Swiss German University Engineering Management Document

SWISS GERMAN UNIVERSITY
ENGINEERING MANAGEMENT
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Engineering Management - Leading Dr. ir. Yuki Indrayadi yindraya@gmail.com
28-Sep-13
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Table of Contents
Leading - Deciding, Communicating, Motivating, Selecting and Developing Deciding - Rational Decision Making, Kepnor-Tregoe Method, Gut Instinct, Group Decisions Communicating - Asking, Telling, Listening and Understanding
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Contents (Contd)
Motivating - Inspire, Encourage, Impel Need-based strategy (Maslow Model) Selecting Focus on hard and soft Skills Developing - Performance correction and personal growth Special Topics on Leading - Lead Changes, New Leader Strategy, Superior Leadership
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Leadership Style
1 - Nice Guy 2 - Loser 3 - Compromiser 4 - Task Master 5 - Ideal Manager
Task
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2 1
People
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Use of Leadership Style

No single style fits all situations A persons dominant style is determined by personality traits Different leadership styles can be effective with different people at different times Advice to engineering managers: Vary style flexibly according to situation at hand in order to be effective
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Leading
To cause people to take effective actions for attaining organizational goals (willingly)
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Question # 4.1
The companys product promised to a major customer is running late and there was intense pressure on the production team to deliver the product. The Direction of Production was eventually told by the company President to deliver or else. The Director therefore decided to ship the product, even though it had not gone through all its testing procedures. Members on the product team were angry by the uncertainty in the functionality and reliability of the shipped product. The Director however insisted: We will just have to take that chance. As the Director of Production, how would you act differently?
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Question # 4.2
As advised by the company President, the Sales Department received a set of specific recommendations produced by an outside management firm to reorganize for maximum effectiveness. The Sales Manager has the hunch that several sales staff may disagree with the recommended changes. The Sales Manager himself is also not fully convinced of the merits of all recommendations. But he wants to implement them, at least in part. How should he proceed?
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Question # 4.7
The Board of Directors received a proposal from a business partner to set up jointly an assembly plant in a third-world country. This new plant will assemble final products using key components made by the company. Financial terms are attractive and the future marketing outlook is bright. There is just one problem. This third-world country is not a democracy, has poor records on human rights, neglects to protect own environment, and does not safeguard workers rights. An investment placed by the company would boost this countrys economy and thus the political position of its current dictator. Should the company accept the proposal and why?
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The Function of Leading
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Deciding
To arrive at conclusions and judgements To assure that the quality of decisions made remains high
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Types of Decisions
Spontaneous Decisions - Intuitive, hunch or gut instinct based Reasoned Decisions - Based on systematic studies and logical analyses (to the extend possible): (1) Assess facts and evaluate alternatives, (2) Use full mental resources, (3) Emphasize creative problem-solving, (4) Think consistently, (5) Minimize the probability of errors (downside risks)
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Why Decision Making is Difficult?

Management Problems - Ill-defined, of wide scope, of constantly changing nature, involving people of unpredictable behavior Data/Facts - Insufficient, of poor quality, excessive, and not to be analyzed and interpreted in time and within budget Impact of decisions - Dependent on peoples opinion, which change in time
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Why Decision Making is Difficult (contd) ?

Nature of Decisions - Compromises among alternatives, with validity changing with time Decision Implementation - Affected by consensus and commitment of affected people Complexity of Decisions Critically important decisions involve multiple management levels, thus requiring coordination
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Criteria for Good Decisions

Achieve stated purpose - correct/change the situation which created the noted problem Be feasible to implement - meaningful with respect to resources required and the value created Have no or limited adverse consequences -not causing major disasters to unit or company in short- and long-term
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Guidelines for Decision Making

Study management cases for acquiring close to real-world experience in decision making Prioritize problems in need of decisions, skip those with minor significance or impact Apply a rational process to guide the decision making process Involve those to be impacted by the decision consensus building foster implementation
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Guidelines for Decision Making

Make decisions based on incomplete/ uncertain information on hand, assumptions introduced Take the necessary risks Delay decision making until the last allowable moment, but within the applicable deadlines, avoid making no decision which is a sign of poor leadership
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Who is to Make What Decision?

Staff Staff and Manager Manager
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Decisions by Staff
Techniques to accomplish assigned tasks or projects Options to continuously improve current operations and work processes Social events - Group picnics, golf outings, Christmas parties, and others
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Decisions by Manager and Staff

Development needs of staff - conference or seminar attendance, training needs, degree programs, etc. Policy and procedure involving staff interactions with other departments Team membership - workload balance, personality fit, working relationship, exposure and visibility, sets of skills, etc.
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Decisions by Manager
Priority of tasks and projects, project or program objectives, budget allocation Personnel assignment, work group composition, evaluation, job action Administrative policies, procedures, office space assignment, special exceptions Business confidential matters
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Rational Decision Making Process
m p l e m e n t D e v e l o p I C o l l e c t l t e r n a t i v e s S o l u t i o n F a c t s A e f i n e R e a l A s s e s s D S e l e c t P r o b l e m P r o b l e m S o l u t i o n
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Rational Decision Making Process

Assess the apparent problem - based on symptoms observed Collect facts - what, how, who, where, when, why, from people who have direct knowledge of the problem at hand : Management by Walking Around Define the real problem - deviation from norm, performance metrics to measure success
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Rational Decision Making Process (contd)

Develop alternatives to achieve the desired resolution - brainstorming, innovation Select optimal solution (logical process, minimizing risks, maximizing probability of success) Set course of action to implement decision, by allocating resources, specifying action steps and define target dates of completion
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Kepnor-Tregoe Decision Analysis Tool

Define decision criteria (necessary criteria and sufficiency criteria) Rank-order sufficiency criteria (from 1 to 10) Evaluate all options against each sufficiency criteria and eliminate those which flunk the necessary criteria Score each surviving option relatively with respect to each sufficiency criteria (from 1 to 10)
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Kepnor-Tregoe Decision Analysis Tool (contd)

Compute a weighted score (multiplying the weight factor of the sufficiency criteria with the relative score of an option and summing up such numerical products for each option) Choose the option with the highest weighted score as the best solution to the problem at hand
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CRITERIA Criteria Criteria Criteria Criteria 1 2 3 4 WEIGHT FACTOR R 10 5 8 OPTION A Go 4 6 10 150 OPTION B Go 8 10 6 178 OPTION C Go 10 7 8 199
Total Weighted Score
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Decision criteria - both necessary and sufficiency- are externalized Relative importance of all sufficiency criteria are rankordered Chosen criteria are Mutually Exclusive and Collectively Exhaustive Decision - equitable, rational, comprehensive
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Decisions Not to Make

Decisions - Not pertinent/applicable to problems at this time Decisions - Can not be implemented effectively (business priority, resources constraints, value created) Decisions - To be made by others
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Question # 4.3
You have been socially pretty active while in college. You know a few people over the years. Among many friends, the following three stand out. Liza majors in literature, is very sociable and communicative, and has an average appearance. She does not hate homemaking. Julie, on the other hand, majors in computer engineering, has a very sharp intellect, and is rather strong willed. She is reasonably sociable and has a passable appearance. Homemaking is not her cup of tea. Debbie is the high school sweetheart, very adaptable and lovely, easy going, comfortable to be with, and has a superb appearance. Her social skills are so so. She likes homemaking which is a tradition of her family and she does it well. Your grandfather is getting old and your mother has been bugging you to make up your mind to get married. Time is running out and you need to make a choice. How would you go about deciding for one of these three candidates as a prospective mate.
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CRITERIA
WEIGHT FACTOR
LISA
JULIE
DEBBIE
Physical Appearance Intellect/Knowledge Adaptability/Compatibility Future Earning Power
Perceived Homemaking Capability

Social Ability

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CRITERIA
WEIGHT FACTOR
LISA
JULIE
DEBBIE
9 5 9 10 8 10

Social Ability

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CRITERIA
WEIGHT FACTOR
LISA
JULIE
DEBBIE
9 5 9 10 8 10
10

Social Ability

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CRITERIA
WEIGHT FACTOR
LISA
JULIE
DEBBIE
9 5 9 10 8 10
5 8 8 8 8 10
8 10 5 10 5 8
10 5 10 5 10 5

Social Ability
401
387
385
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Other Decision Support Tools

Forecasting (exponential smoothing, time series) Regression Analysis (single-variable, multi variables) Risk Analysis (Monte Carlo) What -if Solver Simulation Modeling Decision Trees Optimization (linear programming, integer/dynamic programming)
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Decision Making by Gut Instinct

Spontaneous Decisions - Intuitive solution for complex and ambiguous problems defying systematic analyses (No data) Brain Activities - Left-side (logical, rational and conscious) versus right-side (intuitive, subconscious); Innovative ideas surface unexpectedly, due to accumulated patterns and rules derived from past experience
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Decision Making by Gut Instinct

Intuitive decisions can be wrong from time to time, feedback from trusted sources is needed to recalibrate patterns and rules frequently If repeated, feedback-based learning tends to improve quality of intuitive decisions made in the future
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Decision Making in Teams

Group dynamics Conflict, consideration, closure Criteria for good group decisions
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Decision Making in Teams

Group dynamics - New dimensions to decision making: (1) Coalitions/alliances among team members - position-based advocacy, (2) Conflicts of interests, (3) Personality clash (fighting words, selective seeing, interruptions, personal friction) Leadership Role: (1) Managing conflict, (2) Consideration and (3) Closure
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Decision Making in Teams (Contd)

(1) Minimize Conflict Follow an Inquiryfocused solution-discovery process, not to conduct a position-fighting exercise: (A) Share information, (B) Think critically, (C) Debate ideas rigorously, (D) Check assumption relentlessly, (E) Apply rule of reasoning, and (F) Testing strengths among competing ideas (not competing positions)
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(2) Show Consideration - Make sure that the losers perceive fairness of having their ideas heard and considered: (A) No predetermined solutions, (B) No personal preference of leaders, (C) Listen actively to all ideas - taking notes, asking questions, (D) Explain logic of final decision and why the views of the losers were not accepted
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(3) Manage Closure: (A) Early Close (group think phenomena) as unstated objections will show up at implementation phase: leader to inject questions and promote additional debate, (B) Late Closure (endless debate between warring factions, trying to resolve all trivialities just to be fair) - Leader to cut off debate and announce decision
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Decision Making in Teams (contd)

Criteria for good group decisions (a) Multiple Alternatives to create (b) Assumptions to check (c) Decision criteria to externalize (d) Dissent and debate to promote (e) Perceived fairness to assure
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Communicating
To create understanding and acceptance by conveying facts, viewpoints, impression and/or feelings
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Guidelines for Communication

Communicate with a clear purpose Select proper form to communicate - face-to-face talk, phone conversation, emails, videoconference, staff meeting, written memos, webposting, net-meeting Be honest and open, welcome suggestions, offer pertinent information to dispel fears Keep communications channels open
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How to Communicate?
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Asking
Asking open-ended insightful questions to gain knowledge and to improve understanding of the situation at hand Quality of questions is an clear indication of the questioners grasp of the situation at hand
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Telling
Offer information to keep people (peers, employees, bosses, supply chain partners, customers) informed about matters of concern to them Judgement is needed as to what to tell and what not (Need to Know paradigm), seek balance between (1) trust-creation and no surprise versus (2) control over information
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Listening
Remain focused in listening to the subtext and true meaning of the exchange Maintain eye contact Exercise self-discipline to control own urge to talk and avoid interrupting others
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Understanding
To hear by the head and to feel by the heart Assess the degree of sincerity - verbal intonation, facial expression, body language Recognize shared meaning (emotional and logical)
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Common Barriers to Communications

Semantics Selective Seeing Selective Listening Emotional Barriers
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Common Barriers to Communications

Interpretation of Semantics (words/terms may have multiple meanings) Selective Seeing - See only what one wants to see Selective Listening - Hear only what one wants to hear (screen out ideas divergent to own opinion or self-interest) Emotional Barriers (strong attitude and feelings, personal biases)
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Techniques of Communicating
Know what one wants to say and say what one means (some people want to impress others, not to express themselves) The answer is definitely a maybe It is not probable, but still possible Know the audience (tailoring to the receivers frame of mind - belief, background, attitudes, experience and vocabulary)
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Techniques of Communicating (contd)

Get favorable attention - Taking into account of receivers interest and emotional standing Get understanding - Leading the exchange from present to future, familiar to unfamiliar, and agreeable to disagreeable Get retention - Repeat the ideas (Rule of Four) Get feedback - Asking questions Get action to enhance communications
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Question # 4.6
Jerry Lucas is the Division Director. As Branch Chief. Bob Sanford reports to Lucas. Bob Sanford has four section chiefs reporting into him. Bob Sanford is technically competent with extensive experience in solid rocket propulsion, being regarded to be the best expert in this field. He is highly dedicated to work, but inexperienced in managing technical people, as he has been on the job for only two years. Sanford handles his subordinates quite roughly. He reversed section chiefs decision without prior consultation with them. He demands that no information or data be transmitted to persons outside the group without his knowledge and concurrence. He would also bypass his section chiefs to go directly to people and encourage them to come to him directly with problems. Rumors have it that he places spies or informants within the group. As expected, he delegates no decision-making authority to his section chiefs and regards his section chiefs to be technically incompetent. He creates an atmosphere of fear and suspicion with low group morale. Bob Sanford does not report to Jerry Lucas candidly on project progress and on difficulties encountered. He does not understand his own responsibility of building team-work, enhance group morale and create employee satisfaction, while achieving the goals of his group. He is lacking the skills and willingness of resolving conflicts within the group. Finally, the section chiefs as a group went in to see Jerry Lucas, complaining about the lack of authority and the oppressive atmosphere in the section. What should Jerry Lucas do?
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Question # 4.5
Marketing needs to submit a proposal to a global customer and called a review meeting next morning. By the time Bill Taylor, Design Manager, was so informed in the late afternoon, all his design staff had left and there was no one available. Bill Taylor decided to work on a proposal himself throughout the night so that he can talk with all his design staff in the next morning, one hour before the Marketing Review meeting. All staff agreed with the proposed design, except Henry King, a senior staff, who is recognized as the most experienced and best designer in the group. His objections were that the current design is too complex and that it would take another week to improve on the design for assuring its functional performance. In order to pacify him, Bill Taylor invited Henry King to come along to the Marketing Review meeting so that he would feel the pressure Marketing is exerting on Design. Unexpectedly, Henry King stood up and reiterated all his design objections at the Marketing Review meeting, causing a tremendous embarrassment to Bill Taylor and his boss, Stanley Clark, the Design Director. Bill Taylor became furious. What should Bill Taylor and Stanley Clark do?
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Motivating
To motivate is to apply a force that excites and drives an individual to act, in ways preferred by the manager/leader.
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How to Motivate
Inspire - Infuse a spirit of willingness (By work done, leadership traits, examples set) Encourage - Stimulate through praise, approval and help Impel - Force (Coercion, compulsion, punishments)
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Techniques to Enhance Motivation

Participation - Promoting ownership of idea, project, task and program Communication - Objectives, metrics Recognition - Fair appraisals inducing loyalty and confidence Delegated Authority - Convey trust Reciprocated Interest - Show interest in Results
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Keys for Successful Motivation

Accept people as they are, not try to change them - personal preference, values and standards Recognize that other have drives to fulfill own needs - self-actualization, recognition, ego, self-esteem, group association, etc.. Motivate by addressing the unsatisfied needs - Maslow Need Hierarchy Model
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Maslow Hierarchy Need Model

Self Actualization - Selfdevelopment and realization of own potential Esteem - Ego, recognition Social - Peer acceptance, group affiliation Safety - Job security Physiological Needs - Food & shelter
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S e l f A
E s t e e m S o c i a l S a f e t y P h y s i o l o g i c a l N e e d s
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Maslow Hierarchy Need Model

A higher level need only arises when lower ones are already satisfied A satisfied need no longer dominates the individuals behavior, the next higher need takes over An unsatisfied need acts as a motivator - Central to need-based motivation strategy The top level needs are never fully satisfied
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Motivating Factors for Professionals

Scope of self expression and creativity, having room for making decision, choosing methods and utilizing own talents fully Independence with minimum supervision Recognition for achievements Variety of challenging work is motivating Pay and benefits are minor motivators
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Selecting
By selecting people, managers gain staff with right skills, dedication, value systems, personality, and win their loyalty over time Associate themselves with the right mentors and leaders
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Standard Procedure of Employee Selection Process

Define needs Define qualifications Get applicants Review and pre-screen applicants Conduct interviews - Asking good questions Decide on job candidates
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Skills Assessment
Hard skills - Technical capabilities readily assessed (transcripts, reports and references) Soft skills - Behavior in team work, interpersonal skills, leadership quality, cooperative attitude, mental flexibility and adaptability - all related to personality psychological profile, value systems and deep-rooted beliefs are difficult to evaluate
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Challenges of Selecting
Managers are not trained to assess soft skills major sources of job-related problems and key factors for career failures Candidates are polished to Talk the talk and walk the walk, masking their true long-term personal behavior Selecting people remains a major challenge to all managers
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A Best Practice in Selecting

Companies: Mazda Motor, Flat Rock, Michigan and Diamond-Star Motor, Normal, Illinois Selection Criteria: (1) Interpersonal skills to get along with people, (2) Aptitude for teamwork, (3) Personal flexibility, (4) Drive to improve continuously
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A Best Practice in Selecting (contd)

Selection Process: (1) Multiphase process involving tests, exercises, and role playing in group activities, (2) Pick the best (based on soft skills) employees and train them well technically Results: Got 1300 people out of 10,000 applicants at $13,000/person hiring expenses
(Source: Williams J. Hampton, How Does Japan Inc. Pick its American Workers? Business Week, October 3, 1998)
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Developing
Purpose: To improve knowledge, attitude and skills of employees Knowledge: Cognizance of facts, truths and other information Attitude: Customary dispositions toward people, things, situations and information Skills: Ability to perform specialized work with recognized competence
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How to Develop People
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Guidelines for Employee Development

Emphasize employees role in development (good for the individual and company) Appraise present performance and future potential Counsel for improvement (to induce selfimprovement, set example) Develop Successors - Career Planning Plan of Some Progressive Companies
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Special Topics on Leading

Leading Changes (Eightstep processes to create and sustain changes) New Leaders (Strategy for First 6 months) Advice for Superior Leadership (Eight attributes and more)
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Leading Changes
Changes take time to set in and there are eight critical steps to follow:
(1) Establish a sense of urgency - Identify
marketing and other factors supporting the urgent need for change, getting 75% of corporate leaders on board
(2) Form a powerful guiding coalition -
Secure shared commitment of top leaders

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Leading Changes (Contd)

(3) Create a vision - Have an easy-tocommunicate vision to direct the change efforts
(4) Communicate the vision - Using all means available to spread the words (5) Empower others to act on the vision Encourage risk taking and removal of systems/ people resisting change
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Leading Changes (Contd)

(6) Plan for short-term wins - Select projects to achieve wins within the first one to two years, in order to keep momentum (7) Consolidate improvements - modify systems and promote people in favor of changes (8) Institutionalize new approaches Ensure leadership development/succession
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Corporate Transformational Changes

Corporate Transfromational Changes
9 8 7
# Changes
6 5 4 3 2 1 0 1 2 3 4 Ye ar 5 6 7
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Advice for New Leaders

New Leaders - Sailing through dense fog in first 6 months (short visibility ahead) Seven-rule strategy to follow: (1) Leverage the time before entry - Study the new situation (SWOT analysis), prepare questions (2) Organize to learn - Technical, cultural and political arenas
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Advice for New Leaders (Contd)

(3) Secure early wins - Get some wins in first 6 months (4) Lay foundation for major improvements Initiate pilot programs to try out new technology tools, Change ways to measure performance, Introduce new ways of operating and viewing business, Promote positive examples, and Envision new mechanism to do business
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Advice for New Leaders (Contd)

(5) Create a personal vision - linking to core value and be compatible with top-priority projects (6) Build winning coalitions - linking with powerful groups in top-management, middle management and working groups (7) Manage own time and stress, Secure technical, political and personal advisement
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The Transition Pyramid

Achieve Prioritized Projects Securing Early Wins Laying the Foundation
Learning
Visioning
Coalition Building
Source: Michael Watkins, Seven Rules for New Leaders, Harvard Business School Notes # 9-800-288, June 8, 2001.
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Guidelines for Superior Leadership

(1) Maintain absolute integrity (2) Be Knowledgeable (3) Declare expectations (4) Show uncommon commitment (5) Get out in front (6) Expect Positive results (7) Take care of people (8) Put duty before self-interests
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Profile of Successful Leaders

Strong drive for responsibility and task completion Vigor and persistence in pursuit of goals Venturesomeness and originality in problemsolving Drive to exercise initiative in social situation Self-confidence and sense of personal identity Willingness to accept consequence of decision and action Readiness to absorb interpersonal stress Willingness to tolerate frustration and delay Capacity to structure social interaction systems to the purpose at hand
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Conclusions
Engineering Managers should pay attention to: (1) Making decisions under uncertainty (not suffering from paralysis by analysis), (2) Motivating other engineers with proper motivators, (3) Communicating by proactive asking and intensive listening, (4) Selecting to focus on soft skills, (5) Developing people using personal examples.
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Question # 4.4
The Engineering Director of the company is asked to send one engineer abroad to assist in the installation of equipment. There are three qualified candidates, each working for a different manager under the Director. The Director knows that all three engineers will want to go, but their bosses will not, for fear of losing time in doing their own very critical projects. How should the Director make the choice?
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Question # 4.17
Conflicts between technologists and managers may arise, when the technical professionals (with the skill to make a decisions) have to deal with a manager (who has the right to decide). Why such conflicts often exist in organizations wherein everyone works toward the same common goal?
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Engineering Management - Leading Dr. ir. Yuki Indrayadi yindraya@gmail.com