Cross-Functional Design Teams: Terials Selection and Design, 1997, Pp. 49-53
Cross-Functional Design Teams: Terials Selection and Design, 1997, Pp. 49-53
Cross-Functional Design Teams: Terials Selection and Design, 1997, Pp. 49-53
THE TERM TEAMS is used heavily in industry and other external demands that occur ever more Team is a heavily used and abused term in the
today, often with little more than a hope behind it. frequently. workplace today. Any identifiable group of workers
However, as companies strive for greater produc- The Growing Importance of New Prod- is generally labeled a team, and teams form in the
tivity and responsiveness to market changes, ef- ucts. Senior managers often see new products sales, accounting, and research departments and
fective teams often play a central role in initiating as the key to coping with this chaotic environ- from the factory floor to the executive suite. Sel-
organizational change. Such real teams may occur ment. New products promise higher profit mar- dom does calling a group a team change the way in
in any part of the business, but this article focuses gins, opportunities to avoid commodity product which work gets done.
on the particular issues arising in using teams in status by creating market niches and added Effective teams can exist anywhere in the or-
the product design process. value, and an avenue for revitalizing the corpo- ganization, but teams that deliver superior per-
The most effective design teams generally in- rate image. New products are no longer just formance exhibit certain characteristics (Ref 1):
volve a clearly delineated group of individuals something done in research and development
who work full time on the specified project from but have become central to the plans of the cor- • A small (fewer than ten), well-defined group
its beginning until market introduction. The team poration. Many business leaders go beyond this with complementary skills
comprises not only research and development by deciding to use new product development as • A meaningful purpose, specific goals, and
professionals but also manufacturing and market- the keystone in a broader plan of fundamental agreement on concrete operating principles for
ing members, and often members from quality, improvements in how their companies operate. reaching the goals
finance, or field service. These teams cut across An Emphasis on Productivity and Re- • Mutual accountability for results and joint own-
traditional organizational boundaries, thus sponsiveness. Two thrusts come from these ership of work products
changing traditional reporting and decision-mak- management desires:
ing relationships. Team members often report to Teams and Meetings. Katzenbach and Smith
the team leader for the duration of the project and • A requirement for consistently successful new (Ref I) distinguish teams that make or do things
are physically located together (co-located). Al- products in a less predictable environment from those that recommend things or ones that run
though these characteristics can increase produc- • A requirement to obtain these products ever or manage things. Product development teams are
tivity and responsiveness greatly, each also repre- more quickly while using fewer financial and of the type that do things, and it is essential to rec-
sents a major challenge in organizational change human resources ognize that the doing gets done mostly between
for most companies. team meetings. Development team meetings are to
Specifically, such team characteristics encour- Design, or more broadly, development, teams assess what got done, solve problems, and set plans
age the use of generalists as team members, thus have an effect on the product success require- for doing the next work. Although meetings are an
creating challenges in incorporating specialists, ment, but increasingly they are being considered essential tool of teams, if the team equates itself
such as materials engineers or scientists. This essential to achieving productivity and time-to- with meetings and depends on meetings to get
article provides special coverage on alternative market goals. This optimism regarding teams is work done, progress will be slow. In effective
roles for such specialists whose expertise is es- well founded: many stories have appeared in teams, meetings tend to be highly spontaneous and
sential to the success of the project but whose trade and business magazines and research jour- largely transparent. These teams demand far more
involvement with the team may violate some of nals describing how cross-functional teams have of their members than just participating in sched-
the above characteristics. brought new products to market far more uled meetings.
quickly and inexpensively than more traditional Special Characteristics of Cross-
organizational approaches to product develop- Functional Development Teams. Three traits
Background: The Changing ment of product development make development teams
Role of Product Design and As discussed in a later section, a team is not particularly challenging ones to set up and manage:
the answer to every development project, but (a) most of those involved are professional knowl-
Development in Industry teams have demonstrated their power to improve edge workers; (b) a broad range of professional
development effectiveness dramatically. This skills is needed, including engineering, science,
Most manufacturing companies today are under article covers the characteristics of such teams, marketing, manufacturing, and finance; and (c)
heavy pressure to succeed, even to survive. Serv- how to staff and organize them, and the critical innovation is an uncertain activity. Although some
ice industries have taken a dominant role in com- role of specialists, such as materials specialists, exceptions exist (Ref 1,2), most of the team litera-
merce, much manufacturing has moved offshore, in working with such teams. ture treats simpler situations, such as assembly
and many manufactured goods, especially materi- plant operations or mortgage application process-
als, have become commodities. In addition, envi- ing. Consequently, the literature is of limited use
ronmental and product liability issues complicate
manufacturing operations. All of this is occurring
Types of Teams here; this article relies more on tools that the
author and his colleagues have seen work well in
with a rising tempo, as evidenced by market shifts other product development settings.
50/ The Design Process
Fig 3 A functional organization, in which authority rests Fig 4 A balanced matrix, where the team leader and functional managers have equal authority over team
with the functional managers. Source: Ref 4 members. Source: Ref 4
leader often becomes frustrated. Between Fig. 4 using full-time people, fewer people can handle
and 5 is the heavyweight team leader form, a pow- the project, with the benefit that communication
erful one used by Honda, among others. becomes far simpler. If a full-time member can-
Figures 4 and 5 illustrate another key point. The not be justified, their role should be defined
team leader reports to a general manager, not to a carefully (Ref 4, p 142).
functional manager, such as the vice president of Full-time, end-to-end involvement is much
engineering. Recall the earlier discussion about the easier to accomplish with generalists. This is
team leader functioning as a general manager so one benefit of using generalists on a team, as
that he or she would integrate the viewpoints of all discussed earlier.
functional managers. If the team leader reports to a The first person to be dedicated full time for
functional manager, the project will take on the the duration of the project should be the team
orientation of that function. The other functional leader. Part-time involvement in this key posi-
managers will get involved to inject their opinions, tion is particularly ineffective.
bringing back the shortcomings of the functional The Power and Difficulties of Co-
form. Location. Once a leader is selected, team
Selecting the Best Form for a Project. members are recruited, an organizational form
Every organizational form has its pros and cons. is chosen, and the degree of dedication expected Fig. 6 Effect of separation distance on communication
For example, the functional form is superior for from each member is established, then the last between team members. Communication is much more
maintaining consistency between products in a decision to be made is where to locate this crew. likely to occur if team members are located within about
company’s product line. But it is poor at facilitating The basic choices are to leave members in the 10 m (30 ft) of one another. Source: Ref 7
communication across the functions involved in place where they were before the team formed
developing an innovative new product. Conversely, or to physically locate them close together; this
the separate project form excels at such cross- latter choice is called co-location.
functional communication but is weak in cross- The argument for co-location is that product willing to work very hard to communicate. If they
project coordination. The balanced matrix provides development, especially for highly innovative have to take the effort to dial the phone, compose
some of both but introduces potential conflicts be- products, requires a great deal of cross- a message on their computer, or arrange a video-
cause individuals on the team essentially have two functional communicating, problem solving, and conference, they will instead just make this mini
equal bosses tugging at them. decision making. Placing the participants close decision themselves. After a while, poor mini
The solution to this dilemma is to choose the together simplifies these activities greatly. Proj- decisions pile up.
form with strengths that most closely match the ect focus and easy access to project-related ma- Electronic communications have two other
primary objectives of a particular project, then rec- terials, such as products of the competitors, are shortcomings. One is that they are not very fast;
ognize the shortcomings of the chosen form, and additional advantages. the inherent delays in phone tag and its e-mail
put compensating mechanisms in place to handle Figure 6 illustrates the basic case for co- equivalent are commonplace. The more funda-
them. For example, many firms introduce cross- location. These data from several research and mental weakness is a lack of communication
functional project communication into the func- development sites show how likely individuals quality. The words themselves account for less
tional form by having weekly team meetings. (The are to communicate about technical matters, than half of what a message communicates, most
earlier warning about trying to run a team through depending on their separation. Note that the of the communication being attributed to intona-
meetings should be noted.) “knee” of the curve is at about 10 m (30 ft), tion, body language, and timing. To various ex-
A consequence of this approach to organizational which suggests that there is great value in hav- tents, all of the electronic media filter out this
design is that each project will have its own struc- ing team members close enough to overhear vital information. Even the current resolution of
tural form based on the specific objectives of that conversations of one another. videoconferencing fails to pick up many clues.
project. This makes the organization chart more Thus, true co-location means that team mem- Electronic media certainly have their value, but
complex but enables each project to use the most bers are within conversational distance, not just their limitations diminish their ability to facilitate
effective organizational tools available. in the same building or on the same floor. As rapid, effective team progress. Being aware of the
In general, a form closer to the separate project discussed earlier, this team includes members limitations will help the team to compensate for
should be used for innovative, new-to-the-world from marketing and manufacturing, not just the them.
products, and more functionally oriented forms research and development portion of the team. The Role of Rewards and Other Motiva-
should be used for more routine product upgrades In the author’s experience in working with over tors. Many researchers and authors have ad-
(Ref 6). a hundred product development teams, this type dressed the effectiveness of motivators, such as
There is nothing magical about the terminology of co-location is a powerful tool to shorten de- compensation, recognition, and promotion in im-
used here, for instance the heavyweight team leader velopment cycle time dramatically. proving corporate productivity. This is a difficult
form. Other jargon is used, such as core teams. Although the benefits of co-location are great, subject about which to be definitive, and much of
What really matters is how members are involved the resistance can be equally great in many or- the available material is contradictory. However,
day-to-day, which is the next topic. ganizations. Those who have tried it appreciate two general observations apply to cross-functional
Full-Time, End-to-End Involvement. An- its benefits and would always use it again if development teams.
other important characteristic of effective devel- effective project communication were critical. One is that these systems ultimately have to
opment teams is that, to the greatest extent possi- Many who have not tried it are skeptical, often come into alignment with the behavior desired of
ble, each member serves from the beginning of the due to personal reasons, such as lack of privacy; the team, or the team will revert to traditional
project to its end and is involved full time for that see Ref 4 (p 145–150, 271–272). ways of operating. For example, if the culture
period. Handoffs from person to person or from Co-Location Versus Electronic Team Link- punishes mistakes, then the behavior change
department to department mean breaks in the con- ages. The data in Fig. 6 are from Ref 7, which is sought, learning from mistakes and getting be-
tinuity of vital information. Engineers, according to over 20 years old. Many engineers in high-tech yond mistakes quickly, will not occur. The new
a stereotype that is partially true, often want to industries discount Fig. 6, asserting that modem products developed by the team will not likely be
redesign whatever they receive from someone else. electronic means of communication, for in- very innovative in such a risk-averse environ-
Full-time involvement (also called dedication) stance, faxes, e-mail, and videoconferencing, ment. Similarly, if team cooperation is the desired
translates into higher commitment and accountabil- have superseded the need for physical co- outcome, individuals should not be rewarded.
ity and into greater focus on key objectives of the location. Figure 6 suggests that the threshold Second, substantial dependence on rewards to
project, such as the desires of key customers. By (10 m, 30 ft) is so low that people are not achieve results is likely to backfire. In the
Cross-Functional Design Teams /53
author’s experience, clients who focus on rewards Joining the Team Option. If the specialist’s without a strong scientific basis. There are few
usually have other, more fundamental difficulties, expertise constitutes a major contribution to the firm rules, and the best solution will depend
such as overbearing top management, and superfi- project, this person should be a regular, dedi- greatly on the specific circumstances involved.
cial fixes with rewards will not overcome the fun- cated, co-located member of the team for at least Much of the supporting evidence is anecdotal, as
damental issue. In the end, team members must be most of the development and testing. The spe- in the case of co-location, for example.
motivated intrinsically by an interest in the work cialist should be a T-shaped individual, as dis- However, this does not mean that there are no
itself, and extrinsic motivators will have limited cussed earlier, to justify end-to-end, full-time preferred solutions. Some solutions are far more
effect. For a sobering view of this subject, see Ref involvement. Limited involvement would mean powerful and effective than others, so it is defi-
8. that this person will be gone when problems nitely worth struggling with the issues to find the
associated with his or her design choices begin solution that works best in a specific situation.
to appear later. Individuals forming a design team should form
The Specialist’s Role on a Expert Contributor Option. This is a popular their objectives, analyze the existing data to select
Development Team middle ground, but it must be treated with care an approach, and then do something. In making
to get a quality, responsive contribution from the progress, action is preferable to inaction.
An assumption underlying this article is that the specialist. This individual is not a member of Initial team “experiments” should be operated
reader is probably a materials specialist or man- the team (trying to include such associates to on a manageable scale where the risk is reason-
ager who is reading it concerning their in- help them feel more involved will simply dilute able, and they should involve the most enthusiastic
volvement on a cross-functional development the significance of the team). people to initiate change. See Ref 4, Ch 15, for
team. Thus, the specialist’s role needs specific Therefore, a regular member of the team acts further information on making such changes. Re-
attention here. as a liaison to the specialist, and clear objec- sults should be monitored, and adjustments should
Balancing Team Needs with the Spe- tives, deliverables, and due dates are estab- be made on an ongoing basis. See Ref 9.
cialist’s Needs. The dilemma of the specialist lished for each task. The liaison should monitor For more detailed coverage of the material in
was covered earlier: the specialist’s expertise is progress closely, watching for slippage due to this article, see Ref 4, especially Ch 7 and 8.
often needed to provide the technical product in- the specialist’s other activities or lack of under-
novativeness essential to marketplace success, but standing of project goals. The specialist must
the specialist introduces several complications in spend enough time with the team that he or she REFERENCES
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