University laboratory management in the Internet age

Applied Research Laboratories (ARL:UT) is the largest organized research unit at The University of Texas at Austin. It has a long and distinguished history, conducting applied research since WWII primarily for the Department of Defense in the areas of acoustics, electromagnetics, and information technology. ARL:UT researchers have made important contributions to sonar, radar, geodesy, military information systems, and network security. This paper describes the management challenges associated with operating a defense-funded research laboratory within The University of Texas at Austin. During the past ten years, our laboratory has been confronted with a variety of challenges due to the declining defense budget, the growth of the high technology industry in Austin, and the issues associated with operating a soft-money-funded R&D organization within the constraints imposed by the employment and compensation policies of a major university. The management principles that have guided our laboratory for the past 55 years are discussed and evaluated in the context of these challenges.