1 “patrice zagame’s team leadership of novartis brazil” case study for chapter 11...
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“Patrice Zagame’s Team Leadership of Novartis Brazil”
Case Study for Chapter 11 “Developing and Leading Teams”
by Mohammad Khadim
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Overview
Novartis Brazil is major developer of products to protect and improve health
2002 - Patrice Zagame became president of Novartis Brazil
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Patrice Zagame
He found the company with Poor financial
performance for two consecutive years
Losing market share following four consecutive layoffs
Low employee moral
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Question 1
What team dysfunctions appeared to exist at Novartis Brazil when Patrice Zagame arrived as the president?
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Potential Team Dysfunctions
PotentialTeam
Dysfunction
Groupthink
Free riding
Bad apples effect
Absence of trust
Avoidance ofaccountability
for results
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High cohesiveness Insulation of the team from outsiders Lack of methodical procedures for search and appraisal Directive leadership High stress with a low degree of hope for finding a better solution than the one favored by the leader or other influential persons Complex/changing environment
Illusion of invulnerability Collective rationalization Belief in inherent morality of the team Stereotypes of other groups Direct pressure on dissenters Self-censorship Illusion of unanimity Self-appointed “mind guards”
Incomplete survey of alternatives Incomplete survey of goals Failure to examine risks of preferred choice Poor information search Selective bias in processing information at hand Failure to reappraise alternatives Failure to work out contingency plans
Conformity- Seeking
Tendencyof
Group
Initial Conditions Characteristics ofGroupthink
Groupthink Leadsto Defective DecisionMaking in Terms of
GroupThink
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Team Dysfunctions
GroupThink Team members agree with each other at any cost, even if it is
incorrect Free rider
A team member who obtains benefits from membership but does not bear a proportional share of the responsibility for generating the benefit
Bad apples effect Negative team or group members who withhold effort, express
negative feelings and attitudes, and violate important team norms and behaviors
Absence of trust Avoidance of accountability for results
Team members may put their own needs (ego, career, recognition) ahead of the goals of the team when individuals aren’t held accountable
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Novartis Team Dysfunctions Groupthink
Employees all agreed with one person when making decisions, they did not question it
Employees did not like to challenge the authority figure, and the leadership team was not accustomed to challenging others
Usually one person made the decisions without discussing it with the group
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Novartis Team Dysfunctions
Avoidance of Accountability for Results
Using top down culture, employees showed low accountability for the overall results
Employees did not feel responsible when things did not go well with their projects
Employees did not commit to a clear goal or plan of action
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Question 2
What norms appeared to exist upon Zagame's arrival and what norms did he work on changing and adding?
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Norms
Rules and patterns of behaviors that are accepted and expected by members of a team
Teams adopt norms to help them attain their goals, which may or may not be consistent with organizational goals
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Novartis Existing Norms
Leaderships valued authority and hierarchy
Leaderships did not challenge each other's decision, for example CEO idea was automatically implemented
Teams followed what leaders decided without giving their own opinion
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Novartis New Norms
Decisions to be made as teams
Proposed decisions to be challenged by everyone
Different opinions to be discussed in meetings
Meetings to be brain storming only
Leadership model a behavior to promote "speak up"
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Question 3
Why is Zagame an effective team leader?
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Effective Team Leader
Effective team leaders influence virtually all the factors that affect team behaviors
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Characteristics of Effective Teams
Know why it exists and have shared goals
Support agreed-on guidelines or procedures for making decisions
Communicate freely among themselves
Help each other
Deal with conflict openly and constructively
Diagnose its own processes and improve their own functioning
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Context
Leadership
Teameffectiveness
Goals
Teamsize
Memberroles
NormsMemberdiversity
Cohesiveness
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Zagame Effective Team Leader
Controlled the team's behavior
Empowered the teams to share their opinion and be involved
Used team leaders to enforce changes
Made the functional and cross functional teams communicate well and have open and cooperative relationships
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Zagame Effective Team Leader Controlled the team's behavior by promoting more open and cooperative
relationships using "Speak Up“
Openly challenge proposed decisions, and encourage the expression of different opinions
"Four Cultural pillars“ Leadership team model the culture expected. Four Cultural
Pillars included innovation, customer focus, teamwork and fun. These were the expected behaviors by the teams.
Yearly award ceremony was held to honor people who followed these pillars
Workshops For cross-functional leadership teams. Found out that
communicating controversial decisions to the team is important. Found out that in order to improve decision making process one must challenge colleagues ideas. Found out that team based decisions are important compared to one person making decisions
Modeling desired behaviors
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Zagame Effective Team Leader
Increased the team's moral and found and resolved Novartis Brazil problems and made the company successful
Exceeded its financial goals and its market share stabilized, for two consecutive years
Became one of the top 100 best companies to work for in Brazil, for two consecutive years
Became one of the most successful subsidiaries of Navartis
Attracted top talent for key positions
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Question 4
How was member diversity valued by Patrice Zagame and Ney Suva, the head of human resources?
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Attitudes involving stereotypical false assumptions about
team diversity
Attitudes involving stereotypical false assumptions about
team diversity
Diversity poses a threat to the organization’s effective functioning
Expressed discomfort with the dominant group’s values is perceived as
oversensitivityby minority
groups
Members of all groups want to become and
should be more like the dominant group
Equaltreatment meansthe same treatment
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Zagame Member Diversity
Allowing everyone to have their own opinions and discussing them openly
Enhancing the effectiveness of the teams by bringing more insights into the causes of problems and the potential solutions
Holding workshops for the 12 functional teams to see what problems they faced within the cross functional teams
Promoting horizontal debate with leadership teams
Modeling the culture that was expected
Following "speakup" and "cultural pillars“
Respecting others opinion but to be firm with their final decision
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Questions?