Posts Tagged ‘innovation’

The (new) wisdom of teams

Posted by John Foster on March 9th, 2010

The Wisdom of Teams by Jon Katzenbach and Doug Smith is one of the most useful books I have ever read.  It provides a clear framework for team success based on sound research. That plus the memorable: Form, Storm, Norm, Perform stages of team development by Bruce Tuckman helped me diagnose and facilitate teams for over 20 years.

Key to these models is the distinction between a “real team” and other small working groups that don’t exhibit complementary skills, commitment to a common purpose, shared performance goals, and mutual accountability for their approach to the work at hand.

Over the years, I’ve come to find that team development as Katenbach, Smith, and Tuckman observed it depends on a stable surrounding environment, which is becoming less and less common.  Today’s work place is fraught with complexity, ambiguity, and overlapping priorities.  Speed and confusion are facts of life, not the result of a poorly run organization.

photo from blog.jaciclark.com

Often teams have a hard time functioning as suggested in The Original Wisdom (choirs sing here) because the demands to perform start immediately, and there’s no time to go through the team development stages.  And I have to admit that many business leaders in my career have argued that the time it takes for team building is unnecessary.

Today’s successful teams seem to skip some of the stages and get right to work, much as people can jump up and start dancing together at a wedding with little planning or communication.  They just know what to do when the music starts. I’ve shared some of the insights about this “new” kind of team in an earlier post on teams, and it was so popular I thought I’d add some more on the topic.

Here’s some of the new wisdom emerging from my observations conducted at IDEO with my research partner Daniel Wilson:

3 Degrees of Team: we’ve noticed performance differences in teams can be correlated to various “degrees” of team complexity.  A “client-embedded, extended team” seems to out perform the other types.

1. A “core team” has 3-5 people with different skills working closely on a project.

2. An “extended team” can have 20 or 30 people who identify themselves as members of the team, but do not participate fully in all team activities.  Sometimes they offer a quick assessment of the work, while other times they make a specialized contribution to the overall work product.

2. A “client embedded” team has representatives of the sponsoring agency actually on the team versus reviewing or supporting the work from afar.

Team fluidity: one commonly held belief of a team is that it forms with an original set of members (like a rock band) and keeps those same members for the life of its work.  We’ve seen that successful teams are more fluid and can easily accommodate the arrival and departure of members over the life of their work.  This is managed with the use of project artifacts, boundary objects, and a continuing project narrative that keeps everyone up-to-date and connected to the current state of the team and work.

Popularity: 34% [?]

Transparency beats asymmetries

Posted by John Foster on June 26th, 2009

As I begin this post I’m realizing transparency is a big topic, but it’s coming up all over the place in business, personal, and social situations, so I want to start picking it apart.  I noticed Seth Godin’s post earlier this week, and liked his statement that the issue is not to be viewed as a moral right, but a business tactic, tool or threat.  So this post is about sharing information as a business tactic to win complex games.

I’ve had many discussions with friends about putting things on the Web and how fearful they are about things being used against them.  I hear comments about invasion of privacy, loss of employment, Gattaca and Big Brother.   One of my best friends refuses to participate in social networking sites so he won’t make it any easier for anyone to find out stuff about him.  He’s a very sharp guy, and I think he is playing a good poker game.  And, as Seth points out, poker is not much fun if you can see everyone’s cards.

Ostrich head in sandFor me the issue here is not about transparency, but what game you are playing.  Poker is a small scale strategy game pitting one person against another.  Transparency is the exact wrong thing to do in that game.  But most “games” in life and business are far more complex, and given our 21st Century context (see Thomas Friedman), I think it’s dangerous to live life with a poker face.  It’s more like having one’s head in the sand.

In a complex system, transparency is important as it relates to information asymmetries.  This is when one “side” in a transaction knows more than another.  In such cases, people tend to undervalue an opportunity to avoid risks based on gaps in knowledge. It has been shown in economic theory that the overall value of a system is increased when everyone has access to the same information.

In markets, individuals benefit greatly by sharing their information with others to allow for fair exchanges.  This sharing brings the added bonus of systemic aggregation of information (the Internet enables this like never before).  Aggregation allows people to discover patterns that provide opportunities to adjust tactics and “win” more often.

So here’s some “games of life” to think of as markets instead of as poker:

  • Job interviews/hiring decisions… what if employers and employees knew more about jobs and candidates? Better alignment of jobs and people lead to greater engagement and less turnover.
  • Health… what if people were able to share their health information more fully? They could see trends and patterns and share them with medical professionals to get earlier and better treatment.
  • Business… what if employers shared their performance goals and metrics more fully (even when it’s bad news)?  Employees could intervene earlier and with greater permission to prevent negative trends.
  • Dating… more disclosure about values and interests leads to better match making and longer lasting relationships.

Popularity: 16% [?]

Free advice for GM #3-Put SAAB back on the edge

Posted by John Foster on June 23rd, 2009

I was going to go with Saturn next, but a tweet from Diego on Metacool got me motivated to play with SAAB.  He says, SAAB should get back into rallying, which lends support to my understanding of this brand.

Rally to the edge

Rally to the edge

Technology, cool, edgy, unique.   Born from jets.  Svenska Aeroplan Aktie Bolaget is Swedish Airplane Company in Swedish.  Somewhere it all fell apart and they ended up another mediocre GM-mobile that had no style, no technology, and poor quality.

The organization behind an edgy car has to be edgy.  This is called brand integration (the outside and the inside have to align).  To create edgy things, people have to take risks and push the envelope.  Edge is by definition NOT THE MAINSTREAM.  Okay, I’m ranting… but it’s amazing to me how something edgy can get so rounded off to fit into a corporate model, that it’s no longer viable.

The interdependent organization archetype is a great model for SAAB because it could bring together an array of people and companies from many centers of excellence to work on the coolest automotive technology in the world.  There would need to be lots of experimentation (and failure) going on to find out what new ideas work and what theories don’t hold water.  You just can’t pull this kind of behavior off, if you are trying to please heads of engineering and design at the top of a corporate pyramid.

Key traits of the new SAAB organization:

1. Ad hoc reciprocal structure- each car should be viewed as a project, with full design-build responsibilities.  The designs should connect to the heritage of SAAB (e.g. efficient drag coefficient) but the technology should represent the best of what’s possible in the current market.  These teams should work under temporary agreements with other companies to bring resources necessary for manufacturing.

2. Each model is an experiment- transparency while prototyping (instead of secrecy) promotes involvement from others and improves quality.  Check out Martin Eberhard’s post on how blogs helped at Tesla Motors.  Instead of a long line of reductionist designs, hidden in secrecy while the companies round off the edges to save money, the clean slate approach gives the model team a chance to be truly innovative.  An open process pushes everyone to solve the complex tensions between viability, feasibility, and desirability.  The prototypes should be rallying all over the world to show off and test the new ideas.

3. Entrepreneurial leaders- leadership in today’s auto market is coming from disruptors like Tesla and Fiskar Automotive.  These are entrepreneurial ventures with something to prove and lots of backing to get there.  Each model should be considered and investment and live up to a market based promise of innovation.  Leadership teams should have to start over again with each model to prove this new idea is worth making (and buying).

Popularity: 21% [?]

Free Advice for GM #2- A Chevy for Everyone

Posted by John Foster on June 15th, 2009

Continuing in a series of posts about GM and organization design, let’s take a closer look at creating the right organization for Chevrolet.  I know restructuring is not this simple; so take this as the first installment in a high level comparison of organization design options, not a comprehensive plan of action.

A return the the chevy brand essence?

A return to the Chevy brand essence?

Let’s start with Chevrolet, because that’s the easiest to imagine given their current situation.

To me, Chevy is Americana.  This is the car that represents the American Dream, value, performance, and accessibility.

Chevrolet should help people get their first car, the family car, and have a competitive truck option.  This market means head-to-head competition with Toyota and Honda, so it has to be efficient and cost competitive and produce top quality, reliable, desirable vehicles.  Check out this post on The Truth About Cars for a quick review of the Chevy brand.

Key Traits of the new Chevrolet organization:

1. Efficient hierarchical structure. Clean lines of authority to provide clear direction, efficient decision-making, speed to market, and drive focus on customer needs as the basis for every action.  This market is not about sexy cars, it’s about helping people feel good while they get places safely and manage household costs.

2. Make each model a business. Get past the silos of design, engineering, marketing, etc. and organize each model around a General Manager, with a P&L outcome and a target consumer to drive functional integration.   Fidelity Investments organizes this way (dozens of P&L units), and it works really well.  Develop a rabid consumer orientation as a rallying point, rather than being fractured by functional expertise.

3. Restructure the supply chain. As pointed out by Charles Mann in Beyond Detroit, source great parts from the best suppliers by developing a modular platform.  Don’t try to own everything, focus on total design, build, and sell.

4. Engage employees. Focus on great leadership and build pride (See Jon Katzenbach). The days of management v. labor must be left behind.  This organization needs every single person engaged in a mission to deliver cost competitive, high quality vehicles.  Organize production around manufacturing teams provide job rotations to help employees learn, grow, and develop as a natural component of work.  Use the portfolio of models to allow employees career movement.

5. Reward performance. Pay individuals, teams, and business units more when they meet performance goals in revenue, quality, and costs.  Create healthy internal competition between the businesses.

Next up, how to recover the SATURN brand through an open-source organization.

Popularity: 15% [?]

The rise of the atomic organization

Posted by John Foster on May 13th, 2009

Human kind has had a long love affair with hierarchical organizations, and I think they still have their place in the world, but given the number of large failures of this type of organization lately, I’m with the group (Gary Hamel, for example) who thinks it’s time to expand our options and do some serious experimentation with fundamentally different organization models.

Much of the interesting discussion around this topic centers on social networks.  Great people like Rob Cross and Clay Shirky have shown that there is considerable power in the emergent relationships we all have around us.  Esteemed management consultant Jon Katzenbach and his colleague Zia Kahn describe the informal organization as an overlay to a traditional organization chart that acknowledges the way things really work.  I’m sure they are all on to something big.

Yet, one of the best tests for how an organization functions comes when people ask, “can you show me the org chart?”  Despite many efforts to engage in peer-to-peer activities, “bottom-up” feedback, and a kinder-gentler management philosophy, I find the “org-chart test” often reveals that power and authority still reside at the top of the house.

My experience at IDEO has shown me something quite different is possible.  As my colleague Bob Sutton says, IDEO does not play by the same rules as most businesses (or non-profits for that matter).  See Tim Brown’s blog about how IDEO uses design thinking to create innovative outcomes.  For the past few years, we’ve been trying to understand more about the conditions that enable design thinkers to thrive.  One significant output of this work is a concept called the “atomic organization” which is not simply a social network, but a fully different paradigm for organization behavior.

It’s ambiguous and slippery, but it’s not chaos.  It is a governed, open system with rules, deadlines, and high performance outcomes.  But there is nobody “in charge”, there’s no corporate strategy, and there’s an amazing amount of transparency and interconnectedness.  Ask for an org-chart at IDEO and people either laugh knowingly or simply don’t get the question.

Atomic ExampleSo we asked dozens of people here to draw their version of IDEO.  The synthesized result is a formal structure with consistent parts and rules that show a right way and a wrong way to organize, but a fundamentally different premise of control.  This approach works from the individual out, much like an atom has a nucleus with electrons orbiting around it, and atoms bond together to create molecules, people at IDEO exist at the center of their org-chart with several orbits full of people surrounding them.

This type of organization is both planned and emergent… it can evolve, grow, and contract.  It can be used to get decisions made and others to act.  Atomic organizations have gravity and density, and can be added together to create organizational mass and aggregated impact.  They make it possible to have multiple leaders of the same business unit, include “non-employees” without calling them outsiders, exist at a scale that is comfortable and manageable for the people within, yet still has incredible reach.

So who’s in charge?  That depends… what’s your question?

Popularity: 4% [?]