Development Team Management

Lecture Outline
Options in New Product Organization
Building a Team
Successful Vs Effective Managers

Participants in the Product Management

Process
Managing the Team

Options in New Products Organization

1. Functional

2. Functional Matrix
3. Balanced Matrix
4. Project Matrix
5. Venture
These are listed in increasing projectization, defined as
the extent to which participants see themselves as
independent from the project or committed to it.

Functional Organization
1. Functional: work is done by the various departments, very
little project focus.
Usually a new products committee or product planning
committee.
Does not lead to much innovation

Matrix Organization

2. Functional Matrix: A specific team with people from various

departments; project still close to the current business.
Team members think like functional specialists.
Departments call the shots.

Options in New Products Organization

3. Balanced Matrix: Both functional and project views are
critical.
May lead to indecision and delay.
4. Project Matrix: High projectization, team people are
project people first and functional people second.
People may drive the project even against
departments best wishes.
5. Venture: Team members pulled out of department to work
full time on project.

Performance Success of the Five

Organizational Options

Figure 14.3

Operating Characteristics of the

Basic Options
Characteristic

Functional <------------->Venture
Decision Power of Leader
Low
High
Independence of Group
Low
High
% of time spent on project by member
Low
High
Importance of Project
Low
High
Degree of risk of project to firm
Low
High
Degree of uncertainty
Low
High
Ability of team to violate
company policy
Low
High
Independent funding
Low
High

Decision Rules for Choosing

Among the Options
Score each on a scale of 1 (low) to 5 (high):
1. How difficult is it to get new products in the firm? (Resistance to Change)
2. How critical is it for the firm to have new products at this time? (Micro &
Macro Environmental level pressures)
3. How much risk to personnel is involved?
4. How important is speed of development? (Fast Change)
5. Will the products be using new procedures in their manufacturing?
(Methods/Materials)
6. In their marketing? (Promotion, Channels, etc)
7. What will be the $ profit contribution? (Profitability)
8. How much training do our functional people need in the markets
represented by the new products we want? (Skills)
Rating: Below 15: functional matrix will likely work.
15-30: a balanced matrix will probably work.
Over 30: You need a project matrix or even a venture!

New Product Team at Apple

Once a new product has been decided on, a team is organized and
segregated from the rest of the company by secrecy agreements
and sometimes physical barriers. Sections of the building may be
locked or cordoned off to make room for the teams working on a
sensitive new project. This effectively creates a start-up inside the
company that is only responsible to the executive team, freeing
them from the reporting structure of a big company.

http://thenextweb.com/apple/2012/01/24/this-is-how-apples-top-secret-product-development-process-works/

New Product Team at Google

Kennedy Project: Creating a design vision is the first step, but the
product designers had to distill and implement it. "We sat down,
locked ourselves in rooms, and we just refined on this design as
quickly as we could," Wiley said in 2011, "[we] created these
reference set of designs and then set those onto the world through
the 'productionizing' of that with the engineering teams.

This resulted in establishment of a secretive Google group known as

UXA

http://www.theverge.com/2013/1/24/3904134/google-redesign-how-larry-page-engineered-beautiful-revolution

New Product Team at Toyota

The cross-functional team and chief engineer work together almost daily in the
same room.

With the Prius, a team of specialists from the various design, evaluation, and
manufacturing functional groups sat in a big room with the chief engineer and
made decisions in real time.

To assist these discussions, computer-assisted design (CAD) terminals were put

into the room and it became known as "obeya" (big room).

The obeya serves two purposesinformation management and on-the-spot

decision making.

Before the Prius project, the chief engineer as an individual controlled everything,
but with obeya a cross-functional team now controls the program

http://my.safaribooksonline.com/book/general-business/9780071392310/the-toyota-way-in-action-new-century-new-fuel-newdesign-process-rius/toyota_apostrophy_s_new_product_developm

BUILDING A TEAM
Establishing Culture of Collaboration:
(More important where task becomes tougher)

BUILDING A TEAM
The Team Assignment & Ownership
Clear understanding of team mission & its strategy

Buy-in on part of every one in the team is critical (also

called ownership)
Training
Empowerment
Motivation

(To equip with right skills)

Building a Team
Selecting the Leader:
Must be able to spot
need for change and
convince others of this
need.
Develop team
cohesion, ensure their
commitment,
encourage information
sharing, increase
interaction.

Should the leader be

selected first or selected
by the Team?

What is the
difference
between ?

Successful Managers
&
Effective Managers

 Managers who are

successful may be good
politicians, they are not
necessarily effective

Successful managers may

be the one who do not
actually take care of
people and get high
performance from their
units.

What do managers do
Managers role according to Fayol

Planning
Coordinating
Commanding
Controlling
Organizing

Mintzberg negated that and said these

management roles are more like a folklore
and managers job consists of many brief
and disjointed episodes.

Managers Role according to Mintzberg

Interpersonal Roles
Figurehead
Leader
Liaison

Informational Roles

Monitor/ Nerve center

Disseminator (Person who distributes information)
Spokesman

Decision Making Roles

Entrepreneur
Disturbance handler
Resource allocator
Negotiator

Modern View of Managerial Work

Kotter
According to him managers spend most of the time
interacting and communicating with people.
They spend more time in meetings and social activities
Kotter called this role of manager as Network Building

Activities of Real Manager

Luthans
Communication (Just like Mintzberg view)

Traditional Managers (Just like Fayols view)

Planning
Controlling
Decision making

Networking (Just like Kotters view)

Politicizing and socializing

Human Resource Management

Motivating/ Reinforcing
Disciplining/Punishing
Conflict Management
Staffing
Training/Developing

 Luthans conducted a survey on 248 Real

Manager and found that real managers spend:
In 8 working hrs a day:
1/3 time on communicating(2 hrs 30 min)
1/3 time in traditional management activities (2 hrs 30
min)
1/5 in Human Resource Management activities (1 hr
30 min)
1/5 in Networking (1hr 30 min)

Difference b/w success & effective

Managers
Success was defined as speed of promotion
within an organization by Luthans for their
survey
And effectiveness was based on:
Getting job done through high quantity and quality
standards of performance
Getting job done by people which requires satisfaction
and commitment

 What do Successful managers do?

Networking & Communicating was the most apparent
part of these managers role according to survey
This means that these managers spend more time in
Politicizing
Socializing
Interacting with insiders and outsiders

These managers gave little time to traditional

management activities and human resource
management activities

A word of advice from a Successful

Manager
I find that the way to get ahead around here is to be
friendly with the right people both inside and outside
the firm. They get tired of always talking shop, so I
find a common interest with some its sports, with
others its our kids and interact with them on that
level. The other formal stuff around the office is
important but I really work at this informal side and
have found it pays off when promotion time rolls
around.

 What do Effective managers do?

They focused more on communication and human
resource management activities
Networking was the least preferred or conducted role
of such managers

A word of advice from an Effective

Manager
Both how much and how well things get done
around here, as well as keeping my people loyal and
happy, has to do with keeping them informed &
involved. If I make a change in procedure or the guys
upstairs give us a new process or piece of equipment
to work with, I get my peoples input and give them
the full story before I lay it on them. Then I make
sure they have the proper training and give them
feedback on how they are doing. When they screw
up, I let them know it, but when they do a good job, I
let them know about that too.

 What do Managers, who are both successful

and effective, do?
They use a fairly balance approach in terms of their
activities
But there were very few real managers who were both
successful and effective

 Implications of this study:

A formal reward system should be promoted which
ensures that effective managers are promoted
We must learn how effective managers do their day to
day work
Solution for Short Term
Performance based appraisal system should be introduced
360 degree evaluation.

Solution for Long Term

A culture should be developed which discourages politics in
organization and promote effective performance.

Building a Team
Selecting Team Members:
Core Team
Ad Hoc members
Extended Team

Participants in the Product

Management Process
Project Manager
Leader, integrator, mediator, judge
Translator, coordinator

Project Champion
Supporter and spokesperson
May be the project manager
Enthusiastic but play within the rules

Sponsor
Senior executive who lends encouragement and endorsement to
the champion

Rationalist
The show-me person

Participants in the Product

Management Process
Strategist
Longer-range
Managerial -- often the CEO
Spelled out the Product Innovation Charter

Inventor
Creative scientist
Idea source

Facilitator
Enhance teams productivity and output

Managing the Team

Cross Functional Interface Management

 Allowing team members to spent time with

each other, on and off the job.
Japanese rotational model.
Common rooms, coffee bars, etc

 Overcoming barriers to Market Orientation:

Banishing Compartmentalized thinking
Functional areas tend to focus on their own goals
(Finance, Manufacturing, etc)

Ongoing Management of the Team:

Effective Meetings
Changes in team membership
Job Security Issues (Team vs Function)

 Team Compensation and Motivation:

Firms should use monetary and non monetary rewards
system.

Essential Reading
Development Team Management, 14th
Chapter, New Product Management, Crawford
& Benedetto
Successful vs Effective Real Managers, Fred
Luthans.