Abstract: During global economic downturns, senior executives take many
measures to reduce costs especially in their research-and-development budgets.
However, such measures delay promising projects as well as adversely affect morale.
This article’s main conclusion is that companies should take a more innovative
and strategic approach to cutting R&D costs. They should use difficult
economic periods as an opportunity to upgrade their R&D organization’s
focus, practices, and management. This will not only help them to cut their
costs in the long run but will also raise staff productivity and accelerate the
process to develop new products for the customers.
Published: McKinsey Quarterly, February 2009
Authors: Christie W. Barrett, Christopher S. Musso, and Asutosh Padhi
Link: Upgrading R&D during Downturn