Simply. Better. Teams.
Today agile team concepts, Artificial Intelligence & Machine Learning are everywhere.
But when does it make sense to use them? How can AI & ML enhance teams to build a competitive advantage?
Why are they critical for essential topics like agile and digital transformation, data analytics, driving innovation, and resilience?
And what is the best way to implement them?
Artificial Intelligence & Machine Learning can be applied to build agile product teams that outperform your competition.
The latest advances in AI & ML will allow to train models that will revolutionize how we work.
We will quicker identify issues and better pinpoint solutions.
Well performing team but no customer traction?
Low performance team but management is overselling the project?
Lacking stakeholder support?
All these will become identifiable. Not building Superteams will become a disadvantage in the market place.
According to Research, around 35% of Project Budgets Are Typically Wasted due to a Variety of Reasons.
Some of the most common reasons for this waste include:
Inadequate planning and project scoping can lead to unclear goals, unrealistic timelines, and budgets that do not accurately reflect the true cost of the project.
Poor communication between project stakeholders, team members, and customer can lead to misunderstandings, missed deadlines, and costly mistakes.
Scope creep occurs when project requirements change or expand beyond the original scope, leading to additional costs and delays.
Lack of project management expertise
Inexperienced project managers may lack the necessary skills to effectively manage budgets, resources, and timelines, leading to project waste.
Inefficient or outdated processes can lead to delays and additional costs, such as duplication of efforts, rework, or delays in decision making.
Most of these challenges can be addressed or improved with AI & ML.
According to the Project Management Institute's 2020 Pulse of the Profession report, on average, organizations waste 11.4% of their project budgets due to poor project performance. This figure has decreased from 12.4% in 2018 but still represents a significant amount of waste. (Source: https://www.pmi.org/learning/library/pulse-of-the-profession-2020-1844)
The Standish Group's CHAOS Report, which has been tracking project success rates since 1994, found that only 29% of projects are completed on time, on budget, and with all the originally specified features and functions. The report also found that the average cost overrun for failed projects was 43%. (Source: https://www.standishgroup.com/sample_research/chaos-2018/)
The reasons for project waste are well-documented in project management literature. For example, the Project Management Body of Knowledge (PMBOK) published by the Project Management Institute identifies poor planning, inadequate communication, scope creep, lack of project management expertise, and inefficient processes as some of the most common causes of project failure. (Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok)
Rendanheyi - Haier's Approach to Agile Self-organized Teams
Haier, a Chinese multinational consumer electronics and home
appliances company, is known for its innovative approach to management and organization.
One of the key features of Haier's organizational structure is its use of self-organized teams.
Haier's management methodology is called Rendanheyi. The term "Rendanheyi" is a combination of two Chinese words:
"Ren" (人), which means people, and
"Danheyi" (单合一), which means integration.
The concept was first introduced by Zhang Ruimin, the CEO of Haier, in the 1990s as a way to improve the company's performance and better serve its customers.
The Rendanheyi management methodology is based on the idea of creating value for both employees and customers.
It involves organizing the company into self-organized teams that are focused on meeting the specific needs of different customer segments.
These teams are empowered to make decisions and take actions that will improve customer satisfaction, and they are rewarded based on their performance.
The Rendanheyi methodology also emphasizes continuous improvement and learning.
Haier encourages its employees to experiment with new ideas and approaches, and to share their insights with others. This helps to foster a culture of innovation and collaboration, which has been a key factor in Haier's success.
Reasons for Haier's Success with Self-Organized Teams
There are several reasons why Haier's self-organized teams have been successful in business:
Self-organized teams are better equipped to respond quickly to changes in the market and customer needs.
This is because they are empowered to make decisions and take actions without waiting for approval from higher-ups.
This agility allows Haier to stay ahead of its competitors and respond to customer demands in a timely manner.
When employees have more autonomy and ownership over their work, they tend to be more engaged and motivated.
Haier's self-organized teams are able to tap into the collective intelligence and creativity of its employees, leading to greater innovation and problem-solving.
Haier's self-organized teams are organized around customer needs, rather than internal functions or departments.
This customer-centric approach ensures that Haier is always working to provide the best possible experience for its customers, which is critical in today's competitive business environment.
Haier's self-organized teams are encouraged to constantly review and improve their processes and products.
This culture of continuous improvement has helped Haier stay ahead of its competitors and maintain its position as a market leader.
Haier's self-organized teams have been successful because they promote agility, employee engagement, customer focus, and continuous improvement.
Haier is not using AI & ML to coach and improve its teams. Most advantages of Haier's team incorporate agile team management elements and can be replicated and monitored with AI & ML.
Seeing the performance of Haier in a traditional saturated market hints at possibilities when applied to other industries.
Zhang, H. (2019). How Haier reinvented itself four times. Harvard Business Review. Retrieved from https://hbr.org/2019/09/how-haier-reinvented-itself-four-times.
This article provides a detailed overview of Haier's organizational transformation over the years, highlighting the key role that self-organized teams have played in the company's success.
Von Krogh, G., Haefliger, S., & Rass, M. (2012). Enabling knowledge creation through managing group diversity: the case of self-managing teams. Journal of knowledge management, 16(4), 611-627.
This academic article explores the role of self-managing teams in enabling knowledge creation in organizations. It draws on the example of Haier's self-organized teams as a successful case study.
Du, X., Ai, W., & Ren, L. (2020). How to Manage Self-Organized Teams: Lessons from Haier. MIT Sloan Management Review. Retrieved from https://sloanreview.mit.edu/article/how-to-manage-self-organized-teams-lessons-from-haier/
This article provides some practical insights into how Haier manages its self-organized teams, drawing on interviews with company executives and experts in organizational management. It highlights some of the key features of Haier's approach, such as its focus on customer needs and continuous improvement.