DesignOps Skunk Works - SXSW 2015

DesignOps Skunk Works
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Video Source: Real Genius

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OODAObserve Orient Decide Act

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Kelly Johnson
Image Source: http://www.wvi.com/~sr71webmaster/kelly.htm

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The XP-80
150 Days

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The XP-80
143 Days(Delivered 7 Days Early)

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Movie Source: http://www.lockheedmartin.com/us/100years/stories/p80.html

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The XP-80
Image Source: https://www.ﬂickr.com/photos/lockheedmartin/9079672256/in/set-72157634190793153

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Kelly’s 14 Rules & Practices

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Kelly’s Motto
Be quick, be quiet, and be on time.
“ - Kelly Johnson
Image Source: http://www.thisdayinaviation.com/tag/kelly-johnson/

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Skunk Works - 14 Rules & Practices
15. Starve before doing business with the damned Navy.They don't know what the hell they want and will drive you up a wall before they break either your heart or a more exposed part of your anatomy.
1. The Skunk Works manager must be delegated practically complete control of his program in all aspects. He should report to a division president or higher.
2. Strong but small project offices must be provided both by the military and industry.
3. The number of people having any connection with the project must be restricted in an almost vicious manner. Use a small number of good people (10% to 25% compared to the so-called normal systems).
4. A very simple drawing and drawing release system with great flexibility for making changes must be provided.
5. There must be a minimum number of reports required, but important work must be recorded thoroughly.
6. There must be a monthly cost review covering not only what has been spent and committed but also projected costs to the conclusion of the program. Don't have the books 90 days late, and don't surprise
the customer with sudden overruns.
7. The contractor must be delegated and must assume more than normal responsibility to get good vendor bids for subcontract on the project. Commercial bid procedures are very often better than military
ones.
8. The inspection system as currently used by the Skunk Works, which has been approved by both the Air Force and Navy, meets the intent of existing military requirements and should be used on new
projects. Push more basic inspection responsibility back to subcontractors and vendors. Don't duplicate so much inspection.
9. The contractor must be delegated the authority to test his final product in flight. He can and must test it in the initial stages. If he doesn't, he rapidly loses his competency to design other vehicles.
10. The specifications applying to the hardware must be agreed to well in advance of contracting.The Skunk Works practice of having a specification section stating clearly which important military specification
items will not knowingly be complied with and reasons therefore is highly recommended.
11. Funding a program must be timely so that the contractor doesn't have to keep running to the bank to support government projects.
12. There must be mutual trust between the military project organization and the contractor with very close cooperation and liaison on a day-to-day basis.This cuts down misunderstanding and correspondence
to an absolute minimum.
13. Access by outsiders to the project and its personnel must be strictly controlled by appropriate security measures.
14. Because only a few people will be used in engineering and most other areas, ways must be provided to reward good performance by pay not based on the number of personnel supervised.

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The 15th, Unwritten Rule
15.Starve before doing business with the damned Navy.They don't know what the
hell they want and will drive you up a wall before they break either your heart
or a more exposed part of your anatomy.

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#skunkworks
INNOVATION!

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Skunk Works & Design Operations?

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Engineering optimizes based upon knowing the problem extremely well.
Design
understands the problem
and
the solution
by creating something.

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Skunk Works - 14 Rules & Practices
15. Starve before doing business with the damned Navy.They don't know what the hell they want and will drive you up a wall before they break either your heart or a more exposed part of your anatomy.
1. The Skunk Works manager must be delegated practically complete control of his program in all aspects. He should report to a division president or higher.
3. The number of people having any connection with the project must be restricted in an almost vicious manner. Use a small number of good people (10% to 25% compared to the so-called normal systems).
4. A very simple drawing and drawing release system with great flexibility for making changes must be provided.
5. There must be a minimum number of reports required, but important work must be recorded thoroughly.
9. The contractor must be delegated the authority to test his final product in flight. He can and must test it in the initial stages. If he doesn't, he rapidly loses his competency to design other vehicles.
12. There must be mutual trust between the military project organization and the contractor with very close cooperation and liaison on a day-to-day basis.This cuts down misunderstanding and correspondence
to an absolute minimum.
13. Access by outsiders to the project and its personnel must be strictly controlled by appropriate security measures.

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#skunkworks
Design Skunk Works - 8 Rules & Practices
#1 - The Skunk Works manager must be delegated practically complete control of his program
in all aspects. He should report to a division president or higher.
Kelly’s Rule
The Design Lead must be delegated almost complete control of their project.
Design Rule

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#3 - The number of people having any connection with the project must be restricted in an
almost vicious manner. Use a small number of good people (10% to 25% compared to the so-
called normal systems).
Kelly’s Rule
The number of people having any connection with the project must be restricted in an almost
vicious manner.
Design Rule

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#skunkworks
#4 - A very simple drawing and drawing release system with great flexibility for making
changes must be provided.
Kelly’s Rule
Very simple, high-level requirements and/or flows and sketches may suffice for the project
overview and goals, along with the flexibility for designers to make adjustments as determined
necessary—including the cancelation of the project—for the best results.
Design Rule

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#5 - There must be a minimum number of reports required, but important work must be
recorded thoroughly.
Kelly’s Rule
Team size must be as small as possible. Document as much as is needed, however as little as
possible. Let the design/prototype/etc. be the documentation when sensible to do so.
Design Rule

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#9 - The contractor must be delegated the authority to test his ﬁnal product in ﬂight. He can
and must test it in the initial stages. If he doesn't, he rapidly loses his competency to design
other vehicles.
Kelly’s Rule
Designers must be allowed to test the product as frequently as needed.Testing products allows
the designer to make better decisions about the current product, as well as future products.
Design Rule

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#12 - There must be mutual trust between the military project organization and the contractor
with very close cooperation and liaison on a day-to-day basis.This cuts down misunderstanding
and correspondence to an absolute minimum.
Kelly’s Rule
There must be mutual trust between the Sponsor and Design Lead with continuous
communication to minimize potential misunderstanding.
Design Rule

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#13 - Access by outsiders to the project and its personnel must be strictly controlled by
appropriate security measures.
Kelly’s Rule
Access by outsiders to the project and personnel must be strictly controlled.
Design Rule

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#skunkworks
#15 - Starve before doing business with the damned Navy.They don't know what the hell they
want and will drive you up a wall before they break either your heart or a more exposed part of
your anatomy.
Kelly’s Rule
Don’t do work for people who are unappreciative of—or do not value—the design process.
Design Rule

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1. The Design Lead must be delegated almost complete control of their project.
2. The number of people having any connection with the project must be restricted in an almost vicious manner.
3. Very simple, high-level requirements and/or flows and sketches may suffice for the project overview and goals, along
with the flexibility for designers to make adjustments as determined necessary—including the cancelation of the
4. Team size must be as small as possible. Document as much as is needed, however as little as possible. Let the design/
prototype/etc. be the documentation when sensible to do so.
5. Designers must be allowed to test the product as frequently as needed.Testing products allows the designer to make
better decisions about the current product, as well as future products.
6. There must be mutual trust between the sponsor and Design Lead with continuous communication to minimize
potential misunderstanding.
7. Access by outsiders to the project and personnel must be strictly controlled.
8. Don’t do work for people who are unappreciative of—nor do not value—the design process.

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3 Types of Design Skunk Works Projects

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Intensely collaborative projects during a set period of time and toward a targeted goal.
#1 - Hackathons
Image Source: Sebastiaan ter Burg from Utrecht,The Netherlands
Image Source: Liran Mimon / Wikimedia Israel

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Hackathons
1. Determine Fix-It / Need-It Project List
2. Deﬁne High-Level Objectives
3. Establish Expected / Estimated Project Duration
4. Determine Estimated Team Size
5. Create Project Cards
6. Prioritize Projects
7. Assign Projects
Example: New Hire Hackathons

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Hackathons
3. Establish Expected / Estimated Project Duration
4. Determine Estimated Team Size
6. Prioritize Projects
7. Assign Projects
8. Get Out of
the Way!

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Hackathons
Beneﬁts
• Fix-It / Need-It Projects Get Jumpstarted
• Success or Failure Will Not Alter It; Every Project has a Learning
Outcome
• Team Forming & Performing Occurs (Some Norming & Storming,
Too!)
• Interaction with & Understanding of Broader Team and Culture
• Emerging Themes of Work Styles & Patterns, Leaders, etc.

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Create a separate environment—may be a physical location, a “no ﬂy zone” for ofﬁce politics
and bureaucracy, etc.—where people and teams can be highly autonomous, and let people
focus on their work without worrying about the business of the work itself.
#2 - Protected Projects

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Protected Projects
Example: Atari Skunk Works

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Protected Projects
Example: Hyatt Innovation Labs

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Protected Projects
Beneﬁts
• Keeps Teams and/or People Away from Ofﬁce Bureaucracy
• Maintains Entrepreneurial Spirit / Spirit of Innovation
• Protects Teams / People from Daily Distractions
• Allows Focus to Remain on Future Work Streams & Avoid Fire Fighting
Example: Atari Skunk Works & Hyatt

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Similar in nature to Hackathons, this provides an established set of initiatives that need to be
fulﬁlled, without a rigid timeline and can be worked on when normal work gets disrupted.
#3 - Weaponized Downtime
If you’ve got time to lean, you’ve got time to clean.
“ - My Manager at Burger King

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Weaponized Downtime
Example: Design System in Axure

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Weaponized Downtime
Delivery Time: ~6 Months
Estimated “Actual” Project Delivery Time: ~4 Months with FTEs

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Weaponized Downtime
4. Prioritize Projects (Lower Than Hackathon Projects)
5. Team Chooses Project(s) as Available

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Weaponized Downtime
Beneﬁts
• Low-Priority & High Impact Projects Make Progress
• Success or Failure Will Not Alter It; Every Project has a Learning Outcome
• Weaponized Downtown Projects Sometimes Move Faster Than Expected with More
People Engaged
• Interaction with & Understanding of Broader Team and Culture
• Emerging Themes of Work Styles & Patterns, Leaders, etc.

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So What?
• Design Rules & Practices for Skunk Works Projects Help to Set the Stage for
Getting Things Done
• Multiple Rules Will Apply to Each Skunk Works Project
• You Can Apply Them To Regular Projects,Too!
• 3 Types of Skunk Works Projects Help You Identify an Approach / Style
• Hackathons - Focused Project in Finite Time
• Protected Projects - Reduce the Tyranny of Now from Projects
• Weaponized Downtime - Projects for Unscheduled / Unplanned Non-Billable Time

Thank You!
@russu#skunkworks
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DesignOps Skunk Works - SXSW 2015

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