Building Successful R&D Organizations in Emerging Markets: Challenges, Successes and Lessons Learned

Building successful R&D organizations
in emerging markets: Challenges,
Successes and Lessons Learned
Rosa Weber
October 24, 2014

Copyright © 2014, by Honeywell International Inc.
 Honeywell.com
Introduction: Rosa Weber

 Honeywell.com
Outline
 Introductions – What do you expect to learn today?
What Aerospace technologies are we investigating?
Why do companies build R&D teams abroad?
What challenges can we expect?
What did we learn? …Culture, Politics and the Global Team
Why work abroad? …Rewards for the Fearless.

Advanced Technology Center Of Excellence
 Honeywell.com
What Aerospace technologies are we working on?
V. P. Advanced Technology COE
Crew Interface &
Platform Systems
Components,
Power & Controls
Communications,
Navigation &
Surveillance Systems
Advanced Sensors
& Microsystems
Advanced Systems
& Prototyping
Engines &
Air Management
Technology
Strategy
Global
Air Traffic Management
Business
Development

 Honeywell.com
G05-338-33
Advanced Technology COE –
Crew Interface & Platform Systems
Charter
• Strategically develop
innovative Displays, Human
Centered Systems, Platform Systems
and Software Technologies that enable
our Aerospace businesses to
competitively deliver world class
products
Core Technologies
• Advanced user interfaces
• Advanced visualization techniques
• User requirements capture
• Human-automation design techniques
• Dependable architectures
• Data and control networks
• Model-based development
• High performance displays
• Advanced graphics
• Flexible displays
• Heads-up displays
• Advanced cockpit simulation
• Integrated displays systems
Application Areas
• Soldier systems, future combat systems,
space, ground base vehicles, and
aircraft

 Honeywell.com
Advanced Technology Center Of Excellence (COE)
Advanced Systems & Prototyping
Charter
• Integrated Technology System
Solutions, and System-of-systems
and platforms (vehicles) concept
development
• Meet customers’ needs by integrating
technology and expertise from across
Honeywell
SMARTlab™ Sys-of-Sys
Modeling & Simulation
Core Technologies/Competencies
• Systems engineering & methodologies
• System-of-Systems Modeling & Simulation
• Conceptual Design and Analysis
• Embedded and Immersive Training Systems
• Rapid prototyping, behavioral modeling, and
analysis
• Network centric applications
• Interactive decision aids
• Planning, scheduling, & optimization
• Integrated VHM, diagnostics & prognostics
• Maintenance and Decision Systems
• Vehicle Systems Solutions
• Signal / Image & Data Processing
G05-338-39
Vehicle Health Management
Planning, Scheduling Optimization
Integrated Systems
Solutions
Net-Centric
Applications
Advanced Vehicle
Concepts
Signal, Image, & Data
Processing
Charter
• Integrated Technology System
Solutions, and System-of-systems
and platforms (vehicles) concept
development
• Meet customers’ needs by integrating
technology and expertise from across
Honeywell
Core Technologies/Competencies
• Systems engineering & methodologies
• System-of-Systems Modeling & Simulation
• Conceptual Design and Analysis
• Embedded and Immersive Training Systems
• Rapid prototyping, behavioral modeling, and
analysis
• Network centric applications
• Interactive decision aids
• Planning, scheduling, & optimization
• Integrated VHM, diagnostics & prognostics
• Maintenance and Decision Systems
• Vehicle Systems Solutions
• Signal / Image & Data Processing
Application Areas
• Commercial and Military aviation
• Combat and Vehicle systems
• Homeland Defense and Commercial Security
• Space (crew exploration vehicle, lunar
exploration)

 Honeywell.com
G05-338-35
Advanced Technology COE –
Communications, Navigation & Surveillance Systems
Charter
• Develop advanced navigation,
communication, surveillance, and guidance
technologies for driving growth and
improving engineering productivity
Core Capabilities
• Inertial navigation systems
• GPS/INS integration
• GPS denied navigation
• GNSS receivers and applications
• Aeronautical Radios and Data Link Communications: HF/VHF/Satcom
• Wireless communications & networking
• Aeronautical Surveillance – TCAS/ADS-B Applications
• Obstacle Detection & Avoidance
• Weather and MMW Radar
• Flight Management Systems
Application Areas
• Satellite-based navigation: WAAS, LAAS, GRAS
• MEMS GPS/INS systems
• Autonomous Guidance for UAVs, UGVs
• Personal navigation for soldiers
• Military Communications
• Aeronautical communication and
information management networks
• Secure air-ground, air-air
communications
• Software Defined Radios for CNS
Communication
Technologies
Air Traffic
Management
Navigation
Technologies
Autonomous
Guidance
Chip Level Communications
Systems

 Honeywell.com
Why do we build R&D teams abroad?
• Support Global opportunities
– Support avionics system research, development and
demonstration for both global and local indigenous market
opportunities.
• Help Growth Abroad
– Help develop our technology strategy for the regional market
– Understand global systems and local challenges
– Build direct local interface with customers and decision
makers,
– Validate new Concepts Of Operations
Prague,
Brno
Czech
Republic
Toulouse,
France

 Honeywell.com
How do we build R&D teams abroad?
• Build Centers Of Excellence
1. Hire and develop local talent to serve regional markets
2. Use a global team of researchers to train and mentor new technical staff abroad,
build domain expertise in advanced Aerospace Technology
3. Conduct joint research with local aviation industry and universities in advanced
ATM Modernization solutions
4. Showcase technologies and help define ATM modernization roadmaps
5. Transition beneficial R&D into local product development with local partners
6. Introduce new products and services into regional market;
EU Areas of Interest
Quality &
Affordability
Security Challenge
Challenge
Safety
Challenge
Environment
Challenge
ATM
Efficiency
Challenge

 Honeywell.com
Cultural Differences Across the World
• Spitting in public and littering in public areas are considered an offense and are
subject to fines. (Indonesia)
• It is customary to accept food and drink with your right hand; this is also the
hand you should eat with.
• Offer and accept business/credit cards with both hands. (China)
• Avoid showing the soles of your feet, or pointing your foot at anyone. (Thailand)
• When sitting in front of an important guest, it is rude to cross your legs. (Dubai)
• Do not beckon or point with your finger; use the whole hand to gesture
• Public displays of affection should be minimal – holding hands is acceptable but
kissing and hugging in public is not. (Israel, China…)
• It is important to stand up for new guests and older or higher-ranking people;
men are expected to stand when a woman enters the room. (Dubai)
• When greeting a member of the opposite sex, it is important not to offer to
shake hands unless they extend their hand first – both men and women may
prefer not to shake hands with the opposite sex due to religious reasons.
• What have you encountered?

 Honeywell.com
What types of challenges did we encounter?
Language Culture
Misc.
Team
Maturity

 Honeywell.com
What challenges did we encounter?
Challenges
Senior business partners
may not be able to
communicate in English
No requests for clarification
if message is not understood
Inaccurate translation
(softened, misunderstood)
“yes” = I have heard you
Meeting/presentation
progress is very slow.
.
• Language
Mitigation
Multi-language presentations
Translators for both organizations
Documentation exchanged ahead of
meetings.
A picture is worth a thousand words
Spell out acronyms
Speak slowly, reword if not understood.
Avoid sayings.
“greatest thing since sliced bread”

 Honeywell.com
Challenge Mitigation
A team of fresh grads w/o work
experience.
Work on low hanging fruit
Strong US leadership
Tech transfer between remotely
located mentors & mentees
Collaboration technology and a global
team ready to travel.
Lack of Business Processes Transfer of MOS to Emerging Market
Lack of local Leaders
Expat and bubble assignments;
(legal, finance, IP…)
Reversed “brain drain”
Building trust takes time Spend time in country, weekly calls.
Global team(mentees) wish for
Work with global leader to establish
independence from US mentors
responsibility growth strategy.
before they are ready to lead
Maturity

 Honeywell.com
Building an Independent Team
• What has worked well for developing technical leaders abroad?
– Build technology-based teams where young engineers are paired with
international experts as technical/organizational guides and mentors.
– Assign multi-year projects where task responsibility and project leadership is
slowly, systematically shifted from the experts to the up-and-coming leaders.
– Assign project leadership to individuals who
• are well spoken, confident, team-focused and pay attention to detail,
• have a mind of their own, yet are still eager to learn from their global counterparts.
– Training
• Tech Talks
• Technology, leadership and PM academy
• Formal mentoring programs

Finding, hiring and retaining highly qualified engineers
 Honeywell.com
Emerging Market Challenges
Observations
1. Top candidates in high
demand
– Multiple offers
– Government enticements
– Non-compete clauses
2. Resume embellishment
• What would you do?
Solutions
1. Grow leaders from within your
organization.
Encourage connections forged by
current staff.
Offer interesting work, global
travel/training, learn from the
experts in their field.
2. Test their knowledge
– Present their solution to a problem.
– Take a written test covering basic
knowledge.
Short term employment contracts

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

 Honeywell.com
Business Culture: Forging a business relationship
– Food and drink
• Drinking rituals part of doing business
• If you don’t engage in drinking, indulge in the food
– Gift exchange
• Although not extravagant, gifts should reflect a person’s status.
• Gifts to an individual should be given in private as a gesture of
friendship.
• If negotiations are involved, gifts should be presented once they
are finished.

 Honeywell.com
Business Culture: Negotiation Tactics
Asia Pacific
• Building Experience
– Request a seat in the room or at the table
– Observe, learn from the trained executives
– Volunteer to take minutes, ask a question or two.
– Follow your executives’ lead
– Provide positive feedback
– Request advice on business books
Source: http://www.businessinsider.com/communication-charts-around-the-world-2014-3#ixzz3ENF8cixa

 Honeywell.com
How do we deal with Conflict?
• US
– Debates are quite common and acceptable in negotiations, as long as they remain
polite and there is a focus on win-win strategies.
– Conflicts and disagreements are typically dealt with right as they arise and are
discussed openly as opposed to waiting until after the negotiation, unless they are
highly complex and require more finesse than is possible at the time.
• China
– In general, Chinese do not approach conflict directly and openly, because they do not
want to lose face, and they want to maintain harmony on the surface.
– Very often, they engage a third party to relay their disagreements and have that third
party do what is necessary to resolve the conflict.
• Czech Republic
– If conflict arises, it may lengthen the negotiating process or terminate it altogether.
– As indirect communicators, Czechs would rather negotiate with someone else than
confront conflict. In the process of negotiating, they likely will speak around the issue
or talk about something else.
Source: Cultural Navigator, TMC

 Honeywell.com
Negotiation Tactics: America vs. China
• What could possibly go wrong?

 Honeywell.com
Negotiation Tactics: Europe

 Honeywell.com
Miscellaneous
Challenge Mitigation
Not able to secure external funding
as a US company
Establish corporations abroad.
Join local consortiums.
Weak Intellectual property protection
(trade secrets, patents, processes)
Expose/trade older technology, keep
latest technology in the US.
Pollution Particle mask (highly valued gift)
GPS maps do not work Multi-language city map
Infrastructure (cell phone, internet,
Bring a warm coat…
power, heating) less robust
No taxis available in the evening Arrange car and driver; arrive early

 Honeywell.com
What did we learn?
Culture, Politics and the Global Team
• Don’t underestimate the difficulties of working across cultures.
• Visa’s may be an obstacle to travel for business partners
• Work with a local leader to avoid cultural mistakes
• Accept help from engineers, assistants and drivers.
• Be aware of historical/political tensions
• Become an eager student of the culture, history and business
practices.
• Be generous with your time, your praise, and your knowledge.

 Honeywell.com
Why work abroad? Rewards for the Fearless
“What would you do if you weren’t afraid?” - Sheryl Sandberg
• Rewards?
– global travel,
– greater exposure to corporate
leadership,
– professional growth,
– culture of hope and optimism,
– facing and overcoming your
(temporary) limitations,
– greater understanding of other
cultures, religions and history,
– friendship, good food and a lot of
laughter.

 Honeywell.com
Suggested References

 Honeywell.com
www.honeywell.com

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