Product Planning

1. Product Planning Chapter 3

2. Organizing People • Generally, the process is spread across different departments in organizations • Technical responsibilities tend to fall in manufacturing, engineering, or operations • Marketing responsibilities tend to fall in marketing, advertising, sales, or distribution • The organization can give strong signals as to how a company values new product development

3. Interdepartmental Integration • “in your dreams…” • Six general approaches to integrating departments 1. Co-location - putting them near each other 2. Personnel movement – moving people among departments 3. Formal processes – shared decision-making 4. Informal social systems – scheduled and informal meetings 5. Incentives – dangle a carrot in front of team members 6. Organizational structure – design the organization with this process in mind

4. Organization Structure • The prevalent approach, often accompanied by the thought that putting an organization chart on paper will make the process work effectively • Different ways to set up the structure • Functional approach – grouping skill sets • Matrix organization – reporting to two bosses • Project program approach – large, long projects

5. Team Types • Many organizations use product planning teams to manage their process • Five different types of teams • Functional – within an individual department • Multi-functional – across different departments • Balanced matrix – team members still do department work as well as product planning work • Cross-functional teams (project matrix teams) – similar to multi-functional, except compensation driven by team leader, not departments • Venture teams – self-contained teams with 100% focus and self-sustaining resources

6. Team Roles • Core team, ad hoc team, and extended team • Team leader – project manager • Inventor – original idea source • Champion – sponsor and main advocate • Sponsor – executive level resource provider • Rationalist – devil’s advocate role

7. Factors for Team Effectiveness • Structure of product development process • Linkages within and between departments • Organizational support for teams • Pay and promotion, career development • General team management issues • Team size, selection, training, leadership, conflict resolution • Typically teams are 8-12 members