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The Getting of KnowledgeThe Getting of Knowledge- - funding & managing applied R&Dfunding & managing applied R&D

Andrew Campbell 6 December 2006

OutlineOutline• The Getting of Knowledge

– Strategy– Governance– Management– Communication– Legacy– Evaluation

• Take home messages

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IntroductionIntroduction• Research investors are ‘keepers of the long

view’

• It is a highly strategic business

• It is big business, involving $$ billions andhundreds of organisations

• But there is little written on how to do it• This guide is aimed initially within LWA

• But may be of some interest more widely

AcknowledgmentsAcknowledgments

• Investing in R&D is a strategic privilege

• Bobbie Brazil & the LWA Board for thesabbaticals

• Current and former colleagues– Especially Nick Schofield for much of the detail

• Current & former directors

• PMC members from LWA and our partners

• R&D Corp partners - especially fellow EDs

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Land & Water AustraliaLand & Water Australia

♦♦ One of 14 Rural R&D Corporations and relatedOne of 14 Rural R&D Corporations and related

companies - Statutory Authority (PIERD Act 1989)companies - Statutory Authority (PIERD Act 1989)

♦♦ research to support sustainable resource managementresearch to support sustainable resource management

♦♦ we buy, broker and manage research, we donwe buy, broker and manage research, we don’’t do itt do it

♦♦ managed corporately, independent Board (CAC Act)managed corporately, independent Board (CAC Act)

♦♦ $12.8m appropriation; ~$33m R&D spend (2005-6)$12.8m appropriation; ~$33m R&D spend (2005-6)

♦♦ >30 co-investing partners>30 co-investing partners

♦♦ WeWe’’re in the knowledge businessre in the knowledge business

R&D ProgramsR&D Programs• Industries

– Sustainable Irrigation– Grain & Graze– Managing Climate Variability

– Land, Water & Wool

– Healthy Soils

– SAGE Farmers

• People– Social & Institutional– Land & Water Resources Audit

– Indigenous

• Landscapes– TRACK (Tropical Rivers)– Environmental Water Allocation– Riparian Lands– Native Vegetation & Biodiversity– Agroforestry (through RIRDC)– Weeds

• Innovation– Innovation Call– Scholars & Fellows

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About Applied R&DAbout Applied R&D• ABS categorises research into four types:

pure basic; strategic basic; applied;and developmental

• This work focuses on the last three, especiallyapplied

• Applied research “seeks to acquire newknowledge with a specific application in view”

• We know the application context• We know the intended end-users & beneficiaries• We can tease out the nature of the knowledge

need• We can identify prospective adoption pathways

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The many hats of a research funderThe many hats of a research funder• The focus here is not on how to do R&D, but on how

to invest in and manage applied R&D• This draws mainly on LWA experience over 15 years

across a wide range of R&D programs– learning from failures as much as successes

• A significant emphasis on collaboration

• There is a rich menu of possible approaches tothe business of funding and organising R&D

• Focus on Return on Investment (ROI)• Balanced portfolio across asset classes

• Balanced portfolio risk

• Posit and target where future returns may begenerated – long term perspective

• Regularly review and adjust portfolio

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• Funds collaboration and linkages – thearrows, not just the boxes

• Understands who is doing what and has a goodunderstanding of national capacity

• Centre of the nervous system and has the bestoverview

• Looks for and brokers links across boundaries• Builds and nurtures relationships and develops

networks

• Efficient, accredited systems, andprofessional contract staff

• Strong service capability (legal, financial,business, communication)

• Process accountability (governance, riskmanagement, reporting, audit)

• Emphasises capability as an investmentvehicle for other investors

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• Recognises & fosters creativity,develops ideas

• Spontaneous rather than directed• Treats each innovation as a

separate entity• Flexible financing model – able to

move and commit funds quickly• Opportunistic and entrepreneurial• Not rigid about process

• Independent, skills-based Board, with strongcorporate governance & accountability

• Leadership and influence, top-down agendasetting

• Strategic alliances and partnerships• Commercial focus• Efficiency and performance orientation• Hierarchical, rationalist, managerial in structure

and process

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• Works very hard to understand client needs, culture andvalues

• Works within clients’ operating systems to meet their needs

– understands their systems and leverage points

• Action learning and participative processes

– involves clients in designing R&D

• Shares knowledge and develops priorities jointly

• Uses and builds on existing delivery pathways for adoption• Respects and incorporates non-scientific knowledge

• Clear destination and purpose• Strong real-time intelligence

gathering, constant external scanning• Accepts that there are many alterative futures• Highly responsive to new opportunities• Continually refines course

- as opposed to rigid five year plans• Focus on monitoring and evaluation in an

adaptive sense, rather than after the fact

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• Knowledge is the base capital– drives economic growth, jobs and

behaviour• Explicit about epistemologies

– how we know what we know• Pays attention to knowledge assets

- even ‘old’ projects & programs• Recognises all forms of knowledge and

respects different knowledge domains• Articulates links between data, information

and knowledge• Recognises complexity and uncertainty• Analyses knowledge systems and applies

knowledge management concepts & tools

• Negotiates research focus betweenresearchers and end-users –translates knowledge needs intoresearchable questions

• Synthesises research outputs acrossprojects & programs to meet definedend-user needs

• Able to understand and be understoodby both scientists and end users

• Combines technical literacy and know-how with client empathy and credibility

• Analyses and understands deliverypathways and how to plug into them

• Analyses knowledge gaps and needs,stays in close touch with end-users

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Strategy - corporateStrategy - corporate• “doing the right things right…”• So how do you work out those right things?• Strategy starts with purpose – the business

niche• Maintaining strategic capacity

– scanning, analysis, evaluation, reporting• Strategic navigation vs 5 year plans• A portfolio approach

– Avoids having all eggs in one basket– Spreads risk– Enables a mix of ‘hats’ or approaches according to specific

contexts

EvaluationEvaluation• It must be:

– hard-wired in from the start– adequately resourced– instilled into the culture of the organisation

• Done well, it can improve program management withinthe life of a program

• At a portfolio level it generates valuable intelligence,especially through time

• LWA has evaluated 30% of total portfolio back to 1990with consistent methodology and transparent,conservative assumptions (see Chudleigh, Simpson & Schofield2005)

• Benefit:cost ratio 4.8 (and rising); IRR 24%

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StrategyStrategy–– program and project levelprogram and project level

• Scoping the research questions is critical• Understand the nature of the knowledge need• Understand where knowledge sits c.f. other factors

– market or policy failure, values, institutions etc– knowledge may not be the constraint…

• Understand the type of knowledge required• Understand the adoption context of the intended end-users

before considering research methodology• Be very clear (SMART) about program objectives• $$ invested at this end have a short payback period

StrategyStrategy–– program and project levelprogram and project level

• Science is just one knowledge domain• Others may be equally relevant to the particular mix

of knowledge required– E.g. farmers’ local knowledge, Indigenous

knowledge, strategic or organisational knowledge• Think about the mix and embed it in program

designSome initiatives targeting other knowledge domains:

– Community Fellowships– Recording Traditional Knowledge (Victor Steffensen, Balkanu)– Knowledge for Regional NRM– SAGE Farmers

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ManagementManagement

• Procurement• Project Management

–(not discussed today)• Knowledge and Adoption• Legacy• Evaluation

• Core business for research investors• Fundamental to overall performance, efficiency

and risk at the organisational level• Reputation and credibility are on the line in every

procurement process• Research procurement is not the same as letting a

tender for cleaners, IT, or printing• We are concerned with building the knowledge base,

R&D capacity, and coordinating research effort (objectsof the PIERD Act)

ProcurementProcurement

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Procurement pathwaysProcurement pathwaysAlternatives• Open Call• Select Tender• Commissioned• Joint Venture

Discriminating criteria• Clarity of R&D question, scope, opportunity

– Degree of integration, collaboration, capacity-buildingrequired

• Knowledge about available providers• Desired level of contestability & transparency• Cost-effectiveness (including leverage potential)

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Hostage to oneprovider. Not verytransparent orcontestable.Partnerships can belots of work.

Least transparent.Riskiest againstcomp neutrality.More difficult toprove relative valuefor money.Hostage to oneprovider.

More risk ofprocess beingquestioned.Assumes completeknowledge ofprovider market.Quality of tenderspecs crucial.

Most work,depending onsystems. Manydisappointed parties,my deter bestresearchers. Notconducive forintegration.

Disadvantages

Potentially maxleverage in $$ andinfluence. Canbuild R&D capacity.Can evolve R&Dpriorities as you go.Protect IP. Can beefficient (but notaxiomatic).

The most efficient.Good for protectingIP. Easy to plan &budget. Integration& collaboration canbe built into tenderspecs.

Faster & moreefficient than opencall. Fewerdisappointedparties. Can behighly contestable.Can buildintegration intotender.

Most open &transparent. Easiestto ensure competitiveneutrality, can turnup new ideas/talent &communicatepriorities

Advantages

LowLowMediumHighContestability

LowLowLowHighTransparencyJoint VentureCommissionSelect TenderOpen CallProcess

Pros and Cons of different procurement options

• Efficiency in investment

• Reduces duplication

• Enables coordinatedapproach to cross cuttingissues

• 3 levels – communication,coordination, co-investment

• Be very clear why you arecollaborating

• Must invest in relationships• Attribution can be hard

CollaborationCollaboration

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GovernanceGovernance• Crucial to get governance frameworks right at corporate,

program and project levels• PIERD/CAC Acts excellent at the corporate level• At the program level, governance is trickier, especially for

collaborative investments• We use 3 key instruments

– Program Management Agreement (between co-investors)– Program Management Committee (comprising reps of funders plus end-

users and/or technical expertise) pursuant to S89 of PIERD Act– Project-level research contract

• Contracts are more about clarity and shared understanding,not as a basis for litigation

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Factors influencing practice change in NRMFactors influencing practice change in NRM

Information and the Practice Change CycleInformation and the Practice Change Cycle

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CommunicationCommunication(knowledge & adoption)(knowledge & adoption)

• Make it real• Resource it• Instil it in the culture of the organisation• Plan K&A from the start. It will:

– influence the research methodology– encourage involvement of stakeholders in design

and management of the research– target research questions to user needs– assist implementation, and– improve the adoptability of research results

ManagingManagingthe knowledge legacythe knowledge legacy

• The legacy must be planned and budgeted for– How will research results be managed over the adoption

timeframe?– How will people access info after the program has finished?– Project level results may be less useful than synthesis

products or activities across projects or even acrossprograms - targeted at user needs, in their context at theappropriate scale

– Consider a harvest year– Engaging with intended users or stakeholders, even just

market testing products, can help ensure that outcomes areused and embedded

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Research directory•Programs•Projects•Specialist contactsfor advice

Publications•Reference books•Journal articles•Research reports•Pamphlets•Magazines•Conference proceedings

Spatial datasets

Researchreport

Conferenceproceedings

Journal articles

Magazines

Anecdotal evidence

Reference books (Guidelines and

manuals etc)

Decision support tools•Models•Decision frameworks•Spreadsheets

Knowledge assets of interestKnowledge assets of interest

Current research projects

Specialistadvice

Models

Decision frameworks

Spreadsheets

Knowledge needs

Current research programs

Funding opportunities

NRM Toolbar interfaceNRM Toolbar interface

NRM searchGoogleAustraliaOrganisationassetsAdvanced

[Searches onselection]

Squareiconindicateswhichsearchengine isselected

[Click to see currentalerts plus accessalert settings]

[Click name tosee librarianservices]

Includes formfor requestinginformationfrom thelibrarian

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[Click name toopen Mylibrary]

Click dropdownto view list offolders(Playlists) thatstays open toallow drag anddrop fromsearch results

R&D Directory

This Worked Here!

Knowledge needs

Events and funding

Decision tools

Knowledge market

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In summaryIn summary• Research investors are ‘keepers of the long view’• Applied research is targeted investment• Understanding the knowledge need is crucial• The R&D (scientific inquiry) process itself must be nested

within an appropriate framework of governance,management, adoption and legacy effort

• Knowledge and Adoption; and Evaluation processesmust be hard-wired into program design from the outset

• Smart research investment demands skilled all-rounders• I’ve been lucky to have worked with some of the best!

for more info:for more info:www.triplehelix.com.auwww.triplehelix.com.auwww.www.lwalwa..govgov.au.auwww.www.aanroaanro.net.net