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Managing New Product Development Teams (Structure of NPD Teams (Autonomous…
Managing New Product Development Teams
Constructing New Product Development Teams
Team Size
may range from a few members to hundreds
bigger is not always better; large teams create more admin costs and communication problems
large tams have higher potential for social loafing
Team Composition
including members from multiple functions of firm ensures greater coordination between functions
firms around the world rely heavily on cross-functional teams for their new product development efforts
random
diversity in functional backgrounds increases breadth of knowledge base of team
other types of diversity (e.g. organizational beteure, cultural, gender, age, etc.) can be beneficial as well
provides broader base of contracts within and beyond firm
ensures multiple perspectives are considered
however, diversity can also raise coordination costs
individuals prefer to interact with those they perceive as similar ("homophily")
may be more difficult to reach shared understanding
may lower group cohesion
extended contact can overcome some of these challenges
Structure of NPD Teams
Functional Teams
members report to functional manager
Temporary, and members may spend less than 10% of their time on project
typically no project manager or dedicated liaison personell
little opportunity for cross-functional integration
Lightweight Teams
Members still report to functional manager
Temporary, and member may spend less than 25% of their time on project
Typically have a project manager and dedicated liaison personnel
likely to be appropriate for derivative projects
Heavyweight Teams
members are collocated with project manager
manager is typically senior and has significant authority to command and evaluate members
orten still temporary, but core team members often dedicated full-time to project
likely to be appropriate for platform projects
Autonomous Teams
members collocated and dedicated full-time (and often permanently) to team
project manager is typically senior manager
project manager is given full control over resources contributes from functional departments and has exclusive authority over evaluation and reward of members
autonomous teams may have own policies, procedures and reward systems the may be different from rest of firm
likely to be appropriate for breakthrough and major platform projects
can be difficult to fold back into the organization
The Management of NPD teams
Team Leadership
Team leader is responsible for directing team's activities, maintaining alignment with project goals, and communication with senior management
Team leaders impact team performance more directly than senior management or champions
Different team types need different leader types
lightweight teams need junior or middle manager
Heavyweight and autonomous teams need senior manager with high status, who are good at conflict resolution, and capable of influencing engineering, manufacturing, and marketing functions
Team Administration
many orgas now have heavyweight and autonomous teams develop a project charter and contract book
Project charter encapsulates the project's mission and provides measurable goals. May also describe
Who is on the team
Length of time members will be on team
team budget
percentage of time people spend on team
team budget
reporting timeline
key success criteria
Contract book: defines in detail the basic plan to achieve goals laid out in the project charter. It provides a tool for monitoring and evaluating the team's performance. Typically provides:
estimates of resources required
development time schedule
results that will be achieved
Team members sign contract book; helps to establish commitment ans sense of ownership over project
Managing virtual teams
In virtual teams, members may be a great distance from each other, but are still able to collaborate intensely via videoconferencing, groupware, email, and internet chat programs
enables people with special skills to be combined without disruption to their personal lives
However, may be losses of communication due to lack if proximity and direct, frequent contact
requires members who are comfortable with technology, have strong interpersonal skills and work ethic, and can work independently