B u l l e t i n Number 60, March 2006 - Year VI

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O p i n i o n  

Have Your Say
Collaborator admits: “The fact that I managed to achieve my goals and raise projects for INESC Porto does wonders to my ego, it is potentially good for my evolution in the Manufacturing Systems Engineering Unit and in INESC Porto and it is good for INESC Porto but...I don’t think it is enough”

Gallery of the Uncommon
Have you ever seen your name changed in the envelope of a letter? Well, one of our collaborators was re-named by an internationally known institution. You can’t miss it …

Free Nonsense
Collaborator reflects: “I have been receiving several e-mails that address the film “Brokeback Mountain” and I see them with a certain melancholic joy. I say this because my childhood heroes are being judged according to modern concepts or old prejudice.”

Biptoon
How life goes merrily on

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H A V E    Y O U R    S A Y

Every rose has its thorn...

By Luís Guardão*

I have been in this institution since 1992, after some time in another company in Aveiro, for which I worked for two years after my degree in Electronics and Telecommunications in the University of Aveiro.

The reason why I left this company and embraced the possibility of entering the INESC Centre for Technology Transfer (CTT A&C) for SMEs, seated in Rua José Falcão was because I had the chance to get continuously updated, to be granted some value and to give my contribution to the success of projects in the industry area in which I was involved.

My expectations were met and I have been through every function, from administrating operating systems to taking part in small projects to, later, evolve to management and coordination of bigger and more challenging projects.

However, I can’t really say this was an easy trajectory as I’ve had my share of difficulties. Working in companies is enriching but sometimes hard; on the other hand, the reality from ten years ago where we had many financing from companies (matching the easiness in getting work for INESC), has changed radically, increasing the difficulty in selling INESC Porto’s know-how to industrial companies.

Aware of this reality and of what it might mean to the future of our institution and consequently to my own, I took the job - to which I was alerted/challenged/invited in 2001 by José Caldeira and Luís Carneiro - of dedicating a substantial percentage of my time building up projects, in which INESC Porto would be hired, to a full extent, by its services.

I faced this endeavor with dedication but especially with perseverance, a lot of patience and sometimes the lack of it because, for example, a great project started being negotiated at that time and only four years later, after many changes of contact persons and a lot of “backstage” work, was the contract signed, in 2005.

The point of this already very long description is: the fact that I managed to achieve my goals and raise projects for INESC Porto does wonders to my ego, it is potentially good for my evolution in the Manufacturing Systems Engineering Unit and in INESC Porto and it is good for INESC Porto but…I don’t think it is enough.

We have to find a way to stimulate all of INESC Porto’s collaborators so that they promote the name and competence of this institution, raise projects and commit to them so that they are successful and accomplished on time and with quality, capable of generating real added value.

I suggest the following: a percentage of the profit achieved in the end of the project, for example, 50% should be distributed by the person raising it and by the team in charge of its execution. This way, we would have real incentives to the raising of work as well as to the fulfillment on time and with quality of the goals of the project.

THE READER’S ADVISER COMMENTS
Dear Luis,

The adequate management of the incentives is a way of inducing behaviours and rewarding attitudes that, benefiting the people involved, act in favour of the group.

I suggest we reconsider the real impact of the incentives on behaviour. I don’t know if the formula you suggest is the correct one. For example, I believe that when you speak of “profit” you wish to refer to the margin released by the activity. Well, that is a complex calculation because we have to consider not only direct costs but also other book values per share, including amortisation of the investment of the equipment used and other overheads.

And after that, I don’t think the pure and simple indexation to the invoicing value is a fair procedure. It is a “liberal” technique, that’s for sure, but it doesn’t recognise or reward efforts in strategic activities that can release margins which are smaller than a contract in a less relevant area.

Our coordinated and collective effort is not oriented towards pure invoicing, otherwise we would all be here just bidding our time – there are long and medium term goals as well as a mission underlying our existence which we must respect.

Considering this, we have to find more explicit and immediate processes to reward those who develop efforts associated to the raising of contracts. I don’t understand why you relate that with the effort of enforcement of contracts – do you think the systems of topping-up payments and bonuses we have are not enough and unfair?

We would all like to earn more, but that depends on the margins the institution releases. But the only activities we have that release an effective margin are the direct R&D contracts with the industry or the administration. European projects are financed in 50%, FCT projects only pay a few direct costs (they don’t pay for the administrative service in your unit, for example). What supports our model are the financial R&D service contracts, not the financed activity. And the direct activity has to release enough margins.

Our problem, as well as many organisations, is detecting and promoting leadership and making use of the people who gain status so that they negotiate more daring activities. That status is achieved slowly and by a breakthrough in the market as a person of undeniable competence, maturity and authority in the affairs.

To gain this status, a strong personal investment must be made. This includes technical skills, but it focuses mainly on credibility in the eyes of external actors, and on a very personal effort that multiplies contacts and develops an action of identification of opportunities and initiative of its production.

I repeat: I have recorded your opinion that it is necessary to go through the incentive scheme again as well as its opportunity. And you? What are you investing in? Why don’t you pick a theme of your acknowledged competence and research on your opportunities in Spain?

* Collaborator of the Manufacturing Systems Engineering Unit (UESP)



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