1. Leading Collaboration 20.04.2006 S-72.3510 Product Development of Telecommunication Systems Jari Ylitalo Helsinki University of Technology Department of Industrial Engineering and Management

2. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 2 Intro – the Lecturer  Jari Ylitalo, Lic.Sc. (Tech.)  Researcher at DIEM/HCL Group  Research interests –Leadership, leader development, leadership development, collaboration (social interaction point of view) –Means, methods, processes and roles of leader/leadership and collaboration development –Qualitative research, action research

3. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 3 Intro – the Lecture  The aim of the lecture is to highlight basics of collaborative dynamics and how to lead collaboration  The findings from a recent research project will be presented (Leading Collaboration in Networked Business - LediCo)  Point of view is generic rather than telecom specific

4. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 4 ”Why should we consider themes of leadership and collaboration in product development (or in general)?”

5. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 5 Functional Organization CEO Planning ProductionAccounting Sales MarketingR&D QualityHR Plant 1 Plant 2 Plant 3 District 1 District 2 District 3 Administration Development Plant 4 Project 1 Project 2 Project 3 Auditing Development Product 1 Product 2 Sevices

6. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 6 Networked Organization Company B Customer 1 Company A Customer 2 Company C Company D Company E Project 1 2 Customers of the customer Partnership 1 Partnership 2

7. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 7 Background of the LediCo project  Successful partnership relationships require –mutual trust and respect, open communication, long term commitment, capability to resolve conflicts, and willingness to learn together  Collaborative relations are demanding social settings –require often a new kind of mindset and organizational practices from all collaborative parties  We still lack practical and theoretical knowledge –how to lead, develop and maintain collaborative business relationships

8. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 8 To collaborate – the definition  “To collaborate” is “to labor together”  In the Merriam-Webster dictionary it is defined as “to work jointly with others or together especially in an intellectual endeavor”

9. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 9 Reasons behind collaboration  An individual organization may try to acquire new knowledge and seek novel learning opportunities through interorganizational collaboration  Three main drivers for interorganizational collaboration: –reducing transaction costs –new positioning in markets –access new knowledge and capabilities.  A collaborative relationship is considered by many authors to be the best vehicle for gaining competitive advantage and improving strategic positioning

10. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 10 Collaborative relations - diverse realities  Collaborative operations have expanded closer to the organizations’ elementary operations, e.g. R&D, new product development (NPD), and marketing  Relationships vary in length, intensity, formality, objectives, the content of collaboration, the number of partners, management structures, and administrative models  Various collaborative arrangements exist, e.g. networks, alliances, partnerships, and joint ventures

11. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 11 LediCo research approach and methods  Inductive and explorative case study research with four cases  Two-year project, 2004-2005  The data through documents, interviews, surveys, and workshops  Case companies got specific feedback  Findings were generalized at the project level  Reporting through conference papers, reports and thesis

12. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 12 Cases A)A large scale IT outsourcing partnership B)A common information service portal with multiple partners (18) C)A cross cultural product development partnerhship D)A complex demand-supply chain dyad

13. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 13 Collaboration Frameworks

14. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 14 Collaborative Relationship Dimensions Business outcomes Added value Relationship outcomes Trust Shared meanings Competencies Collaboration Mutual review Preconditions for a collaborative relationship Initial match Top management’s commitment Interaction & Communication Knowledge Processing Learning & Transformation Purpose Common strategic intent Objectives Business & Relationship Infrastructure Management Technology Contracts Processes

15. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 15 Life Cycle of a Collaborative Relationship Dissolution 1. Pre-stage 2. Exploration – decision 3. Formation – structure & contract 4. Development & Learning – building shared meanings and trust 5. Maturity – continuous improvement & value creation Re-formation

16. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 16 Life Cycle of a Collaborative Relationship  Pre-stage and exploratory stage –the need for collaborative relationship is clarified and the partner is sought  Formation stage –the objectives are defined and the platform for collaboration is set up  Learning and development stage –collaboration is developed through mutual transformation processes  Maturity stage –continuous development of collaboration takes place  Reformation or dissolution –through a crisis the partnership can lead to dissolution of the relationship  The Life Cycle Model emphasises the dynamic nature of a partnership –stages are somewhat overlapping and have not always clear boundaries Dissolution 1. Pre-stage 2. Exploration – decision 3. Formation – structure & contract 4. Development & Learning – building shared meanings and trust 5. Maturity – continuous improvement & value creation Re-formation

17. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 17 Potential Surprises and Underestimations  Diversity is greater than expected  It takes longer time to build a collaborative relationship than anticipated  Mutual learning and adjustments are continuosly needed  Individuals and their relationships are decisive in successful collaboration  It is not just the interface that matters

18. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 18 Mutual Considerations  Why are we doing this?  What kind of frame are we using?  Roles and responsibilities needed?  Mindsets and competencies needed?  What kind of mutual actions are needed?  Success criteria and evaluation?

19. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 19 Tasks of leadership...  Ensuring mutual awareness (and existence) of mission/common purpose of the partnership  Ensuring direction for actions, vision and goals of the partnership  Creating preconditions for action and success –Information, knowledge, competences and skills, equipment, empowerment, psychological space, physical conditions and facilities for collaboration –Creation and maintenance of relevant collaborative connections and relationships between people, teams and organizations internally and externally –Decision making, conflict resolution,  Ensuring feedback and criteria for success of collaboration –business outcomes, relationship characteristics

20. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 20... Tasks of leadership  Making sure that people know their primary tasks and focus their actions and energy towards those –taking care of task, time and role boundaries  Taking care that the partnership can meet internal and external requirements all the time –Continuous transformation and improvement –Maintaining vitality  Meeting emotional energy and channelling it to promote the primary task of the partnership

21. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 21 Conclusions  Meeting collaboration challenges concern every organization (and individual?)  Horizontal, one-to-one relationships are in core of a collaborative relationship  Building and nurturing a living relationship require mutual sense making and dialogue  Collaboration competencies and mindset should be strengthened consciously  Continuous matching together needed

22. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 22 It takes years to build the relationship - However it can be destroyed in seconds! (A LediCo case company representative)

23. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 23 Discussion  Have a discussion with the person next to you –What would I expect from my collaboration partner? –What are special requirements (competences/mindsets) for an individual in a collaborative role?

24. Helsinki University of Technology Department of Industrial Engineering and Management Jari Ylitalo S-72.3510 Product Development of Telecommunication Systems Leading Collaboration 200406 24 Contact Information Jari Ylitalo Helsinki University of Technology Department of Industrial Engineering and Management tel. +358 50 301 6841 e-mail: jari.ylitalo@hut.fi Internet: www.hcl.hut.fi