Innovation and innovative teams
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Transcript Innovation and innovative teams
Innovation and
innovative teams
Jimmie Johansson
Richard Berntsson Svensson
Kashif Ahmed Khan
Agenda
Creativity and Innovation
The innovators
Team structure
Managing innovative teams
The innovative team environment
Rewards and recognition
The management team
Creativity and innovation
What is Creativity?
New
ideas
What does it mean to be Innovative?
Transforming
ideas into action
Containing processes like: research,
development, manufacturing and marketing
Innovation (1/4)
Industrial innovation
Portable
radio
Boing 727
Risks of failure
IBM’s
OS/2
Technical focus, not marketing needs
Innovation (2/4)
Knut Holt Study
23 organizations were studied
“Four of the firms had made no inquiries to
potential users, six had made too few inquiries,
two ignored the result, two had misinterpreted
the answers, six were committed to
preconceived designs and three failed to
understand the environment to which their
products would be subjected.”
Innovation (3/4)
The chase for the first spot
Reverse engineering
“There are really two risks in research and
development…One is whether the technology will
succeed. The other is whether it will satisfy some market
requirements. If you hang back and wait, you can be in a
position where you can know the answer to both
questions, and catching up can take a lot less time than
the original effort.” George Mechlin, Vice President for R&D in WestingHouse
Innovation (4/4)
Risks
Is
Fast pace of technology
it always good to be first on the market?
Maybe when turning directly to users
with reverse engineering
DVD - BlueRay
Operating systems, network protocols and
database systems.
Innovators
Innovator
The
creative person that find solution for a
problem
Champion
Can
be innovator
Fights for the idea to turn into action
Sponsor
Makes
the action happen
Discussion point
Is reverse engineering a good approach to
successful innovation or is it more
important to be first on the market?
Team structure (1/3)
Concepts of team structure
Taylor's
method
Drucker
Teamwork
Commitment
Team creativity
A team
performs better then the individuals alone
Jelled teams increases the chance of success
Team structure (2/3)
Basic structure
Official
Individual
Private
Structural conflicts
Interaction
between the basic team structures
Group ethics
Unwritten
team ethic
Settle own disputes without outside help
Team structure (3/3)
Group behavior
Work
group
Process group
Combat group
Managing innovative teams (1/4)
Team leader style
Top-down
or bottom-up?
“The manager’s function is not to make people work,
but to make it possible for people to work”
Team dynamics
Closed
Random
Synchronous
Open
Managing innovative teams (2/4)
Personal needs
Learn
members to think by themselves
Political vs. technical solutions
Difference
between political and technical
Politics often used to describe people-related
work
Crystallizing the team
Loosely
coupled individuals
Managing innovative teams (3/4)
Communication
Communication
with the manager is important
Open communication
Group
discussion?
Concerns management
Involve members with right knowledge and
skills
Honestly presented
Managing innovative teams (4/4)
Managing conflicts
Avoid early polarization
Focus on the issues
Do not deal separately
Intergroup conflicts
Resolve issues them self
Bring parties together
Subcommittee
Reduce stakes
Agreed technical
solution
Discussion points
Is group ethic important?
Should
teams settle their own disputes?
What is the manager’s function?
“The
manager’s function is not to make
people work, but to make it possible for
people to work”
Is the communication with the manger the
most important?
Innovative team environment
Office environment
How people are organized
Size of working group
Problems that can affect innovative
environments negative
Actions for establishing or maintaining
innovative environments (1/2)
Establish program for further develop promising
people
Provide time and resources to good innovators
Provide promising innovators and champions
with sponsors
Make groups in organizations not resistant and
stagnant to new ideas
Actions for establishing or maintaining
innovative environments (2/2)
Monitor outside technical and market
development
Provide a good communication program to make
sure manager and their workers interact
Provide the professionals with modern tool,
space and support
Reward good work
Discussion points
Is a smaller organization more innovative
than a larger one?
Is a more open landscape better for
creating new ideas and innovations than a
room where you can just fit a small group?
Rewards and Recognition (1/1)
Fertile imagination of creative people
Inadequate recognition of creative people
Pelz & Andrew’s Study
Comparison
of people who resigned and stayed in the
organization
No talent recognition
Both award and incentive plans can be highly
effective based on the needs of the company
Award Programs (1/1)
Few people make difference in the failure
and success of a project
Manager’s know these people but rarely
appreciate their work
Recognition Programs
Basic
idea is to reward significant
achievements as soon as possible.
”Golden Banana” Pin
Recognition Programs (1/1)
Top people’s recognition is essential
Aggregate of smaller contributions can
have an enormous impact
Minor advance should be encouraged
Letter
from the boss
Pat on the back
Rene McPherson’s observation
IBM Award Plan (1/1)
Formal & Informal Awards
Informal Awards
Range from $50 to $ 1500
Can be given at manager’s discretion
Formal Awards
Divisional Management grant sums up to $25,000
Corporate Awards range up to $100,000 or more
Reserved for unique accomplishments
Presented at Annual Gala Recognition Dinner
FORTRAN
$250,000 presented to an IBM fellow and eight of his prior
associates
Industry Award Plans (1/1)
Six Corporate Compensation Awards
Company
Award
Annual Award
Amount Savings
(%)
United Technologies
$2,900 $19,791
14.6
United Technologies
2,500
40,000
6.3
Western Electric
3,910,
26,000
15.0
Schering Corp
1,125
5,000
22.5
Johnson & Johnson
6,798
46,500
15.0
GAF Corporation
3,580
29,000
12.3
Total
$20,993 $166,291
12.6
Award Guidelines (1/2)
To qualify for an award, achievement
should be
Clear
Significant
Worthy
Resonably
consistent with other awards
Give awards in public with plenty of
publicity
Award Guidelines (2/2)
Maxim of Charlie Beacham, Lee Iacocca’s
mentor at Ford
”If you want to give a man credit, put it in writing.
If you want to give him hell, do it on the phone.”
Large Team’s achievements
Special
Momento
Avoid giving cash to large groups
Never give awards before the achievement has
actually been accomplished.
Incentive Plans (1/2)
Aimed at more fundamental demands
Sustenance
Comfort
Incentive systems include some elements of
recognition
Common use of various types of Incentive pay
systems.
New organizations rely on them to attract and
retain technical talent
Incentive Plans (2/2)
Survey of 105 firms of Boston
Over
80% of firms in High Technology had bonus pay
plans
33% of the rest opposed it
These plans are widespread and popular among
employees.
Limited evidence of support for organizational
economic value
Can be used to stimulate peripheral behavior
A Caution On Recognition
Programs (1/1)
W. Edwards Deming
Famous
14 points
Various recognition and reward systems can
be counterproductive
Keep focus on the work
Use rewards and recognition
Make sure they dont become disincentives
The Management Team (1/1)
Top manager and immediate subordinate
managers make up the management team
Most important single group in the entire
organization
Make key operating decisions, set
priorities and determine quality of work as
well as working environment.
Contention Management (1/3)
All organizations (medium or large)
involves great many conflicts.
Inadequate resources and tight schedules
Need of Central Group
Paul Lawrence & Jay Lorsch Study
Contention
Management style leads to most
effective group performance
Contention Management (2/3)
Basic ground rules for contention
management are:
Awareness
of management team
Helding team member responsible
Resolution of disagreement
Prescence of all concerned parties
Making sure all issues are explored and
understood
Contention Management (3/3)
Effectiveness of contention management
Exposes
organizational’s latent conflicts
Strengthen’s trust & avoid’s distrust
Provides motivation
Makes environment more challenging
Helps in finding solutions in disagreement
IBM Personal Computer & PC
Junior(1/1)
Late 1970’s
Frank Cary IBM CEO
Don Estridge assigned as Project Manager
Job well done, IBM became a Hero from Zero
Long term disaster
DOS
Program and Microsoft
Hardware and Intel Chip
PC Junior and contention Management
Business Principles and Strategies
(1/1)
Every organization develops its own
principles & strategies
Keep into consideration the following
guidelines
Assume
technology will improve rapidly
Do what is best for customer
Watch for fundamental changes
Managing the Contention System
(1/1)
Guidelines
Put
product managers incharge of the product
programs
Make the organization as an open house
Top Management should protect
organizaitional’s long term principles, goals
and strategies
Management Roles (1/1)
Management team vs technical team
Management team consists of
representatives
People depend on managers for support
Managers must insist on their
departmental interests
Experiment in Group Dynamics
Team Co-operation (1/1)
Manager’s face complex array of
pressures
Departmental
Pressure
Top Management Pressure
Need of middle ground
Defend
group’s interests
Need of broader consideration
Management Scope & Perspective
(1/1)
Job descriptions and tables of
organizations
Rigid vs Loose definitions
First Line Managers and supervisors
Technical executives
Senior Management
Transparent Management (1/1)
Transparent managers
Instruction
passing is done without
responsibility
Not a normal management attitude
Senior managers force their subordinates to
behave in this manner
Don’t blame the senior management
Don’t lose respect of people and management
Building the Management Team
(1/1)
Building ambitious, contentious and
aggressive managers into a team is not
easy.
Steps in building management team
Respect
views of the team
Involve team members in decision making
Encourage team members to work together
Discussion Points
Should there be awards and recognition
programs in the company and how do they
stimulate the peripheral behavior?
To what degree should the organization
publicise the awards and the ceremonies?
To what an extent is the contention
management
responsible
in
the
success/failure of project and how?