Kim B. Clark & Steven C. Wheelwright Organizing and Leading “Heavyweight” Development Teams California Management Review (1992), 34(3), pp. 9-28 Reimo Jahn 49001876 2 Prof. Euiho Suh – ST: Advanced Technology Management Table of Contents 1. Introduction 2. Four Types of Development Team Structures 3. The Heavyweight Team Structure 3.1 Structure & Management 3.2 Pros and Cons 3.3 Potential 3.4 Example: Motorola’s Bandit team 4. Summary 5. Discussion Topics Reimo Jahn Heavyweight Development Teams 12/02/2013 3 Prof. Euiho Suh – ST: Advanced Technology Management 1. Introduction For effective product or process development a company needs to coordinate and integrate specialized capabilities successfully. Especially challenging for large firms with separate and highly specialized functions, many employees with diverse skill levels and working styles. Paper presents one promising team structure, heavyweight teams, and discusses its potentials and pitfalls in organizing and managing product or process development. Reimo Jahn Heavyweight Development Teams 12/02/2013 4 Prof. Euiho Suh – ST: Advanced Technology Management 2. Four Types of Development Team Structures A. Functional Team Structure Function Manager ENG MFG MKG Working Level team • team members grouped by discipline leaders • subfunction managers • senior functional managers characteristics • coordination of ideas • cross-functional issues discussed in occasional meetings • responsibility passed from one function to another • managers w/responsibility & authority • separated, subdivided activities • learning effects • individual performance hard to evaluate Reimo Jahn Heavyweight Development Teams 12/02/2013 5 Prof. Euiho Suh – ST: Advanced Technology Management 2. Four Types of Development Team Structures team • members remain in functions • designated representatives (L) leaders • lightweight project manager • junior/mid-level • little influence, inexperienced characteristics • project as broadening experience • key resource or cadre decisions by senior mgmt • PM: schedules, time plans etc. B. Lightweight Team Structure FM ENG FM MFG FM MKG Liaison Project Manager Area of PM Influence • PM overlooks coordination/integration • only few differences to functional teams • improved communication • low acceptance of lightweight PM Reimo Jahn Heavyweight Development Teams 12/02/2013 6 Prof. Euiho Suh – ST: Advanced Technology Management 2. Four Types of Development Team Structures C. Heavyweight Team Structure FM FM FM MFG MKG L L L Market ENG PM Reimo Jahn team • cross-functional but physically colocated • core team and other members leaders • primary influence/supervision • usually senior managers • highly engaged “champions” • influence mainly thru core team characteristics • PM has direct responsibility and authority • cross-functional focus and consideration of market needs Heavyweight Development Teams 12/02/2013 7 Prof. Euiho Suh – ST: Advanced Technology Management 2. Four Types of Development Team Structures • concentration on project success • birthplace of unique ideas/breakthrus D. Autonomous Team Structure FM ENG FM MFG MKG L L PM • rethink instead of utilize existing assets • high risks, hard to change at half-way Reimo Jahn FM Heavyweight Development Teams Market team • cross-functional team members • separated from original functions leaders • heavyweight PM with full control and evaluation authority characteristics • “clean sheets”, no former rules • fully responsible for outcome L 12/02/2013 8 Prof. Euiho Suh – ST: Advanced Technology Management 3. Heavyweight Team Structure • fundamentally new way of organizing for traditionally organized companies • promising but underrepresented form of team structure • poses major challenges for project management • implementing demands fundamental changes in the organization Reimo Jahn Heavyweight Development Teams 12/02/2013 9 Prof. Euiho Suh – ST: Advanced Technology Management 3.1 Managing Heavyweight Teams Project Charter • captures clear mission with measurable objectives • set by senior management, members accept it by joining team • e.g.: “The product is to be ramped by Dec. 2014 at a minimum of 20% gross margin.” Contract Book • defines a detailed plan to achieve the goals declared in Charter • re: working plan, resources required, result outline, evaluation • made by team itself, takes a week to few months Staffing • cross-functional core team of dedicated employees, co-located • core team’s task: coordinate & integrate all functions’ work • additionally: frequently joining team members Reimo Jahn Heavyweight Development Teams 12/02/2013 10 Prof. Euiho Suh – ST: Advanced Technology Management 3.1 Managing Heavyweight Teams Project Leadership • PM leads, manages, evaluates, receives reports from team • PM champions project, instead of being just neutral/facilitating • PM has earned right to lead with skills, experience, status etc. • way more active and enthusiastic than lightweight leader Roles of the Project Leader 1. Direct Market Interpreter 2. Multilingual Translator 3. Direct Engineering Manager 4. Program Manager 5. Concept Infuser Reimo Jahn Heavyweight Development Teams 12/02/2013 11 Prof. Euiho Suh – ST: Advanced Technology Management 3.1 Managing Heavyweight Teams Roles of the Project Leader Direct market interpreter First hand information, dealer visits, auto shows, has own marketing budget, market study team, direct contact and discussions with customers Multilingual translator Fluency in language of customers, engineers, marketers, stylists; translator between customer experience/requirements and engineering specifications “Direct” engineering manager Direct contact, orchestra conductor, evangelist of conceptual integrity and coordinator of component development; direct eye-to-eye discussions with working level engineers; shows up in drafting room, looks over engineers’ shoulders Program manager “in motion” Out of the office, not too many meetings, not too much paperwork, faceto-face communication, conflict resolution manager Concept infuser Concept guardian, confronts conflicts, not only reacts but implements own philosophy, ultimate decision maker, coordination of details and creation of harmony Reimo Jahn Heavyweight Development Teams 12/02/2013 12 Prof. Euiho Suh – ST: Advanced Technology Management 3.1 Managing Heavyweight Teams The Executive Sponsor • senior management seeks to secure both team guidance and team empowerment at the same time • executive sponsor mentors team & communicates with mgmt • team and sponsor agree on list of areas where team is free to decide independently from mgmt ( “clarify boundaries”) Team Member Responsibility • team members have responsibility for their own function and cross-functional team effort • “functional hat “ ↔ “team hat” Reimo Jahn Heavyweight Development Teams 12/02/2013 13 Prof. Euiho Suh – ST: Advanced Technology Management 3.1 Managing Heavyweight Teams „Functional Hat“ Ensuring functional expertise on the project „Team Hat“ Sharing responsibility for team results Representing the functional prospective on Establishing reporting and other the project organizational relationships Ensuring that sub-objectives are met that depend on their function Reconstituting tasks and content Ensuring that functional issues are raised pro-actively within the team Participation in monitoring and improving team performance Sharing responsibility for ensuring effective team processes Examining issues from an executive point of view Understanding, recognizing and challenging the project‘s boundaries Reimo Jahn Heavyweight Development Teams 12/02/2013 14 Prof. Euiho Suh – ST: Advanced Technology Management 3.2 Pros and Cons Heavyweight teams tend to have… • focus on product/process • cross-functional perspective • Broad set of skills available • commitment/esprit de corps • awareness of customer needs • set a clear mission Heavyweight teams may… • clash with functions • agitate senior mgmt • make other employees feel like “second class” Reimo Jahn • not excel in all components • be too generalist • want even more power Heavyweight Development Teams 12/02/2013 15 Prof. Euiho Suh – ST: Advanced Technology Management 3.3 Potential Improvement of… communication team identity problem-solving ability creativity & innovativeness Increase of… development efficiency development speed market fit Reimo Jahn Heavyweight Development Teams 12/02/2013 16 Prof. Euiho Suh – ST: Advanced Technology Management 3.4 Motorola’s Bandit team • Motorola’s high sales Bravo pager line faces low-price competition from Japanese manufacturers in 1980s. • In order to stay competitive Motorola realized that they had to change the way they produce completely. • Motorola’s Communication Department was given a charter to develop an automated, profitable, on-shore production operation. • Heavyweight development team is set up in June 1986 with an 18 months deadline. • Project was called Bandit, because they were up to take ideas from anywhere possible. Reimo Jahn Heavyweight Development Teams 12/02/2013 17 Prof. Euiho Suh – ST: Advanced Technology Management 3.4 Motorola’s Bandit team • The project’s core team consisted of eight members: five from Motorola’s main engineering functions (robotics, Industrial and process engineering etc.) each one from accounting and HR one from HP, as representative of the software networking vendor. • Scott Shamlin, the project leader, was described as hands-on manager, “crusader”, “renegade” and “workaholic” who stimulates communication and articulated the vision. • Team was sponsored by a senior executive: early supporter and champion, George Fisher. Reimo Jahn Heavyweight Development Teams 12/02/2013 18 Prof. Euiho Suh – ST: Advanced Technology Management 3.4 Motorola’s Bandit team • The team started with a contract book, created a working plan and a process blueprint afterwards. • 18 months later… 1. Project was finished on contract book schedule. 2. Automated production was running with 5-sigma tolerance. 3. Cost objectives are met (lower direct costs and higher profit margins). 4. Product reliability could be increased above standards. 5. Knowledge was successfully transferred to other internal operations. Reimo Jahn Heavyweight Development Teams 12/02/2013 19 Prof. Euiho Suh – ST: Advanced Technology Management 감사합니다 20 Prof. Euiho Suh – ST: Advanced Technology Management References Wheelwright, Steven C. / Clark, Kim B. (1992), Organizing and leading “heavyweight” development teams“, California Management Review, 34(3), 9-28. Reimo Jahn Heavyweight Development Teams 12/02/2013