Welcome to Reality Check. In this column, I'll paint provocative pictures for innovation managers based on snippets from science, history, demographics, and respected business observers. As an experimental scientist, I promise to be objective and cite my sources. As a former senior manager in a Fortune 100 corporation, I'll strive to make this column worth your attention. As a lifelong rebel against intellectual laziness and unexamined premises, I'll try to make you think. If you sometimes find the conclusions unsettling, that will be because the evidence is convincing and the arrow's found its mark. Many thanks to Jim Euchner and MaryAnne Gobble for the opportunity! Your Teams Aren't Good Enough It's a pretty bald assertion. But what we know about people and knowledge, communication and teamwork, and the speed of change makes it certain: It's almost impossible that you have the team you need today, especially if you're building teams the old-fashioned way, by selecting people to work on a project from available employees. People and Knowledge Herbert Simon, computer scientist and Nobel Laureate in economics, did a study of chess grandmasters, from which he concluded that an expert's memory can hold about 50,000 chunks--action-oriented facts or patterns (Simon 1996, 89-93). He also concluded that it takes about a decade of hard practice to attain such knowledge, the 10,000 hours of practice that Malcolm Gladwell (2008) concludes separate the best from the mediocre. If anything, it's taking longer to become an expert as the ever-growing mountain of world knowledge is stretching the time it takes to develop creative expertise (Jones 2009). Now consider a big, important business project, and try to estimate how many little facts might matter along the way. In my first career, pharmaceutical drug discovery, a project might easily require many thousands of nuggets: facts about historic approaches, biochemistry, tissue biology, physical properties, synthetic chemistry, patents, toxicity, disease, economics, regulations, and on and on. I suspect it's no different if you're designing and selling aircraft, automobiles, smart-phones, or financial systems. It may be becoming more true as software becomes the differentiator in so many products, because software systems may be the most complex things that humans have ever created (Brooks 1995). Conclusion: Developing new, market-creating or market-leading products takes world-class talent, built on a mass of detail and experience that takes an individual many years to acquire. Communication and Teamwork To accommodate the growing complexity of projects and the limits of any one person's time and knowledge, work is increasingly done in teams, and the teams are getting larger (Jones 2009, figure 1C). But teamwork has intrinsic limits: Brooks's Law (The way to slow down a project is to put more people on it) captures the tradeoff between the benefit of distributing the work to more people and the exponential growth in the inefficiency of interpersonal communication as teams expand (Brooks 1995). To work together, people must share not only facts but trust; unfortunately, our circles of trust are modest in size and slowly built (Dunbar 1997). The scaling math is not good: for a team of n people, the number of connections for facts and trust grows as n-squared, which is why the rule of thumb for effective team size is a number between four and ten. Bigger teams will have idle participants and bog down in slow decision-making. Fighting that tendency exacts a cost in hands-on management. But if a team should be small, can we count on it to pick up the knowledge it needs from the rest of the company without having to formalize those connections? A large study at Cornell suggests not; an analysis of 14 million e-mails among 43,000 students showed that people at three or more degrees of separation (Alice knows Bob, who knows Christine, who knows David) will essentially never communicate (daily probability about 0. …
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