A framework for purchasing and integrated product teams.

THE SETTING

Are teaming and empowerment simply two more short-lived management techniques? In the case of many new management initiatives, workers are saying, "Stop with the fads. No more posters, seminars, and training classes."[1] The trend to date suggests that teaming and empowerment are here to stay. Today the United States finds itself in an era of intense international competition and business upheaval, with rapid advances in technology and reduced product life cycles. In response, firms are reassessing their traditional ways of doing business.

Revolutionary changes have already occurred in production philosophies and the treatment of inventories - witness the growth of just-in-time applications. Improving the process dimension of organizations has been the goal of total quality management (TQM) initiatives. The logical next step is to improve the human resource side of the operations. This is one of the few remaining untapped opportunities for American industry. In the future, world-class performance will be a function of how well industry is able to manage its human resources.

Firms have made extensive investments in new technology and capital equipment, while attempts to improve the human side have been minimal at best. Ironically, this is the only resource that appreciates with time. In today's environment, technology can become obsolete overnight and capital equipment can depreciate rapidly.[2] Many believe that the best way to capitalize on a firm's human resources is through the use of teaming and empowerment.

Teams can be created that include workers with different skills from different departments. Advocates claim that teams should be given the power to develop a product, manage a business, improve a system, or plan their own work schedules. Theory says that when employees gain this level of control, they will work faster and smarter, with an eye toward profitability. Such teams tend to manage themselves and may become the foundation of the new organization. Unfortunately, although many firms have tried this team approach during the past decade, most are still struggling to reap the advertised benefits of the teaming concept.

This article is based on nine case studies of commercial and government organizations that have implemented the cross-functional teaming approach. These case studies provide significant insight into a broad range of organizations:

* A chemical and manufacturing firm