Management of Technology (OM476) Managing NPD Teams March 8, 2006 S. Fisher

Agenda Surprise – adapting the schedule again! Team composition and processes In-class mini case “Managed innovation…is often considered an oxymoron. Many companies find that as soon as “management” shows up, the forces of “innovation” start looking for places to hide.” ---Rita Shor, Corporate E-Business Manager at 3M (from Manufacturing and Technology News,

Revised Schedule Today  Discuss NPD team management  Collect Evista case deliverables Monday March 20 – Project Selection Wednesday March 22 – Discuss case #6 Monday March 27 – Discuss Evista case

Think back to OB class… What are some of the key attributes related to team functioning? What is unique about NPD that might affect how you would organize or manage a team?

R&D team mini-case Read “Feed R&D” case In small groups, discuss and prepare answers to the following questions:  What team management challenges would Lars face if he outsourced the R&D work?  Should Lars outsource R&D on this project to Inova? If so, how much of the R&D work?

Collaborating Across the Globe Often creates need for virtual teams  Communication patterns  Permanence IBM example – global project staffing

How to build cross-border teams? Some companies are attempting training and cross-cultural awareness  General team building activities  Axcelis Technologies in Beverly, MA hired a trainer to help employees better understand how Indian co- workers would act Different styles in handshakes, eye contact Immersion trips Strengths/limitations of communication technology?

Team Structure 4 types based on integration  Functional – minimal integration  Lightweight – project manager facilitates integration  Heavyweight – matrix structure  Autonomous – team becomes primary work unit Pros and cons of these types? Role of team leader vs. project champion?

Co-location Opposite of virtual teams in many ways Bringing project team members together at the same site Gets really interesting when you start crossing organizational boundaries  Blended teams – clients and consultants  ERP implementation example

Lead User Teams at 3M Comprised of 4-6 members with diverse skills (technical, marketing, etc)  Autonomous  Assigned ambiguous, uncertain projects to research; mandate to take risks  Partner with Lead Users, experts working in target industries Has resulted in more efficient and effective innovation - very different from 3M’s traditional “inventor in the lab” model Source: Shor, R. Managed Innovation: 3M’s latest model for new products. From January

Problems at Microsoft? Turnover up 1% to 9% (still lower than industry average) Some employee discontent  Defections to Google  Bloggers such as Mini-Microsoft launching critiques Spending time on project reviews and internal coordination rather than talking to customers and taking products to market Source: Greene, J. (Sept 26, 2005). Troubling Exits at Microsoft. Business Week, p

Microsoft – Some of the Ten Crazy Ideas Make business areas more independent Empower incubation projects Schedule unscheduled time Cut back on bureaucracy Reduce staffing of large projects Encourage risk-taking Source: Greene, J. (Sept 26, 2005). Troubling Exits at Microsoft. Business Week, p

Have a great spring break! When we return, will cover Project Selection on March 20  There will be an in-class writing! See handout for next case background material (due March 22)