The Skunk Works Boss and his 14 Rules

Lockheed Skunk Works is a legendary aircraft
design division of Lockheed (currently
Lockheed-Martin).  Their numerous outstanding
achievements over several decades of operation
have inspired others to imitate Skunk Works ideas,
leading to the concept of the Skunk Works Team.

The original operating rules, however, are not
often mentioned.  These rules were written by
Kelly Johnson, the founder of Skunk Works, who led
the organization during its most productive years.

Some of the rules are specific to defense
contracting, but there are still interesting
parallels to more mainstream situations.

For example, to rephrase rule #7, we could say
that "using open source/free software is very
often better than using proprietary software".


  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 (It is essential that the program
manager have authority to make decisions quickly
regarding technical, finance, schedule, or
operations matters).

  2. Strong *but small* project offices must be
provided both by the customer and contractor (The
customer program manager must have similar
authority to that of the contractor).

  3. The number of people having any connection
with the project must be restricted in an almost
vicious manner.  Use of a small number of good
people (10 to 25 percent compared to the so-called
normal systems). (Bureaucracy makes unnecessary
work and must be controlled brutally).

  4. A very simple drawing and drawing release
system with great flexibility for making changes
must be provided.  (This permits early work by
manufacturing organizations, and schedule recovery
if technical risks involve failures).

  5. There must be a minimum of reports required,
but important work must be recorded thoroughly.
(Responsible management does not require massive
technical and information systems).

  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 ninety days late
and don't surprise the customer with sudden
overruns.  (Responsible management does require
operation within the resources available).

  7. The contractor must be delegated and must
assume more than normal responsibility to get good
vendor bids for the subcontract on the
project. Commercial bid procedures are very often
better than military ones.  (Essential freedom to
use the best talent available and operate within
the resources available).

  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.  (Even the
commercial world recognizes that quality is in
design and responsible operations -- not
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. (Critical, if new technology and
the attendant risks are to be rationally
accommodated).

  10. The specification applying to the hardware
must be agreed to 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. (Standard specifications inhibit new
technology and innovation, and are frequently
obsolete).

  11. Funding a program must be *timely*, so that
the contractor doesn't have to keep running to the
bank to support government projects. (Rational
management requires knowledge of, and freedom to
use, the resources originally committed).

  12. There must be mutual trust between the
customer 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. (The
goals of the customer and producer should be the
same -- get the job done well).

  13. Access by outsiders to the project and its
personnel must be strictly controlled by
appropriate security measures. (This is a program
manager's responsibility even if no program
security demands are made -- a cost avoidance
measure).

  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*.
(Responsible management must be rewarded, and
responsible management does not permit the growth
of bureaucracies).

posted on 1165390785.59 by SiteAdmin