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					            Integrated Product Development Teams: A Model for Effective Teamwork
The following paper outlines the process of developing an effective Integrated Product Development Team (IPDT).
The paper summarizes aspects from “The Wisdom of Teams” by Katzenbach, “Managing the Design Factory” by
Reinertsen, and various other internet sources.
Summary

   Strive for High Performance
        A team is a small number of people with complementary skills who are committed to a common purpose,
        performance goals, and approach for which they hold themselves mutually accountable and is deeply
        committed to one another’s personal growth and success.
   Put A+ Players in the Leadership Role

   Layout your organization based on business needs
        Functional - Develops specialized skill sets to accomplish a task
        Autonomous - Where speed is the most important need
        Hybrid - A blend of both functional and autonomous team
   Colocate your teams
        “…those that have worked on colocated teams insist that this is the most effective way to do development.”


Why Teams?
"If I could solve all the problems myself, I would." Thomas Edison

"Talent wins games, but teamwork and intelligence wins championships." Michael Jordan
                                                                                                           Figure 1: S.M.A.R.T. Goals
What is a Team?                                                                                                  SA500 Mech Visual Yield
                                                                             100
A team is a small number of people with complementary                         90
skills who are committed to a common purpose,                                 80
performance goals, and approach for which they hold                           70
themselves mutually accountable.
                                                              Visual Yield




                                                                              60

                                                                              50

   Small Number-Typically 4 to 12 people, ideally 7                          40

   Complementary Skills                                                      30

       1. Technical or functional expertise                                   20

       2. Problem solving and decision making skills                          10

       3. Interpersonal Skills                                                 0


                                                                                   Jan   Feb   Mar   Apr   May   Jun   Jul   Aug   Sep   Oct   Nov   Dec   Jan- Feb- Mar-   Apr- May- 1-Jun
    Common Purpose-Typically imposed by                                                                                             Month
                                                                                                                                                            01   01   01     01   01


    management. Generated through use of a Team                                                            Figure 2: Power Comes From:
    Charter
   Performance Goals - S.M.A.R.T. (Figure 1)
                                                                                                                                               Authority
        Specific                                                                                                                                 20%
        Measurable
                                                                                                                  Accountability
        Achievable                                                                                                    50%
        Resourced                                                                                                                                    Influence
                                                                                                                                                        30%
        Timely
   Approach-These are the methods used to achieve goals (i.e. Six Sigma
    methods, NPI Methods, etc.)
   Mutual Accountability-Power comes primarily from accountability
    (Figure 2)

Integrated Product Development Teams: A Model for Effective Teamwork                                                                                                                    1
Damon R. Stoddard, August 17, 2001
Maximizing the Effectiveness of Teams
Working Group                                                                                                                                     High
        A group without a significant incremental                                                                                             Performance
        performance need. Members interact primarily to                                                                                          Team
        share information, best practices, and perspectives
        to help individuals perform better.
Pseudo Team




                                                                Performance Impact
        A group that could have a significant performance                                                    Real Team
        need, but it has not focussed on collective
        performance and is not really trying to achieve it.
Potential Team                                                                       Working
        A group for which there is a significant, incremental                         Group
                                                                                                               Potential
        performance need, and that really is trying to                                                          Team
        improve its performance impact. It has not yet                                         Pseudo
        achieved clarity about purpose, goals, and working                                      Team
        approach. Furthermore, it has not yet achieved
        mutual accountability.
Real Team                                                                                             Team Effectiveness
        A small group of people with complementary skills
        who are equally committed to a common purpose, goals, and working approach for which they hold themselves
        mutually accountable.
High Performance Team
         A Real Team that has members who are also deeply committed to one another’s personal growth and success.
        It outperforms all reasonable expectations.




Choosing a Leader of the Team
When choosing a leader of the team, you want to select “A+” players. One methodology for identifying A+ players
is through assessing each of your employees on the following 2 questions:

       Leadership Ability-How effective is this player at leading groups of people to achieve a common goal?
       Performance Track Record-“The ability to get things done”, or “Your go to person”


                              Performance
                                                                                                                                Performance
                                                                                                                   Leadership




                                                                                                                                                  A+ Player?



                          -                +
                                      Team Leaders
                                                                                          Employee
    Leadership




                 +                    (A+ Players)                                             Jane                   +            +             Yes




                 -

Integrated Product Development Teams: A Model for Effective Teamwork                                                                                           2
Damon R. Stoddard, August 17, 2001
Types of Organizational Layouts
     Layout              Description              Primary               Advantages                   Disadvantages
                                                  Benefit
Functional           People grouped together   Develop              Efficiency (One expert        Slow
(Working Group)      by functionality          specialized skill    can work on multiple          Won’t minimize cost to
                     (engineers with           set to do specific   designs)                       produce
                     engineering, etc.)        tasks                                              Won’t maximize sell price
                                                                                                  Won’t maximize market
                                                                                                   share
Autonomous           Cross functional team     Speed                 Speed (2x faster than       Cross project
(Real Team or High   reporting to 1 team                              Autonomous)                  incompatibility
Performance Team)    leader                                          Shared Accountability       Inefficient (May “re-
                                                                     Commitment                   invent the wheel)
                                                                     Potential of High           Weaken functional
                                                                      Performing                   expertise
                                                                     Diversification of skill    Rarely Optimize unit costs
                                                                      sets
Hybrid Team          “Matrix” organizations    Eliminates            Minimizes product           Not as fast as autonomous
(Real Team or High   (multiple reporting       inherent issues        cost                         team
Performance Team)    relationships)            with above two        Maximize
                                               types                  performance




Integrated Product Development Teams: A Model for Effective Teamwork                                                       3
Damon R. Stoddard, August 17, 2001
Colocation or not?
“We have been in contact with thousands of people who have worked on development teams. Without exception,
those that have worked on colocated teams insist that this is the most effective way to do development.”
Donald G. Reinertsen, Managing the Design Factory



                                       Distance Effects on Communication


                                                            Thomas J. Allen ,
       Least Once Per Week




                             60%
        Communicating at




                                                            Managing the Source of
                             50%
           Probability of




                                                            Technology
                             40%
                             30%
                             20%
                             10%
                              0%
                                   0   5    10   15    20     25    30     35   40   45   50
                                                 Separation Distance (Feet)




Conclusion
The data clearly indicates utilization of Integrated Product Development Teams is essential for the success of New
Product Introductions. Consider the following when establishing a team:
   Strive for High Performance
         A team is a small number of people with complementary skills who are committed to a common purpose,
         performance goals, and approach for which they hold themselves mutually accountable and is deeply
         committed to one another’s personal growth and success.
   Put A+ Players in the Leadership Role

   Layout your organization based on business needs
         Functional - Develops specialized skill sets to accomplish a task
         Autonomous - Where speed is the most important need
         Hybrid - A blend of both functional and autonomous team
   Colocate your teams
         “…those that have worked on colocated teams insist that this is the most effective way to do development.”




Integrated Product Development Teams: A Model for Effective Teamwork                                                 4
Damon R. Stoddard, August 17, 2001
References:

http://rampages.onramp.net/~bodwell/home.htm

http://www.wow4u.com/teams/

http://www.cranfield.ac.uk/coa/macro/nextgen/benefits.htm


The Wisdom of Teams




Managing the Design Factory




Integrated Product Development Teams: A Model for Effective Teamwork   5
Damon R. Stoddard, August 17, 2001