Henry Tam/MGI Case

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Case overview

The MGI case investigates a team that is comprised of – members who are involved in order to participate

in a school contest and – members who are trying to start a real business.

Our goal: Conduct a thorough diagnosis of the MGI team’s processes in order to guide our recommendations for how Henry Tam can help his team.

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Background Three former Soviet Union émigrés (Sasha, Igor,

Roman) have an innovative music puzzle game. Good reviews but poor sales

Contact 2 HBS students (Henry, Dana) to participate in a business case competition

Also contact MIT student (Dav) for MIT business case and Berkeley School of Music student (Alex) as music industry consultant

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Henry Tam & Music Games International Alexander "Sasha" Gimpelson, co-founder,

member of Music Educators' National Conference. Mr. Gimpelson graduated from Columbia University School of Engineering, and had Harvard University MBA.

Igor Tkachenko, co-founder, is an award-winning composer and pianist with an international reputation.

Roman Yakub, co-founder, is an internationally acclaimed composer with rich experience in both traditional and electronic/computer composition.

Henry Tam, HBS MBA student, with background in investment banking & business development

Dana Solman, HBA MBA student, with background in finance

Dav Clark, MIT Brain & Cog Science grad student, with expertise in wave form visualization & software. Interest in creative uses of music.

Alexander Jan Sartakov, Berklee College of Musch student with major in Music Business Mangement and Music Production. Expertise in computer music applications. Cast of Characters

Team (2003) Team (2007)

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Questions about the case

What were the strengths of the MGI team?

What is your evaluation of the MGI team’s process?

What were the root causes of the team’s process problems?

Were the differences among the team members a liability or an asset?

What could Henry have done earlier to avoid the team’s problems?

At the end of the case, what actions could Henry have taken to increase the team’s effectiveness?

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What were the strengths of the MGI team?

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What is your evaluation of the MGI team’s process?

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What were the root causes of the team’s process problems?

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Were the differences among the team members a liability or an asset?

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What could the team have done earlier to avoid problems?

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At the end of the case, what actions could the team have taken to increase its effectiveness?

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MGI case illustrates faultlines

Correlated dimensions of diversity that yield a clear basis for subgroups formation

The stronger the diversity faultline, – The more likely subcategorizations will occur– Greater the chance of disruptions of group

functioning.

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Diversity is a double edged sword Diversity on job-related dimensions can

– Bring more ideas & skills into a group– Increase contact with stakeholders outside the group– Increase innovation and problem solving– Challenge assumptions– “Creative abrasion”

But diversity of many types (including functional area) can:– Increase tension & conflict– Decrease cohesion– Make communication less efficient

The net benefit isn’t clear

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Williams & O’Reilly (1998): Review of 40 years of diversity research

• Reviewed 87 study• Narrative summary

• Non-statistical review• Attempt to qualitatively make sense of many

studies• Effects of diversity on group outcomes• Types of diversity: Functional background, Group tenure, Age, Gender, Race/Ethnicity

• Outcomes: process outcomes (e.g., cohesion, conflict, turnover) and performance outcomes

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Williams & O’Reilly (1998) Review of Group Diversity

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ConclusionReview of 87 studies of diversity

“Overall, this research offers convincing support for the argument that variations in group demography can have both direct and indirect effects on group process and performance. Under ideal conditions increased diversity may have the positive effects predicted by information and decision theories. However, consistent with social categorization and similarity/attraction theories. the preponderance of empirical evidence suggests that diversity is most likely to impede group functioning. Unless steps are taken to actively counteract these effects, the evidence suggests that, by itself, diversity is more likely to have negative than positive effects on group performance.”

Williams, K., & O'Reilly, C. (1998). Demography and diversity in organizations: A review of 40 years of research. Research in Organizational Behavior, 20, 77-140.

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Distinguishing Between Task & Relationship Conflict

Task conflict– To what extent are there differences of opinions regarding the task

in your work group – How frequently are there disagreements about the task you are

working on in this work group,– How often do people in your work group disagree about the work

Relationship conflict– Sample items for relationship conflict include How muc friction is

present in your work group, – To what extent are personality clashes present in your work group,

How much anger is present in your– How much emotional conflict is there in your work group

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Using Task Conflict for Creative Problem Solving

Dialectical Inquiry Identify a recommended plan

with the data used to derive it. Identify the underlying

assumptions. Develop a feasible counterplan

that rests on opposite assumptions.

Conduct a structured debate so decision-makers hear arguments in support of both the plan and the counterplan.

Devil’s Advocacy Devil's advocate developers a

critique of the prevailing plan, which criticizes it but offers no counterplan.

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These conflict-based approaches lead to better decisions

Dialectical Inquiry Devils Advocacy Consensus0123456789 Solution quality Satisfaction with group

Schweiger, D. M., Sandberg, W. R., & Ragan, J. W. (1986). Group approaches for improving strategic decision making: Academy of management Journal, 29(1), 51-71.

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Meta-analysis shows devil’s advocacy better than expert advice

Schwenk, C. R. (1990). Effects of devil's advocacy and dialectical inquiry on decision making: A meta-analysis. Organizational Behavior and Human Decision Processes, 47(1), 161-176.

Dialectical Inquiry Devils Advocacy Consensus0

0.2

0.4

0.6

0.8

1

1.2

1.4

Decision quality X Decision Process

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De Wit & Greer update’s (2012):Meta-analysis on conflict, team performance & satisfaction

Relationship conflict associated with poorer satisfaction & performance

Average correlations, corrected for unreliability Task conflict X relationship conflict = .52*** Task conflict X member satisfaction = -.24*** Relationship conflict X members satisfaction = -.54*** Task conflict X task performance = -.01** Relationship conflict X task performance = -.16

Average correlation broken down by type of conflict and type of outcome

K = 30 studies, > 2,000 respondents

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De Wit & Greer’s update (2012): Effects of task conflict depend on relationship conflict

With a strong relationship btw task & relationship conflict, then task conflict predicts worse performance

With no relationship btw task & relationship conflict, then task conflict does not predict worse performance

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Webber et al (2001): Meta-analysis Attempts to quantitatively review similar literature Attempts to differentiate type of diversity that

moderates diversity effects – Highly job related: E.g., task-related knowledge, skills and

abilities (KSA), education, industry, functional area– Less job related: E.g., Age, race, gender, ethnicity

Attempt to differentiate the type of team that moderates diversity effect

Examines 24 studies, with 45 correlations

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Results

No strong effects of diversity overall or any particular type No reliable difference in effects on cohesion or performance Job-related diversity tended to have weak positive effects,

while less job-related diversity tended to have negative ones– This difference is statistically significant

Webber, S. S., & Donahue, L. M. (2001). Impact of highly and less job-related diversity on work group cohesion and performance: a meta-analysis. Journal of Management, 27(2), 141.

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Van Dijk 2012 Meta-Analysis

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Knippenberg (2007) narrative review No positive or negative main effect of diversity

on either performance or relationships Improve research methods by measuring the

presumed mediating factor: relational vs task conflict (creative friction)

Investigate moderators (i.e., conditions that foster or suppress diversity effects)

Van Knippenberg, D., & Schippers, M. C. (2007). Work group diversity. Annual Review of Psychology, 58, 515-541.

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Some moderators

Fault lines diversity has worse effects when dimensions of diversity are aligned

Type of measurement negative effects of demographic & positive effects of functional diversity larger with subjective measures

Task complexity functional diversity has greater positive effects with more complex tasks

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Measurement type Negative effects of demographic diversity & positive

effects of functional diversity larger with subjective measures

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Task complexity

Functional diversity has greater positive effects with more complex tasks

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What Do You Do About It? Recategorization

– Super-category – circle of inclusion– Find cross-cutting categories– Find superordinate goal– Identify common enemy

Declassify– Get people to think of outgroup members as

individuals, not exemplars of their group– Contact hypothesis – Get to know others in

context of equal status and communication Mutual differentiation

– Acknowledge differences– Emphasize complementary

Gaertner, S. L., Dovidio, J. F., Banker, B. S., Houlette, M., Johnson, K. M., & McGlynn, E. A. (2000). Reducing intergroup conflict: From superordinate goals to decategorization, recategorization, and mutual differentiation. Group Dynamics, 4(1), 98-114.

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Circles of Inclusion

Rust Belt Bible Belt

USA

Cleveland/Browns

Pittsburgh/Steelers

Terrorist