Slides Used by Tom Allen
Cross Functional Teaming and
Collaboration
January 31, 2002
Lean Aerospace Initiative
The Process of Innovation
Technology
INNOVATION
Market
January 31, 2002
Lean Aerospace Initiative
Departmental Organization
Technology
D1
D2 D3
D4 D5 D6
Market
January 31, 2002
Lean Aerospace Initiative
Project Team Organization
Technology
P1
P2 P3
P4 P5
P6
Market
January 31, 2002
Lean Aerospace Initiative
Matrix Organization
Technology
D1
D2 D3
D4
D5
D6
P1 P2 P3 P4 P5 P6 P7 P8
Market
January 31, 2002
Lean Aerospace Initiative
Matrix Organization
Technology
D1
D2 D3
D4
D5
D6
P1 P2 P3 P4 P5 P6 P7 P8
Market
January 31, 2002
Lean Aerospace Initiative
The Basic Tradeoff and Dilemma in Product
Development Organization
•
Departmental Organization
•
•
•
Departmental structure is more
closely mapped to the structure of
the supporting technologies
It thereby provides a better
connection to those technologies
and better ongoing technical
support to the project effort.
This is, however, accomplished at
the cost of much greater difficulty in
coordination of the project tasks
and less responsiveness to market
change.
•
Project Team Organization
• Project Team structure
groups people from different
disciplines together in a
single team all reporting to a
common manager.
• It thereby provides better
coordination of the project
tasks and increased
sensitivity to market
dynamics.
• This is, however,
accomplished at the cost of a
separation from the
disciplinary knowledge
underlying the project effort.
When this is carried to an
extreme, it will gradually
erode the technology base of
the organization.
January 31, 2002
Lean Aerospace Initiative
The First Variable
dK = rate of change of
dt
knowledge
dK
dt
January 31, 2002
Lean Aerospace Initiative
The Second Variable
Iss
dK = rate of change of
dt
knowledge
Iss =
subsystem
interdependence
dK
dt
January 31, 2002
Lean Aerospace Initiative
Locating Projects in the Space
Iss
x x
x xx x
o o o
oo
o o
dK
dt
January 31, 2002
Lean Aerospace Initiative
Locating Projects in the Space
Iss
x x
x xx x
Project
Team
Departments
o o o
oo
o o
dK
dt
January 31, 2002
Lean Aerospace Initiative
Dividing into Two Regions
Iss
x x
x xx x
Project
Team
Departments
o o o
oo
o o
dK
dt
January 31, 2002
Lean Aerospace Initiative
A More Normal Situation
Iss
x x
x xx x
+
+
+
Project
Team
+
+
+
+
+
Departments
o o o
oo
o o
+
+
dK
dt
January 31, 2002
Lean Aerospace Initiative
Locating People in the Space
Iss
x x
x xx x
+
+
+
Project
Team
+
+
+
+
+
Departments
o o o
oo
o o
+
+
dK
dt
January 31, 2002
Lean Aerospace Initiative
Locating the Boundary
Iss
Ti = Duration of
project assignment
Project
Team
T1
T2
T1 > T2
Department
dK
dt
January 31, 2002
Lean Aerospace Initiative
What About This Situation?
+
+
+ + ++
++ +
+
Iss
Project
Team
Departments
dK
dt
January 31, 2002
Lean Aerospace Initiative
What About This Situation?
• Periodically rotate engineers on a
temporary basis between team and
departments over the life of the project.
• Make use of spatial location to offset
organizational separations.
January 31, 2002
Lean Aerospace Initiative
Organizational Structure Space IV
dM
dt
Project
Team
Iss
Ti
Department
dK
dt
January 31, 2002
Lean Aerospace Initiative
Organizational Structure Space V
dK
dt
Ti
Department
Project
Team
Depa
rtmen
t
dM
dt
Iss
Project
Team
January 31, 2002
Lean Aerospace Initiative
Structuring the Organization
• Standard Industrial Practice
– Ignores the rate at which technologies are
developing (despite the fact that this can
often be measured).
– Usually ignores the interdependencies in
project work (seasoned project managers
are an exception).
– Focuses on project duration (and usually
makes the wrong decision on this
parameter).
January 31, 2002
Lean Aerospace Initiative
Matrix Connections to Market and
Technology
Technology
Dept
Head
Dept
Head
Dept
Head
Proj
Mgr
Proj
Mgr
Proj
Mgr
Proj
Mgr
Proj
Mgr
Market
Proj
Mgr
January 31, 2002
Lean Aerospace Initiative
Dept
Head
Dept
Head
Dept
Head
Balance in the Matrix
• Should there be a balance of power
between the project side and the
departmental side of the product
development Matrix?
– Some argue for balance.
– Some argue for “Heavyweight Project
Managers”.
– Does project size and complexity make a
difference?
January 31, 2002
Lean Aerospace Initiative
Nature of the Survey
• Engineers and managers working on
over 100 projects in 10 organizations
were surveyed.
• There were approximately 2500
responses.
• Projects were divided into those that
were smaller and/or less complex and
those that were larger (top quartile in
size) and more complex.
January 31, 2002
Lean Aerospace Initiative
The Nature of the Survey
Project team members were asked to indicate on a scale
where the locus of influence lay for each of the following :
Influence Over Technical Decisions
Influence Over Salary & Promotions
Influence in the Organization
Project
Manager
Equal
January 31, 2002
Lean Aerospace Initiative
Departmental
Management
Box & Whisker Representation of a
Distribution
1.0
Project Performance
25%
.8
Median
.6
.4
25%
25%
25%
.2
0.0
January 31, 2002
Lean Aerospace Initiative
Project Performance as a Function of Project Size and
Complexity and Locus of Influence Over Salaries and
Promotions
Project Performance
1.0
.8
.6
Influence Over
Pay & Promotion
.4
Proj Mgr
.2
Balanced
0.0
N=
Dept Mgt
8
21
Less
46
3
11
16
More
Size and Complexity of Project
January 31, 2002
Lean Aerospace Initiative
Project Performance as a Function of Project Size and
Complexity and Locus of Organizational Influence
Project Performance
1.0
.8
.6
Organizational
Influence
.4
Proj Mgr
.2
Balanced
0.0
N=
Dept Mgt
23
22
Less
21
10
11
8
More
Size and Complexity of Project
January 31, 2002
Lean Aerospace Initiative
Project Performance as a Function of Project Size and
Complexity and Locus of Influence Over Technical Decisions
Project Performance
1.0
.8
.6
Influence Over
Tech Decisions
.4
Proj Mgr
.2
Balanced
0.0
N=
Dept Mgt
28
28
Less
19
4
20
6
More
Size and Complexity of Project
January 31, 2002
Lean Aerospace Initiative
What Have We Learned?
• There are four variables that are
important in determining organizational
structure for product development.
• Whether balance is necessary in the
product development matrix is
dependent upon the nature of the
project.
January 31, 2002
Lean Aerospace Initiative