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MediSysCorp:TheIntensCareProduct

DevelopmentTeam
Donnellon,A&Margolis,JD2009,HarvardBusinessPublishing,no.4059.

AndrewKuszczakowski

Contents
Question1
CreationofExecutiveCommittee
ProductDevelopmentProcess
DifferentDecisionMakingProcess
Question2
ProductDeliveryandModularDesign
PointsofConflict
ResolutionStrategy
RegulatoryCompliance
PointsofConflict
ResolutionStrategy
Question3
PersonalGoal
OrganisationalGoals
InfluenceTactics
Question4
TeamversusGroupAnalysis
TeamDevelopmentTactics
References
AppendixADecisionMakingStyle:FormationofExecutiveCommittee
AppendixBDecisionMakingStyle:ImplementationofCrossFunctionalTeams
AppendixCConflictMap:ProductLaunchDate
AppendixDConflictMap:ModularDesignIssue
AppendixEConflictMap:RegulatoryCompliance
AppendixFMerzsOrganisational&ProfessionalGoals
AppendixGMediSysCorporation:IntensCareStructure

Question1
ArtBeaumontjoinedMediSysCorpinJanuary2008.Withinweeksheintroducedaseriesofchanges.
Whatwerethosechangesandhowdidhegoaboutmakingthem?IfyouwereArtBeaumontwhat
wouldyouhavedoneunderthecircumstances?Supportyouropinionswithappropriateevidence.

Beaumontidentifiedareasinthecorporationthathebelievedrequiredchangesinorderfor
MediSysCorporationtocontinuetogrowitsbusiness.Heidentifiedalackofstrategicfocus
withinthecorporationandherealisedtheneedtobethefirsttomarketwithinnovative
products.

CreationofExecutiveCommittee
Inreactiontothelackofstrategicfocus,BeaumontcreatedanExecutiveCommittee
comprisingofthefiveVicePresidentsthatreporteddirectlytohim.Beaumontwashiredinto
theroleofPresidenttosharpenthestrategicfocusofthecorporation.BasedontheVroom,
YettonandJagosnormativedecisionmakingmodel,itappearsBeaumontmadethis
decisioninanautocratic(AI)manner(DuBrin,Dalglish&Miller2006).Itwouldappearthat
thisdecisionwasbasedoninformationthatwasavailabletohim,togetherwithintuitionand
perhapshisprofessionalexperience.

ProductDevelopmentProcess
Inordertobefirsttomarketwithnewproducts,Beaumontsawtheneedtospeedupproduct
developmenttimes.Nohria,JoyceandRoberson(2003)suggestthatanagilecorporation
candeliverinnovativeproductsandanticipateeventsratherthanreactingwhenitmaybe
toolate.Beaumontsetaboutformalisingafasttrackedproductdevelopmentprocessby
ensuringthatthecriticalfunctionalareasworkinparallelfromtheconceptualstagetofinal
production.ItappearsthatBeaumontalsomadethischangeinanautocraticmanner,asper
Vroom,YettonandJagosnormativedecisionmakingmodel(DuBrin,Dalglish&Miller
2006).

DifferentDecisionMakingProcess
InBeaumontspositionIthinkIwouldhavefollowedadifferentdecisionmakingprocess.
ThereisnoquestionthatBeaumontidentifiedsomevalidproblemswithinMediSys
Corporationthatrequiredsomedecisionstobemade.Tohiscredit,Beaumontactedquickly
andforcefullyhoweverIbelievehedidnotconsiderallofthestakeholdersthatwouldbe
impactedbyhisdecisions.
InBeaumontssituation,IwouldmakeuseofVroom,YettonandJagosdecisionmaking
tree(DuBrin,Dalglish&Miller2006).Basedonmyanalysis(AppendixA)ofthedecisionto
formtheExecutiveCommitteeIwouldhaveadoptedanautocratic(AII)decisionmaking
style.ThisapproachinvolvesgaininginformationfromtheVicePresidentsandtheboardof
MediSysCorporationbeforemakingadecision.

Applyingthesamemodeltotheuseofcrossfunctionalteams,myanalysis(AppendixB)
suggeststheadoptionofagroupbased(GII)decisionmakingstyle.Myapproachwould
involvemeetingwiththeVicePresidentsofthefunctionalareastodiscussthegoaloffaster
productdevelopmenttimes.TheroleIwouldplaywouldbetoprovidedirectionbutalsoto
empowerthegrouptodesigntheproductdevelopmentprocessandmakethefinaldecision.
Isuggestthatseniormanagerswithinthefunctionalareaswouldbeformedintoacommittee
todesigntheprocess,withguidancefromtheirrespectiveVicePresidents.Seniormanagers
woulddiscusspossiblesolutionswiththeirteamsandreachcompromiseswithother
functionalareasseniormanagers.

Question2
ThereisasignificantamountofbothunderlyingandobviousconflictinMediSysCorp.Whatconflicts
haveyouascertained?Whatconflictresolutionstrategieswouldyourecommendforeachsituation?
Supportyourrecommendationswithevidence.

ThekeyareasofinternalconflictthatIhaveidentifiedinthiscasestudyincludethepressure
oflaunchingtheproductbyAugust2009theincorporationofamodulardesignintothe
productand,theneedtomeetregulatorycompliancerequirements.

ProductDeliveryandModularDesign
PointsofConflict
PressureisbeingexertedbyMerzontheengineeringteamtomeettheproductdelivery
deadlineandtoincorporateamodulardesign.Merzbelievesthatherconcernsarealigned
withdeliveringthemostprofitableproductforMediSysCorporation.Beingfirsttomarketwith
theIntensCareproductwillprovidegreaterpossibilityofproductprofitability,whichisakey
driverforMerz.Beaumonthasmadeitclearthatthecorporationsreputationisontheline
andhasmadeitarequirementthatMediSysCorporationarefirsttomarketwithIntensCare.
Theengineeringteamisdealingwithanumberoftechnicalissuesandtheirtaskismade
difficultbyrecentstaffcutbacks(hencescarcityofresources).Thedeliveryofthesoftware
(thatwasoutsourcedtoIndia)isdelayed.ThisisthefirsttimethatMediSysCorporationhas
outsourcedthesoftwaredevelopmentfunction.Theconflictmaprelatedtotheproduct
launchdateisshowninAppendixC.
Therequirementforamodulardesignhasnotbeenformallyspecifiedorapprovedinthe
designoftheproduct.BretOBrien,theSeniorEngineeringManagerhasdeclaredthathe
willmakeademandtobeletofftheteamifFogeldoesntgetMerzoffhisback.
ConsideringOBrienisavaluableteammember,Fogelwillwanttokeephiminhisteam,so
itisinFogelsinteresttoresolvethisconflict.Todate,Fogelhasadoptedanavoidance
positionregardingtheconflictwithintheIntensCareteam.Theconflictmapregardingthe
modulardesignissueisshowninAppendixD.

ResolutionStrategy
InreviewingtheconflictbetweentheengineeringteamandMerz,commongroundbetween
partiesexists(i.e.everyoneappearstobecommittedtodeliveringaprofitableproduct).The
keyissueisaroundthetimingofdeliveryandwhatwillbedeliveredbyAugust2009.I
believethisconflictisbestresolvedbyFogel(asProductLead)actingasamediatorto
brokerawinwinscenario,throughacollaborativeconflicthandlingstyle(Thomas1976).A
collaborativeapproachismostsuitableifthereisadesireforbothpartiestosatisfytheirown
concernsandthoseoftheotherparty(Thomas1976).Anidealoutcomewouldbea
resolutionwheretheengineeringteamcommitstoamodulardesign,howeverinorderto
meettheimmediatedeadlinethisdesignwillbeincorporatedinthenextreleaseofthe
product.

RegulatoryCompliance
PointsofConflict
TheissueofregulatorycomplianceactsasapointofconflictbetweenBaio(Regulatory
Affairs)andMerz(Marketing),OBrien(Engineering)andMukerjee(Software).Inthiscase,
Merz,OBrienandMukerjeeappeartodownplaytheimportanceoftheregulatoryprocess
beingimplementedbyBaio.ThisgivesBaiothefeelingthattheteamisnotcommittedto
ensuringregulatoryrequirementsaremet.ItappearsthatMerz,OBrienandMukerjeesee
regulatoryrequirementsasanoverheadthatsimplyslowsdownthepathtomarket.OBrien
suggeststhattheyRegulationssimplythrowuproadblocksinfrontofeveryone.The
conflictmapfortheissueofregulatorycomplianceisshowninAppendixE.

ResolutionStrategy
Sincelaunchingaproductthatdoesnotcomplywithregulatoryrequirementsposesa
significantrisktoMediSysCorporation,Baioisentitledtoholdacompetitiveposition,
accordingtoThomas(1976)conflicthandlingmodel.ThiscreatesaproblemforFogel,in
thatBaiocouldmakeitdifficultfortheIntensCareteamtomeettheirproductlaunch
deadline.Inthissituation,IrecommendthatastheProductLead,Fogelshouldeducate
OBrien,MukerjeeandMerzontheimportanceoftheroleofRegulatoryAffairsandto
encouragethesepartiestoadoptanaccommodatingconflicthandlingstyle(Thomas1976).
ByaccommodatingBaiosposition,thereisapossibilityforthepartiestoworkmore
collaborativelytomeettheproductlaunchdate.

Question3
ValerieMerzisfacingaprofessionaldilemma.Whatarethepersonalandorganisationalgoalssheis
workingtowards?DescribethepowershehasatMediSysCorp.Whatinfluencetacticswouldyou
recommendthatValerieusetoachievehergoals?

PersonalGoal

IntermsofMerzspersonalgoals,thecasestudydoesnotprovidespecificdetailsonwhat
thesemaybe.ItisalsointerestingtonotethatMerzhasanMBAfromStanfordUniversity,
whichisahighlyregardedteachinginstituteintheheartofSiliconValleyinCalifornia
(StanfordUniversityn.d.).Merzgraduatedin2007,soitappearsthatthisisherfirstjobafter
completingherMBAstudies.ItisinterestingtonotethatBeaumontrecognisesthatthat
MerzispotentialGMmaterial.MyobservationisthatMerzsbehaviourmaycorrespondto
thepatternoftheHomeRunHitter,asdescribedbyWaldroopandButler(2000).Iassume
thatMerzispersonallydriventomoveintoaseniormanagementpositioninMediSys
Corporation.

OrganisationalGoals
MediSysCorporationhavesetagoaloflaunchinganinnovative,worldclassproductby
August2009.Merzcancontributetotheachievementofthisgoalbyensuringthat
IntensCareisaprofitableproduct(IseethisasMerzskeyorganisationalgoal).Beingfirstto
marketwiththeproductwouldplacethecorporationinastrongpositioncomparedtoits
rivals.Merzalsobelievesthatamodulardesignisthekeytogainingacompetitive
advantageinthemarketplaceandwillimprovelongtermprofitabilityoftheproduct.Meeting
immediateorganisationalgoalsanddeliveringaprofitableproductshouldcontributeto
Merzspersonalgoals(seeAppendixF).

InfluenceTactics
Merzcanimprovethepossibilityofachievingherorganisationalandpersonalgoalsifshe
canalignkeypeopleintheorganisationwithhergoals.Tacticscanbeadoptedtopersuade
andinfluence,howevertheconsequencesofsuchtacticsshouldbeconsidered.Bartoletal
(2003)suggestthreepossibleoutcomes(resistance,compliance,commitment)depending
onthepowerexertedbyaleader.
Intermsofpositionpower,byherownadmissionMerzdoesnothavelegitimatepowerover
thetechnicalteamsastheyarenotexpectedtocomplywithherdecisions(Zand1997).
Coercivepowercouldbeused,howeverBartoletal(2003)suggestthiscanleadtoa
resistivereactionandthereforeitisnotrecommended.Merzmaybeabletoexertpersonal
power,inparticularreferentandexpertpower(DuBrin,Dalglish&Miller2006).Itwould
seemthatMerzmaylackthecharismatictraitsbasedonherinteractionswithOBrienand
Baio.
Rationalpersuasioncanbeaneffectiveinfluencetacticwhenbothpartiesshareacommon
objective(Yukl1990).MysuggestionisthatMerzshouldidentifythespecificationsthatwill
deliverMediSysCorporationacompetitiveadvantage(perhapsthroughsuitablemarket
research)andbasedonthis,userationalpersuasiontacticswiththetechnicalteam.To
supportthistactic,Merzshouldalsoenterintoconsultationwiththetechnicalteam,asthisis
morelikelytoresultinteamcommitment(Falbe&Yukl1992).
Inparallelwiththeseactivities,Merzshouldlooktoformcoalitionswithkeypeople,suchas
seniormanagersinthecorporation.Istronglyrecommendavoidanceofpoliticalgame

playing.However,Merzshouldrecognisetheneedtobepoliticallysavvyandbeawareof
internalorganisationalpolitics.FormingcoalitionscanhelptokeepMerzgainthisawareness
andimportantly,Merzmaybeableleveragefavoursandmakeuseofbargainingwith
coalitionmemberstohelpherachievehergoals(DuBrin,Dalglish&Miller2006).For
example,shecouldadoptbargainingtacticstogainmoreallocatedresourcestothe
IntensCareengineeringteam.FormationofcoalitionsmuchalsoprovideMerzwith
informationalpowerfromsuchinteractions.
Intermsoftacticsthatcouldbeadoptedexternally,Merzcouldmakeuseofrational
persuasionandreferentpowertoinfluencehercustomersinthemarketingoftheIntensCare
product.Thiscouldhelpachievegreatersalesrevenueandhenceincreaseproduct
profitability.

Question4
ItwouldseemthattheIntensCareteamatMediSysCorpisnotfunctioningeffectivelyandthereforenot
achievingitsstrategicobjective.Isitcurrentlyateamoragroup?Whoshouldberesponsibleforthe
developmentoftheteamandwhattacticswouldyourecommendtheleaderadopttoenabletheteams
tofunctionmoreeffectively,asateam?

TeamversusGroupAnalysis
IbelievethatthecurrentIntensCareteamiscurrentlyagroup,notateam.However,within
thisgroupthereisatechnicalteamthathasworkedontheproductforquitesometimeand
thereforeisareasonablywellfunctioningteam.Thetechnicalteamisinvolvedinactive
problemsolvingandworkingtowardsdeliveryoftheIntensCareproductandconsistsof
Fogel,OBrienandGersen(seeAppendixG).Mukerjeeisalsopartofthetechnicalteambut
playslessofaroleasheisspendingalotoftimeinIndiawiththeoutsourcedsoftware
developmenteffort.WithintheIntensCarecoregroup,therearerepresentativesfrom
MarketingandRegulatoryAffairs.TheinteractionswithintheIntensCarecoreteamappear
tobeindividualisticandthereisalackofasharedcommongoal,resultinginalackof
cooperationandteamwork.

TeamDevelopmentTactics
Inthissituation,IbelievethatJackFogel(astheProductLead)shouldberesponsiblefor
teamdevelopment.BeaumontidentifiedFogelslackofbusinessfocus.Fogelseems
unwillingorunabletoengagetheMarketingandRegulatoryAffairsrepresentativesto
promoteassimilationintotheteam.Leadershipoftheteamhasbeenmadedifficultbyalack
ofunderlyingbusinessprocessesforthedevelopmentofnewproducts.Forexample,Merz
hasadesiretoseeaproductwithamodulardesign,howeverthereappearstobeno
formalisedwaytoresolvethisissue.Instead,theissuehasbeensimmeringaway
unresolvedandcreatingapointofconflict.

Newteamsusuallymovethroughdistinctdevelopmentphasesastheymature,these
phasesincludeforming,storming,normingandperforming(Hittetal.2007).Thereare
numberoftacticsthatcanbeappliedtoprogresstheteamtotheperformingphaseas
quicklyaspossible.
TheIntensCareteamrequirestheProductLeadtobuildtrustamongstmembersand
promotecooperationandteamwork.Isuggestthatthefirststepistoaligntheteamtoa
commonvisionandcommunicatethisdirectiontotheteam(Kotter2001).Thisservesto
aligntheteamtoacommonpurpose.
Intermsofdecisionmaking,theHerseyBlanchardSituationalLeadershipmodelsuggests
thattheleadersroledependsontheabilityandcommitmentofteammembers(Hersey,
Blanchard&Johnson2002).ItappearsthatMediSysCorporationhascompetentand
talentedpeople,althoughtheremaybesomeinsecurityorslightunwillingnessofteam
members.AspertheSituationalLeadershipmodel,IsuggestthattheProductLeadshould
encouragethegroupwithaparticipativestyleofleadership(Hersey,Blanchard&Johnson
2002).Thiswillhelpingainingbuyinfromteammembersandallowthemtofeelasenseof
ownership.
Thegroupiscurrentlyoperatingatvaryinglevelsofurgency,forexampleGersonseems
unperturbedbythetightdeadlines.TheProductLeadshouldregularlychallengethestatus
quoandcreateasenseofurgencyamongstteammembers.
Astheteamachievessetmilestones,theseachievementsshouldbecelebratedbytheteam.
Thiswillhelptheteamtocreateanidentity,whichisimportantinthedevelopmentof
effectiveteams.Buildingonteameffectiveness,theProductLeadshouldunderstandthe
relativestrengthsandweaknessesoftheteammembersandtheremaybescopetoaddress
weaknessesthroughtrainingprograms.
Itisunclearfromthecasestudywhetherthereareculturaldifferenceswithinthegroup
howeverIsuggestthatleadersshouldadoptanadaptivestrategyinsuchasituation(Brett,
Behfar&Kern2006).Understandingculturaldifferenceswillallowtheleadertoadoptthe
mosteffectivemotivationalstrategy.Teamdiversitycanalsobeleveragedinproblem
solvingasagreaterbreadthofperspectivescanbeincorporated,withpossibilitiesforhigh
qualitydecisions.
Externaltotheteam,theProductLeadshouldworkwiththeExecutiveCommitteetoensure
thattherightbalanceofindividualandteambasedrewardscanbeprovidedtotheteam
(Thamhain2004).Currently,individualteammembersdonotreporttotheProductLeadbut
continuetoreporttotheirindividualmanagers.Thecorporationsstructureshouldbe
addressedtoensureteammembersreporttotheProductLead,whichwouldalsoprovide
theleaderwithlegitimatepower.

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AppendixADecisionMakingStyle:FormationofExecutive
Committee
Question:ShouldanExecutiveCommitteebeformedtopromoteamorestrategicfocus
withinMediSysCorporation?

AppendixBDecisionMakingStyle:ImplementationofCross
FunctionalTeams
Question:Shouldcrossfunctionalteamsbeusedasamechanismtoacceleratetheproduct
developmentprocess?

AppendixCConflictMap:ProductLaunchDate

AppendixDConflictMap:ModularDesignIssue

AppendixEConflictMap:RegulatoryCompliance

AppendixFMerzsOrganisational&ProfessionalGoals

AppendixGMediSysCorporation:IntensCareStructure

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