The Hidden Battle Behind Every Product Launch

I sat in a pub the other day with a group of pharmaceutical scientists.  Their backgrounds were either in R&D or manufacturing.  I mentioned how it was a shame that brilliant product innovations often get stuck between R&D creativity and manufacturing efficiency. 

It was like pouring petrol on some kindling, lighting a match and stepping back.  I could instantly see how each scientist would discuss the issue, from a seemingly neutral viewpoint, but really, they were defending the position of their respective ‘historical’ camps… some things never change.

This conflict is not new, and I have observed it in my experience across aerospace, pharmaceutical, and food industries.  R&D and manufacturing operate with fundamentally misaligned incentive structures.

🔹 R&D teams are rewarded for:

·       Generating new ideas

·       Developing innovative products

·       Investing in cutting-edge new equipment

·       Pushing technological boundaries

🔸 Manufacturing teams are rewarded by:

·       Maintaining consistent production

·       Maximising current equipment speed

·       Minimising waste

·       Ensuring operational stability

The Consequence?... Organisational Friction

When these departments operate with conflicting metrics, we create an environment where breakthrough innovations struggle to transition from concept to consistent production.   The result?   Potential game-changing products never reach their full market potential.

The question is “How do we minimise this friction?”  Yes, it will always exist, but how do we stop it curtailing the company’s innovation growth strategy?

I believe the answer lies in designing compensation models that reward both departments for successful product implementation, not just individual departmental goals. 

Or am I being too simplistic?...