Case | HBS Case Collection | September 1991 (Revised January 1992)

Allegheny Ludlum: Research and Engineering Resource Allocation

by Dorothy Leonard-Barton and Geoffrey K. Gill

Abstract

Allegheny Ludlum's (AL) technical vice president, Jack Shilling faces the task of determining how to allocate engineering resources among five areas of technology. AL's technology organization has great strategic importance and has therefore been untouched by the company's headcount and overhead reduction policies. Shilling must anticipate and prepare to meet or explore competitive threats and market opportunities as he prepares to make his allocation decisions. Shilling also considers the following questions: What engineering skills should he look for in new hires? Is the current planning system optimal? What criteria should he use in judging projects? (Includes details of three project proposals which students are asked to evaluate). Under what conditions should AL undertake a development as a joint venture rather than keeping it entirely in-house? Teaching objectives include: 1) Analyze resource allocations to support/sustain technological capabilities and 2) Examine technology strategy formulation process.

Keywords: Engineering; Resource Allocation; Technology; Policy; Leadership; Decisions; Competency and Skills; Projects; Joint Ventures; Strategy; Electronics Industry; Technology Industry;

Citation:

Leonard-Barton, Dorothy, and Geoffrey K. Gill. "Allegheny Ludlum: Research and Engineering Resource Allocation." Harvard Business School Case 692-027, September 1991. (Revised January 1992.)