"scientific peak" is still to come. Scientists with high aims toward scientific goals show high productivity in the 3()'s, some slump in t h e late 40's, but hit "a dramatic p e a k " of performance again in t h e 50's. These facts are the results of studies conducted at the University of Michigan Survey Research Center. A researcher's desire to advance in a company doesn't have too much efMonsanto and Minnesota Mining find that five- fect on his research performance, acto Donald C. Pelz, study direcy e a r planning is important to successful operation cording tor a t the center. However, people with strong science values perform master plan, year-by-year sales forecasts much better than those whose interest J ^ O N G - R A X G E C O M P A N Y P L A N N I N G IS 110 covering a five-year period a r e main- in scientific fields is only moderate or longer just desirable; it's vital. And tained for each division. T h e s e are re- weak. the "distant vista" is not just a top level Relations between t h e researcher, his viewed against over-all economic preview—now all management levels get chief, and his colleagues can have a dictions, determined from projections of into t h e picture. Pelz r e gross national product, in p l a n n i n g spe- big effect on productivity. Just how plans are m a d e , however, ports: " T h e highest performance is cific divisional expansions. differs from company to company. In addition, each division estimates shown by those (researchers) who have A five-year plan, set u p first for each yearly spending five years in advance considerable independence in pursuing division a n d then combined into an their own work, b u t at t h e same time for factory and delivery costs, as well over-all company pattern, is the apas expenses for sales, advertising, ad- maintain close daily relations with the proach taken b y two of the chemical ministration, engineering, research, and chief. In all probability, the chief, b y industry's major firms. n e w product development. O n c e one- his frequent inquiries, shows his inAt Monsanto, for example, all prodyear divisional sales a n d spending terest and enthusiasm about the work, ucts are classified into some 35 groups. programs are approved, t h e y are re- and this is something on which a young Each contains materials related by viewed every three months. Only scientist ihrives." marketing characteristics as well as by W h a t effect d o colleagues have on chemical type. Each group then is capital expenditures of over a quarter T h e scientific regarded as a "sub-company," operating million dollars must be authorized by a researcher's work? aims of the researcher's closest colt h e 3M board. in a specific product area, within MonEstimates of sales and expenses for leagues a n d his frequency of contact santo. Each such group, says company con- all divisions are then combined to give with them may also have a big bearing troller Irving C. Smith, is assigned its t h e over-all sales picture for t h e coming on productivity, Pelz maintains. "When the scientist names as colyear. F r o m this, the expected corown overhead, which covers property investment back through intermediates p o r a t e cash position is d e t e r m i n e d for leagues those w h o are dissimilar to to basic r a w materials and includes each of t h e four subsequent calendar himself both in terms of (scientific) working capital. And each develops quarters. For a growth c o m p a n y such values a n d experience, then if he sees its own profit, runs its own sales oper- as 3M, this system of quarterly check- them daily his performance is very ing—superimposed upon a general long- high," the U M researcher explains. If ations, and pays its own expenses of research, engineering, and administra- term plan—provides needed flexibility. he sees them only weekly, his performtion. Minnesota Mining executive vice ance is very low. "The opposite picture emerges if his Five-year plans for each group are president L. F. Weyand stresses that, based on t h e following: a b o v e all, long-range planning should colleagues are individuals closely like b e made without fear—whether fear of him, both in values and previous ex• Each product group will produce war, depression, strikes, or floods or perience. Here, if h e sees them weekly cash for its expansion needs from profits fear of management's ability to make his performance is good, b u t if daily and depreciation. its business grow. Planning, W e y a n d his performance is poor." T h e average scientist performs bet• This cash—after dividend allow- says, must b e based upon t h e premise ances—will be invested in t h e group of a "normal" situation, b u t should b e ter, however, if his colleagues are inthat generated ft. flexibile enough to cope w i t h changes. dividuals closely like him, both in val• Cash accumulated during any year Monsanto's Smith and 3 M ' s W e y a n d ues and previous experience. Here, if is invested the following year but earns discussed their companies' planning he sees t h e m weekly his performance no profits until the second year. techniques at a recent meeting of t h e is good, b u t if daily his performance is poor. • Each g r o u p uses its own cost over- National Industrial Conference Board. Interpreting this, Pelz says, "If a head ratios in calculating profits. scientific group consists of people with differing viewpoints and backgrounds, Estimates a r e revised annually, so it m a y be highly stimulating. But that a five-year preview is always on t h e there is t h e danger that one individual board. Monsanto uses this technique may seem a crackpot to t h e others if h e to help define objectives in research a n d comes up with a particularly wild idea. marketing expenditures, personnel reRelations between the re- He may be laughed down, and m a y quirements, a n d capital outlays. • Planning for Sales. Minnesota searcher, his chief, and his give in to the group's pressures. Mining h a s 2 5 separate a n d largely "In such situations, it may be essencolleagues have a big effect autonomous divisions in its setup. tial to have the emotional support of E a c h group at 3M, as at Monsanto, is one or two other persons w h o have t h e responsible for its own sales a n d profits. same viewpoint as his, and can see t h e JTORTY YEARS O L D OR OLDERP If y o u ' r e To arrive at a continuing long-range a scientist don't let it bother you—your feasibility of his idea." m
MANAGEMENT
Planning for the Long Range
What Motivates a Researcher?
48
C&EN
MARCH
4,
1957
