CHAPTER 14
CHAPTER 14
DEVELOPMENT TEAM MANAGEMENT
DEVELOPMENT TEAM MANAGEMENT
McGrawHill/Irwin
Copyright ©2006 The McGrawHill Companies, Inc. All right reserved.
Some Terms in New Products
Some Terms in New Products
Organization
Organization
Functional: People in business departments or
functional areas are involved, and product
development activity must mesh with their work.
Project: The product innovation activity requires
people who think first of the project.
Matrix: Two people are likely to be involved in any
piece of work: project manager and line function
head.
Options in New Products Organization
Options in New Products Organization
1. Functional
2. Functional Matrix
3. Balanced Matrix
4. Project Matrix
5. Venture
These are listed in increasing projectization,
defined as the extent to which participants see
themselves as independent from the project or
committed to it.
Figure 14.1
Options in New Products Organization
Options in New Products Organization
1. Functional: work is done by the various departments,
very little project focus.
Usually a new products committee or product planning committee.
Does not lead to much innovation.
2. Functional Matrix: A specific team with people from
various departments; project still close to the current
business.
Team members think like functional specialists.
Departments call the shots.
3. Balanced Matrix: Both functional and project views are
critical.
May lead to indecision and delay.
Many firms are making it work successfully.
4. Project Matrix: High projectization, team people are
project people first and functional people second.
People may drive the project even against department’s best wishes.
5. Venture: Team members pulled out of department to
work full time on project.
Operating Characteristics of the Basic
Operating Characteristics of the Basic
Options
Options
Characteristic Functional <>Venture
Decision Power of Leader Low High
Independence of Group Low High
% of time spent on project by member Low High
Importance of Project Low High
Degree of risk of project to firm Low High
Disruptiveness of project Low High
Degree of uncertainty Low High
Ability of team to violate
company policy Low High
Independent funding Low High
Figure 14.3
Decision Rules for Choosing Among
Decision Rules for Choosing Among
the Options
the Options
Score each on a scale of 1 (low) to 5 (high):
1. How difficult is it to get new products in the firm?
2. How critical is it for the firm to have new products at this time?
3. How much risk to personnel is involved?
4. How important is speed of development?
5. Will the products be using new procedures in their
manufacturing?
6. In their marketing?
7. What will be the $ profit contribution from each new item?
8. How much training do our functional people need in the
markets represented by the new products we want?
Rating: Below 15: functional matrix will likely work.
1530: a balanced matrix will probably work.
Over 30: You need a project matrix or even a venture!
Figure 14.4