Effective Team Management: Norming Zac Burac, Joel Janke and Josh Steinegger Principles of Management 6 May 2014

Thesis Statement The number one issue and opportunity facing managers today in the area of effective team management is the establishment of proper group dynamics specifically group norms.

Key Question What are two types of norms?

What are norms? Group members naturally develop particular ways of acting and performing. Every acceptable action within a group is seen as a norm Set standards for future actions Developed early Can change – Difficult to alter

Why set up norms? Every action influences potential for success – These actions are shaped by norms Self developing norms are usually detrimental to team success Establishing group norms eliminates risk – Increases potential for success.

Procedural/Formal Norms Usually officially documented Easy to identify Easier to judge right & wrong Easier to correct Easier to follow Examples – Meeting length and time, project deadlines, hierarchy structure, etc.

Informal Norms Not officially documented Difficult at times to identify Difficult to judge Difficult to correct Examples – Day-to-day behavior, interpersonal communication, culture, etc.

How to set norms 1) Form/Gather group 2) Discuss mission statement or group purpose 3) Brainstorm guidelines for effective team 4) Evaluate and reach consensus 5) Officially document 6) Evaluate group effectiveness 7) Reevaluate norms if necessary

Key Question What are warning signs of bad norms inside a company?

Lymbersky, C. (2014, February 10). Why do Companies Fail? 2014 Survey Results - Turnaround Management Society. Turnaround Management Society.

Microsoft Prevalent since 1975 (founding) – HQ: Redmon, Washington – Founders: Bill Gates, Paul Allen (ABQ, NM) – Trades on NASDAQ, Dow Jones, S&P 500, etc. – Windows, Office, Xbox, Bing, Skype, Outlook, MSN, etc. – Annual Revenue: $77.85 (2013) Summer 2013 – CEO Steve Ballmer announces “One Microsoft”

Microsoft One Microsoft – “Realignment” of the company to increase innovation. New Organizational Structure Four new Engineering groups created Focus on “High-value activities”

Ballmer, S. (2013, September 13). Microsoft Investor Relations - Events - FAM Microsoft Investor Relations.

Microsoft Organizational Changes – Steve Ballmer resigns as CEO – Satya Nadella promoted to CEO to take charge of One Microsoft. – Two department heads resign – Bill Gates steps down as Chairman for a day-to-day role.

Microsoft Organizational Changes – 12 new, reorganized groups Operating Systems Engineering Group, Devices and Studios Engineering Group, Applications and Services Engineering Group, Cloud and Enterprise Engineering Group, Dynamics, Advanced Strategy and Research Group, Marketing Group, COO, Business Development and Evangelism Group, Finance Group, Legal Group, and HR Group.

Microsoft Unrest – Critics: More problems than what One Microsoft addresses. – Employees unsettled and working for competing companies. Bad norms: Lack of vision, Too much change, too fast

J.C. Penney Founded in 1902 by James Cash Penney – Discount department store – Late 2000’s – rising competition (i.e. Target) – Brought Ron Johnson to aid rebranding process as CEO. – Bold plans to reinvent retail experience. – Seventeen months pass – Johnson is no longer the CEO.

J.C. Penney Completely rid of the words Discount and Clearance. No Sales, no coupons Very big-picture, not willing to take small steps. Changed the culture of J.C. Penney all at once

J.C. Penney Bad Norms: – Employee Alignment w/ Mission – Changed culture

Key Question Identify two aspects that assist in producing positive norms?

Ford Motor Company One Ford Program One Plan – “Aggressively restructure to operate profitably at the current demand and changing model mix.” – “Work together effectively as one team.” (One Ford Mission and Vision, 2014)

Ford Motor Company (Corporate.Ford.com, 2014)

Corporate Norms Aggressive Restructure – March 2008 Selling Luxury Brands – Increased Revenue New Business Focus – Initiated by Allan Mulally, CEO (Carty: ABC News, 2008) (Timmons: The New York Times, 2008)

Employee Norms Maintain interest levels – Communication methods Embrace the UAW Company Events – “Go Further Employee Events” – Employee Resource Groups – Volunteer Programs (Employee Engagement, 2014) (Our Company, 2014)

Google Fortune 100 Best Company Mission Statement – “Google’s mission is to organize the world’s information and make it universally accessible and useful.” (About Google, 2014)

Corporate Norms Ten things we know are true – What is important You can be serious without a suit – Challenging yet fun Great just isn’t good enough (What We Believe, 2014)

Employee Norms Unique Environment – Innovation – Collaboration – Easy to talk – Setting options – Organized freedom (Stewart, 2013)

Employee Norms “I’ve watched people interact at Google and you see a cross-fertilization of ideas.” “I’ve found that people do their most creative work when they’re motivated by the work itself.” “Physical space is the biggest lever to encourage collaboration.” “If you’re surrounded by friends, you’re happier, you’re more loyal, you’re more productive.” (Stewart, 2013)

Key Questions What are two types of norms? – Formal and Informal What are warning signs of bad norms inside a company? – Over diversification, Misdirection of rebranding, and Lack of vision/culture Identify two aspects that assist in producing positive norms? – Mission Statement and Vision Program – Provide a welcoming environment