Introduction
Collaborative initiatives between research institutes, public sector and industry are increasingly seen as the step forward to meet major challenges. Driven by ambition and enthusiasm, a Letter of Intent or memorandum of Understanding is too easily signed, without proper exploration of parties’ true interests, intentions and willingness to give up at least some autonomy. This is what actually happened in a joint venture between a bioscience university and an energy (generating and retailing) company in North-Western Europe.
The case study
It sounds so simple: arranging a partnership between a company and an academic knowledge institute. The proposed collaboration comprised a number of research and demonstration projects in the field of renewable energy and researchers were not short of ideas. Even before a LoI was signed, academic researchers presented their research proposals in the interim steering committee, formed by the University Chancellor and the Chief Innovation Officer (CIO) of the energy company. The proposals were included in a ‘project long list’. So far so good.
At the energy company, the research proposals were received ‘lukewarm’. Business developers assigned to the initiative, were somewhat reluctant to spend time. As a matter of fact, they were already quite busy developing renewable energy business projects and their business managers were not willing to ease the commercial targets.
The researchers, however, backed by the University Chancellor, pressed forward. By applying for subsidies and licenses, by hiring new researchers and recommending the joint venture to the local authorities (promising close on 100 local, highly qualified jobs), they raised the expectations of the University’s (internal and external) stakeholders. With the approval of the University Chancellor, some research projects were actually started. Obviously, the energy company’s CIO felt he was slowly loosing control and his business developers and project managers basically give low priority to the matter. In the meantime, lawyers of both parties were spending lots of time defining the terms of the LoI, and – at some point –submitted the 24th draft to the steering committee. Disaster struck when the CIO threatened to withdraw his support, bringing partnership and mutual trust to an abrupt end.
Time for rethink
Clearly, this was the result of a mismatch between expectations, interests and governance. The parties involved jumped from an initial idea (collaboration) to design (the LoI) and even execution (the research projects). The processes of exploring (initial vision, each other’s backgrounds, cultures), sharing (discussing each other’s ideas, expectations, interests and assumptions) and agreeing (projected outcomes, costs, governance) were actually skipped and done by the lawyers, drafting 24 versions of the LoI.
Highland Worldwide member Twynstra Gudde facilitated the rethink, using the collaborative approach[1]. This approach offers a Looking Glass to address individual, organizational and common interests. Preparation and execution of projects was temporarily stopped and, a few discussion rounds, mutual understanding was improved dramatically. Not all differences of opinion were solved, but most were revealed and openly discussed, making procedures and governance much more effective. Also, the true interests of the parties involved were shared. For example, the university wanted to consolidate its leading position in bioscience research, but was too cash-strapped to do so and therefore looking for partners. And, perhaps, was more exploring possibilities to continue doing research than willing to give away some autonomy in decision- making. The energy company, on the other hand, was striving for a leading position in renewable energy generation. And, therefore, perhaps too much short-term-oriented and somewhat impatient with the researchers.
The result
With hindsight, it wasn’t lack of ambition. It was jumping to conclusions, wrongly assuming that involved parties would understand each party’s expectations, objectives and true interests right from the beginning. Hastily started research projects came to a standstill due to differences in opinion.
A collaborative approach speeds up cooperation initiatives between academic, public and private sectors making collaboration much more fun and successful. The collaboration between the university and the energy company eventually resulted in a successful joint research facility in the Netherlands, hosting a wind turbine test field (were the latest innovations are being tested and certified), a solar energy test field (demonstrating the latest PV techniques and proving the efficiency of sun-tracking systems) and a bio-energy research project (integrating the production of algae biofuel, biogas and bio-ethanol).
More information:
Highland Worldwide/Twynstra Gudde
Guus van Leerdam
E-mail: gle@tg.nl
Phone: +31651105234
