HBS Case Innovation and Collaboration at Merrill Lynch Essay

In a rapidly changing world, organizations request to continually identify impertinently opportunities beyond existing competencies if they are to stand up and prosper. Customers also increasingly want customized mathematical products. Customer service has become a hygiene factor and customer loyalty is now being driven by faster innovation, rapid concept-to-market and product co-creation. This has led to the extension of the coaction paradigm to customer facing functions in the supply chain, namely the product design and prototyping phase. Collaboration is becoming a new and of the essence(predicate) character reference of competitive advantage.Historically, analysts in the investing bank tended to work independently. Especially, in the commencement action of 1990s, the globalization overwhelmed the market and investor became to think that they should non respectable invest in the local market, plainly invest in the international market. With this change of lymph gla nds attitude, the investment bank became to flavor the need of innovation of their working style. Under these situations, Merrill lynch decided to create totally contrastive style of seek announce, the outstanding construction identify which was only possible with the collaboration of international-market, cross- firmament, and cross-as put analysts.The First Capital-Structure answer for closely the U.S. Cable Indus elbow grease covered seven companies. It was the first try of collaborative work in Merrill Lynch, so it didnt discombobulate any(prenominal) spend guide lines for the effective squad work. There was no clear final stage of team work, and also there was no motivation for the participant. Analysts from different sections were asked to get together one day, and asked to guard a capital structure piece. Without any clear finale, and without the structure and organisation of team work, the whole outgrowth proceeded very inefficiently. It took often of tim e to get the final report, but the step of report was not satisfied. In separate words, its try to change was in advance(p), but the team work itself was not so much value-addable.The second Capital-Structure report about U.S. Utilities covered 5 companies. This time, it seemed like there were clear goals The root from get-go was that people would be able to pick up this social function and start generating tradesfrom it. That was goal number one. The second goal was to consecrate the report sitting on peoples desks for a good menstruum of time as a reference guide to how different part of the capital structure impacted individually other and affected valuations and strength opportunities In addition, the participants in this communicate worked pretty closely together already.However, these were not enough for the effective collaboration. They were still not motivated to the project a lot, and the more commitment might have been called for. This means that they still didn t have specific goal to head for. Absence of specific goal naturally brought lots of debates which slow the progress. When the team finished the project, the report got a lot of positive feedback from clients. And it seems that Merrill Lynch met its goal in the beginning. However, without the specific goal of what they should win, and with the lots of instruction they should mix all together, it was a grinding exercise to r all(prenominal) on the final result.The Third Capital-Structure Report was about railcar companies. At this time U.S. specialists and Europe specialists worked together. Analysts did not need much win over because they already knew the need for this collaborative work. There were lots of energy and fervor already. In addition, this third project started with a plan they knew what they want to pass on specifically and they also had the clear deadline. The whole procedure was progressed very smoothly from this step to the next. As a result, Sales heard from a client that the value-added ideas contained in the report are original, differentiate Merrill from the rest of the Street, and allow them other reason to pay Merrill commissions.Even though Merrill Lynch learned lots of things undergoing the upper three cases, there still are many issues remained. The project might have been more timely and had a clear attracter. To achieve the further successful innovation and collaboration, there are many important things cook as the director of the research department should have horizon about.As a leader for change, Browning should set the theme by communicating inspiring resourcefulnesss, which provide a picture of the future feature poetry and prose, imagination and pragmatism, drawing on destination, dream, prize,target, message, and first step. So, first, as a leader Browing must be secure about teams charter, mission, goals and objectives to team members. And employees must believe a certain level of individual effort go away lea d to achieving the corporations standards of performance. So Browing should set stretch goals which they energize people. And Browing must confront the key questions that must be answered and then communicate the inherent truth that inspires.The communion of that inspiring vision is arguably the indispensable condition. So For this, he should launch internal website for his innovative project and this website will help team members expedite projects vision communication as well as timely information access. To be specific, formally, the analysts can share information about each sector regularly through email, e-news letter, and regular cross-sector showdown. For example, the equity analyst can have the summary about current bond market or derived function market weekly or biweekly. Also, through inner-information session for cross-asset collaboration report the analyst could have a chance of analyzing pros and cons of the collaboration report.Second, for effective communication, Browning has to build the trust and respect in the innovative project team. Informally, middling as Fleishman insisted, through casual lunch or regular dinner, cross-asset analysts could be close to each other, and all-of-sudden they could be collaborating. And this interaction would encourage meaningful communication around issues of compelling importance to analysts. To develop solid foundation and unwashed trust, face-to-face interaction is needed. In addition, just as Hezig recommended, having new hires eject for a period of time before getting allocated to do research might be a useful tool for effective communication. in the altogether employees not only could be comfortable with cross-asset resources, but also could have close relationships with cross-asset colleagues.Third, Browing has to build the culture which voluntarily stimulates voluntary collaboration. So he has to pay attention to structure a collaborative innovation team which can add flexibility to planning an d control systems. Without flexibility, analysts can deliver their creative and productive ideas. So Browing need to consider this flexibility in a long term goal. Creative collaboration respects and honors the talents andcontributions of each person involved, regardless of rank, seniority or expertise. Organizations that are serious about collaboration make sure there is a safe environs for victorious the risks that are necessary for creative collaboration.Fourth, Browing should create atmosphere where stimulates discovery ideas. It means that he should create norms to assist creativity. Collaborative Innovation is a new practice that improves on current practice or responds to new opportunities and challenges. Actually, many organizations are trying to build their own culture for innovation. indeed Browing needs to focus on risk taking for change. Risk taking is no punishments for failure and freedom to try things and fail. For example, laughing at those who suggest new appr oaches can stop sharing information each other.Another norm to promote creativity is openness. Openness includes open communication and help share information, open access, willingness to consult others. Browing should be careful of intimacy evaporation. He should build up internal knowledge database as an cats-paw at the corporate level for collecting ideas and then promoting them. And also he has to give all the relevant employees to access the database. As a result, employees who are interested in any relevant subject can give negative or positive feedback and the subject can develop in a better way. Innovation is a process, not just an output. measure out is as important as time in. If we have a problem, our brains continue to search for the solution even while we are doing other things.Fifth, Browing should celebrate accomplishment making everyone hero. Celebrating accomplishments provides support for staff undergoing change. Just as Casea said, Browining has to convince ana lysts that collaborative project is additive to their franchise, that its not just an extracurricular activity. Financial rewards do encourage people to produce results. scarce the kind of ownership that really generates energy is not financial. It is emotional. Employees must feel that the rewards offered are attractive. Providing adequate pay, at the same time he could encomium the effort and result whenever he encounters. This will impart a needsense of personal accomplishment and little by little will build commitment to the collaboration. A solid performance management system requires due respect to both intrinsic and extrinsic rewards. So Browing should be skilled at communicating instrumental and expressive messages concurrently.The last clue for Browning is to decide or delegate the suitable leader and make him control the team under strong leadership. Just as Casesa indicated, non-hierarchical relationships crossways divisions among analysts complicated the task since there was also no actual leader when analysts made the third capital-structure report. To maintain this innovation, Browning also has to consider tenderkind side of innovation, because even the most technical of innovations requires strong leaders with bully relationship and communication skills. The good leader might pull human resource to the collaboration when needed. Just as Haggerty brought an editor in meeting to help them structure the report, the environment which makes analysts easy to collaborate would also promote the positive image of collaboration. Under good and respectful leader, the future collaboration would create more successful capital-structure report.BIBLIOGRAPHYAMBLER, S. (1995) USING USE CASES REDUCE culture COSTS WITH USE-CASE SCENARIO TESTING, SOFTWARE DEVELOPMENT, 3 (6), JULY.BILOW, S. C. (1995) DEFINING AND DEVELOPING USER porthole INTENSIVE APPLICATIONS WITH USE CASES, REPORT ON OBJECT ANALYSIS AND DESIGN. 1 (5) 28-34.INNOVATION THE CLASSIC TRAPS ,S KILLS LESSONSTHE NOT-SO-SECRET INGREDIENT OF tall PERFORMANCE, BE A true BOSSLEADERSHIP FOR CHANGE ENDURING SKILLS FOR CHANGES MATERS, WRITERROSABETH MOSS KANTERTHE NOT-SO-SECRET INGREDIENT OF HIGH PERFORMANCE, INTRINSIC REWARDS GENERALLY MOTIVATE BESTCORPORATION, CULTURE, AND COMMITMENT MOTIVATION AND kindly CONTROL IN ORGANIZATIONS, WRITERCHARLES OREILLYINNOVATION, WRITERROSABETH MOSS KANTERBUILDING AN potent GLOBAL BUSINESS TEAM, CULTIVATING A CULTURE OF TRUST act leading for deviate Enduring Skills for Changes Maters, generatorROSABETH MOSS KANTER, pageboy4See create an Effective Global Business Team, Cultivating a Culture of Trust, page 69TitleInnovation, WriterRosabeth Moss Kanter, Page10Title Leadership for Change Enduring Skills for Changes Maters, Writer ROSABETH MOSS KANTER, Page3TitleCorporation, Culture, and Commitment motive and Social Control in Organizations, Page15, WriterCharles OReillyTitleCorporation, Culture, and Commitment Motivation and Social Control in Organizations, Page15, WriterCharles OReillyTitle Leadership for Change Enduring Skills for Changes Maters, WriterROSABETH MOSS KANTER, Page14See Motivation The Not-So-Secret Ingredient of High Performance, Intrinsic Rewards generally Motivate Best, page 5-7See Innovation The Classic Traps ,Skills Lessons, page 4See Motivation The Not-So-Secret Ingredient of High Performance, Be a broad(a) Boss, page 17-18