Harvard Case - Teaming Up to Win the Rail Deal at GE (A)
"Teaming Up to Win the Rail Deal at GE (A)" Harvard business case study is written by Amy C. Edmondson, Ranjay Gulati, Rachna Tahilyani. It deals with the challenges in the field of Organizational Behavior. The case study is 21 page(s) long and it was first published on : Sep 6, 2019
At Fern Fort University, we recommend that GE Transportation Systems (GTS) implement a strategic approach to win the rail deal, focusing on building a strong, collaborative, and diverse team with a clear understanding of the client's needs and a commitment to delivering a winning solution. This approach will involve leveraging the strengths of each team member, fostering open communication, and managing potential conflicts constructively.
2. Background
This case study focuses on GE Transportation Systems' (GTS) bid for a major rail deal. The company faces a challenging situation: a demanding client with specific requirements, internal competition for resources, and a need to overcome cultural differences within the team. The main protagonists are:
- John Hunter: GTS's leader for the rail deal, tasked with assembling a winning team.
- The Team: A diverse group of individuals with varying expertise and experiences, including engineers, sales representatives, and project managers.
- The Client: A demanding customer with specific requirements and a reputation for being difficult to work with.
3. Analysis of the Case Study
This case study can be analyzed using a framework that combines Organizational Behavior and Team Dynamics with Strategic Management principles.
Organizational Behavior:
- Leadership Styles: John Hunter's leadership style is crucial to the team's success. He needs to adopt a transformational leadership style, inspiring and motivating his team, fostering collaboration, and creating a shared vision for winning the deal.
- Team Dynamics: The team's effectiveness hinges on its ability to function as a cohesive unit. This requires addressing potential conflicts, fostering open communication, and promoting psychological safety within the team.
- Motivation Theories: Understanding the team members' individual motivators is essential. John Hunter should leverage intrinsic motivation by aligning the team's goals with their personal values and aspirations.
- Organizational Culture: GTS's culture needs to support collaboration and innovation. John Hunter should encourage organizational learning and employee empowerment to foster a culture of continuous improvement and problem-solving.
Team Dynamics:
- Group Behavior: Understanding how individuals interact within the team is crucial. John Hunter should use team building techniques to facilitate effective communication and collaboration.
- Communication Patterns: Open and transparent communication is key to success. John Hunter should encourage active listening and feedback mechanisms to ensure everyone feels heard and understood.
- Performance Management: Setting clear goals and providing regular feedback will help the team stay on track and achieve desired outcomes.
- Diversity and Inclusion: The team's diverse perspectives can be a valuable asset. John Hunter should promote a culture of inclusion and respect to leverage the strengths of each team member.
Strategic Management:
- Corporate Strategy: GTS's bid for the rail deal should align with its overall corporate strategy and growth objectives.
- Operations Strategy: The team needs to develop a clear understanding of the client's requirements and develop an operational strategy to meet those needs effectively.
- Decision-Making Processes: John Hunter should establish clear decision-making processes to ensure efficiency and accountability.
4. Recommendations
- Build a High-Performing Team: John Hunter should focus on building a team with diverse expertise and complementary skills. He should use talent management strategies to identify and recruit the best individuals for each role.
- Foster Collaborative Culture: John Hunter should prioritize open communication, active listening, and constructive feedback. He should encourage employee engagement and create a culture of psychological safety where team members feel comfortable sharing ideas and concerns.
- Develop a Winning Strategy: The team should develop a comprehensive strategy that addresses the client's specific requirements and aligns with GTS's capabilities. This strategy should include a clear understanding of the client's needs, a detailed project plan, and a robust risk management plan.
- Leverage Technology and Analytics: GTS should leverage data analytics and technology to optimize its operations and provide insights into the client's needs. This will help the team make informed decisions and deliver a competitive solution.
- Manage Conflicts Effectively: John Hunter should proactively address potential conflicts by establishing clear communication channels, promoting empathy, and using conflict resolution techniques to find mutually beneficial solutions.
- Develop a Strong Communication Plan: John Hunter should establish a clear communication plan to ensure all team members are informed and aligned on the project goals and objectives. This plan should include regular meetings, progress reports, and clear communication channels for addressing any concerns or issues.
- Focus on Customer Relationship Management: John Hunter should prioritize building a strong relationship with the client, understanding their needs and expectations, and demonstrating a commitment to delivering a successful project.
5. Basis of Recommendations
These recommendations consider:
- Core Competencies and Consistency with Mission: The recommendations align with GTS's core competencies in rail transportation and its mission to provide innovative solutions for its clients.
- External Customers and Internal Clients: The recommendations prioritize understanding the client's needs and fostering collaboration within the team to ensure a successful project delivery.
- Competitors: The recommendations emphasize leveraging technology and analytics to gain a competitive advantage and deliver a superior solution compared to competitors.
- Attractiveness: The recommendations are expected to increase the likelihood of winning the rail deal, leading to increased revenue and market share for GTS.
6. Conclusion
By implementing these recommendations, GE Transportation Systems can increase its chances of winning the rail deal. Building a strong, collaborative, and diverse team, developing a winning strategy, and leveraging technology and analytics will enable GTS to deliver a superior solution that meets the client's needs and exceeds their expectations.
7. Discussion
Other alternatives not selected include:
- Focusing solely on technical expertise: This approach risks overlooking the client's specific requirements and failing to build a strong relationship.
- Ignoring internal competition: This approach could lead to resource conflicts and hinder the team's ability to deliver a cohesive solution.
- Adopting a purely transactional approach: This approach could damage the client relationship and limit future opportunities for collaboration.
Key assumptions include:
- The team is committed to winning the deal: This assumption is crucial for fostering a collaborative culture and achieving success.
- The client is open to a collaborative approach: This assumption is necessary for building a strong relationship and delivering a solution that meets their needs.
- GTS has the necessary resources to support the project: This assumption is crucial for ensuring the team has the tools and support needed to succeed.
8. Next Steps
- Team Formation: John Hunter should immediately begin assembling the team, selecting individuals with the necessary expertise and experience.
- Client Relationship Building: John Hunter should initiate communication with the client to understand their needs and expectations.
- Strategy Development: The team should work together to develop a comprehensive strategy that addresses the client's requirements and aligns with GTS's capabilities.
- Project Planning and Execution: The team should create a detailed project plan and implement the strategy effectively.
- Communication and Feedback: John Hunter should establish a clear communication plan and provide regular feedback to ensure the team is aligned and on track.
By implementing these recommendations and taking the necessary steps, GE Transportation Systems can position itself for success in winning the rail deal and achieving its business objectives.
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Case Description
In 2012, Nalin Jain, then head of GE aviation for South Asia, was given the added responsibility for GE's transportation business in India, including bidding for a $2.5 billion contract to manufacture, service and maintain 1,000 diesel locomotives for state owned Indian Railways (IR). The deal, which would have been the largest deal on the planet for the transportation business, had been under discussion for six years, and many within GE had given up hope that it would materialize, but Jain persisted. In February 2015, when IR requested companies to submit a financial bid in six months, Jain quickly built an autonomous team, sequestered from the rest of GE, with people from multiple businesses and functions. His team overcame internal resistance from people at headquarters and stiff competition to help GE win the deal by a narrow margin. Jain was then tasked with executing the deal. As many of his earlier team members had moved on, Jain hired new people and built a new diverse yet integrated team for execution, with members able to put aside their many differences, look beyond their functional silos, and focus on the project deliverables. However, 2017 brought a series of challenges. GE changed India's organization structure, making India business leaders report only to their respective global business leaders instead of reporting to both their business leaders and the India country leader. Jain's mandate was expanded to include the entire international operations of GE's transportation business. And, sub-optimal company performance forced GE to announce cost cuts of $2 billion. In the face of this turmoil, Jain wonders, Have I created an agile team that can succeed in GE's matrix environment and deal with the internal challenges? Do the team members have the maturity and motivation required for the project to succeed?
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