The Leading Edge - Spring 2008 - (Page 9)

briefs COMPLEX WORK? CALL IN THE TEAM Teamwork should be the mantra for those working in the most complex manufacturing environments, according to a recently published study from the Stanford Graduate School of Business. The research found that people in those environments gain the most by using problem-solving teams because they are more likely to be working on very high quality products that require complex steps. “It’s not teams, per se,” says Kathryn Shaw, one of the study’s authors and professor at the Stanford Graduate School of Business. “It’s having an environment that supports teamwork. “You need a group of experts coming together to solve a complex problem. You’re bringing people together because no one can solve the problem as well as a group.” The study, as detailed in a news release posted on Business Wire, used data from steel mini-mills, which traditionally have focused on products rather than on interaction of workers. Managers often resisted the idea of bringing in rank-and-file workers to collaborative meetings because it meant overtime or time away from the factory floor. The five-year study, though, revealed that the number of factories using problemsolving teams more than tripled. Rank-and-file employees can work collaboratively to suggest ways to work smarter, whether from more efficient training to reconfiguration of the product lines or faster ways to identify and reject unacceptable products. Shaw reports that strategic teams with appropriate incentives can have a widespread impact well beyond the steel industry. However, the study also revealed one caveat—team gains are significant only when they address complex processes such as improving product quality or solving assembly line problems. Relatively simple tasks, such as organization shifts, do not improve significantly with teamwork. The full study can be found at www.gsb.stanford.edu/news/knowledgebase.html. ENTREPRENEURS, WE HARDLy KNOW yOU Entrepreneurs frequently drive economic growth, yet their role and needs frequently are not understood by policymakers. A new study by the Ewing Marion Kauffman Foundation is the largest longitudinal research of new businesses ever conducted and is identifying data that will change that course. “These insights into the earliest years of a firm’s existence are essential for creating public and private programs that encourage new business development, innovation and sustainability,” says Robert Litan, vice president of research and policy at the Kauffman Foundation. The Kauffman Firm Survey tracks nearly 5,000 businesses founded in 2004. Annually collected data centers on topics such as debt and equity financing, employee benefits, business innovations, outcomes such as sales and profits, and characteristics of business owners. Among the survey’s highlights: • About 45 percent of businesses experienced a profit during the first year. • Nearly 60 percent had no employees in the first year. Less than 4 percent of the participating businesses had more than 10 employees since their startup. • Many businesses were started with little or no debt financing. Nearly 44 percent had none during the first year of operation, while 17 percent started with $5,000 or less. • Just 10 percent of the businesses in the study used external equity sources in their first year (parents and spouses were the most common support). • Nearly 70 percent of businesses were owned by men and slightly more than 30 percent were owned by women (some businesses had co-owners). • Nine percent of the firms closed by the end of the first calendar year. Alicia Robb, a principal investigator on the survey, says additional research will be available as the study continues to reveal what happens to these businesses in the future regarding strategy, innovation, survival and growth. For more information, visit Kauffman.org. PUNISHMENT HURTS ALL Spare the rod to boost cooperation and increase performance in the workplace— that’s what a Harvard University study recently found. In a study published in last month’s Journal Nature, researchers found punitive action in a group setting is self-destructive and detrimental, Professor Martin Nowak told Bloomberg News. He explained in the article that 104 college students participated in a computerized modified version of Prisoner’s Dilemma. Players played in pairs against unknown opponents and had to decide to cooperate, betray or punish. Points were awarded and deducted based on their decisions. The five top players in the game never used costly punishment (hurting both punisher and opponent), while the five lowest-rated players used punitive behavior most heavily, earning the lowest payoffs and failing to increase the average payoff for the group, according to the details in Bloomberg News. THE LEADING EDGE 9 http://www.gsb.stanford.edu/news/knowledgebase.html http://Kauffman.org

Table of Contents Feed for the Digital Edition of The Leading Edge - Spring 2008

The Leading Edge - Spring 2008 Contents No Place To Go But Up Lessons from Harvard Bits & Pieces Conducting Business Outside the United States Top 10 Misconceptions of Doing Business in Ireland In a Nutshell: Q&A The Leading Edge Alliance

The Leading Edge - Spring 2008

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