“We’re treating this as a Skunk Works project.”
I’ve heard this term many times, even led a few projects of this sort. Within our Andersen world, many of us have worked on transformational projects and initiatives, and some of them have involved projects of this sort.
However, for a long time, I didn't know where the name came from. Then not too long ago, a friend of mine mentioned a book that described it, and much more.
And, it turns out, the origin story is innovation gold.
The Year: 1943. The Mission: Develop a top-secret jet to stay ahead of the curve. The Problem: Lockheed was already at capacity.
At the time, Lockheed led in aviation with the P-38 and the famous Electra. (Movie buffs: the plane featured at the end of Casablanca was a Lockheed 12A Electra Junior!)
But as jets emerged, the U.S. needed a focused, discreet effort.
Engineer Kelly Johnson moved a hand-picked team into a makeshift facility next to a plastics plant that produced a permanent, "terrible" stench.
At the time, the comic Li'l Abner featured a smelly place called "Skonk Works." One day, engineer Irv Culver answered the phone:
“Skonk Works, inside man Culver speaking.” 📞
The name stuck and evolved into "Skunk Works"- a symbol of autonomy, speed, and breakthrough innovation.
The results have included the XP-80 Shooting Star, the first jet fighter for the United States; the iconic SR-71 Blackbird, and the F-117 Nighthawk, the world’s first operational stealth aircraft.
“Skunk Works” is not just a term or building; it’s an operating system. Johnson’s 14 Rules of Management are a blueprint for leadership including (paraphrased):
• Delegation: The manager must be delegated practically complete control of their program.
• The Lean Rule: Keep the number of team members to a minimum.
• The Trust Rule: There must be mutual trust between the company and key contractors, with very close cooperation between them.
Does it work today? It depends on the situation. Before using this approach, consider:
• Integration: How much does it need to plug into existing tech?
• Speed: Is the deadline "impossible" for bureaucracy?
• Size: Is the team small enough to stay agile?
When consistent with team needs, Skunk Works projects can be very effective. I’ve personally been connected to a few over the years, especially with mobile app development. More broadly, if you understand the concept, then you can understand better if and when this approach might be best for you and your team.
In many situations, from the rigor of a modern audit to the development of an AI-driven digital solution, the Skunk Works model reminds us that sometimes the most effective approach is to cut the red tape and trust a small, elite team to deliver. As we learned in our Andersen days, the goal isn't just to follow the process; it's to get the job done right. Sometimes, that requires our own version of the Skunk Works spirit.
When applied in the right situations, the results can be legendary, much like many of the projects we’ve been proud to be part of as Andersen alumni.
P.S. Here’s a link to Ben Rich’s memoir Skunk Works: A Personal Memoir of My Years at Lockheed.