David Spurlock

Valuation for the Strategic Management of Research and Development Projects: The Deferral Option

Abstract: The most widely used financial technique for evaluating projects is discounted cash flow; however, discounted cash flow analysis fails to consider flexibility. Real options analysis offers an alternative technique that provides value for the managerial flexibility that is inherent in most R&D projects. This article investigates the deferral option using computer simulation. There are five variables that determine the value of the deferral option, and simulations analyze these variables over a wide range of conditions. Sensitivity analysis on the five variables is performed and the results are discussed.

Motivation and Stakeholder Acceptance in Technology-driven Change Management: Implications for the Engineering Manager

Abstract: In this case study, we explore the dynamics of change management and organizational effectiveness. The experiences of a government agency with oversight authority in implementing a major technology initiative are discussed. The introduction of change is frequently met with resistance, especially if that change involves a re-engineering of basic work processes. Research suggests that employee motivation and morale in the face of major change initiatives can be impacted by leadership style. The normative decision model outlines how situational variables such as communication patterns, timing, and perceived need for change alter the level of participative decision making required for employee acceptance. Organizational change management strategies that include clear communication plans and training will meet with higher levels of employee satisfaction and acceptance. This article explores the application of theory in practice. Change management procedures are evaluated from the perspective of lessons learned. Knowledge about this change effort in the form of lessons learned offers insight that may prove useful to engineering managers faced with managing technology-driven change in organizations with high percentages of employees with non-technical backgrounds.

A Content Analysis of Data Collection and Analysis Techniques as Reported in the Engineering Management Literature

Abstract: Engineering management involves an extremely diverse range of topics, problems, and questions, many of which involve both human and non-human elements. An analysis of the methods used in the field of engineering management is important in order to identify trends in the use of methods, to promote the training of future research practitioners, and to build overall knowledge for and about change. This article reviews the studies reported in journals relevant to engineering management and describes and categorizes the data collection and analysis methods, reporting relative frequencies and trends in the use of these methods.