focusȱ theȱ projectȱ towardsȱ theȱ bestȱ opportunitiesȱ andȱ finallyȱ theȱ exploitationȱ planningȱ stageȱ providesȱ theȱwayȱforwardȱafterȱtheȱprojectȱisȱcomplete.ȱ Finallyȱ weȱ lookedȱ atȱ theȱ specialȱ issuesȱ thatȱ affectȱ theȱ endȱ ofȱ theȱ projectȱincludingȱstrategiesȱforȱensuringȱthatȱtheȱprojectȱfinishesȱonȱ time.ȱWeȱlookedȱatȱpostȱprojectȱevaluationȱandȱtheȱneedȱforȱaȱsocialȱ eventȱtoȱmarkȱtheȱendȱofȱtheȱproject.ȱ Ifȱ youȱ haveȱ readȱ thisȱ bookȱ inȱ preparationȱ forȱ runningȱ orȱ joiningȱ aȱ collaborativeȱproject,ȱIȱhopeȱitȱhasȱpreparedȱyouȱforȱanȱexcitingȱandȱ rewardingȱ experience.ȱ Ifȱ yourȱ projectȱ isȱ alreadyȱ running,ȱ Iȱ hopeȱ itȱ hasȱhelpedȱyouȱmakeȱtheȱbestȱofȱtheȱeffortȱyouȱareȱputtingȱin.ȱTheȱ restȱ isȱ upȱ toȱ you.ȱ Iȱ wishȱ youȱ theȱ bestȱ ofȱ success,ȱ notȱ justȱ forȱ theȱ projectȱ itself,ȱ butȱ forȱ theȱ benefitsȱ youȱ areȱ ableȱ toȱ reapȱ fromȱ theȱ results.ȱ

Glossary

Applicationȱ Inȱ requestingȱ grantȱ funding,ȱ projectȱ consortiaȱ completeȱ anȱ applicationȱwhichȱdescribesȱtheirȱprojectȱandȱwhichȱisȱassessedȱbyȱtheȱ fundingȱorganisation.ȱȱ Assessmentȱ Describesȱ theȱ processȱ byȱ whichȱ aȱ projectȱ applicationȱ isȱ selectedȱ forȱ grantȱfundingȱbyȱaȱfundingȱbody.ȱȱ BackgroundȱIntellectualȱPropertyȱ(BackgroundȱIP)ȱ IPȱthatȱisȱpreviouslyȱknownȱandȱbroughtȱtoȱtheȱprojectȱbyȱoneȱofȱtheȱ partnersȱtoȱallowȱtheȱworkȱtoȱproceed.ȱ Baselineȱ Withinȱ aȱ projectȱ planȱ orȱ spendȱ profile,ȱ baselineȱ refersȱ toȱ theȱ initialȱ forecastȱ ofȱ projectȱ timeȱ andȱ costsȱ atȱ theȱ startȱ ofȱ theȱ project.ȱ Asȱ theȱ projectȱ progresses,ȱ actualȱ achievedȱ ratesȱ canȱ beȱ comparedȱ toȱ theȱ Baselineȱtoȱillustrateȱwhetherȱtheȱprojectȱisȱonȱschedule.ȱ Claimȱ Grantsȱareȱnormallyȱpaidȱinȱarrearsȱagainstȱprojectȱexpenditure.ȱTheȱ mechanismȱ forȱ payingȱ grantsȱ involvesȱ theȱ consortiumȱ makingȱ aȱ claimȱ forȱ theirȱ grant.ȱ Aȱ claimȱ formȱ mayȱ beȱ providedȱ whichȱ describesȱ whatȱ costsȱ haveȱ beenȱ incurredȱ andȱ henceȱ whatȱ grantȱ isȱ due.ȱ Consortiumȱ Theȱ groupȱ ofȱ projectȱ partnersȱ thatȱ areȱ workingȱ collaborativelyȱ onȱ theȱproject,ȱareȱsharingȱtheȱrisksȱandȱbenefits,ȱandȱwhoȱhaveȱsignedȱ theȱconsortiumȱagreement.ȱȱ

162ȱȱȱȱȱȱGlossaryȱ

ConsortiumȱAgreementȱ Aȱ formalȱ agreementȱ enteredȱ intoȱ byȱ allȱ theȱ consortiumȱ partners.ȱ Theȱ agreementȱ setsȱ downȱ theȱ termsȱ ofȱ theȱ collaboration,ȱ theȱ managementȱofȱtheȱproject,ȱtheȱdistributionȱofȱintellectualȱpropertyȱ andȱ whatȱ happensȱ ifȱ aȱ partnerȱ defaultsȱ orȱ leavesȱ theȱ project.ȱ Theȱ contentȱ ofȱ theȱ agreementȱ isȱ normallyȱ forȱ theȱ projectȱ partnersȱ toȱ agree.ȱȱ Contributionȱinȱkindȱ Aȱcontributionȱtoȱtheȱprojectȱmadeȱbyȱanȱorganisationȱoutsideȱofȱtheȱ consortium.ȱ Contributionsȱ areȱ normallyȱ inȱ theȱ formȱ ofȱ cheapȱ materialsȱ orȱaccessȱ toȱ facilities.ȱTheȱvalueȱ ofȱcontributionsȱcanȱ addȱ toȱtheȱproject’sȱeligibleȱcosts.ȱȱ Deliverablesȱ Tangibleȱ outputsȱ orȱ resultsȱ fromȱ theȱ project.ȱ Theseȱ couldȱ includeȱ prototypes,ȱreports,ȱdemonstrationsȱetc.ȱTheȱbalanceȱofȱinternalȱandȱ externalȱ deliverablesȱ indicatesȱ theȱ extentȱ toȱ whichȱ theȱ projectȱ isȱ disseminatingȱitsȱresults.ȱ Deliverablesȱ–ȱExternalȱ Externalȱ deliverablesȱ areȱ thoseȱ thatȱ areȱ sharedȱ withȱ theȱ widerȱ communityȱsuchȱasȱaȱpublishedȱpaperȱorȱpublicȱdemonstration.ȱ Deliverablesȱ–ȱInternalȱ Internalȱdeliverablesȱareȱprivateȱtoȱtheȱconsortium.ȱ Disseminationȱ Theȱ sharingȱ ofȱ projectȱ outputsȱ andȱ resultsȱ withinȱ theȱ widerȱ community.ȱȱ EligibleȱCostsȱ Costsȱaccruedȱbyȱtheȱprojectȱpartnersȱinȱcarryingȱoutȱtheȱprojectȱthatȱ areȱ acceptableȱ toȱ aȱ fundingȱ bodyȱ asȱ costsȱ againstȱ whichȱ aȱ grantȱ contributionȱcanȱbeȱpaid.ȱTheseȱareȱmostlyȱagreedȱinȱadvanceȱofȱtheȱ offerȱletter.ȱ

Glossaryȱȱȱȱȱȱ163ȱ

EndȱDateȱ Thisȱ dateȱ marksȱ theȱ endȱ ofȱ theȱ project.ȱ Typicallyȱ inȱ grantȱ fundedȱ projects,ȱnoȱcostsȱcanȱbeȱcountedȱasȱeligibleȱafterȱthisȱdate.ȱ Evaluationȱ Anȱ analysisȱ ofȱ theȱ effectivenessȱ ofȱ theȱ projectȱ thatȱ isȱ carriedȱ outȱ shortlyȱafterȱtheȱprojectȱhasȱbeenȱcompleted.ȱȱ Exploitationȱ Activitiesȱthatȱachieveȱaȱcommercialȱreturnȱorȱsustainabilityȱbenefit,ȱ forȱtheȱconsortiumȱpartners,ȱfromȱtheȱresultsȱofȱtheȱproject.ȱȱ FinancialȱViabilityȱ FinancialȱViabilityȱisȱaȱmeasureȱofȱaȱpartner’sȱcommercialȱhealthȱandȱ abilityȱtoȱparticipateȱinȱaȱproject.ȱPartnersȱmustȱhaveȱsufficientȱcashȱ flowȱtoȱfundȱtheirȱprojectȱactivitiesȱinȱadvanceȱofȱanyȱgrantȱfundingȱ whichȱ isȱ paidȱ inȱ arrears.ȱ Viabilityȱ canȱ alsoȱ beȱ extendedȱ toȱ aȱ partner’sȱabilityȱtoȱfundȱexploitationȱofȱtheȱresultsȱafterȱtheȱprojectȱ hasȱbeenȱcompleted.ȱȱ Forecastȱ Withinȱ aȱ spendȱ profile,ȱ costȱ forecastsȱ shouldȱ beȱ providedȱ andȱ updatedȱ toȱ showȱ howȱ theȱ projectȱ willȱ accrueȱ costsȱ betweenȱ nowȱ andȱ theȱ endȱ ofȱ theȱ project.ȱ Atȱ theȱ startȱ ofȱ theȱ project,ȱ theȱ forecastȱ willȱbeȱtheȱsameȱasȱtheȱbaseline.ȱȱ ForegroundȱIntellectualȱPropertyȱ(ForegroundȱIP)ȱ NewȱIPȱthatȱisȱgeneratedȱasȱpartȱofȱtheȱproject.ȱ FundingȱBodyȱ Organisationsȱthatȱprovideȱgrantȱfundingȱforȱprojects.ȱ Grantȱ Theȱcontributionȱmadeȱbyȱtheȱfundingȱbodyȱtoȱtheȱproject.ȱGrantsȱareȱ normallyȱprovidedȱasȱaȱpercentageȱofȱtheȱeligibleȱcosts.ȱ IntellectualȱPropertyȱ(IP)ȱ Ideas,ȱknowȬhowȱorȱtechniquesȱthatȱallowȱyouȱtoȱsolveȱaȱproblem.ȱ


IntellectualȱPropertyȱRightsȱ(IPR)ȱ Theȱlegalȱownershipȱofȱintellectualȱproperty.ȱTheȱrightsȱallowȱyouȱtoȱ exclusivelyȱbenefitȱfromȱtheȱIP.ȱ LeadȱPartnerȱ(a.k.a.ȱProjectȱLeader)ȱ Withinȱeachȱconsortium,ȱoneȱofȱtheȱpartnersȱwillȱactȱasȱtheȱlead.ȱThisȱ partnerȱ isȱ normallyȱ responsibleȱ forȱ communicationȱ withȱ fundingȱ bodiesȱandȱprovidesȱtheȱprojectȱmanager.ȱ MicroȱOrganisationȱ Microȱorganisationsȱareȱdefinedȱasȱsoleȱproprietorshipsȱ(a.k.a.ȱSoleȱ trader),ȱ partnershipsȱ andȱ limitedȱ companiesȱ withȱ fewerȱ thanȱ 10ȱ employees.ȱ Thereȱ areȱ specialȱ conditionsȱ underȱ whichȱ microȱ Organisationsȱshouldȱbeȱconsideredȱasȱpartners.ȱ Milestonesȱ Milestonesȱ areȱ pointsȱ withinȱ theȱ projectȱ thatȱ markȱ particularȱ achievements.ȱ Milestonesȱ needȱ notȱ coincideȱ withȱ aȱ specificȱ deliverable.ȱ MonitoringȱOfficerȱ Anȱindividualȱappointedȱbyȱaȱfundingȱbodyȱtoȱmonitorȱtheȱprogressȱ ofȱaȱprojectȱandȱtheȱspendingȱofȱgrantȱfunds.ȱȱ OfferȱLetterȱ Theȱ contractȱ betweenȱ theȱ fundingȱ bodyȱ andȱ theȱ projectȱ consortium.ȱ Theȱ offerȱ letterȱ setsȱ outȱ theȱ termsȱ underȱ whichȱ theȱ grantȱ isȱ provided.ȱ OfferȱLetterȱ–ȱHubȱandȱSpokeȱȱ Aȱhubȱ&ȱspokeȱofferȱletterȱisȱaȱsingleȱdocumentȱthatȱisȱaddressedȱtoȱ theȱleadȱpartner.ȱInȱtheseȱcases,ȱtheȱclaimsȱareȱmadeȱthroughȱtheȱleadȱ partnerȱ whoȱ thenȱ distributesȱ grantȱ paymentsȱ whenȱ theyȱ areȱ received.ȱ

Glossaryȱȱȱȱȱȱ165ȱ

OfferȱLetterȱ–ȱIndividualȱ Someȱprojectsȱhaveȱindividualȱofferȱletters,ȱoneȱforȱeachȱmemberȱofȱ theȱ consortium.ȱ Inȱ theseȱ cases,ȱ eachȱ partnerȱ makesȱ theirȱ ownȱ grantȱ claimȱdirectly.ȱȱ Partnerȱ Aȱmemberȱofȱtheȱprojectȱconsortium.ȱ ProjectȱLeaderȱ Seeȱleadȱpartnerȱ ProjectȱScheduleȱ(a.k.a.ȱProjectȱPlan)ȱ Aȱdocumentȱthatȱdescribesȱtheȱcontentȱandȱorganisationȱofȱtheȱworkȱ packagesȱ withinȱ theȱ project.ȱ Theȱ planȱ shouldȱ alsoȱ containȱ aȱ Ganttȱ chartȱillustratingȱtheȱtimingȱofȱtheȱworkȱpackages.ȱ Quarterlyȱ Threeȱmonthlyȱintervalsȱstartingȱonȱtheȱprojectȱstartȱdate.ȱ Scopeȱ Scopeȱisȱdefinedȱasȱtheȱrangeȱofȱactivitiesȱandȱdeliverablesȱthatȱtheȱ projectȱintendsȱtoȱcarryȱout.ȱ SMEȱ–ȱSmallȱandȱMediumȱEnterpriseȱ SMEȱ isȱ anȱ Europeanȱ definition.ȱ Inȱ someȱ casesȱ SMEsȱ canȱ receiveȱ largerȱgrantȱpercentagesȱthanȱlargeȱcompanies.ȱȱ SpendȱProfileȱ Theȱspendȱprofileȱisȱaȱspreadsheetȱthatȱdescribesȱtheȱspreadȱofȱcostsȱ forȱeachȱpartnerȱoverȱtheȱdurationȱofȱtheȱproject.ȱItȱisȱusedȱtoȱtrackȱ expenditureȱ andȱ provideȱ forecastȱ informationȱ aboutȱ projectȱ expenditure.ȱ StartȱDateȱ Theȱ startȱ dateȱ isȱ theȱ officialȱ startȱ ofȱ theȱ project.ȱ Typicallyȱ inȱ grantȱ fundedȱprojects,ȱnoȱeligibleȱcostsȱcanȱbeȱaccruedȱbeforeȱtheȱstartȱDate.ȱ


TechnologyȱTransferȱ Technologyȱtransferȱisȱtheȱdisseminationȱorȱsharingȱofȱtechnologicalȱ knowȬhowȱ betweenȱ partnersȱ withinȱ aȱ consortiumȱ toȱ facilitateȱ benefitsȱ orȱ commercialȱ opportunities.ȱ Technologyȱ transferȱ isȱ commonlyȱbetweenȱacademicȱinstitutionsȱandȱendȬuserȱcommercialȱ partners,ȱ orȱ betweenȱ technologyȱ basedȱ SMEsȱ andȱ largerȱ marketȱ players.ȱ VireȱorȱVirementȱ Virementȱ isȱ theȱ movementȱ ofȱ budgetȱ fromȱ oneȱ costȱ headingȱ toȱ anotherȱorȱbetweenȱoneȱpartnerȱandȱanother.ȱ

Index

boilerȱplate,ȱ47ȱ businessȱcase,ȱ49,ȱ129ȱ businessȱdirection,ȱ114ȱ

materials,ȱ17ȱ overheads,ȱ16ȱ software,ȱ14ȱ subȬcontractors,ȱ18ȱ endȱdate,ȱ22ȱ endȱusers,ȱ31,ȱ132ȱ exploitation,ȱ29,ȱ127ȱ plan,ȱ145ȱ vehicles,ȱ149ȱ

ȱ

ȱ

cashȱflow,ȱ19,ȱ105ȱ coffeeȱandȱbiscuits,ȱ37,ȱ48,ȱ61ȱ collaboration,ȱ30ȱ communications,ȱ89,ȱ104,ȱ112ȱ confidentiality,ȱ46,ȱ117ȱ consortiumȱagreement,ȱ23,ȱ37,ȱ 111,ȱ150ȱ consortiumȱchanges,ȱ41ȱ consultants,ȱ107ȱ criticalityȱofȱfunding,ȱ12ȱ customers,ȱ53,ȱ132,ȱ141,ȱ143ȱ

feedback,ȱ34ȱ finalȱreport,ȱ155ȱ financeȱoffices,ȱ100ȱ fiveȱforces,ȱ140ȱ freedomȱofȱinformation,ȱ27ȱ

academicȱpartners,ȱ93ȱ additionality,ȱ9ȱ advisoryȱgroup,ȱ31ȱ AIDAȱmodel,ȱ57ȱ audit,ȱ20,ȱ43ȱ

ȱ

ȱ Ganttȱchart,ȱ29,ȱ71,ȱ147ȱ grantȱclaims,ȱ106ȱ grantȱdistribution,ȱ43ȱ grants,ȱ26ȱ

ȱ

ȱ

hubȱandȱspoke,ȱ22ȱ

delays,ȱ120ȱ deliverables,ȱ56ȱ dependencies,ȱ64,ȱ70,ȱ121ȱ dissemination,ȱ23,ȱ29,ȱ45,ȱ150ȱ documentation,ȱ155ȱ

ȱ

ȱ eligibleȱcosts,ȱ14ȱ documentation,ȱ155ȱ equipment,ȱ17ȱ labour,ȱ14ȱ

intellectualȱpropertyȱ background,ȱ44,ȱ148ȱ foreground,ȱ44,ȱ149ȱ intellectualȱpropertyȱrights,ȱ44,ȱ 99,ȱ143ȱ ownership,ȱ44ȱ interviews,ȱ32ȱ ISO,ȱ142ȱ

168ȱȱȱȱȱȱIndexȱ keyȱopinionȱleaders,ȱ31ȱ knowledgeȱnetworks,ȱ11ȱ knowledgeȱspillȬover,ȱ10ȱ knowledgeȱtransfer,ȱ11ȱ

ȱ lawyers,ȱ47,ȱ112ȱ leadȱpartner,ȱ19ȱ liability,ȱ39ȱ licensing,ȱ128,ȱ148,ȱ149ȱ logs,ȱ81ȱ

ȱ marketȱanalysis,ȱ130ȱ marketȱdynamics,ȱ138ȱ marketȱfailure,ȱ9ȱ marketȱpenetration,ȱ55ȱ MichaelȱPorter,ȱ140ȱ microȱcompanies,ȱ106ȱ monitoringȱofficer,ȱ24,ȱ77,ȱ90,ȱ124ȱ

ȱ NASA,ȱ13ȱ NetȱPresentȱValue,ȱ59ȱ

ȱ objectives,ȱ50,ȱ93,ȱ156ȱ offerȱletter,ȱ21ȱ overȬspend,ȱ120ȱ

ȱ partnering,ȱ30ȱ preȬcompetitive,ȱ8,ȱ26ȱ projectȱcloseȱmeeting,ȱ156ȱ projectȱmanagement,ȱ29ȱ projectȱmanagementȱsoftware,ȱ70ȱ projectȱmanager,ȱ41,ȱ60,ȱ78,ȱ88,ȱ 113,ȱ123,ȱ153,ȱ157ȱ projectȱplan,ȱ60,ȱ82ȱ publications,ȱ95ȱ

ȱ recruitment,ȱ97,ȱ99,ȱ104,ȱ119ȱ reporting,ȱ24ȱ reportingȱsystem,ȱ78ȱ

resourceȱlevelling,ȱ71ȱ risk,ȱ10,ȱ59,ȱ67ȱ commercial,ȱ85,ȱ122ȱ environmental,ȱ85ȱ financial,ȱ96ȱ forecasting,ȱ87ȱ impactȱanalysis,ȱ86ȱ management,ȱ83ȱ managerial,ȱ85ȱ mitigation,ȱ87ȱ technical,ȱ85,ȱ96,ȱ122ȱ riskȱpremium,ȱ59,ȱ74ȱ rollingȱwaveȱplanning,ȱ82ȱ routeȱtoȱmarket,ȱ146ȱ royalties,ȱ128ȱ

ȱ scope,ȱ12,ȱ28,ȱ39ȱ SME,ȱ7,ȱ106ȱ spendȱprofile,ȱ72ȱ stakeholders,ȱ51,ȱ134ȱ startȱdate,ȱ22ȱ statesȱaid,ȱ5,ȱ23ȱ Europe,ȱ6ȱ steeringȱcommittee,ȱ40,ȱ50,ȱ78,ȱ79,ȱ 115,ȱ123ȱ meetings,ȱ154ȱ students,ȱ11,ȱ97ȱ subȬcontractors,ȱ18,ȱ31,ȱ42,ȱ108,ȱ 142ȱ

ȱ team,ȱ30ȱ technicalȱapproach,ȱ28ȱ TechnologyȱReadinessȱLevels,ȱ13ȱ technologyȱtransfer,ȱ94ȱ termination,ȱ42ȱ timesheets,ȱ19ȱ trends,ȱ139ȱ

ȱ underȬspend,ȱ21ȱ

Indexȱȱȱȱȱȱ169ȱ useȱcase,ȱ132ȱ

ȱ Wiki,ȱ89ȱ withdrawal,ȱ115ȱ

ȱ ȱ

workȱpackage,ȱ67,ȱ82,ȱ153ȱ workȱpackages,ȱ153ȱ workingȱdays,ȱ15ȱ

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