Measuring and Managing Team Performance:

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Measuring and Managing Team Performance A
Balanced Approach Researcher Kepa Mendibil
Telleria Supervisor Dr Jillian MacBryde DMEM
Research Presentation Day 24 January 2003
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Contents

• Research area background
• Research questions
• Methodology
• Results findings
• Contribution of the research

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Research area Background

• 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 teams

• Implications
• Increase empowerment
• Increased accountability
• Increased emphasise on measuring and managing
  team performance

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Common Problem

• PROBLEMS
• Business Process objectives are
• not aligned with companys strategy

• Employee performance measurement
• is not aligned with process performance
• and organisational objectives

• Lack of understanding on how to
• measure team performance

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Why do teamwork attempts fail?

• 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)

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Research 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 Phases
Novelty of research
Discussion groups
Broad literature review
Specific literature review
Practical relevance
Exploratory research (Phase 1) 4 case studies
Industrial workshops
Seminars
Applicability of The tool in Different
environments
Exploratory research (Phase 2) 6 best
practice case studies
Case studies
Expert opinion
Action Research
Focus group discussions
Reliability of Research process

• Research problems
• RQ1, RQ2

-Theoretical framework and workbook verified and
improved -Findings
-Reliable answers to research questions -Proved
novelty of the research
-Research gap -RQ3, RQ4 -Typology for TPMS
design -Theoretical framework -TPM workbook
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Pre-understanding

• 4 case studies EPSRC project collaborators

• 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)

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Pre-understanding

• All organisation deemed team performance
  measurement (TPM) as an important aspect
• Organisations 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 systems
• 3 main areas impacting team performance
• Process management
• Team management
• Organisational support management

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Theory Building (TB)
Development of TPM typology
Do current framework meet TPM requirements?
Re-think research questions
Develop TPM framework
Construct practical tool
Apply model/tool and extract learning
Contribution to Knowledge
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TB 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
• Team effectiveness How well does the team
  achieve its process/task objectives?
• Team efficiency How do team processes affect the
  capability of team members to work together in
  the future?
• 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 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 support
• Technology
• Training
• Rewards
• Information systems
• Physical environment
• Strategic alignment

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TB PM models vs TPM typology

• Most available PM frameworks/models do not
  analyse performance from a team perspective
• Those that do, only focus on measures related to
  the team process/task
• Current frameworks do not consider those key
  factors that drive team performance
• There is a lack of integration between theory on
  team effectiveness and theory on performance
  measurement

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Theoretical framework

• Team Performance Measures
• Acceptability of task/process output
• Capability of team members to
• work together in the future
• Team member satisfaction

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Theoretical 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 framework
(1) What do we want the process to do? (2) What
does the team need to do? -Team Competencies
(Knowledge, Skills, Attitudes) -Team processes
(3) What is currently the team doing? How does
this affect process performance? (4) Improvement
Action plan (5) Team Performance Measures
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Theory 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 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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AR in Water Bottling Co.
CUSTOMER
SUPPLIER

• 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.
RESULTS

• 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

ENABLERS

• 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

• 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

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Results 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 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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Contribution

• 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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