Leading Projects: the role of personal style in NPD project success Zvi Aronson, Ph.D. Affiliate Assistant Professor HOWE School of TM 1 © Zvi Aronson

Agenda Perspectives on leadership Leader personal style captured by the FFM Project-based work – and uncertainty –Effect of leader personal style on NPD success Implications for selection and development

Perspectives on Leadership 3 Behavioral and trait perspectives Who are leaders? What do leaders do? (task and relationship management ) Contingency perspectives When should they do it? (LPC and Path Goal Theories) Follower perspectives How do leaders affect others? (Charismatic and Transformation al Leadership) Emotional and symbolic © Zvi Aronson

Is there optimum leader personal style for NPD ? Market & technology uncertainty Leader Personal Style Five Factor Model Selection Development Implications Success

Project Leader – A Pivotal Figure Link between the project team and senior management Effective in obtaining resources – personnel; larger budgets for the team Often central in creating the project vision and communicating it to project the team Facilitates teamwork Keep teams motivated and focused Are small group managers of their teams What are the characteristics of leaders who are more effective on these tasks? Implications cor selection and development?

Extroversion-introversion –sociable, talkative, assertive, active –retiring, sober, reserved, cautious Agreeableness –good-natured, gentle, cooperative, forgiving, hopeful –irritable, ruthless, suspicious, uncooperative, inflexible Conscientiousness –careful, thorough, responsible, organized, self- disciplined, scrupulous –irresponsible, disorganized, undisciplined, unscrupulous –A conscientious person plans rather than acts on spontaneous behavior. Emotional Stability –calm, enthusiastic, poised, secure –depressed, angry, emotional, insecure Openness to Experience –imaginative, sensitive, intellectual, polished –down to earth, insensitive, narrow, crude, simple –An open person tends to appreciates adventure, unusual ideas, non traditional thinking, imagination and curiosity. Five-Factor Model Capturing Personal style A comprehensive way to understand personal style differences

Uncertain Environment - Radical Innovation radical innovation exists when both market and technology uncertainties are high innovations of this type pose severe challenges for new product teams, because –the market is not well understood and the product is still evolving and changing with the market. –these types of innovations require a focus on a learning- based strategy -experimenting is an essential component of the process. –Product teams may try a product in the market to learn, improve it and try it again

Stable Environment – Incremental Innovation Exists when the customers are well defined and are typically well known as is the technology required to produce the innovation. Incremental innovations include product changes or improvements, product line extensions and ‘me too’ products that are similar to the competition. Typically more rule and planning-oriented This type of innovation usually encounters fewer surprises than the more radical type.

NPD success- Leader Personal Style Link- example Leaders personal style Success Uncertainty Certainty Un-open Open High Low NPD

Leader Openness – fostering constructive conflict among team members When greater uncertainty exists, as in radical innovation, the propensity for conflict may increase –Open individuals are better able to understand and adapt to others’ perspectives –Open NPD project leaders should also be willing to listen to criticism and encourage different points of view –Reduce the likelihood of group-think Use conflict as a spring board for idea generation, problem solving Collaborative conflict management

Leader Openness: learning-based strategy; Openness to the customer under conditions of high uncertainty, characteristic of radical innovations, development teams face severe challenges because the market is not well understood and the product is still evolving and changing with the market. these innovations require a focus on a learning-based strategy - experimenting is an essential component of the process. Product teams may try a product in the market to learn, improve it, and try it again Project leaders high in openness should be more successful on trial and error research tasks that require maintaining flexibility, learning through experience, and openness to customer information Implications for coaching these individuals to use this asset to learn more about the customer and technology, to successfully bring the product to market.

Leader Openness - vision - unified goal shaping a vision involves the cognitive ability to mesh various factors together to create an effective product concept Represents a positive outcome for the project identifies what is possible if the team pulls together when the level of uncertainty is high, as in radical innovation, this creative task may be more complex leaders high on openness, are more creative, and successful on this task implications for Vision training - techniques for generating new possibilities beyond current trends

Leader extraversion – communicating the vision It is critical for the leader to communicate the project vision –verbally, in memos –referring to the vision in celebrations, speeches, –daily interactions –speaking enthusiastically about the project assignments –Clarifying goals that are tied to the vision Extraverted leaders passionately articulate the vision regarding project goals, to project members, engendering high levels of performance Implications for building communication skills

Leader Stability – A Stress Buffer Having a radical NPD team led by a leader who is Stable should be particularly functional because of the uncertainty, rapid change and the surprises involved with radical innovation. Air crew captains A Stable leader can help buffer the radical NPD team from the stress associated with this uncertainty, thus enabling the team to continue functioning together over long periods of time necessary for radical NPD Develop stress management skills

Leader Conscientiousness – task orientation Planning is crucial for both radical and incremental NPD leaders, although radical NPD team leaders must plan for a far more uncertain environment (Barczak). Conscientious individuals have a preference for planning – task orientated; set goals Conscientiousness is related to performance across jobs and criteria and this suggests Leader Personal style, characterized by by conscientiousness should be important for success in both types of NPD. Develop: invest time in goal setting/planning

Respondents Sample – 178 NPD project teams Respondent breakdown –NPD professionals (primarily product – 41%, technical 38%; and marketing 31% managers) from technology- based companies in NY and NJ Industries – telecommunications; computers; electronics; pharmaceutical; information services Mostly firms: annual incomes >500 million Response rate - 93% Team size: average 23

Uncertainty – how would you describe your NPD project in relation to these statements The technology required to develop this product (R&D) was totally new to our company This product had to be sold to people or organizations outside our company's traditional customer base 178 NPD teams were split 89 Incremental 89 Radical – greater uncertainty

Criterion - NPD project performance - speed and success This product was (speed) developed and launched faster than the major competitor for a similar product completed in less time than customary in our industry launched on or ahead of the original schedule developed at initial project go-ahead This product met/exceeded expectations (success) senior management sales Profit market share expectations customer expectations alpha.96

Conscientiousness Openness Extroversion Agreeableness Stability For all products –Relationships Between Leader Personal style & NPD Success NS.22*.32**.29**.15* * p<.05; **p<.01 CorrelationsRegression; Betas.23*.18*

Conscientiousness Openness Extroversion Agreeableness Stability Results –Relationship between Leader Personal Style and NPD Success.21*.27**.45** IncrementalRadical.20 * * p<.05 ; **p<.01 ; F–Test – for slopes significant.14.45** NS

Implications for Selection Conscientiousness and Stability –Minimum levels established as selection criteria, for employees being considered to lead NPD teams Openness –Selecting team leaders who are open is crucial for success in radical NPD teams

Implications for Development A leader with a personal style characterized by openness can be coached to –use this asset to encourage and handle new ideas –and learn more about the customer to successfully bring the product to market.

Implications for Development A leader with a personal style characterized by openness can be coached to –use this asset to encourage and handle new ideas –and learn more about the customer to successfully bring the product to market.