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Lockheed Skunk Works

Clarence L. "Kelly" Johnson is the Albert Einstein of aerospace design. Johnson's aircraft programs were so groundbreaking and historically influential, that he and Lockheed's Skunk Works are forever enshrined in humanity's technology hall of fame.

1943–1975 — Johnson lead the Skunk Works through its most famous era, overseeing:

Kelly Johnson, the father of today's Skunk Works, is sometimes cited as the originator of the "keep it simple stupid" (KISS) principle, and his famed "down-to-brass-tacks" management style was summed up by his motto:

    "Be quick, be quiet, and be on time."

Kelly Johnson's 14 Management Rules

1. Extreme Autonomy

The Skunk Works manager must be delegated practically complete control of his/her program in all aspects. He/she should report to a division president or higher.

2. Work Closely with the Military

Strong but small project offices must be provided both by the military and industry.

3. Small Teams of Brilliant People

The number of people having any connection with the project must be restricted in an almost vicious manner. Use a small number of good people (10% to 25% compared to the so-called normal systems).

4. Design Tools Flexibility

A very simple drawing and drawing release system with great flexibility for making changes must be provided.

5. Report Less, Do More

There must be a minimum number of reports required, but important work must be recorded thoroughly.

6. Always Keep an Eye on Costs

There must be a monthly cost review covering not only what has been spent and committed but also projected costs to the conclusion of the program.

7. Bids Procedures

The contractor must be delegated and must assume more than normal responsibility to get good vendor bids for subcontract on the project. Commercial bid procedures are very often better than military ones.

8. Push Quality Responsibility Back to the Subcontractors

The inspection system as currently used by the Skunk Works, which has been approved by both the Air Force and Navy, meets the intent of existing military requirements and should be used on new projects. Push more basic inspection responsibility back to subcontractors and vendors. Don't duplicate so much inspection.

9. Always Test What You Have Built

The contractor must be delegated the authority to test his final product in flight. He can and must test it in the initial stages. If he doesn't, he rapidly loses his competency to design other vehicles.

10. Define Product's Specifications Well in Advance

The specifications applying to the hardware must be agreed to well in advance of contracting. The Skunk Works practice of having a specification section stating clearly which important military specification items will not knowingly be complied with and reasons, therefore, is highly recommended.

11. Ensure Funding

Funding a program must be timely so that the contractor doesn't have to keep running to the bank to support government projects.

12. Trust is Everything

There must be mutual trust between the military project organization and the contractor, the very close cooperation and liaison on a day-to-day basis. This cuts down misunderstanding and correspondence to an absolute minimum.

13. Be Quiet

Access by outsiders to the project and its personnel must be strictly controlled by appropriate security measures.

14. Fairly Reward the Good Work

Because only a few people will be used in engineering and most other areas, ways must be provided to reward good performance by pay not based on the number of personnel supervised.

The Unofficial Rules 15, 16, and 17

Kelly also had unofficial rules 15, 16, and 17, which he is known to have repeatedly stated to his subordinates:

Thanks to Rodney Rodriguez for this list - LinkedIn - Twitter