Internal and external forces impacting Independent research and development

companies.

Restructuring (internal)

Restructuring an organization can consume anywhere from 6 to 18 months but

can prove to be very rewarding in many ways and well worth the effort. During

restructuring both management and the company will experience new advances.

Restructuring can save jobs, investment capital, the livelihood of the creditors, as well as

confirm a new economic value for the company. The following provides an overview of

considerations when restructuring.

• Begin restructuring by creating and analyzing your financial picture, know the

numbers. Identify profit centers and division and also your most profitable

customers. Understand inventory and accounts receivables.

• Accumulate feedback and control reports. Talk (interview) and listen to

everyone including staff, management, present and former customers, and

suppliers and former suppliers to discover what it is you do well and also, what it

is you need to be doing better.

• Decide what business model makes sense for your organization after

analyzing financial reports and conducting interviews. The chosen model should

center on profit centers, products, divisions, and customers and are likely to be

indicative of what you do well.

• Focus on the new business model and cut everything else. It may be

necessary to cut 60 to 80 percent of employees, revenues and assets. This may be

 difficult but it is also a necessary step in successful reorganization to save the

company.

Our company did not actually experience a re-organization or restructuring. Our

organizer sold his stock in his old company and submitted his resignation. He then left

and started a new organization with the legal structure of a Limited Liability Corporation

(LLC) taking some of the former employees with him. The decision has proven to be a

very successful strategic planning maneuver that actually saved the jobs for many of us

while providing a new opportunity for the company to move forward under new direction

without the controls of the Board of Directors.

Organizational mission (internal)

The corporate mission describes who we are and what we do – it defines our

focus and what is important to us. Independent research and development companies,

LLC mission is:

“Developing and maintaining leading edge technology in the areas of

imaging and secure data transmission.”

Richard Nanni, our leader follows through on this mission by instilling

appropriate personnel and educating them to manage and to focus while and bringing

products to fruition and match technology to the needs of customers.

Economy (external), Fiscal policies (internal), Customer demands (external)

Monetary policy is a tool used by a national government to influence its domestic

policies. The term fiscal policy refers to expenditures taken to provide goods and

services and the way expenditures are financed. Those that affect Independent research
and development companies include political cycles and congressional leadership (or lack

thereof).

Organizations who do business with the government are very much affected by

political and fiscal policies established by the current administration. Independent

research and development companies focuses on government contracting opportunities

and therefore we are a stakeholder in policies that affect government contracting for

defense spending, etc.

All organizations are affected by the economic conditions and fiscal policies of

not only the country where they are located, but also globally as in the case with

competition.

Organizational fiscal policies must take into consideration the IRS method of

organization, is the company a “C” corp, “S” corp, Partnership, or LLC? Tax laws affect

the bottom line with regards to employee benefits, depreciation, rewards and incentives

for executives, and other write offs.

Other budgetary issues include strategic plans for growth in assets and timing is

essential to take the best advantage of tax laws. These budgetary issues filter down to

different departments that may be in competition for funding dollars.

Competition – external

Strategic planning for research and development entails identifying and

researching new developments and technological advances in target industries of interest.

Indications of future markets and visions for research and development include analysis

of the pending “state-of-the-art” or “cutting-edge” product developments as well an

analysis of how or what may be possible as complimentary products and services.

Together with this analysis, R&D strategic planners attempt to match current resources

with the visions or possibilities.

Fundamental research consists of the possible strategic integration of technology

and tools at the engineering level including breakthroughs or developments and how they

are interconnected. This comprises building upon the achievements and contributions of

many systems as well as identifying defining parallel projects.

Both company and project level S.W.O.T. analysis are frequently made and

include an analysis of the rivalry of competitors, product or service substitutes, the

bargaining power of both suppliers and buyers, and identifying and evaluating the

attractiveness of the industry or opportunity.

Matching resources includes all stakeholders such as current or possible investors

or funding opportunities, current level and skills of employable talent that may be readily

available and where to find the talent required, time studies for project research to launch

(project planning and management), and the final analysis of probability identifies the

possibility of successful completion of the product-to-market phase. A formal

presentation is made to the board of directors who have the final say as to what will or

will not be pursued.

Continuous revisions and reconstruction of strategic plans is normal in R&D and

it is necessary for management to put in place the policies and procedures necessary to

ensure that this valuable process is not ignored or discounted for its importance. R&D

plans are only as good as the benchmarks set and the achievement of goals or identifying

when a project should be “scrapped” all together is very important to all stakeholders.
 Competitors for Independent research and development companies, LLC include

NASA-Boeing, Computer Science Corporation, DynaCorp, Brunman and others who

focus on defense contracting.

Globalization (external)

Global managers must strive to become cosmopolitan and to develop

cultural empathy consistent with their environment. Business ethics in a global

economy requires management to identify behaviors that both the business and

their employees should and should not engage in by identifying a guidance source

that goes beyond enforceable laws. This may include hiring local or native

consultants or management personnel who are familiar with the local cultures and

acceptable behaviors. Success factors for international managers include:

• Cross-cultural sensitive and adventurous

• Business knowledge and a willingness to learn

• Courage – the ability to take risks

• Ability to motivate others and to seek and use feedback

• Personal integrity yet open to criticism

• Insight

• Commitment to success while maintaining flexibility

Communications in a global environment can be exceptionally challenging.

Often local translators are needed to bridge the gap and to help management understand

how they need to transform their own thoughts and actions about the work environment

in order to gain the respect and cooperation of the local workforce as well as to motivate

staff.
 Minimizing management layers can help retain the influence of directives

resulting in more efficient communications and hence, better planning and control

production processes.

Richard Nanni is the CEO of Independent research and development companies,

LLC, a research and development company specializing in advanced imaging, encryption

and compression, and secure data transmission technology and software development.

He is currently charged the responsibility of managing 62 employees in 12 different

countries. Four group managers track projects in progress and act in the advisory

capacity.