The Skunk Works Story
The story of Skunk Works is essentially a masterclass in delivering breakthrough technology under extreme constraints.
Origins
In 1943, Lockheed was tasked with building a jet fighter for the US Army Air Forces to counter the German Me 262. The request came with a near-impossible deadline: 150 days from contract to first flight. Clarence “Kelly” Johnson, already known for engineering brilliance and blunt leadership, pulled together a small, highly skilled team.
Instead of operating within the traditional bureaucracy, they worked in a separate facility—literally a rented circus tent next to a smelly plastics factory, which inspired the nickname Skunk Works.
A Radical Approach
Johnson set out 14 rules and practices that cut through corporate red tape:
- Small teams
- Short reporting lines
- Minimal documentation
- Direct communication with decision-makers
- Engineers empowered to make calls without waiting for approval chains
That first project, the XP-80, was completed in just 143 days—faster than anyone thought possible—and it set the cultural DNA for decades of work.
Legacy
Skunk Works went on to create some of the most advanced aircraft in history, including the U-2 spy plane, the SR-71 Blackbird, and the F-117 Nighthawk stealth fighter.
The pattern was consistent:
- Work in small, autonomous groups
- Shield them from unnecessary process
- Place the right talent in the right roles
- Drive towards a clearly defined, high-impact goal
The magic was not in ignoring rules entirely, but in replacing them with a lean framework built for speed, trust, and technical excellence.
It’s a case study in how, when you strip away layers and empower a focused team, you can bend not just timelines but what’s thought technically possible.
Kelly Johnson’s 14 Rules and Practices
- The Skunk Works manager must be delegated practically complete control of their program in all aspects. They should report directly to a division president or higher.
- Strong but small project offices must be provided, staffed with good people who can do more than one job.
- The number of people having any connection with the project must be kept to an absolute minimum.
- A very simple drawing and drawing release system with great flexibility for making changes must be provided.
- There must be a minimum number of reports required, but important work must be recorded thoroughly.
- There must be monthly cost reviews covering not only what has been spent and committed but also projected costs to the end of the program.
- The contractor must have responsibility for testing and approving parts before installation.
- Specifications applying to the hardware must be agreed to in advance and adhered to rigidly.
- Funding a program must be timely so that the contractor doesn’t have to stop work waiting for a new contract.
- The number of people involved in meeting with customer representatives must be limited to avoid confusion.
- A small number of top technical people should interface with the customer directly to avoid information distortion.
- There must be mutual trust between the contractor and the customer, with no micromanagement.
- Access by outsiders to the project and its personnel must be strictly controlled.
- The contractor must be rewarded for successful performance and penalised for failure.