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Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002
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Page 1: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

1

PeopleOrganizational Issuesin the Lean Enterprise

Professor Debbie Nightingale

October 21 2002

Debbie Nightingale MIT copy 2002

2

The soft stuff is the hard stuffrdquo

-Chris Cool VP Lean Enterprise

Northrop Grumman ISS Sector

Debbie Nightingale MIT copy 2002

3

Issues in Lean EnterpriseImplementation

How to organize for leanChange managementEducationTraining (re-training)TeamsGlobalVirtual teamsExcess peopleMetrics

Debbie Nightingale MIT copy 2002

4

Socioeconomic Drivers

Globally rising and converging standard of living

Increasing rate of technological change

Environmental responsibility

Profound increase in understanding of ldquoneedsrdquo1048773Customer1048773Employees1048773Stockholders1048773Partners

Debbie Nightingale MIT copy 2002

5

Changing Roles of the Enterprisethe Individual amp the Community

Leading edge companies will succeed even if a State or Nation does not

The Leading Edge Corporation will be an opportunist that capitalizes on the competitive resources provided by the individual and the community

Sustained access to these resources will require a company to be a proactive partner with the community and the individual

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

6

A Premise

It is not the physical facilities but the

organizational capability that will

differentiate success from failure of the

enterprise

Source Gerhardt Schulmeyer President ABB-North America

Debbie Nightingale MIT copy 2002

7

Human Resource Shifts

From

Perform task

Reward for doing

Skills life equal to career life

Training as 1 of payroll

Individual treated as cost

Limit human potential

To

Perform task amp provide knowledge

Reward learning and doing

Skills obsolescence at 20 per year

Training as 7 of payroll

Individual viewed as asset

Maximize human potential

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

8

Shifts Required to Support Teamingamp Partnering as a Core Competency

From

Physically control core competencies

Reward individual contribution

Transfer knowledge within team

Single decision style hierarchy

Material supply chain

To

Control the knowledge of core competencies

Reward individual contribution and team success

Transfer of knowledge between teams

Multiple decision styles hierarchy team empowered

Knowledge supply chain

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

9

Knowledge Supply Chain

Treat knowledge as a commodity

Treat the knowledge process as an integrated supply

Utilize the core competencies of industry and academia

Apply the principles of supply chain management

Debbie Nightingale MIT copy 2002

10

Requirements for Competitive Excellence

New technical ampbehavioral

discoveries that resultin new technologies

new principles

New knowledgeconverted into new

teachings new talent

Leading-edge productand process platformsthat satisfy customer

needs

Continuously educatedemployee using latest

knowledge for effectiveexecution of technical

amp managementprocess

Knowledge

Generation

Knowledge

Transfer

University

Industry

Debbie Nightingale MIT copy 2002

11

The Knowledge Process

Knowledge Generation

Build a knowledge basevia Research Adaptation

Discovery Experience

Knowledge Development

Transform raw knowledgeinto codified Principles

amp Practices

Knowledge Transfer

Produce Documentation ampPeople that will facilitate

knowledge delivery

Knowledge Need amp Use

Implement amp adjustknowledge to meetCustomersrsquo Needs

Debbie Nightingale MIT copy 2002

12

Corporate Culture ChangeOrganizational

Aspect

Traditional

Practice

Shift in

Practice

Authority Based on Position Based on Knowledge

Decision Making Close to Top Where Action Is

Employee Contribution Limit knowledge amp Skills Enhance

Information Closely Control Share Widely

Rewards Individual Preference Teamwork

Status Highlight Differences Mute Differences

Supervision Watchdog Resource

SOURCE MSB REPORT OF NATIONAL RESEARCH COUNCIL

Debbie Nightingale MIT copy 2002

13

Responsive Practices amp Culture

From

Teach Productivity

Teach the Need to Change

Customer Satisfaction

My Standards and Metrics

To

Teach Innovation amp Creativity

Teach the Process of Change

Society Stakeholder Satisfaction

Our Standards and Metrics

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

14

The Fundamental Transition

To make change happen means we

must change the way we are

and perceive we are measured

Stand Alone Equip

Single Discipline Employees

Integrated Equip

Systems

Multi-discipline

Employees

Debbie Nightingale MIT copy 2002

15

Making Change Happen Is Not Easy

It must be remembered that there is nothing more difficult to plan more doubtful of success nor more dangerous to manage - than the creation of a new

system

For the initiator has the enmity of all who would profit by the preservation of the old and merely lukewarm defenders in those who would gain by the new

Source Machiavelli The Prince 1513

Debbie Nightingale MIT copy 2002

16

Assessing a Corporate Culture

Driving

Beliefs StrategyManagerial

Beliefs

People

Beliefs Performance

Systems

Structure

Hypothesis if the beliefs are not aligned performance suffers

SOURCE Boston College

Debbie Nightingale MIT copy 2002

17

Levels of Culture

Artifacts

The visible hearable feelable manifestations of

the underlying assumptions eg behavior

patterns rituals physical environment dress

codes stories myths products etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

18

Levels of Culture

Shared Espoused Values

The espoused reasons for why things should

be as they are eg charters goal statements

norms codes of ethics company value

statements

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
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Page 2: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

2

The soft stuff is the hard stuffrdquo

-Chris Cool VP Lean Enterprise

Northrop Grumman ISS Sector

Debbie Nightingale MIT copy 2002

3

Issues in Lean EnterpriseImplementation

How to organize for leanChange managementEducationTraining (re-training)TeamsGlobalVirtual teamsExcess peopleMetrics

Debbie Nightingale MIT copy 2002

4

Socioeconomic Drivers

Globally rising and converging standard of living

Increasing rate of technological change

Environmental responsibility

Profound increase in understanding of ldquoneedsrdquo1048773Customer1048773Employees1048773Stockholders1048773Partners

Debbie Nightingale MIT copy 2002

5

Changing Roles of the Enterprisethe Individual amp the Community

Leading edge companies will succeed even if a State or Nation does not

The Leading Edge Corporation will be an opportunist that capitalizes on the competitive resources provided by the individual and the community

Sustained access to these resources will require a company to be a proactive partner with the community and the individual

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

6

A Premise

It is not the physical facilities but the

organizational capability that will

differentiate success from failure of the

enterprise

Source Gerhardt Schulmeyer President ABB-North America

Debbie Nightingale MIT copy 2002

7

Human Resource Shifts

From

Perform task

Reward for doing

Skills life equal to career life

Training as 1 of payroll

Individual treated as cost

Limit human potential

To

Perform task amp provide knowledge

Reward learning and doing

Skills obsolescence at 20 per year

Training as 7 of payroll

Individual viewed as asset

Maximize human potential

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

8

Shifts Required to Support Teamingamp Partnering as a Core Competency

From

Physically control core competencies

Reward individual contribution

Transfer knowledge within team

Single decision style hierarchy

Material supply chain

To

Control the knowledge of core competencies

Reward individual contribution and team success

Transfer of knowledge between teams

Multiple decision styles hierarchy team empowered

Knowledge supply chain

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

9

Knowledge Supply Chain

Treat knowledge as a commodity

Treat the knowledge process as an integrated supply

Utilize the core competencies of industry and academia

Apply the principles of supply chain management

Debbie Nightingale MIT copy 2002

10

Requirements for Competitive Excellence

New technical ampbehavioral

discoveries that resultin new technologies

new principles

New knowledgeconverted into new

teachings new talent

Leading-edge productand process platformsthat satisfy customer

needs

Continuously educatedemployee using latest

knowledge for effectiveexecution of technical

amp managementprocess

Knowledge

Generation

Knowledge

Transfer

University

Industry

Debbie Nightingale MIT copy 2002

11

The Knowledge Process

Knowledge Generation

Build a knowledge basevia Research Adaptation

Discovery Experience

Knowledge Development

Transform raw knowledgeinto codified Principles

amp Practices

Knowledge Transfer

Produce Documentation ampPeople that will facilitate

knowledge delivery

Knowledge Need amp Use

Implement amp adjustknowledge to meetCustomersrsquo Needs

Debbie Nightingale MIT copy 2002

12

Corporate Culture ChangeOrganizational

Aspect

Traditional

Practice

Shift in

Practice

Authority Based on Position Based on Knowledge

Decision Making Close to Top Where Action Is

Employee Contribution Limit knowledge amp Skills Enhance

Information Closely Control Share Widely

Rewards Individual Preference Teamwork

Status Highlight Differences Mute Differences

Supervision Watchdog Resource

SOURCE MSB REPORT OF NATIONAL RESEARCH COUNCIL

Debbie Nightingale MIT copy 2002

13

Responsive Practices amp Culture

From

Teach Productivity

Teach the Need to Change

Customer Satisfaction

My Standards and Metrics

To

Teach Innovation amp Creativity

Teach the Process of Change

Society Stakeholder Satisfaction

Our Standards and Metrics

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

14

The Fundamental Transition

To make change happen means we

must change the way we are

and perceive we are measured

Stand Alone Equip

Single Discipline Employees

Integrated Equip

Systems

Multi-discipline

Employees

Debbie Nightingale MIT copy 2002

15

Making Change Happen Is Not Easy

It must be remembered that there is nothing more difficult to plan more doubtful of success nor more dangerous to manage - than the creation of a new

system

For the initiator has the enmity of all who would profit by the preservation of the old and merely lukewarm defenders in those who would gain by the new

Source Machiavelli The Prince 1513

Debbie Nightingale MIT copy 2002

16

Assessing a Corporate Culture

Driving

Beliefs StrategyManagerial

Beliefs

People

Beliefs Performance

Systems

Structure

Hypothesis if the beliefs are not aligned performance suffers

SOURCE Boston College

Debbie Nightingale MIT copy 2002

17

Levels of Culture

Artifacts

The visible hearable feelable manifestations of

the underlying assumptions eg behavior

patterns rituals physical environment dress

codes stories myths products etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

18

Levels of Culture

Shared Espoused Values

The espoused reasons for why things should

be as they are eg charters goal statements

norms codes of ethics company value

statements

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 3: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

3

Issues in Lean EnterpriseImplementation

How to organize for leanChange managementEducationTraining (re-training)TeamsGlobalVirtual teamsExcess peopleMetrics

Debbie Nightingale MIT copy 2002

4

Socioeconomic Drivers

Globally rising and converging standard of living

Increasing rate of technological change

Environmental responsibility

Profound increase in understanding of ldquoneedsrdquo1048773Customer1048773Employees1048773Stockholders1048773Partners

Debbie Nightingale MIT copy 2002

5

Changing Roles of the Enterprisethe Individual amp the Community

Leading edge companies will succeed even if a State or Nation does not

The Leading Edge Corporation will be an opportunist that capitalizes on the competitive resources provided by the individual and the community

Sustained access to these resources will require a company to be a proactive partner with the community and the individual

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

6

A Premise

It is not the physical facilities but the

organizational capability that will

differentiate success from failure of the

enterprise

Source Gerhardt Schulmeyer President ABB-North America

Debbie Nightingale MIT copy 2002

7

Human Resource Shifts

From

Perform task

Reward for doing

Skills life equal to career life

Training as 1 of payroll

Individual treated as cost

Limit human potential

To

Perform task amp provide knowledge

Reward learning and doing

Skills obsolescence at 20 per year

Training as 7 of payroll

Individual viewed as asset

Maximize human potential

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

8

Shifts Required to Support Teamingamp Partnering as a Core Competency

From

Physically control core competencies

Reward individual contribution

Transfer knowledge within team

Single decision style hierarchy

Material supply chain

To

Control the knowledge of core competencies

Reward individual contribution and team success

Transfer of knowledge between teams

Multiple decision styles hierarchy team empowered

Knowledge supply chain

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

9

Knowledge Supply Chain

Treat knowledge as a commodity

Treat the knowledge process as an integrated supply

Utilize the core competencies of industry and academia

Apply the principles of supply chain management

Debbie Nightingale MIT copy 2002

10

Requirements for Competitive Excellence

New technical ampbehavioral

discoveries that resultin new technologies

new principles

New knowledgeconverted into new

teachings new talent

Leading-edge productand process platformsthat satisfy customer

needs

Continuously educatedemployee using latest

knowledge for effectiveexecution of technical

amp managementprocess

Knowledge

Generation

Knowledge

Transfer

University

Industry

Debbie Nightingale MIT copy 2002

11

The Knowledge Process

Knowledge Generation

Build a knowledge basevia Research Adaptation

Discovery Experience

Knowledge Development

Transform raw knowledgeinto codified Principles

amp Practices

Knowledge Transfer

Produce Documentation ampPeople that will facilitate

knowledge delivery

Knowledge Need amp Use

Implement amp adjustknowledge to meetCustomersrsquo Needs

Debbie Nightingale MIT copy 2002

12

Corporate Culture ChangeOrganizational

Aspect

Traditional

Practice

Shift in

Practice

Authority Based on Position Based on Knowledge

Decision Making Close to Top Where Action Is

Employee Contribution Limit knowledge amp Skills Enhance

Information Closely Control Share Widely

Rewards Individual Preference Teamwork

Status Highlight Differences Mute Differences

Supervision Watchdog Resource

SOURCE MSB REPORT OF NATIONAL RESEARCH COUNCIL

Debbie Nightingale MIT copy 2002

13

Responsive Practices amp Culture

From

Teach Productivity

Teach the Need to Change

Customer Satisfaction

My Standards and Metrics

To

Teach Innovation amp Creativity

Teach the Process of Change

Society Stakeholder Satisfaction

Our Standards and Metrics

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

14

The Fundamental Transition

To make change happen means we

must change the way we are

and perceive we are measured

Stand Alone Equip

Single Discipline Employees

Integrated Equip

Systems

Multi-discipline

Employees

Debbie Nightingale MIT copy 2002

15

Making Change Happen Is Not Easy

It must be remembered that there is nothing more difficult to plan more doubtful of success nor more dangerous to manage - than the creation of a new

system

For the initiator has the enmity of all who would profit by the preservation of the old and merely lukewarm defenders in those who would gain by the new

Source Machiavelli The Prince 1513

Debbie Nightingale MIT copy 2002

16

Assessing a Corporate Culture

Driving

Beliefs StrategyManagerial

Beliefs

People

Beliefs Performance

Systems

Structure

Hypothesis if the beliefs are not aligned performance suffers

SOURCE Boston College

Debbie Nightingale MIT copy 2002

17

Levels of Culture

Artifacts

The visible hearable feelable manifestations of

the underlying assumptions eg behavior

patterns rituals physical environment dress

codes stories myths products etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

18

Levels of Culture

Shared Espoused Values

The espoused reasons for why things should

be as they are eg charters goal statements

norms codes of ethics company value

statements

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 4: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

4

Socioeconomic Drivers

Globally rising and converging standard of living

Increasing rate of technological change

Environmental responsibility

Profound increase in understanding of ldquoneedsrdquo1048773Customer1048773Employees1048773Stockholders1048773Partners

Debbie Nightingale MIT copy 2002

5

Changing Roles of the Enterprisethe Individual amp the Community

Leading edge companies will succeed even if a State or Nation does not

The Leading Edge Corporation will be an opportunist that capitalizes on the competitive resources provided by the individual and the community

Sustained access to these resources will require a company to be a proactive partner with the community and the individual

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

6

A Premise

It is not the physical facilities but the

organizational capability that will

differentiate success from failure of the

enterprise

Source Gerhardt Schulmeyer President ABB-North America

Debbie Nightingale MIT copy 2002

7

Human Resource Shifts

From

Perform task

Reward for doing

Skills life equal to career life

Training as 1 of payroll

Individual treated as cost

Limit human potential

To

Perform task amp provide knowledge

Reward learning and doing

Skills obsolescence at 20 per year

Training as 7 of payroll

Individual viewed as asset

Maximize human potential

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

8

Shifts Required to Support Teamingamp Partnering as a Core Competency

From

Physically control core competencies

Reward individual contribution

Transfer knowledge within team

Single decision style hierarchy

Material supply chain

To

Control the knowledge of core competencies

Reward individual contribution and team success

Transfer of knowledge between teams

Multiple decision styles hierarchy team empowered

Knowledge supply chain

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

9

Knowledge Supply Chain

Treat knowledge as a commodity

Treat the knowledge process as an integrated supply

Utilize the core competencies of industry and academia

Apply the principles of supply chain management

Debbie Nightingale MIT copy 2002

10

Requirements for Competitive Excellence

New technical ampbehavioral

discoveries that resultin new technologies

new principles

New knowledgeconverted into new

teachings new talent

Leading-edge productand process platformsthat satisfy customer

needs

Continuously educatedemployee using latest

knowledge for effectiveexecution of technical

amp managementprocess

Knowledge

Generation

Knowledge

Transfer

University

Industry

Debbie Nightingale MIT copy 2002

11

The Knowledge Process

Knowledge Generation

Build a knowledge basevia Research Adaptation

Discovery Experience

Knowledge Development

Transform raw knowledgeinto codified Principles

amp Practices

Knowledge Transfer

Produce Documentation ampPeople that will facilitate

knowledge delivery

Knowledge Need amp Use

Implement amp adjustknowledge to meetCustomersrsquo Needs

Debbie Nightingale MIT copy 2002

12

Corporate Culture ChangeOrganizational

Aspect

Traditional

Practice

Shift in

Practice

Authority Based on Position Based on Knowledge

Decision Making Close to Top Where Action Is

Employee Contribution Limit knowledge amp Skills Enhance

Information Closely Control Share Widely

Rewards Individual Preference Teamwork

Status Highlight Differences Mute Differences

Supervision Watchdog Resource

SOURCE MSB REPORT OF NATIONAL RESEARCH COUNCIL

Debbie Nightingale MIT copy 2002

13

Responsive Practices amp Culture

From

Teach Productivity

Teach the Need to Change

Customer Satisfaction

My Standards and Metrics

To

Teach Innovation amp Creativity

Teach the Process of Change

Society Stakeholder Satisfaction

Our Standards and Metrics

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

14

The Fundamental Transition

To make change happen means we

must change the way we are

and perceive we are measured

Stand Alone Equip

Single Discipline Employees

Integrated Equip

Systems

Multi-discipline

Employees

Debbie Nightingale MIT copy 2002

15

Making Change Happen Is Not Easy

It must be remembered that there is nothing more difficult to plan more doubtful of success nor more dangerous to manage - than the creation of a new

system

For the initiator has the enmity of all who would profit by the preservation of the old and merely lukewarm defenders in those who would gain by the new

Source Machiavelli The Prince 1513

Debbie Nightingale MIT copy 2002

16

Assessing a Corporate Culture

Driving

Beliefs StrategyManagerial

Beliefs

People

Beliefs Performance

Systems

Structure

Hypothesis if the beliefs are not aligned performance suffers

SOURCE Boston College

Debbie Nightingale MIT copy 2002

17

Levels of Culture

Artifacts

The visible hearable feelable manifestations of

the underlying assumptions eg behavior

patterns rituals physical environment dress

codes stories myths products etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

18

Levels of Culture

Shared Espoused Values

The espoused reasons for why things should

be as they are eg charters goal statements

norms codes of ethics company value

statements

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
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  • Slide 49
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  • Slide 55
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  • Slide 57
  • Slide 58
Page 5: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

5

Changing Roles of the Enterprisethe Individual amp the Community

Leading edge companies will succeed even if a State or Nation does not

The Leading Edge Corporation will be an opportunist that capitalizes on the competitive resources provided by the individual and the community

Sustained access to these resources will require a company to be a proactive partner with the community and the individual

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

6

A Premise

It is not the physical facilities but the

organizational capability that will

differentiate success from failure of the

enterprise

Source Gerhardt Schulmeyer President ABB-North America

Debbie Nightingale MIT copy 2002

7

Human Resource Shifts

From

Perform task

Reward for doing

Skills life equal to career life

Training as 1 of payroll

Individual treated as cost

Limit human potential

To

Perform task amp provide knowledge

Reward learning and doing

Skills obsolescence at 20 per year

Training as 7 of payroll

Individual viewed as asset

Maximize human potential

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

8

Shifts Required to Support Teamingamp Partnering as a Core Competency

From

Physically control core competencies

Reward individual contribution

Transfer knowledge within team

Single decision style hierarchy

Material supply chain

To

Control the knowledge of core competencies

Reward individual contribution and team success

Transfer of knowledge between teams

Multiple decision styles hierarchy team empowered

Knowledge supply chain

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

9

Knowledge Supply Chain

Treat knowledge as a commodity

Treat the knowledge process as an integrated supply

Utilize the core competencies of industry and academia

Apply the principles of supply chain management

Debbie Nightingale MIT copy 2002

10

Requirements for Competitive Excellence

New technical ampbehavioral

discoveries that resultin new technologies

new principles

New knowledgeconverted into new

teachings new talent

Leading-edge productand process platformsthat satisfy customer

needs

Continuously educatedemployee using latest

knowledge for effectiveexecution of technical

amp managementprocess

Knowledge

Generation

Knowledge

Transfer

University

Industry

Debbie Nightingale MIT copy 2002

11

The Knowledge Process

Knowledge Generation

Build a knowledge basevia Research Adaptation

Discovery Experience

Knowledge Development

Transform raw knowledgeinto codified Principles

amp Practices

Knowledge Transfer

Produce Documentation ampPeople that will facilitate

knowledge delivery

Knowledge Need amp Use

Implement amp adjustknowledge to meetCustomersrsquo Needs

Debbie Nightingale MIT copy 2002

12

Corporate Culture ChangeOrganizational

Aspect

Traditional

Practice

Shift in

Practice

Authority Based on Position Based on Knowledge

Decision Making Close to Top Where Action Is

Employee Contribution Limit knowledge amp Skills Enhance

Information Closely Control Share Widely

Rewards Individual Preference Teamwork

Status Highlight Differences Mute Differences

Supervision Watchdog Resource

SOURCE MSB REPORT OF NATIONAL RESEARCH COUNCIL

Debbie Nightingale MIT copy 2002

13

Responsive Practices amp Culture

From

Teach Productivity

Teach the Need to Change

Customer Satisfaction

My Standards and Metrics

To

Teach Innovation amp Creativity

Teach the Process of Change

Society Stakeholder Satisfaction

Our Standards and Metrics

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

14

The Fundamental Transition

To make change happen means we

must change the way we are

and perceive we are measured

Stand Alone Equip

Single Discipline Employees

Integrated Equip

Systems

Multi-discipline

Employees

Debbie Nightingale MIT copy 2002

15

Making Change Happen Is Not Easy

It must be remembered that there is nothing more difficult to plan more doubtful of success nor more dangerous to manage - than the creation of a new

system

For the initiator has the enmity of all who would profit by the preservation of the old and merely lukewarm defenders in those who would gain by the new

Source Machiavelli The Prince 1513

Debbie Nightingale MIT copy 2002

16

Assessing a Corporate Culture

Driving

Beliefs StrategyManagerial

Beliefs

People

Beliefs Performance

Systems

Structure

Hypothesis if the beliefs are not aligned performance suffers

SOURCE Boston College

Debbie Nightingale MIT copy 2002

17

Levels of Culture

Artifacts

The visible hearable feelable manifestations of

the underlying assumptions eg behavior

patterns rituals physical environment dress

codes stories myths products etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

18

Levels of Culture

Shared Espoused Values

The espoused reasons for why things should

be as they are eg charters goal statements

norms codes of ethics company value

statements

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
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Page 6: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

6

A Premise

It is not the physical facilities but the

organizational capability that will

differentiate success from failure of the

enterprise

Source Gerhardt Schulmeyer President ABB-North America

Debbie Nightingale MIT copy 2002

7

Human Resource Shifts

From

Perform task

Reward for doing

Skills life equal to career life

Training as 1 of payroll

Individual treated as cost

Limit human potential

To

Perform task amp provide knowledge

Reward learning and doing

Skills obsolescence at 20 per year

Training as 7 of payroll

Individual viewed as asset

Maximize human potential

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

8

Shifts Required to Support Teamingamp Partnering as a Core Competency

From

Physically control core competencies

Reward individual contribution

Transfer knowledge within team

Single decision style hierarchy

Material supply chain

To

Control the knowledge of core competencies

Reward individual contribution and team success

Transfer of knowledge between teams

Multiple decision styles hierarchy team empowered

Knowledge supply chain

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

9

Knowledge Supply Chain

Treat knowledge as a commodity

Treat the knowledge process as an integrated supply

Utilize the core competencies of industry and academia

Apply the principles of supply chain management

Debbie Nightingale MIT copy 2002

10

Requirements for Competitive Excellence

New technical ampbehavioral

discoveries that resultin new technologies

new principles

New knowledgeconverted into new

teachings new talent

Leading-edge productand process platformsthat satisfy customer

needs

Continuously educatedemployee using latest

knowledge for effectiveexecution of technical

amp managementprocess

Knowledge

Generation

Knowledge

Transfer

University

Industry

Debbie Nightingale MIT copy 2002

11

The Knowledge Process

Knowledge Generation

Build a knowledge basevia Research Adaptation

Discovery Experience

Knowledge Development

Transform raw knowledgeinto codified Principles

amp Practices

Knowledge Transfer

Produce Documentation ampPeople that will facilitate

knowledge delivery

Knowledge Need amp Use

Implement amp adjustknowledge to meetCustomersrsquo Needs

Debbie Nightingale MIT copy 2002

12

Corporate Culture ChangeOrganizational

Aspect

Traditional

Practice

Shift in

Practice

Authority Based on Position Based on Knowledge

Decision Making Close to Top Where Action Is

Employee Contribution Limit knowledge amp Skills Enhance

Information Closely Control Share Widely

Rewards Individual Preference Teamwork

Status Highlight Differences Mute Differences

Supervision Watchdog Resource

SOURCE MSB REPORT OF NATIONAL RESEARCH COUNCIL

Debbie Nightingale MIT copy 2002

13

Responsive Practices amp Culture

From

Teach Productivity

Teach the Need to Change

Customer Satisfaction

My Standards and Metrics

To

Teach Innovation amp Creativity

Teach the Process of Change

Society Stakeholder Satisfaction

Our Standards and Metrics

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

14

The Fundamental Transition

To make change happen means we

must change the way we are

and perceive we are measured

Stand Alone Equip

Single Discipline Employees

Integrated Equip

Systems

Multi-discipline

Employees

Debbie Nightingale MIT copy 2002

15

Making Change Happen Is Not Easy

It must be remembered that there is nothing more difficult to plan more doubtful of success nor more dangerous to manage - than the creation of a new

system

For the initiator has the enmity of all who would profit by the preservation of the old and merely lukewarm defenders in those who would gain by the new

Source Machiavelli The Prince 1513

Debbie Nightingale MIT copy 2002

16

Assessing a Corporate Culture

Driving

Beliefs StrategyManagerial

Beliefs

People

Beliefs Performance

Systems

Structure

Hypothesis if the beliefs are not aligned performance suffers

SOURCE Boston College

Debbie Nightingale MIT copy 2002

17

Levels of Culture

Artifacts

The visible hearable feelable manifestations of

the underlying assumptions eg behavior

patterns rituals physical environment dress

codes stories myths products etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

18

Levels of Culture

Shared Espoused Values

The espoused reasons for why things should

be as they are eg charters goal statements

norms codes of ethics company value

statements

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
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  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
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  • Slide 57
  • Slide 58
Page 7: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

7

Human Resource Shifts

From

Perform task

Reward for doing

Skills life equal to career life

Training as 1 of payroll

Individual treated as cost

Limit human potential

To

Perform task amp provide knowledge

Reward learning and doing

Skills obsolescence at 20 per year

Training as 7 of payroll

Individual viewed as asset

Maximize human potential

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

8

Shifts Required to Support Teamingamp Partnering as a Core Competency

From

Physically control core competencies

Reward individual contribution

Transfer knowledge within team

Single decision style hierarchy

Material supply chain

To

Control the knowledge of core competencies

Reward individual contribution and team success

Transfer of knowledge between teams

Multiple decision styles hierarchy team empowered

Knowledge supply chain

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

9

Knowledge Supply Chain

Treat knowledge as a commodity

Treat the knowledge process as an integrated supply

Utilize the core competencies of industry and academia

Apply the principles of supply chain management

Debbie Nightingale MIT copy 2002

10

Requirements for Competitive Excellence

New technical ampbehavioral

discoveries that resultin new technologies

new principles

New knowledgeconverted into new

teachings new talent

Leading-edge productand process platformsthat satisfy customer

needs

Continuously educatedemployee using latest

knowledge for effectiveexecution of technical

amp managementprocess

Knowledge

Generation

Knowledge

Transfer

University

Industry

Debbie Nightingale MIT copy 2002

11

The Knowledge Process

Knowledge Generation

Build a knowledge basevia Research Adaptation

Discovery Experience

Knowledge Development

Transform raw knowledgeinto codified Principles

amp Practices

Knowledge Transfer

Produce Documentation ampPeople that will facilitate

knowledge delivery

Knowledge Need amp Use

Implement amp adjustknowledge to meetCustomersrsquo Needs

Debbie Nightingale MIT copy 2002

12

Corporate Culture ChangeOrganizational

Aspect

Traditional

Practice

Shift in

Practice

Authority Based on Position Based on Knowledge

Decision Making Close to Top Where Action Is

Employee Contribution Limit knowledge amp Skills Enhance

Information Closely Control Share Widely

Rewards Individual Preference Teamwork

Status Highlight Differences Mute Differences

Supervision Watchdog Resource

SOURCE MSB REPORT OF NATIONAL RESEARCH COUNCIL

Debbie Nightingale MIT copy 2002

13

Responsive Practices amp Culture

From

Teach Productivity

Teach the Need to Change

Customer Satisfaction

My Standards and Metrics

To

Teach Innovation amp Creativity

Teach the Process of Change

Society Stakeholder Satisfaction

Our Standards and Metrics

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

14

The Fundamental Transition

To make change happen means we

must change the way we are

and perceive we are measured

Stand Alone Equip

Single Discipline Employees

Integrated Equip

Systems

Multi-discipline

Employees

Debbie Nightingale MIT copy 2002

15

Making Change Happen Is Not Easy

It must be remembered that there is nothing more difficult to plan more doubtful of success nor more dangerous to manage - than the creation of a new

system

For the initiator has the enmity of all who would profit by the preservation of the old and merely lukewarm defenders in those who would gain by the new

Source Machiavelli The Prince 1513

Debbie Nightingale MIT copy 2002

16

Assessing a Corporate Culture

Driving

Beliefs StrategyManagerial

Beliefs

People

Beliefs Performance

Systems

Structure

Hypothesis if the beliefs are not aligned performance suffers

SOURCE Boston College

Debbie Nightingale MIT copy 2002

17

Levels of Culture

Artifacts

The visible hearable feelable manifestations of

the underlying assumptions eg behavior

patterns rituals physical environment dress

codes stories myths products etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

18

Levels of Culture

Shared Espoused Values

The espoused reasons for why things should

be as they are eg charters goal statements

norms codes of ethics company value

statements

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 8: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

8

Shifts Required to Support Teamingamp Partnering as a Core Competency

From

Physically control core competencies

Reward individual contribution

Transfer knowledge within team

Single decision style hierarchy

Material supply chain

To

Control the knowledge of core competencies

Reward individual contribution and team success

Transfer of knowledge between teams

Multiple decision styles hierarchy team empowered

Knowledge supply chain

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

9

Knowledge Supply Chain

Treat knowledge as a commodity

Treat the knowledge process as an integrated supply

Utilize the core competencies of industry and academia

Apply the principles of supply chain management

Debbie Nightingale MIT copy 2002

10

Requirements for Competitive Excellence

New technical ampbehavioral

discoveries that resultin new technologies

new principles

New knowledgeconverted into new

teachings new talent

Leading-edge productand process platformsthat satisfy customer

needs

Continuously educatedemployee using latest

knowledge for effectiveexecution of technical

amp managementprocess

Knowledge

Generation

Knowledge

Transfer

University

Industry

Debbie Nightingale MIT copy 2002

11

The Knowledge Process

Knowledge Generation

Build a knowledge basevia Research Adaptation

Discovery Experience

Knowledge Development

Transform raw knowledgeinto codified Principles

amp Practices

Knowledge Transfer

Produce Documentation ampPeople that will facilitate

knowledge delivery

Knowledge Need amp Use

Implement amp adjustknowledge to meetCustomersrsquo Needs

Debbie Nightingale MIT copy 2002

12

Corporate Culture ChangeOrganizational

Aspect

Traditional

Practice

Shift in

Practice

Authority Based on Position Based on Knowledge

Decision Making Close to Top Where Action Is

Employee Contribution Limit knowledge amp Skills Enhance

Information Closely Control Share Widely

Rewards Individual Preference Teamwork

Status Highlight Differences Mute Differences

Supervision Watchdog Resource

SOURCE MSB REPORT OF NATIONAL RESEARCH COUNCIL

Debbie Nightingale MIT copy 2002

13

Responsive Practices amp Culture

From

Teach Productivity

Teach the Need to Change

Customer Satisfaction

My Standards and Metrics

To

Teach Innovation amp Creativity

Teach the Process of Change

Society Stakeholder Satisfaction

Our Standards and Metrics

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

14

The Fundamental Transition

To make change happen means we

must change the way we are

and perceive we are measured

Stand Alone Equip

Single Discipline Employees

Integrated Equip

Systems

Multi-discipline

Employees

Debbie Nightingale MIT copy 2002

15

Making Change Happen Is Not Easy

It must be remembered that there is nothing more difficult to plan more doubtful of success nor more dangerous to manage - than the creation of a new

system

For the initiator has the enmity of all who would profit by the preservation of the old and merely lukewarm defenders in those who would gain by the new

Source Machiavelli The Prince 1513

Debbie Nightingale MIT copy 2002

16

Assessing a Corporate Culture

Driving

Beliefs StrategyManagerial

Beliefs

People

Beliefs Performance

Systems

Structure

Hypothesis if the beliefs are not aligned performance suffers

SOURCE Boston College

Debbie Nightingale MIT copy 2002

17

Levels of Culture

Artifacts

The visible hearable feelable manifestations of

the underlying assumptions eg behavior

patterns rituals physical environment dress

codes stories myths products etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

18

Levels of Culture

Shared Espoused Values

The espoused reasons for why things should

be as they are eg charters goal statements

norms codes of ethics company value

statements

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 9: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

9

Knowledge Supply Chain

Treat knowledge as a commodity

Treat the knowledge process as an integrated supply

Utilize the core competencies of industry and academia

Apply the principles of supply chain management

Debbie Nightingale MIT copy 2002

10

Requirements for Competitive Excellence

New technical ampbehavioral

discoveries that resultin new technologies

new principles

New knowledgeconverted into new

teachings new talent

Leading-edge productand process platformsthat satisfy customer

needs

Continuously educatedemployee using latest

knowledge for effectiveexecution of technical

amp managementprocess

Knowledge

Generation

Knowledge

Transfer

University

Industry

Debbie Nightingale MIT copy 2002

11

The Knowledge Process

Knowledge Generation

Build a knowledge basevia Research Adaptation

Discovery Experience

Knowledge Development

Transform raw knowledgeinto codified Principles

amp Practices

Knowledge Transfer

Produce Documentation ampPeople that will facilitate

knowledge delivery

Knowledge Need amp Use

Implement amp adjustknowledge to meetCustomersrsquo Needs

Debbie Nightingale MIT copy 2002

12

Corporate Culture ChangeOrganizational

Aspect

Traditional

Practice

Shift in

Practice

Authority Based on Position Based on Knowledge

Decision Making Close to Top Where Action Is

Employee Contribution Limit knowledge amp Skills Enhance

Information Closely Control Share Widely

Rewards Individual Preference Teamwork

Status Highlight Differences Mute Differences

Supervision Watchdog Resource

SOURCE MSB REPORT OF NATIONAL RESEARCH COUNCIL

Debbie Nightingale MIT copy 2002

13

Responsive Practices amp Culture

From

Teach Productivity

Teach the Need to Change

Customer Satisfaction

My Standards and Metrics

To

Teach Innovation amp Creativity

Teach the Process of Change

Society Stakeholder Satisfaction

Our Standards and Metrics

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

14

The Fundamental Transition

To make change happen means we

must change the way we are

and perceive we are measured

Stand Alone Equip

Single Discipline Employees

Integrated Equip

Systems

Multi-discipline

Employees

Debbie Nightingale MIT copy 2002

15

Making Change Happen Is Not Easy

It must be remembered that there is nothing more difficult to plan more doubtful of success nor more dangerous to manage - than the creation of a new

system

For the initiator has the enmity of all who would profit by the preservation of the old and merely lukewarm defenders in those who would gain by the new

Source Machiavelli The Prince 1513

Debbie Nightingale MIT copy 2002

16

Assessing a Corporate Culture

Driving

Beliefs StrategyManagerial

Beliefs

People

Beliefs Performance

Systems

Structure

Hypothesis if the beliefs are not aligned performance suffers

SOURCE Boston College

Debbie Nightingale MIT copy 2002

17

Levels of Culture

Artifacts

The visible hearable feelable manifestations of

the underlying assumptions eg behavior

patterns rituals physical environment dress

codes stories myths products etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

18

Levels of Culture

Shared Espoused Values

The espoused reasons for why things should

be as they are eg charters goal statements

norms codes of ethics company value

statements

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 10: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

10

Requirements for Competitive Excellence

New technical ampbehavioral

discoveries that resultin new technologies

new principles

New knowledgeconverted into new

teachings new talent

Leading-edge productand process platformsthat satisfy customer

needs

Continuously educatedemployee using latest

knowledge for effectiveexecution of technical

amp managementprocess

Knowledge

Generation

Knowledge

Transfer

University

Industry

Debbie Nightingale MIT copy 2002

11

The Knowledge Process

Knowledge Generation

Build a knowledge basevia Research Adaptation

Discovery Experience

Knowledge Development

Transform raw knowledgeinto codified Principles

amp Practices

Knowledge Transfer

Produce Documentation ampPeople that will facilitate

knowledge delivery

Knowledge Need amp Use

Implement amp adjustknowledge to meetCustomersrsquo Needs

Debbie Nightingale MIT copy 2002

12

Corporate Culture ChangeOrganizational

Aspect

Traditional

Practice

Shift in

Practice

Authority Based on Position Based on Knowledge

Decision Making Close to Top Where Action Is

Employee Contribution Limit knowledge amp Skills Enhance

Information Closely Control Share Widely

Rewards Individual Preference Teamwork

Status Highlight Differences Mute Differences

Supervision Watchdog Resource

SOURCE MSB REPORT OF NATIONAL RESEARCH COUNCIL

Debbie Nightingale MIT copy 2002

13

Responsive Practices amp Culture

From

Teach Productivity

Teach the Need to Change

Customer Satisfaction

My Standards and Metrics

To

Teach Innovation amp Creativity

Teach the Process of Change

Society Stakeholder Satisfaction

Our Standards and Metrics

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

14

The Fundamental Transition

To make change happen means we

must change the way we are

and perceive we are measured

Stand Alone Equip

Single Discipline Employees

Integrated Equip

Systems

Multi-discipline

Employees

Debbie Nightingale MIT copy 2002

15

Making Change Happen Is Not Easy

It must be remembered that there is nothing more difficult to plan more doubtful of success nor more dangerous to manage - than the creation of a new

system

For the initiator has the enmity of all who would profit by the preservation of the old and merely lukewarm defenders in those who would gain by the new

Source Machiavelli The Prince 1513

Debbie Nightingale MIT copy 2002

16

Assessing a Corporate Culture

Driving

Beliefs StrategyManagerial

Beliefs

People

Beliefs Performance

Systems

Structure

Hypothesis if the beliefs are not aligned performance suffers

SOURCE Boston College

Debbie Nightingale MIT copy 2002

17

Levels of Culture

Artifacts

The visible hearable feelable manifestations of

the underlying assumptions eg behavior

patterns rituals physical environment dress

codes stories myths products etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

18

Levels of Culture

Shared Espoused Values

The espoused reasons for why things should

be as they are eg charters goal statements

norms codes of ethics company value

statements

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 11: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

11

The Knowledge Process

Knowledge Generation

Build a knowledge basevia Research Adaptation

Discovery Experience

Knowledge Development

Transform raw knowledgeinto codified Principles

amp Practices

Knowledge Transfer

Produce Documentation ampPeople that will facilitate

knowledge delivery

Knowledge Need amp Use

Implement amp adjustknowledge to meetCustomersrsquo Needs

Debbie Nightingale MIT copy 2002

12

Corporate Culture ChangeOrganizational

Aspect

Traditional

Practice

Shift in

Practice

Authority Based on Position Based on Knowledge

Decision Making Close to Top Where Action Is

Employee Contribution Limit knowledge amp Skills Enhance

Information Closely Control Share Widely

Rewards Individual Preference Teamwork

Status Highlight Differences Mute Differences

Supervision Watchdog Resource

SOURCE MSB REPORT OF NATIONAL RESEARCH COUNCIL

Debbie Nightingale MIT copy 2002

13

Responsive Practices amp Culture

From

Teach Productivity

Teach the Need to Change

Customer Satisfaction

My Standards and Metrics

To

Teach Innovation amp Creativity

Teach the Process of Change

Society Stakeholder Satisfaction

Our Standards and Metrics

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

14

The Fundamental Transition

To make change happen means we

must change the way we are

and perceive we are measured

Stand Alone Equip

Single Discipline Employees

Integrated Equip

Systems

Multi-discipline

Employees

Debbie Nightingale MIT copy 2002

15

Making Change Happen Is Not Easy

It must be remembered that there is nothing more difficult to plan more doubtful of success nor more dangerous to manage - than the creation of a new

system

For the initiator has the enmity of all who would profit by the preservation of the old and merely lukewarm defenders in those who would gain by the new

Source Machiavelli The Prince 1513

Debbie Nightingale MIT copy 2002

16

Assessing a Corporate Culture

Driving

Beliefs StrategyManagerial

Beliefs

People

Beliefs Performance

Systems

Structure

Hypothesis if the beliefs are not aligned performance suffers

SOURCE Boston College

Debbie Nightingale MIT copy 2002

17

Levels of Culture

Artifacts

The visible hearable feelable manifestations of

the underlying assumptions eg behavior

patterns rituals physical environment dress

codes stories myths products etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

18

Levels of Culture

Shared Espoused Values

The espoused reasons for why things should

be as they are eg charters goal statements

norms codes of ethics company value

statements

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 12: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

12

Corporate Culture ChangeOrganizational

Aspect

Traditional

Practice

Shift in

Practice

Authority Based on Position Based on Knowledge

Decision Making Close to Top Where Action Is

Employee Contribution Limit knowledge amp Skills Enhance

Information Closely Control Share Widely

Rewards Individual Preference Teamwork

Status Highlight Differences Mute Differences

Supervision Watchdog Resource

SOURCE MSB REPORT OF NATIONAL RESEARCH COUNCIL

Debbie Nightingale MIT copy 2002

13

Responsive Practices amp Culture

From

Teach Productivity

Teach the Need to Change

Customer Satisfaction

My Standards and Metrics

To

Teach Innovation amp Creativity

Teach the Process of Change

Society Stakeholder Satisfaction

Our Standards and Metrics

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

14

The Fundamental Transition

To make change happen means we

must change the way we are

and perceive we are measured

Stand Alone Equip

Single Discipline Employees

Integrated Equip

Systems

Multi-discipline

Employees

Debbie Nightingale MIT copy 2002

15

Making Change Happen Is Not Easy

It must be remembered that there is nothing more difficult to plan more doubtful of success nor more dangerous to manage - than the creation of a new

system

For the initiator has the enmity of all who would profit by the preservation of the old and merely lukewarm defenders in those who would gain by the new

Source Machiavelli The Prince 1513

Debbie Nightingale MIT copy 2002

16

Assessing a Corporate Culture

Driving

Beliefs StrategyManagerial

Beliefs

People

Beliefs Performance

Systems

Structure

Hypothesis if the beliefs are not aligned performance suffers

SOURCE Boston College

Debbie Nightingale MIT copy 2002

17

Levels of Culture

Artifacts

The visible hearable feelable manifestations of

the underlying assumptions eg behavior

patterns rituals physical environment dress

codes stories myths products etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

18

Levels of Culture

Shared Espoused Values

The espoused reasons for why things should

be as they are eg charters goal statements

norms codes of ethics company value

statements

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 13: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

13

Responsive Practices amp Culture

From

Teach Productivity

Teach the Need to Change

Customer Satisfaction

My Standards and Metrics

To

Teach Innovation amp Creativity

Teach the Process of Change

Society Stakeholder Satisfaction

Our Standards and Metrics

Source Next Generation Mfg 1997

Debbie Nightingale MIT copy 2002

14

The Fundamental Transition

To make change happen means we

must change the way we are

and perceive we are measured

Stand Alone Equip

Single Discipline Employees

Integrated Equip

Systems

Multi-discipline

Employees

Debbie Nightingale MIT copy 2002

15

Making Change Happen Is Not Easy

It must be remembered that there is nothing more difficult to plan more doubtful of success nor more dangerous to manage - than the creation of a new

system

For the initiator has the enmity of all who would profit by the preservation of the old and merely lukewarm defenders in those who would gain by the new

Source Machiavelli The Prince 1513

Debbie Nightingale MIT copy 2002

16

Assessing a Corporate Culture

Driving

Beliefs StrategyManagerial

Beliefs

People

Beliefs Performance

Systems

Structure

Hypothesis if the beliefs are not aligned performance suffers

SOURCE Boston College

Debbie Nightingale MIT copy 2002

17

Levels of Culture

Artifacts

The visible hearable feelable manifestations of

the underlying assumptions eg behavior

patterns rituals physical environment dress

codes stories myths products etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

18

Levels of Culture

Shared Espoused Values

The espoused reasons for why things should

be as they are eg charters goal statements

norms codes of ethics company value

statements

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 14: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

14

The Fundamental Transition

To make change happen means we

must change the way we are

and perceive we are measured

Stand Alone Equip

Single Discipline Employees

Integrated Equip

Systems

Multi-discipline

Employees

Debbie Nightingale MIT copy 2002

15

Making Change Happen Is Not Easy

It must be remembered that there is nothing more difficult to plan more doubtful of success nor more dangerous to manage - than the creation of a new

system

For the initiator has the enmity of all who would profit by the preservation of the old and merely lukewarm defenders in those who would gain by the new

Source Machiavelli The Prince 1513

Debbie Nightingale MIT copy 2002

16

Assessing a Corporate Culture

Driving

Beliefs StrategyManagerial

Beliefs

People

Beliefs Performance

Systems

Structure

Hypothesis if the beliefs are not aligned performance suffers

SOURCE Boston College

Debbie Nightingale MIT copy 2002

17

Levels of Culture

Artifacts

The visible hearable feelable manifestations of

the underlying assumptions eg behavior

patterns rituals physical environment dress

codes stories myths products etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

18

Levels of Culture

Shared Espoused Values

The espoused reasons for why things should

be as they are eg charters goal statements

norms codes of ethics company value

statements

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 15: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

15

Making Change Happen Is Not Easy

It must be remembered that there is nothing more difficult to plan more doubtful of success nor more dangerous to manage - than the creation of a new

system

For the initiator has the enmity of all who would profit by the preservation of the old and merely lukewarm defenders in those who would gain by the new

Source Machiavelli The Prince 1513

Debbie Nightingale MIT copy 2002

16

Assessing a Corporate Culture

Driving

Beliefs StrategyManagerial

Beliefs

People

Beliefs Performance

Systems

Structure

Hypothesis if the beliefs are not aligned performance suffers

SOURCE Boston College

Debbie Nightingale MIT copy 2002

17

Levels of Culture

Artifacts

The visible hearable feelable manifestations of

the underlying assumptions eg behavior

patterns rituals physical environment dress

codes stories myths products etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

18

Levels of Culture

Shared Espoused Values

The espoused reasons for why things should

be as they are eg charters goal statements

norms codes of ethics company value

statements

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 16: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

16

Assessing a Corporate Culture

Driving

Beliefs StrategyManagerial

Beliefs

People

Beliefs Performance

Systems

Structure

Hypothesis if the beliefs are not aligned performance suffers

SOURCE Boston College

Debbie Nightingale MIT copy 2002

17

Levels of Culture

Artifacts

The visible hearable feelable manifestations of

the underlying assumptions eg behavior

patterns rituals physical environment dress

codes stories myths products etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

18

Levels of Culture

Shared Espoused Values

The espoused reasons for why things should

be as they are eg charters goal statements

norms codes of ethics company value

statements

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 17: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

17

Levels of Culture

Artifacts

The visible hearable feelable manifestations of

the underlying assumptions eg behavior

patterns rituals physical environment dress

codes stories myths products etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

18

Levels of Culture

Shared Espoused Values

The espoused reasons for why things should

be as they are eg charters goal statements

norms codes of ethics company value

statements

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 18: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

18

Levels of Culture

Shared Espoused Values

The espoused reasons for why things should

be as they are eg charters goal statements

norms codes of ethics company value

statements

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 19: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

19

Levels of Culture

Shared Basic Assumptions

The invisible but surfaceable reasons why

group members perceive think and feel the

way they do about external survival and internal

integration issues eg assumptions about

mission means relationships reality time

space human nature etc

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 20: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

20

Cultural Interfaces

NationsEthnic GroupsGovernmentIndustryIndustryIndustryCompanyCompanyDivisionDivisionFunctional GroupsHierarchical EchelonsOccupational Communities

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 21: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

21

Cultural Change Issues1 Identify the business problem or issue

2 Develop the strategy amp tactics to deal with the issuesolve the problem

3 Assess the present state of the culture to identify how assumptions will aid or hinder what is to be done

4 Focus on those cultural elements that will aid you ignore the ones that will hinder you unless they are absolute constraints

5 Identify the people in your organization who are ldquoculture carriersrdquo of the elements that will aid you

6 Empower these culture carriers amp build change teams around them

7 Develop processes for overcoming normal resistance to change

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 22: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

22

The Change Process

Overcoming resistance to change by creating

ldquopsychological safetyrdquo --

The Change Process

In order for new learning to occur survival anxiety has to

be greater than learning anxiety This is best

accomplished by reducing learning anxiety

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 23: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

23

The Change Process

1 Creation of a compelling positive vision

If I learn this new stuff how will we all be better off

Why should one do this Where is it all leading

2 Involvement of the learner in the changelearning process

Can I design my own learning process

3 Formal training

What do I need to know to fulfill the new vision what is

involved in the new behavior amp attitudes

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 24: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

24

The Change Process4 Informal Training

Will I get the ldquoknow-howrdquo and skill of handling the new

situations This level of training involves redefining what

things mean and changing the standards by which things

are judged

5 A practice field and coaches

Can I try my hand in situations where mistakes are OK and I

can learn from them Will there be coaches around to tell

me whether I am doing OK and how to do better

6 Corrective feedback

If things are done correctly or incorrectly will there be

continuous appropriate feedbackSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 25: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

25

The Change Process

7 Positive role models amp examples examples amp cases of what not to do

Will we observe our own managers all the way up the line

ldquowalking the talkrdquo and setting positive examples Are there

stories myths parables that exemplify correct and

incorrect behavior and attitudes

8 Support groups in which learning problems can be aired

Are there formal opportunities in which learning problems

can be aired and discussed in a supportive environment

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 26: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

26

The Change Process9 A reward and discipline system consistent with the new learning

If I or others do it right will we get consistent rewards and if

I or others are failing in some way will we get appropriate

feedback if others are violating the new rules will I observe

them getting appropriately disciplined

10 New structures and routines to support the new behavior

If I learn the new things and do them will my behavior be

ldquonormalrdquo in the organization

Source Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 27: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

27

The Bottom Line Questions1 Does culture have to change or do you have to change business

processes within the present culture

2 If culture has to change can you build on enhancing cultural

strengths rather than eliminating elements of culture

3 If cultural elements have to be eliminated are you prepared to

deal with the anxieties involved

4 Are you willing to allocate the time and resources necessary to

actually change the cultureSource Ed Schein Sloan School of Management

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 28: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

28

Migrating From Taylorism

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 29: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

29

To Druckerism (The Notion ofthe Knowledgeworker)

The factory will be an information networkrdquo

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 30: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

30

Has Led to an IdealKnowledgeworker Profile

Breadth of Knowledge

Depth

of

Knowledge

Source Profile 21 SMEDearborn MI

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 31: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

31

The Teamwork Continuum1 Team 2 Manager 3 Shared

Formation Centered Leadership

Managerrsquos

Role

Team

Memberrsquos

Role

One on One

Supervision

Directs each

Memberrsquos Work

Do What They

Are Told

Group Leader

Focus on Goals

Manage Group

Work Together

As a Group

Team Coordinator

Members are Goal Focused

Shared Leadership

Initiate Actions

Track Data

Lead Projects

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 32: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

32

The Teamwork Continuum (cont)4 Self - Directed 5 Self ndash Managed

Boundary Manager

Coaches Team

Manages Interface

Run Day - to - Day

Operation

Resource ldquoStaffrdquo

Provide Help on Request

Team is Accountable

for own work

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 33: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

33

Rewarding Teamwork

Individual Group Organization

Financial

Non-Financial

To successfully reward teamwork research has

found that all six of the matrix elements must be

clearly definedSOURCE Dr Ann Majchrzak USC

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 34: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

34

Organizing for ProductDevelopment and Transfer to

Manufacturing

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 35: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

35

The Process of Innovation

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 36: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

36

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 37: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

37

Departmental Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 38: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

38

Time and Coordination

Time can always be substituted for coordination1048773And the converse

Improved coordination can reduce development time

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 39: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

39

Project Team Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 40: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

40

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 41: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

41

Matrix Organization

Technology

MarketSource Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 42: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

42

Matrix Connections to Marketand Technology

TechnologyM

arke

t

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

DeptHead

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

ProjMgr

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 43: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

43

The Basic Tradeoff and Dilemma in ProductDevelopment Organization

Departmental Organization Departmental structure is

more closely mapped to the structure of the supporting technologies

It thereby provides a better connection to those technologies and better ongoing technical support to the project effort

This is however accomplished at the cost of much greater difficulty in coordination of the project tasks and less responsiveness to market change

Project Team Organization Project Team structure groups

people from different disciplines together in a single team all reporting to a common manager

It thereby provides better coordination of the project tasks and increased sensitivity to market dynamics

This is however accomplished at the cost of a separation from the disciplinary knowledge underlying the project effort When this is carried to an extreme it will gradually erode the technology base of the organization

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 44: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

44

Contact with Technology

If Departmental Organization provides better connection to technology are all technologies equal in the degree to which this necessaryThe answer of course is no

What then is it about different technologies that determines the degree to which close contact is necessaryThe answer is the rate at which new knowledge is bei

ng generated

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 45: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

45

Rate of Change of Knowledge

Mature stable technologies

Rapidly changing technologies

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 46: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

46

Coordination

Turning to Project Team Organization if this form of organization provides better coordination the question follows are all projects equal in the amount of coordination neededThe answer is no

What then is it about different projects that determines the amount of coordination that is neededThe answer is the degree of interdependence that exi

sts in either the product architecture or among the tasks that must be performed in product development

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 47: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

47

Interdependence of the Architecture orof the Tasks to be Performed

dK

dt

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
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  • Slide 14
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  • Slide 46
  • Slide 47
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  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 48: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

48

Organizational Structure Space

dK

dt

rate of change ofknowledge

interdependenceI =

dKdt =

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 49: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

49

Three Possible Situations

dK

dt

Departments

Project

Team

ss

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 50: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

50

Duration of Project Assignment

dK

dt

ssProject

Team

Department

Ti

T2

T1

T1 gtT2

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
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  • Slide 26
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  • Slide 28
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  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
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  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 51: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

51

Structuring the Organization

Standard Industrial PracticeIgnores the rate at which technologies are d

eveloping (despite the fact that this can often be measured)

Usually ignores the interdependencies in project work (seasoned project managers are an exception)

Focuses on project duration (and usually makes the wrong decision on this parameter)

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 52: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

52

How to Handle this Situation

Project

Team

Departments

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 53: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

53

Two Possibilities

Re-partition the overall problem to reduce interdependencies

Form a project team but rotate personnel between the project team and the departments for time periods that are related to the rate of change of their disciplines

Source Tom Allen Sloan School of Management

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 54: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

54

Integrating the Lean EnterpriseRequires Expansive Leadership

Leaders of changeSystem integratorsProcess optimizersAgility flexibility implementersTechnologistsldquoFuturistsrdquoGlobally astuteMarketers

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

  • Slide 1
  • Slide 2
  • Slide 3
  • Slide 4
  • Slide 5
  • Slide 6
  • Slide 7
  • Slide 8
  • Slide 9
  • Slide 10
  • Slide 11
  • Slide 12
  • Slide 13
  • Slide 14
  • Slide 15
  • Slide 16
  • Slide 17
  • Slide 18
  • Slide 19
  • Slide 20
  • Slide 21
  • Slide 22
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • Slide 27
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • Slide 32
  • Slide 33
  • Slide 34
  • Slide 35
  • Slide 36
  • Slide 37
  • Slide 38
  • Slide 39
  • Slide 40
  • Slide 41
  • Slide 42
  • Slide 43
  • Slide 44
  • Slide 45
  • Slide 46
  • Slide 47
  • Slide 48
  • Slide 49
  • Slide 50
  • Slide 51
  • Slide 52
  • Slide 53
  • Slide 54
  • Slide 55
  • Slide 56
  • Slide 57
  • Slide 58
Page 55: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

55

Comparison of Behavior Attributes

Fat Behaviors

Confusion

Unnecessary commentary

Irrelevant observations

Random thoughts

Self-imposed barriers

Ego

Lean Behaviors

Self-awareness

Humility

Compassion

Suspension

Deference

Calmness

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

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Page 56: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

56

Comparison of Behavior Attributes

Fat Behaviors

Irrationality

Revenge

Inaction

Positions

Interpretations

Uncertainty

Lean Behaviors

Quietude

Reflection

Honesty

Benevolence

Consistency

Generosity

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

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Page 57: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

57

Comparison of Behavior Attributes

Fat Behaviors

Negativity

Excess

Gossip

Sarcasm

Preoccupation

Ambiguity

Extreme flattery

Lean Behaviors

Patience

Humor

Understanding

Respect

Listening

Observation

Trust

Source ML Emiliani Lean Behaviors MCB University Press 1998

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

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Page 58: Debbie Nightingale, MIT © 2002 1 People/Organizational Issues in the Lean Enterprise Professor Debbie Nightingale October 21, 2002.

Debbie Nightingale MIT copy 2002

58

Comparison of Behavior Attributes

Fat Behaviors

Cynicism

Subjectivity

Bias prejudice

Deception

Selfishness

Pride

Criticism

Lean Behaviors

Sincerity

Equanimity

Objectivity

Discipline

Rectitude

Wisdom

Balance

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