Leadership and Team Building. Sustainable Competitive Advantage (Porter) Conventional Wisdom: Industries with barriers to entry low power among suppliers.

Leadership and Team Building

Sustainable Competitive Advantage (Porter)

• Conventional Wisdom: Industries with• barriers to entry

• low power among suppliers & customers

• few ready substitutes

• large market share

Sustainable Competitive Advantage: 1972-1997

• Unconventional Reality• Southwest Airlines (21,000%)

• Wal-Mart (19,000%)

• Tyson Foods (18,000%)

• Circuit City (16,000%)

• Plenum Publishing (16,000%)

Characteristics of Industries and Firms

• Industries with• massive competition

• few barriers

• widespread losses

• no unique technology

• many substitutes

• Firms that • were never market

share leaders in any of the 25 years

• explicitly compete through the management of their workforce

Why This Type of Competitive Advantage is Sustainable

• Systems and cultures are not concrete nor readily visible

• System dynamics are complex and hard to replicate across contexts

• Interaction between people and systems is even more complex and impossible to replicate

• People cannot be cloned

Why Teams and Why Now?: Conventional Wisdom

• Changes in competitive landscape….

• faster & more responsive

• smaller & less administrative intensity

• substitution of technology for low skill labor

• technological enhancements for high skill labor

• globalization of labor and product markets

• result in changes in coordination patterns

Changes in Coordination Patterns

• Centralization

• Functionally-based departmentation

• Formalization and Standardization

• Decentralization

• Divisional or Project-based departmentation

• Mutual adjustment

EnvironmentChanges

EnvironmentChanges

CoordinationPatterns Change

CoordinationPatterns Change

Implications for Managerial Skills and Careers

• Key Managerial Skills• knowledge-based technical specialty• teamwork and negotiation skills• recognition and referral skills• reputation and relationship management

• Key Aspects of Managerial Careers• not organizationally controlled; do-it-yourself• project-based, serial and cellular in nature

Why Teams and Why Now?: Unconventional Wisdom

• Evolutionary history: Human history (1/10 of 1%)• Evolutionary psychology: Hunter-Gatherers• Implications for cooperative behavior: Survivor?• Implications for work teams

Pleistocene Age (2 Million Years)

2000

Language of Evolutionary Psychology

• Adaptive Problems (e.g., cooperation)• Functional Analysis and Specialization

• cheat detection• equity calculations (the four letter “f” word)

• Evolutionarily Unanticipated Problems• diet and exercise• physiological responses to stress• large volumes of written material• occupational integration of men and women• cross-cultural teams

If this is so natural, why is it so difficult?

• Individualism v. Collectivism

• Acquisition v. Retention

• Empowerment v. Coordination

• Cohesiveness v. Diversity

Overview of Team Leadership

StructuringTasks

StructuringTasks

SelectingMembersSelectingMembers Focusing

EnergyFocusingEnergy

DirectingEnergyDirectingEnergy

CreatingEnergyCreatingEnergy

StrengtheningRelationshipsStrengtheningRelationships

Learning &AdaptingLearning &Adapting

Leadership: Timing and ProcessesLeadership: Timing and Processes

TeamDesign

TeamDesign

TeamDynamics

TeamDynamics

TeamDevelopment

TeamDevelopment

Overview of Team Leadership

StructuringTasks

StructuringTasks

SelectingMembersSelectingMembers Focusing

EnergyFocusingEnergy

DirectingEnergyDirectingEnergy

CreatingEnergyCreatingEnergy

StrengtheningRelationshipsStrengtheningRelationships

Learning &AdaptingLearning &Adapting

Leadership: Timing and ProcessesLeadership: Timing and Processes

TeamDesign

TeamDesign

TeamDynamics

TeamDynamics

TeamDevelopment

TeamDevelopment

Overview of Team Leadership

StructuringTasks

StructuringTasks

SelectingMembersSelectingMembers Focusing

EnergyFocusingEnergy

DirectingEnergyDirectingEnergy

CreatingEnergyCreatingEnergy

StrengtheningRelationshipsStrengtheningRelationships

Learning &AdaptingLearning &Adapting

Leadership: Timing and ProcessesLeadership: Timing and Processes

TeamDesign

TeamDesign

TeamDynamics

TeamDynamics

TeamDevelopment

TeamDevelopment

Overview of Team Leadership

StructuringTasks

StructuringTasks

SelectingMembersSelectingMembers Focusing

EnergyFocusingEnergy

DirectingEnergyDirectingEnergy

CreatingEnergyCreatingEnergy

StrengtheningRelationshipsStrengtheningRelationships

Learning &AdaptingLearning &Adapting

Leadership: Timing and ProcessesLeadership: Timing and Processes

TeamDesign

TeamDesign

TeamDynamics

TeamDynamics

TeamDevelopment

TeamDevelopment

Overview of Team Leadership

StructuringTasks

StructuringTasks

SelectingMembersSelectingMembers Focusing

EnergyFocusingEnergy

DirectingEnergyDirectingEnergy

CreatingEnergyCreatingEnergy

StrengtheningRelationshipsStrengtheningRelationships

Learning &AdaptingLearning &Adapting

Leadership: Timing and ProcessesLeadership: Timing and Processes

TeamDesign

TeamDesign

TeamDynamics

TeamDynamics

TeamDevelopment

TeamDevelopment

Overview of Team Leadership

StructuringTasks

StructuringTasks

SelectingMembersSelectingMembers Focusing

EnergyFocusingEnergy

DirectingEnergyDirectingEnergy

CreatingEnergyCreatingEnergy

StrengtheningRelationshipsStrengtheningRelationships

Learning &AdaptingLearning &Adapting

Leadership: Timing and ProcessesLeadership: Timing and Processes

TeamDesign

TeamDesign

TeamDynamics

TeamDynamics

TeamDevelopment

TeamDevelopment

Overview of Team Leadership

StructuringTasks

StructuringTasks

SelectingMembersSelectingMembers Focusing

EnergyFocusingEnergy

DirectingEnergyDirectingEnergy

CreatingEnergyCreatingEnergy

StrengtheningRelationshipsStrengtheningRelationships

Learning &AdaptingLearning &Adapting

Leadership: Timing and ProcessesLeadership: Timing and Processes

TeamDesign

TeamDesign

TeamDynamics

TeamDynamics

TeamDevelopment

TeamDevelopment

Overview of Team Leadership

StructuringTasks

StructuringTasks

SelectingMembersSelectingMembers Focusing

EnergyFocusingEnergy

DirectingEnergyDirectingEnergy

CreatingEnergyCreatingEnergy

StrengtheningRelationshipsStrengtheningRelationships

Learning &AdaptingLearning &Adapting

Leadership: Timing and ProcessesLeadership: Timing and Processes

TeamDesign

TeamDesign

TeamDynamics

TeamDynamics

TeamDevelopment

TeamDevelopment

Overview of Team Leadership

StructuringTasks

StructuringTasks

SelectingMembersSelectingMembers Focusing

EnergyFocusingEnergy

DirectingEnergyDirectingEnergy

CreatingEnergyCreatingEnergy

StrengtheningRelationshipsStrengtheningRelationships

Learning &AdaptingLearning &Adapting

Leadership: Timing and ProcessesLeadership: Timing and Processes

TeamDesign

TeamDesign

TeamDynamics

TeamDynamics

TeamDevelopment

TeamDevelopment

Achieving CompetitiveAdvantage Through Teams

Performance

Adaptability

Retention

Performance

Adaptability

Retention

TeamDesign

TeamDesign

TeamDynamics

TeamDynamics

TeamDevelopment

TeamDevelopment

Purpose of Management 808

• Expose you to existing theories and data regarding these issues

• Give you a unique, hands-on experience building and leading a work team

• Synthesize existing theories and your own experience to develop your skills in the areas of team building and leadership

• Improve the relative standing of the Broad School on this dimension

Broad School Survey Results:Rankings Against Competitors

• Pre-MBA 808: How satisfied are you with:• value derived from teamwork (4%)• fellow students teamwork skills (5%)

• Post-MBA 808: How satisfied are you with:• value derived from teamwork (84%)• fellow students teamwork skills (86%)

• GMAT Presentation• Wall Street Journal Citation

Management 808 Themes

• People are a source of sustainable competitive advantage

• People can best be understood from an evolutionary psychological perspective

• Our understanding of people is best enhanced via the formulation and testing of explicit theories stated in advance (as opposed to “common sense”)

• Our understanding of people is best communicated via true stories, legends and myths

Course Structure

• Content• team task analysis

• selection & placement

• motivation

• decision making

• managing conflict

• learning & adapting

• dyadic relationships

• leadership

• Process• lectures

• readings

• cases

• exercises

• living case

Overview of Team Leadership

StructuringTasks

StructuringTasks

SelectingMembersSelectingMembers Focusing

EnergyFocusingEnergy

DirectingEnergyDirectingEnergy

CreatingEnergyCreatingEnergy

StrengtheningRelationshipsStrengtheningRelationships

Learning &AdaptingLearning &Adapting

Leadership: Timing and ProcessesLeadership: Timing and Processes

TeamDesign

TeamDesign

TeamDynamics

TeamDynamics

TeamDevelopment

TeamDevelopment

Determination of Course Grade

• Individual Learning of Course Content• Lectures

• Readings

• Team Performance on Simulation

• Development Plan Based on 360-feedback

Course and TeamLab Web Pagehttp://courses.bus.msu.edu/MBA/808/001

http://web1.bus.msu.edu/mgt/lab/

MSU’s Team Effectiveness Research Laboratory

• History

• Goals

• Your Role• the task

• the workforce

• the rules of engagement

• your evaluation

The A2C2 Project

Michigan StateUniversity

Michigan StateUniversity

Aptima/AlphaTech

Aptima/AlphaTech

Naval Academy/War College

Naval Academy/War College

Carnegie MellonUniversity

Carnegie MellonUniversity