Using the knowledge you have
gained throughout this course and utilizing the information provided in the
lectures, evaluate the scenario and provide Olaf with a plan of action for the
future that attacks the problems he has identified. Be specific and provide
examples that relate to Wireless Telecom Company in a 1- to 2-page Word essay.
Maximum Megahertz Project
Scenario:
Olaf
Gundersen, the CEO of Wireless Telecom Company, is in a quandary. Last year he
accepted the Maximum Megahertz Project suggested by six up-and-coming young
R&D corporate stars. Although Olaf did not truly understand the technical
importance of the project, the creators of the project needed only $600,000, so
it seemed like a good risk. Now the group is asking for $800,000 more and a 6-month
extension on a project that is already 4-months behind. However, the team feels
confident they can turn things around. The Project Manager and project team
feel that if they hang in there a little longer, they will be able to overcome
the roadblocks they are encountering—especially those that reduce power,
increase speed, and use a new technology battery. Other managers familiar with
the project hint that the power pack problem might be solved, but “the
battery problem will never be solved.” Olaf believes he is locked into
this project; his gut feeling tells him the project will never materialize, and
he should get out. John, his Human Resource Manager, suggested bringing in a
consultant to axe the project.
Olaf
decided to call his friend Dawn O’Connor, the CEO of an accounting software
company. He asked her, “What do you do when project costs and deadlines
escalate drastically? How do you handle doubtful projects?” Her response
was, “Let another Project Manager look at the project. Ask: ‘If you took
over this project tomorrow, could you achieve the required results, given the
extended time and additional money?’ If the answer is no, I call my top
management team together and have them review the doubtful project in relation
to other projects in our project portfolio.” Olaf feels this is good
advice.
Unfortunately,
the Maximum Megahertz Project is not an isolated example. Over the last
5-years, there have been three projects that were never completed. “We
just seemed to pour more money into them, even though we had a pretty good idea
the projects were dying. The cost of those projects was high; those resources
could have been better used on other projects.” Olaf wonders, “Do we
ever learn from our mistakes? How can we develop a process that catches errant
projects early? More importantly, how do we ease a Project Manager and team off
an errant project without embarrassment?” Olaf certainly does not want to
lose the six bright stars on the Maximum Megahertz Project.
Olaf
is contemplating how his growing telecommunications company should deal with
the problem of identifying projects that should be terminated early, how to
allow good managers to make mistakes without public embarrassment, and how they
all can learn from their mistakes.