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7/19/21 1 Team Decisions, Mt Everest Simulation BUS38118 – Summer, 2021 Effective Management of Groups and Teams Reid Hastie Friday from 6:00pm-9:00pm Saturday from 1:30-4:30pm - remote format - Teaching Assistants Dane Christensen < [email protected] > Donovan Rowsey < [email protected] > Meeting Plan 1. Mt. Everest Simulation 2. 3:30 DEBRIEF 3. Comments on individual and group decision biases MBA Teams at Chicago Booth 1. Problem: Performance Evaluation many suggestions to identify and punish free-riders But, how do you identify them? 2. The value of a well-defined plan: Objective, sub-tasks (sub-goals) just not always possible 3. Recommend: Always provide an alternative individual assignment (whenever team assignments are made) 4. Recommend: Use of standard Team Contract (at Booth) 5. Recommend: Major Offense Reports Yellow Card, Red Card

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Page 1: MBA Teams at Chicago Booth

7/19/21

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Team Decisions, Mt Everest Simulation

‘ BUS38118 – Summer, 2021

Effective Management of Groups and Teams

Reid Hastie

Friday from 6:00pm-9:00pm Saturday from 1:30-4:30pm

- remote format -

Teaching Assistants Dane Christensen

< [email protected] > Donovan Rowsey

< [email protected] >

Meeting Plan 1.  Mt. Everest Simulation

2.  3:30 DEBRIEF 3.  Comments on individual

and group decision biases

MBA Teams at Chicago Booth 1.  Problem: Performance Evaluation … many

suggestions to identify and punish free-riders … But, how do you identify them?

2.  The value of a well-defined plan: Objective, sub-tasks (sub-goals) … just not always possible

3.  Recommend: Always provide an alternative individual assignment (whenever team assignments are made)

4.  Recommend: Use of standard Team Contract (at Booth)

5.  Recommend: Major Offense Reports … Yellow Card, Red Card

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Everest Simulation

10+ minutes for students to sign-in and study the “How to play” tutorial and their individual role background information Assemble in a Zoom Breakout Room (room # = team #) … verify you have a complete 5-role team, and begin the simulation You may need to sign-out of the simulation after the tutorial and then sign-in again in order to play your role …

Everest Simulation

Not a video game, point-and-click strategies, without some analysis will not succeed

Leader: Verify that all team members have entered their decisions at the end of each “day,” before the Leader moves the team on to the next “day”

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Be sure to find and use your chat function to communicate with teammates – as well as the Zoom Breakout Room meeting option If you are separated from your party (e.g., you are at Camp 2, your party is at Camp 3), communicate via chat and in the Zoom Breakout Room (until you re-unite) You do not have to stay together, but you cannot receive medical supplies if you are separated from the Physician The first two rounds are less eventful, use this time to become familiar with the interface, consider your role, and begin interacting with your teammates Teams finish a different times, so some of you will have a fairly long coffee break to wait until we re-start discussion at 3:30 (Saturday)

Good luck on the mountain …

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The Challenges …

Day 3: What’s the matter with the Environmentalist? The Environmentalist suffers from an asthma attack … Solution, the Physician supplies an inhaler

Day 4: (Team is at Camp 3) Lack of weather information, should you ascend to Camp 4? Expected temperature at Camp 4 is -230F + wind chill implies frostbite in 5 min … team should not ascend today

Day 5: (Team is at Camp 4) Each member (at Camp 4) needs to request an individualized number of oxygen canisters for the ascent … (total time is 18 hours = 1,080 min; canisters = [liters/min X 1,080 min]/720 liters-per-canister) Leader (2 canisters), Physician (4), Photographer (2), Marathoner (6) Environmentalist (6)

Specific problems to solve …

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Team process challenges?

INFORMATIONDISTRIBUTION

PERFECTLYALIGNED

LOTSOFCONFLICT

COMPLETELYSHARED

LOTSOFUNSHARED

XXX

GOALALIGNMENT

CommonKnowledgeEffect… Informationheldbymoremembersbeforeteamdiscussionhasmoreinfluenceonteamjudgmentsthaninformationheldbyfewermembers,independentofthevalidityoftheinformation.

Pooling un-shared information …

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Why does the Common Knowledge Effect occur?

1.  (good reason) In most well-organized team decisions, the most important information is the most-shared

2.  (bad reason) “Feels good” to compare notes … less stressful than trying to evaluate new information (perhaps from an unreliable source)

3.  (bad reason) Everyone feels competent, has a valid opinion, likely to agree

How to counter-act the Common Knowledge Effect?

1.  Be aware of its existence 2.  Leadership … facilitate pooling: systematic

discussion plan, equal participation rates 3.  Minimize status differences, encourage low-status

to contribute first 4.  Start with evidence-driven discussion plan … first

the facts, then solutions, then critical evaluation 5.  Rigorous, but not poisonous evaluation process …

Obligation to Dissent (next week more on rigor … can also be considered part of a “good climate”)

6.  (maybe) employ a discussion device like Adversarial Roles (Red Team/Blue Team)

How to counter-act the Common Knowledge Effect?

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Mixed objectives …

Leader objectives … summit + team survival

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FridayEveningTeamfirst

SaturdayEveningTeamsecond

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Physician objectives … summit + team survival

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Photographer objectives … don’t summit and go slow

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Marathoner objectives … summit, selfish

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Environmentalist objectives … don’t summit, go slow

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Team goals achieved …

Team goals achieved …

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Suppose you wanted to “score” team decisions for optimality, for quality?

A Everyone loves the decision … and it “works”

B ?

C ?

D ?

F Deadlocked … Unable to Decide

… improve on the HBS scoring scheme?

Questionnaire results … 1.  Overall team effectiveness 2.  Psychological Safety 3.  Cognitive Conflict 4.  Affective Conflict 5.  Fair Process 6.  Leader Effectiveness

… questionnaire gives you a sense of how to interpret these concepts in

the context of a team activity

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Kahneman’s Catalogue of Biases …

Cognitive Biases … 1.  Availability, Salience … images, concepts,

analogies 2.  Anchoring (numbers, not “ideas”) 3.  Representativeness (similarity and stereotypes) 4.  Confirmation 5.  Scenario-thinking (Disaster Neglect), aka “the

inside view,” narrative myopia, or tunnel vision

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Kahneman’s Catalogue of Biases …

Motivational, Social Biases … 1.  Self-Interest … illusion of fairness 2.  Self-Aggrandizing Attributions … “better than average,”

over-credit the self, blame the situation (including co-workers)

3.  Optimism Motivational-Cognitive Mixture 1.  Overconfidence 2.  Sunk-Cost Fallacy 3.  Loss-Aversion, Risk-Aversion

Teams and Groups … biases

1.  Groupthink 2.  Polarization 3.  Competitive Escalation 4.  [ In-group Favoritism (generalized selfishness) ] 5.  [ Free-Riding ]

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Enough for today …