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Product Planning

This chapter explores the organization of people within product development, highlighting the spread of responsibilities across various departments such as manufacturing, marketing, and engineering. It discusses interdepartmental integration approaches—like co-location and personnel movement—and outlines different structures (functional, matrix, project program) to enhance collaboration. The text also examines team types, including functional and cross-functional teams, and emphasizes critical team roles for effectiveness. Essential factors for successful product development teams are analyzed, such as structure, support, and team management.

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Product Planning

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  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

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