To compete in the long run, companies must take a balanced approach to how they manage their engineering function.

1. Hip to Be Square
James M. Perkins
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-engineering solutions for tomorrow

2. Faster. Better. Cheaper.
Faster. Better. Cheaper.
Several years ago, frustrated by senior leadership’s continuing demand to do things “faster, better,
cheaper”, an engineering management colleague shared with me a simple diagram he referred to as
the “engineering triangle”. At the time, it was like someone describing the facts of life to me.
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3. “Engineering Triangle”
Cheap
Quick Correct
What he drew was this. He described its application quite simply as being able to pick any two, but the
third would be sacrificed. You could do something quick and cheap, but it won’t be correct. You could
do something correct and quick, but it won’t be cheap. You could do something cheap and correct, but
it won’t be quick.
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4. Project Application
On a project level, these three variables often take different priority. Speed-to-market may be a priority
for a new product launch. Cost may be a priority for an expansion project. Accuracy and conformance
to requirements is essential in regulated environments.
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5. Corporate Application
However, at a corporate level, the focus is always on the bottom line. Unfortunately, since reducing
expenses is a more tangible approach than growing the top line, it is the path pursued more often.
With a short-term focus on “cheaper”, the result has often been downsizing the engineering function to
the bare minimum. The retained experienced engineers are able to get the work done today, but
where will their replacements come from and how will they be ready when needed? Where will top
line growth come from if development of products and technology is sacrificed due to fewer
engineers?
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6. New Model
Speed Cost
Quality Sustainability
To compete in the long run, I would propose a different model. The difference is a fourth
consideration; sustainability. As the supply of engineers decreases and the demand increases,
engineering talent cannot be turned on and off like a faucet. Even if it could, there is domain
knowledge (i.e., knowledge of a company’s products, processes and customers) and core competency
expertise (i.e., things a company does well that provide customer benefits, are not easy for
competitors to imitate, and can be leveraged across many products and markets) that is acquired only
through experience. More importantly, it is not about “picking” two or three, but “optimizing” all four. A
set of intelligent solutions tailored to your business can meet your speed, cost, quality and
sustainability needs.
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7. Speed
Speed Cost
Quality Sustainability
Speed can be achieved by leveraging external resources as needed. This includes using not only
contracted engineering services, but suppliers and vendors on joint development and process
optimization activities. Speed is not only the time to market with new products to grow the top line, but
the time it takes to implement cost savings activities that impact the bottom line.
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8. Cost
Speed Cost
Quality Sustainability
Cost can be saved by reducing the number of engineers while still ensuring depth of the engineering
function. For example, many of the tasks and activities engineers are asked to perform are not related
to core competencies or require domain knowledge. Many of these activities are cyclical in nature or
have varying demand. These tasks and activities are prime candidates for outsourcing if lower labor
rates or flexible staffing can be obtained. In some cases, the external resources may be more proficient
because they specialize in these tasks or activities and do them for other companies. Since these
resources are paid for only as needed, are more efficient, or are available at lower labor rates, cost
savings are realized.
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9. Quality
Speed Cost
Quality Sustainability
Quality can be achieved by developing and adhering to documented, standard processes by both
internal and external resources. The goal is to achieve extraordinary results from ordinary people.
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10. Sustainability
Speed Cost
Quality Sustainability
Sustainability, as previously mentioned, begins with having engineering understudies on the payroll.
However, there are other considerations related to talent acquisition and retention that must be
addressed. In addition, as the supply of engineers in the U.S. decreases, strategic alliances to
access engineers outside the U.S. will become increasingly important.
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11. Summary
Success tomorrow will require companies to think square today.
Cheap Speed Cost
Quick Correct Quality Sustainability
Old Thinking New Thinking
Pick 2 Optimize 4
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12. Hip to Be Square
By the way, for you trivia buffs, “Hip to Be Square” is the title of a 1986 single by Huey Lewis and the
News. The lyrics include the words “an idea who’s time has come”.
How prophetic.
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