Leading Collaboration

20.04.2006

S-72.3510 Product Development of Telecommunication Systems

Jari Ylitalo

Helsinki University of Technology

Department of Industrial Engineering and Management

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

Intro – the Lecturer

Jari Ylitalo, Lic.Sc. (Tech.) Researcher at DIEM/HCL Group Research interests

– Leadership, leader development, leadership development, collaboration (social interaction point of view)

– Means, methods, processes and roles of leader/leadership and collaboration development

– Qualitative research, action research

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

Intro – the Lecture

The aim of the lecture is to highlight basics of collaborative dynamics and how to lead collaboration

The findings from a recent research project will be presented (Leading Collaboration in Networked Business - LediCo)

Point of view is generic rather than telecom specific

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

”Why should we consider themes of leadership and collaboration in product

development (or in general)?”

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

Functional Organization

CEO

Planning

ProductionAccounting Sales Marketing R&D Quality HR

Plant 1

Plant 2

Plant 3

District 1

District 2

District 3

Administration

Development

Plant 4

Project 1

Project 2

Project 3

Auditing

Development

Product 1

Product 2

Sevices

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

Networked Organization

Company B

Customer 1

Company A

Customer 2

Company C

Company D

Company E

Project 1

Project 2

Customers of the customer

Customers of the customer

Partnership 1

Partnership 2

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

Background of the LediCo project Successful partnership relationships require

– mutual trust and respect, open communication, long term commitment, capability to resolve conflicts, and willingness to learn together

Collaborative relations are demanding social settings – require often a new kind of mindset and organizational

practices from all collaborative parties We still lack practical and theoretical knowledge

– how to lead, develop and maintain collaborative business relationships

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

To collaborate – the definition

“To collaborate” is “to labor together” In the Merriam-Webster dictionary it is defined as “to

work jointly with others or together especially in an intellectual endeavor”

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

Reasons behind collaboration

An individual organization may try to acquire new knowledge and seek novel learning opportunities through interorganizational collaboration

Three main drivers for interorganizational collaboration: – reducing transaction costs

– new positioning in markets

– access new knowledge and capabilities.

A collaborative relationship is considered by many authors to be the best vehicle for gaining competitive advantage and improving strategic positioning

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

Collaborative relations - diverse realities Collaborative operations have expanded closer to the

organizations’ elementary operations, e.g. R&D, new product development (NPD), and marketing

Relationships vary in length, intensity, formality, objectives, the content of collaboration, the number of partners, management structures, and administrative models

Various collaborative arrangements exist, e.g. networks, alliances, partnerships, and joint ventures

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

LediCo research approach and methods Inductive and explorative case study research with four

cases Two-year project, 2004-2005 The data through documents, interviews, surveys, and

workshops Case companies got specific feedback Findings were generalized at the project level Reporting through conference papers, reports and thesis

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

Cases

A) A large scale IT outsourcing partnership

B) A common information service portal with multiple partners (18)

C) A cross cultural product development partnerhship

D) A complex demand-supply chain dyad

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

Collaboration Frameworks

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

Collaborative Relationship Dimensions

Business outcomes

Added value

Relationshipoutcomes

Trust

Shared meanings

Competencies

Collaboration

Mutual review

Preconditions for a collaborative relationshipInitial match

Top management’s commitment

Interaction & Communication

Knowledge Processing

Learning & Transformation

PurposeCommon

strategic intent

ObjectivesBusiness &Relationship

Infrastructure

Management

Technology

Contracts

Processes

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

Life Cycle of a Collaborative Relationship

Dissolution

1. Pre-stage

2. Exploration– decision

3. Formation– structure & contract

4. Development & Learning– building shared meanings

and trust

5. Maturity – continuous improvement &

value creation

Re-formation

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

Life Cycle of a Collaborative Relationship

Pre-stage and exploratory stage – the need for collaborative relationship is clarified

and the partner is sought Formation stage

– the objectives are defined and the platform for collaboration is set up

Learning and development stage – collaboration is developed through mutual transformation processes

Maturity stage – continuous development of collaboration takes place

Reformation or dissolution– through a crisis the partnership can lead to dissolution of the relationship

The Life Cycle Model emphasises the dynamic nature of a partnership– stages are somewhat overlapping and have not always clear boundaries

Dissolution

1. Pre-stage

2. Exploration– decision

3. Formation– structure & contract

4. Development & Learning– building shared meanings

and trust

5. Maturity – continuous improvement &

value creation

Re-formation

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

Potential Surprises and Underestimations Diversity is greater than expected It takes longer time to build a collaborative

relationship than anticipated Mutual learning and adjustments are continuosly

needed Individuals and their relationships are decisive in

successful collaboration It is not just the interface that matters

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

Mutual Considerations

Why are we doing this? What kind of frame are we using?Roles and responsibilities needed?Mindsets and competencies needed?What kind of mutual actions are needed?Success criteria and evaluation?

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

Tasks of leadership... Ensuring mutual awareness (and existence) of mission/common

purpose of the partnership Ensuring direction for actions, vision and goals of the partnership Creating preconditions for action and success

– Information, knowledge, competences and skills, equipment, empowerment, psychological space, physical conditions and facilities for collaboration

– Creation and maintenance of relevant collaborative connections and relationships between people, teams and organizations internally and externally

– Decision making, conflict resolution, Ensuring feedback and criteria for success of collaboration

– business outcomes, relationship characteristics

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

... Tasks of leadership

Making sure that people know their primary tasks and focus their actions and energy towards those – taking care of task, time and role boundaries

Taking care that the partnership can meet internal and external requirements all the time – Continuous transformation and improvement– Maintaining vitality

Meeting emotional energy and channelling it to promote the primary task of the partnership

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

Conclusions Meeting collaboration challenges concern every

organization (and individual?) Horizontal, one-to-one relationships are in core of a

collaborative relationship Building and nurturing a living relationship require

mutual sense making and dialogue Collaboration competencies and mindset should be

strengthened consciously Continuous matching together needed

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

It takes yearsto build the relationship

-However it can be destroyed

in seconds!

(A LediCo case company representative)

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

Discussion

Have a discussion with the person next to you– What would I expect from my collaboration partner?

– What are special requirements (competences/mindsets) for an individual in a collaborative role?

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Helsinki University of TechnologyDepartment of Industrial Engineering and ManagementJari Ylitalo

S-72.3510Product Development of Telecommunication SystemsLeading Collaboration 200406

Contact Information

Jari YlitaloHelsinki University of Technology

Department of Industrial Engineering and Management tel. +358 50 301 6841

e-mail: jari.ylitalo@hut.fi

Internet: www.hcl.hut.fi