Know-how protectionA blessing and a curse at the same time?
Expert: Dipl.- Ing. Volker Schreiner
F&P Blog
Many companies, whether SMEs or corporations, strive to develop and market unique selling points.
They often go to great lengths to maintain their own R&D departments in order to optimize products and processes and thus gain a competitive edge.
Excessive know-how protection can lead to a lack of information exchange…
Managers are contractually obliged to maintain confidentiality and accept competition clauses in their contracts that are intended to prevent them from switching to competitor companies in the near future. Employees and production staff sometimes work in segregated areas and it is often not possible to exchange information and knowledge with one another. Participation in working groups in which employees from different companies discuss topics and exchange experiences is rarely used, if at all. Suppliers and customers undergo extensive checks before they can enter and leave the factory premises.
Why can shielding the company cause problems?
As a result, the company increasingly isolates itself from the rest of the company and forms an enclave in which all processes are developed and evaluated internally, without being able to take into account supposedly interesting findings and developments from outside.
This is exactly what I experienced at a German company that manufactures high-quality medical technology products with over 4,000 employees in Germany. Complex manufacturing processes were analyzed and optimized by highly qualified employees, test procedures were developed and integrated into production.
The assignment of an interim manager from F&P Executive Solutions AG led to the realization that the coolants used for years were completely unsuitable for the materials to be processed. The rapid use of alternative media led to a doubling of tool life, the surface quality of the parts produced was significantly improved and the fluctuation in mechanical values was also minimized through the use of a new lubricant. Not to be neglected was the permanent reduction in tool costs by more than €1 million.
The question must be allowed as to what extent the isolation of a company is justified in order to secure know-how and whether its own employees are therefore unable to make sufficient use of important contacts and external events.
The experts at F&P Executive Solutions AG offer a comprehensive portfolio to support SMEs and corporations in the implementation of projects, bridging vacancies and restructuring. The diverse expertise of our interim managers enables targeted advice and sustainable improvements in previously critical areas.
