WHAT IS A SKUNKWORKS INNOVATION OPERATION?

A skunkworks innovation outfit is a small autonomous unit within a company completely focused on developing highly experimental, potentially radical new products or services at a rapid, unhindered pace outside typical corporate bureaucracy and hierarchies.

The term originated from defense contractors allowing isolated prototyping teams to push next-generation aircraft capabilities, but by eschewing rigid structures and scrutiny, skunkworks innovation units now operate similarly in various industries.

They epitomize lean innovation concepts. A skunkworks team is isolated – sometimes within a dedicated workspace – from core business departments, allowing concentration on speculative, high-stakes projects. They control their own resource allocation, objective setting and decision-making.

Give the unproven nature of skunkworks projects which may never make it market, managers shield them from short-term business targets. Famously secretive security clearances and strict confidentiality foster radical creativity without premature scrutiny or interference.

That enables small groups of highly dedicated experts with deep trust to iterate concepts rapidly through immediate prototyping unencumbered by organizational drag or administrative duties. Fail fast and no limits thinking is embraced.

While autonomy and creativity reign supreme internally, skunkworks outfits must demonstrate value. Therefore, defined milestones, consistent checkpoints and transparency around progress – albeit to select executives – still apply.

It’s a balancing act melding the agility and rule-breaking of Silicon Valley startups within large corporations for targeted initiatives. When it works, skunkworks produce game-changing innovations leapfrogging incremental improvements like Apple’s original iPod or the first stealth fighter jets. When communications falter or strategies diverge from leadership, they can also lead nowhere.

For leaders, allowing the right ratio of organizational patience and challenge regarding skunkworks groups is essential for success. Enabled self-sufficiency lets unproven concepts mature, while occasional oversight ensures alignment. It comes down to picking brilliant, driven teams and empowering their dedicated vision. This level of trust in human ingenuity, however unorthodox, is how skunkworks create enormous business value through breakthrough innovations.