In 2013, Microsoft recognized that the company would have to make some fundamental changes to compete in an industry that rewards fast-paced innovation. At the time, there were several product groups at Microsoft that not only operated in silos, but also viewed each other as competitors for resources and bonuses. An engineer on a product team in one division might discover something that could be useful in another division’s product, but there was no incentive for the engineer to share what was learned with the other product team. To address this problem, and to promote teamwork across the organization, Microsoft replaced the product groups with four broad divisions based on functions that absolutely need to collaborate to get anything done. For example, a team responsible for developing a new Xbox would now likely include engineers from the devices and studio engineering division, the operating systems division, the applications division, and the cloud division. To support Microsoft’s new structure and emphasis on teamwork, the company redesigned two buildings at corporate headquarters. The corridors and private offices that once filled these buildings were completely torn out. Now the buildings are filled with large open shared rooms called neighborhoods, which teams can customize using stipends provided by the company. There are smaller “focus” rooms and cozy alcoves that employees can use when privacy is needed, but there are no private offices. The buildings are light and airy, and are decorated with art and interesting objects that encourage employees to walk around and to meet and communicate. Rather than e-mailing, employees are encouraged to engage with each other in person and to connect in ways that are more spontaneous and rich. Employees who may have never met face-to-face may run into each other at one of the coffee bars and discover they’re working on similar projects. Of course, the redesigned buildings may present the company and its employees with certain challenges. For example, some employees likely have a strong preference for privacy, or may be bothered by the distractions and interruptions from teammates. As another example, limited private space may make it less likely that employees speak up and challenge others on the team for fear that conflict will be exposed. Finally, because employees play an important role in the CASE: MICROSOFT Final PDF to printer 400 CHAPTER 1 2 Teams: Processes and Communication coL27660_ch12_374-409.indd 400 10/17/17 11:36 AM EXERCISE: WILDERNESS SURVIVAL The purpose of this exercise is to experience team processes during a decision-making task. This exercise uses groups, so your instructor will either assign you to a group or ask you to create your own group. The exercise has the following steps: 12.1 Working individually, read the following scenario: You have gone on a Boundary Waters canoe trip with five friends to upper Minnesota and southern Ontario in the Quetico Provincial Park. Your group has been traveling Saganagons Lake to Kawnipi Lake, following through Canyon Falls and Kennebas Falls and Kenny Lake. Fifteen to 18 miles away is the closest road, which is arrived at by paddling through lakes and rivers and usually portaging (taking the land path) around numerous falls. Saganagons Lake is impossible to cross in bad weather, generally because of heavy rain. The nearest town is Grand Marais, Minnesota, 60 miles away. That town has plenty of camping outfitters but limited medical help, so residents rely on hospitals farther to the south. The terrain is about 70 percent land and 30 percent water, with small patches of land here and there in between the lakes and rivers. Bears are not uncommon in this region. It’s now mid-May, when the (daytime) temperature ranges from about 25°F to 70°F, often in the same day. Nighttime temperatures can be in the 20s. Rain is frequent during the day (nights, too) and can be life threatening if the temperature is cold. It’s unusual for the weather to stay the same for more than a day or two. Generally, it will rain one day and be warm and clear t 12.1 Describe how the building redesign is likely to influence process gain and process loss in the teams at Microsoft. 12.2 Describe how the changes at Microsoft have likely influenced team states. 12.3 What are the advantages and disadvantages of the building redesign with respect to communication? What can be done to mitigate potential disadvantage

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Chapter11: Managing Change And Innovation
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In 2013, Microsoft recognized that the company would have to make some fundamental changes
to compete in an industry that rewards fast-paced innovation. At the time, there were several
product groups at Microsoft that not only operated in silos, but also viewed each other as
competitors for resources and bonuses. An engineer on a product team in one division might
discover something that could be useful in another division’s product, but there was no incentive
for the engineer to share what was learned with the other product team. To address this problem,
and to promote teamwork across the organization, Microsoft replaced the product groups with
four broad divisions based on functions that absolutely need to collaborate to get anything done.
For example, a team responsible for developing a new Xbox would now likely include engineers
from the devices and studio engineering division, the operating systems division, the applications
division, and the cloud division.
To support Microsoft’s new structure and emphasis on teamwork, the company redesigned
two buildings at corporate headquarters. The corridors and private offices that once filled these
buildings were completely torn out. Now the buildings are filled with large open shared rooms
called neighborhoods, which teams can customize using stipends provided by the company.
There are smaller “focus” rooms and cozy alcoves that employees can use when privacy is
needed, but there are no private offices. The buildings are light and airy, and are decorated
with art and interesting objects that encourage employees to walk around and to meet and communicate. Rather than e-mailing, employees are encouraged to engage with each other in person
and to connect in ways that are more spontaneous and rich. Employees who may have never met
face-to-face may run into each other at one of the coffee bars and discover they’re working on
similar projects.
Of course, the redesigned buildings may present the company and its employees with certain
challenges. For example, some employees likely have a strong preference for privacy, or may be
bothered by the distractions and interruptions from teammates. As another example, limited
private space may make it less likely that employees speak up and challenge others on the team
for fear that conflict will be exposed. Finally, because employees play an important role in the
CASE: MICROSOFT
Final PDF to printer
400 CHAPTER 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 400 10/17/17 11:36 AM
EXERCISE: WILDERNESS SURVIVAL
The purpose of this exercise is to experience team processes during a decision-making task. This
exercise uses groups, so your instructor will either assign you to a group or ask you to create your
own group. The exercise has the following steps:
12.1 Working individually, read the following scenario:
You have gone on a Boundary Waters canoe trip with five friends to upper Minnesota and
southern Ontario in the Quetico Provincial Park. Your group has been traveling Saganagons Lake to Kawnipi Lake, following through Canyon Falls and Kennebas Falls and Kenny
Lake. Fifteen to 18 miles away is the closest road, which is arrived at by paddling through
lakes and rivers and usually portaging (taking the land path) around numerous falls. Saganagons Lake is impossible to cross in bad weather, generally because of heavy rain. The nearest
town is Grand Marais, Minnesota, 60 miles away. That town has plenty of camping outfitters but limited medical help, so residents rely on hospitals farther to the south.
The terrain is about 70 percent land and 30 percent water, with small patches of land
here and there in between the lakes and rivers. Bears are not uncommon in this region. It’s
now mid-May, when the (daytime) temperature ranges from about 25°F to 70°F, often in the
same day. Nighttime temperatures can be in the 20s. Rain is frequent during the day (nights,
too) and can be life threatening if the temperature is cold. It’s unusual for the weather to stay
the same for more than a day or two. Generally, it will rain one day and be warm and clear
t

12.1 Describe how the building redesign is likely to influence process gain and process loss in
the teams at Microsoft.
12.2 Describe how the changes at Microsoft have likely influenced team states.
12.3 What are the advantages and disadvantages of the building redesign with respect to communication? What can be done to mitigate potential disadvantage

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