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Measuring and Managing Team Performance:Measuring and Managing Team Performance:
A Balanced ApproachA Balanced Approach
Researcher: Kepa Mendibil TelleriaResearcher: Kepa Mendibil TelleriaSupervisor: Dr Jillian MacBrydeSupervisor: Dr Jillian MacBryde
DMEM Research Presentation DayDMEM Research Presentation Day24 January 200324 January 2003
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ContentsContents
Research area & backgroundResearch area & background
Research questionsResearch questions
Methodology Methodology
Results & findingsResults & findings
Contribution of the researchContribution of the research
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‘A team concept is central to the development of process-
based management and it is one of the few means by which
large business processes can be integrated ‘ (Teare et al)
Over half of the Fortune 1000 are implementing self-directed
teamsImplications:
Increase empowerment
Increased accountability
Increased emphasise on measuring and
managing team performance
Research area & BackgroundResearch area & Background
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FUNCTIONS
Manage processes
Support processes
PR
OC
ES
SES
Operate processes
PROBLEMS: Business Process objectives are
not aligned with company’s strategy
Conflicts between departmental and processes managers
Employee performance measurementis not aligned with process performance and organisational objectives
Employees have a lack of the company’s vision worsening of employee participation
Lack of understanding on how to measure team performance
Common ProblemCommon Problem
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‘Traditional ways of measuring performance, determine
compensation, provide training, and even organize facilities are
tailored to vertical units, not processes, and to individuals, not
teams’ (Hammer & Stanton, 1999)
Why do teamwork attempts fail?Why do teamwork attempts fail?
Need to develop a better understanding on how to manage and measure team performance
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Research questionsResearch questions
RQ1. How do current organisations tackle the issue of
team performance?
RQ1.1. Why is TPM difficult?
RQ2. Is there a need for a tool that facilitates TPMS
design?
RQ2.1. What are the requirements of a TPMS development process?
RQ2.2. Do current methods fulfil those requirements?
RQ2.3. What are the drawbacks?
RQ3. If yes, how should such a tool look like?
RQ4. How does such a tool impact on organisations?
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Methodology: Research PhasesMethodology: Research Phases
PRE-UNDERSTANDING
Jan00 –Sep00
THEORY BUILDING
Aug00-Jun02
THEORY TESTING
Jun01 – Sep02
VALIDATING AND
EVALUATINGJan02 – Jan03P
hase
Acti
vit
ies
Ou
tcom
es
Broad literature review
-Research problems -RQ1, RQ2
-Theoretical framework and workbook verified and improved-Findings
-Reliable answers to research questions-Proved novelty of the research
Action Research
-Research gap-RQ3, RQ4-Typology for TPMS design-Theoretical framework-TPM workbook
Exploratory research (Phase 1):
4 case studies
Specific literature review
Exploratory research (Phase 2):
6 ‘best practice’case studies
Focus group discussions
Discussiongroups
Industrial workshops
Seminars
Expert opinion
Case studies
Novelty of research
Practical relevance
Applicability ofThe tool in Different
environments
Reliability ofResearchprocess
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Pre-understandingPre-understanding
6 ‘best practice’ case studies Litton (electronics) NCR Rank Xerox (Sales and Service) Irizar (Coach manufacturer, Basque Country) Maier (Plastic moulding, Basque Country) ITP (aerospace, Basque Country)
4 case studies: EPSRC project collaborators
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Pre-understandingPre-understanding
All organisation deemed team performance measurement (TPM) as an important aspectOrganisations are measuring team performance in an ad hoc manner Teams using performance measures systematically: were further advanced in the team development scale combined process measures with other variables affecting team performance (e.g. EFQM
self-assessment) had a better understanding about customer requirements had a more systematic and transparent ways of communicating and deploying company
strategy
Managers and team leaders suggested that it would be beneficial for industrial organisations to develop a practical tool to facilitate and assist in developing TPM systems3 main areas impacting team performance Process management Team management Organisational support management
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Theory Building (TB)Theory Building (TB)Development
of TPM typology
Do current framework meet TPM
requirements?
Apply model/tool and extract learning
Develop TPM framework
if yes
if no
Re-think research questions
Contribution to
Knowledge
Contribution to
Knowledge
Construct practical tool
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TB: Typology of TPM development processTB: Typology of TPM development process
Built upon previous typology for PMS development process (Hudson et al, 2001)
Input from a variety of research disciplines (e.g. HR, organisational psychology, operations management)
Classified into 3 areas: Development process
Characteristics of measures
Dimensions of team performance
Criteria for team performance:(1) Team effectiveness: How well does the team achieve its process/task
objectives?
(2) Team efficiency: How do team processes affect the capability of team members to work together in the future?
(3) How satisfied are the team members? (Combination of personal growth and satisfaction
Provide a balanced view of team performance – i.e. relate measures to those drivers for team performance
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TB: Factors affecting team performanceTB: Factors affecting team performance(1) Team task/process
Interdependence Technology Significance Skills variety Autonomy
(2) Team characteristics and processes Structure and composition: e.g. Team type, size, heterogeneity, roles, norms, goal
clarity, Skills Knowledge and Attitudes, Commitment, Accountability, Autonomy Internal processes: e.g. Communication, Coordination, Leadership, Learning,
Collaboration, Monitoring, Feedback, Decision making, Conflict resolution, Innovation External processes: e.g. Integration, Coordination, Communication, Cooperation
(3) Organisational supportTechnologyTrainingRewardsInformation systemsPhysical environmentStrategic alignment
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TB: PM models vs TPM typologyTB: PM models vs TPM typology
Most available PM frameworks/models do not analyse performance from a team perspectiveThose that do, only focus on measures related to the team process/taskCurrent frameworks do not consider those key factors that drive team performanceThere is a lack of integration between theory on team effectiveness and theory on performance measurement
There is a need for a tool to facilitate TPMS design
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Theoretical frameworkTheoretical frameworkCompany strategyCompany strategy Customer requirementsCustomer requirements
Team Performance Measures
• Acceptability of task/process output• Capability of team members to
work together in the future• Team member satisfaction
DeploymeDeploymentnt
pathpath
DeploymeDeploymentnt
pathpath
DeploymeDeploymentnt
pathpath
TPMSTPMS
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Theoretical frameworkTheoretical framework
Defines a deployment path including five considerations: Expectations (company, process and team) Requirements (process, team, organisation) As-is analysis (current performance vs. desired) Improvement Action Plan Performance Measurement
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Theoretical frameworkTheoretical framework
DeploymeDeploymentnt
pathpath
(1) What do we want the process to do?(1) What do we want the process to do?(2) What does the team need to do?(2) What does the team need to do?
-Team Competencies -Team Competencies (Knowledge, Skills, Attitudes)(Knowledge, Skills, Attitudes)-Team processes -Team processes
(3) What is currently the team doing?(3) What is currently the team doing? How does this affect process performance?How does this affect process performance?(4) Improvement Action plan(4) Improvement Action plan(5) Team Performance Measures(5) Team Performance Measures
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Theory TestingTheory Testing
Theory and workbook was tested through: 4 industrial workshops with Australian organisations
(around 15 organisations) 2 further case studies: Honeywell, Polaroid 4 industrial seminars Focus groups Expert opinion Action Research in Highland-Spring
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Action Research (AR) in Water Bottling CoAction Research (AR) in Water Bottling Co
Objective -
‘To enhance the cross-functional integration of the manufacturing
process team through the development and implementation of a
team based performance measurement system.
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Product Manufacturing Team
SU
PPLIE
R
Blowmoulding
Good InwardsFilling &
PackagingWarehouse
CU
STO
ME
R
EngineeringLaboratory
Quality Assurance
Material flowService flow
AR in Water Bottling Co.AR in Water Bottling Co.
• Look at company and departmental strategy• Define objectives and measures for the process• Align training to competency requirements• Define other organisational issues required to maximise team performance
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AR in Water Bottling Co.AR in Water Bottling Co.
Team Performance Measures•OEM•Cost per case•Employee Satisfaction
• Job satisfaction• Growth needs satisfaction• Organisational commitment
•Skills required vs available (training matrixes)
•Employee involvement•Number of implemented suggestions
Teaming Measures
•Employee productivity•Employee surveys (interdepartmental)•Performance appraisal analysis•Communication•Boundary management
Process Measures
•Downtime Analysis•Estimated vs real changeover time•First hour efficiency•Delivery reliability•Estimated vs Real manning level•Non-budgeted overtime analysis
RESULTS
ENABLERS
Process performance
Employee satisfactionTeam competitiveness
Organisational Support Measures
•Planned vs delivered training•HS vs ‘best practice’ benchmark•Employee survey•% of teams/individuals with goals aligned to company strategy and process objectives
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Results & findingsResults & findings
General The application of the TPM framework enables to highlight those key
areas that were not previously addressed
Teams at different developmental stages require the use of different performance measures
TPM framework was applied in a wide range of industries and thus, we argue that it could be used by a diverse type of organisations
TPM framework is applicable with teams carrying out a variety of tasks and at different organisational levels
TPM as a local management tool and a bottom-up approach
The TPM framework complements other PM models used by the organisations
The generic nature of the framework does not allow to explicitly identify key factors and measures for different type of teams at different organisational levels and developmental stages
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Results & findingsResults & findings
Related to Action Research TPM measurement as a way of increasing management involvement
TPM facilitates the growth in focus and involvement of team
members
But, all the above when considering the bigger context
Related to methodology Usefulness of combining different research strategies
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ContributionContribution
to knowledge was made by….
Developing a better the understanding of the implications of
BPR into team performance management and measurement
Better understanding the limitations of current methodologies
for measuring team performance
Further developing the understanding of performance
measurement in the context of teams by integrating theory of
team effectiveness into research on performance measurement
to practice was made by….
Developing a practical tool (based on a theoretical framework)
that facilitates organisations to assess and manage their teams
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?