Commentary, Governance

Most companies under-invest in R&D Governance by an order of magnitude and over-invest in Administration by an even greater magnitude...

Consider the time and resources spent in R&D building budgets (one-size-fits-all+) and tracking against those budgets. How much more inexpensive and effective it would be to design the protections of Other People’s Money OPM+ into each investment transaction. With OPM every dollar spent also comes out of the recipient’s pocket, so funding agents are assured they’re only spending what’s absolutely necessary.

This is perhaps the most important message in the entire Governance section. Companies must spend much more on R&D Governance: World Class R&D companies will spend an order of magnitude more money on R&D Governance than is usually the case. Visit the headquarters of McDonald’s corporation to better appreciate the magnitude of the effort it takes to govern investments wisely.

More Core Arguments for Governance