Public Service
What Capabilities Drive the Effectiveness of Product Teams?
2024-12-10
Every leader aspires to have highly effective teams. When colleagues work in harmony and collaborate seamlessly, they can create superior products at a faster pace. This leads to happier customers, increased revenue, and remarkable growth. But what exactly does "team effectiveness" entail, and how can companies cultivate and measure this crucial driver of success? For the past five years, McKinsey has been conducting extensive research on how agile working methods impact business outcomes.

Mastering Team Effectiveness for Business Success

Delivery Predictability

On average, the share of committed work a team delivers within a sprint or a release cycle is a key metric. Our research reveals ten essential capabilities for driving delivery predictability, with organizational process factors playing a significant role. For instance, a streamlined tech stack means the engineering team doesn't have to rely on a separate operations team to manually provision servers. Iterative and automated controls, along with self-serve environments provisioning, significantly reduce the likelihood of these activities delaying delivery. When risk, compliance, and audit controls are automated and team members can self-provision environments, delivery predictability improves.

Having dedicated team members who don't depend on other teams or functions allows for better capacity prioritization within a single team. Teams can then focus on delivering committed work without dealing with dependencies or resource bottlenecks. Moreover, when teams remain persistent for three to six months with 100 percent dedicated members who don't "context switch" between projects, their work estimates become more consistent, and their velocity and throughput enhance.

Value Realization

In product development, driving business value should be the primary decision-making metric. Our research shows that technology factors play a meaningful role in improving value realization, which is defined as the share of committed business value that is delivered. For example, when organizations start allocating budgets to products instead of projects, the gap between commitment and delivery narrows. Agile funding shifts the focus from optimizing for budget, time, and scope to prioritizing fixed-capacity teams and measurable business outcomes.

Making decisions on work planning and budgeting at the product level enables teams to better meet their commitments and adjust their efforts according to market or other conditions. Effective product managers, who are business leaders with the mindset and technical skills to guide multiple product teams simultaneously, shape product strategy, define requirements, and ensure delivery quality.

Team Engagement

Maximizing employee satisfaction scores (ESS) is crucial as it is linked to various organizational benefits. When organizations recognize individual expertise, provide career progression options, and base promotions on capabilities, employees become more engaged and satisfied. Standardizing and reducing the overall number of roles helps create a balanced ratio of orchestrators to doers, increasing team capacity without hiring more employees.

Automating routine tasks such as environment provisioning, compliance, operations, and testing activities also improves employee satisfaction. Freed from administrative tasks, team members can focus on building new functionalities and features, which is more fulfilling professionally and personally. Advanced automation enables incremental releases and A/B testing of new features, allowing teams to deliver functionality to users more quickly and reducing stress associated with large, infrequent deployments.

Organizing product delivery around specific value metrics like user journeys or customer segments helps teams achieve measurable business outcomes. When teams work towards a collective goal, they can see the product's ultimate impact, improving overall employee satisfaction.

We naturally expect a positive relationship between automation and each subdimension of team effectiveness. Interestingly, agile funding and product management also significantly impact each subdimension. Combined with automation, these forces bring clarity, accountability, and a shared purpose to product teams. When teams are trusted to make autonomous decisions, they can better estimate their deliverables and create more value for the business. A product-based journey requires leadership commitment to invest in individuals and help each team member build their capabilities. Empowered teams are effective teams.

Caledonia Family Demands Refund for Incomplete Construction
2024-12-10
A Caledonia family's dream of a new addition turned into a nightmare when they hired Affordable Builders LLC in 2023. Despite paying a substantial sum of $80,000, they now face the prospect of liens on their property due to unpaid bills. This case highlights the issues that can arise when dealing with contractors and the importance of proper project management.

Unfinished Construction Leads to Financial Woes for Family

Delayed Start and Initial Work

Next to Jerry Dinda's house stands an unfinished construction site, a constant reminder of his remodeling project gone awry. As Dinda explains, "This was supposed to be a really beautiful master suite. I'm sorry for my neighbors... it looks like crap." The family initially signed a contract with James Ferdon of Affordable Building LLC in July 2023. However, since June, there has been no progress on the project. The couple had hoped to accommodate their uncles from Menomonee Falls by having them stay in the new addition. But as of July 2024, their uncles were unable to move in as planned.The work started with the construction of a shed on their property in August 2023. Today, Dinda points out that the shed is still unfinished and requires gutters, electricity, and door locks. This initial setback set the tone for the months of delays and missed deadlines that followed.

Subcontractor Woes and Financial Concerns

Maier and Dinda's troubles didn't end with the unfinished shed. No further work was done on their property until February 2024 when excavation of the addition's crawl space began. But even after that, more delays occurred. The couple heard from Ferdon's subcontractors that they weren't being paid. Their first conversation was with the man who did the excavation work. "He said, 'I'm sorry, but I'm gonna have to put a lien on your property,'" Dinda recalled. This left them wondering what happened to the $80,000 they had paid Ferdon.Soon after, the concrete guy who did the crawl space showed up, also stating that he hadn't been paid. Racine County Circuit Court records show that Ferdon owes more than $200,000 in judgments to former customers, a loan provider, and suppliers. The Pansch family, who hired Affordable Building for a 300 square foot addition, also faced costly problems. Dan Pansch described one such issue: "The roof for one thing. It was leaking into our window here, into our vents, into our HVAC system, all over our floor."Ferdon has run into legal troubles as well. In August, he was extradited to Lake County, Illinois, where he's charged with retail theft. He also faced charges of issuing a worthless check at another Menards store in Mount Pleasant. A warrant for Ferdon was issued in connection with the Racine County case, and it remains active.

BBB's Perspective and Contractor's Response

Ferdon is a licensed contractor in Wisconsin, but the Better Business Bureau (BBB) Serving Wisconsin has received five complaints about his business in three years, alleging incomplete work and poor workmanship. Lisa Schiller of the BBB explains, "The biggest thing that we are seeing with these complaints is that the consumers have put down a large amount of money up front."Affordable Building did respond to a BBB complaint filed by Dinda. It stated, "This project had many hoops to go through to get the permit approved... Since the addition has started, we had to go through additional work to get the approval from the inspector."Maier's uncles, who were supposed to move into the addition in July, had to renew their lease and stay put. "We would have liked this done so my uncles can move in ASAP," said Maier. "Take care of their needs."So far, no subcontractors have filed a lien on Dinda and Maier's property. Dinda says he's scheduling another meeting with the DA's office after the holidays in the hope of finding a resolution to their problem.
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Construction Progress at Nichols Reservoir: Halfway Done and On Track
2024-12-10
In mid-November, a small yet distinct pool of water came into view at the bottom of Nichols Reservoir. This sight stands in stark contrast to the usual capacity of this small lake within the Santa Fe Municipal Watershed. Typically, when full, it can hold over 200 million gallons. The reservoir underwent a significant draining this spring and summer as part of a construction project aimed at repairing the dam's outlet conduit and carrying out other essential repairs and upgrades. City officials have informed us that the work is now approximately halfway completed.

Engineer's Perspective: Progress and Challenges

Taylor Jurgens, an engineer from the city Water Division, shared insights in an interview late last month. He stated that the construction work was close to 50% done. Despite some setbacks due to the snowstorm in early November, which led to the postponement of certain tasks, the reservoir is on schedule to begin holding water again in May. This showcases the dedication and efforts of the construction team in ensuring the timely completion of the project.

Dam Repair and Outlet Conduit

The repair of the dam's outlet conduit is a crucial aspect of this construction project. A properly functioning outlet conduit is essential for the proper management and storage of water in the reservoir. By addressing this issue, the city is taking significant steps towards ensuring the long-term sustainability and reliability of the water supply system. The work on the outlet conduit involves meticulous inspection and repair to ensure its optimal performance.

During the repair process, engineers have been closely monitoring the structural integrity of the dam. This includes conducting regular inspections and using advanced technologies to assess the condition of the dam. Any potential issues or weaknesses are identified and addressed promptly to prevent any future problems. The attention to detail in these inspections and repairs is crucial for the safety and stability of the reservoir.

Other Upgrades and Their Impact

In addition to the repair of the outlet conduit, the construction project also includes other necessary upgrades. These upgrades are aimed at enhancing the overall functionality and efficiency of the reservoir. For example, improvements may be made to the water storage capacity, the distribution system, or the monitoring and control mechanisms.

The implementation of these upgrades will not only benefit the current water supply but also lay the foundation for future growth and development. By investing in these upgrades, the city is demonstrating its commitment to providing a reliable and sustainable water supply to its residents. These improvements will help to ensure that the reservoir can meet the increasing demands of the growing population and support various economic activities.

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