Meir (2008) says efforts to select a diverse team, should be tempered by team size. He argues that large teams tend to have less collaboration. This has a negative effect on the team’s effectiveness. The eRPD oversight committee is sufficiently diverse in talent and abilities. The committee is composed of persons of different backgrounds and accomplishments. This mitigates for the fact the project manager has no formal training in Information technology. However, committee size is the major culprit. The oversight committee is too large to be effective. Barnes & Nobles was very effective with small diverse teams. Maintaining the level of effective collaboration was made possible. This was achieved by having enough team members who add value to the project. Project management should consider external risk factors. Anticipating all manner of risk is by no means easy. However, having a contingency plan for rapid response to risk is important. RPD was caught in a media maelstrom regarding the web portal black out. Kloppenberg, Frolick & Teisch (2007) describe failure to understand requirements as one of the risk areas for IT project management. This they say could be a result of inadequate technical skills as is the case with eRPD’s Project manager. Alternatively it could also be because of lack of technical specifications. Perhaps it is advisable for the project team to review their requirements. Many organizations' IT projects grow easily carried away by producing “state-of-the-art” technology at the expense of user-friendly solutions. RPD may need to review risk identification, response management strategies. As well RPD needs to deploy a system for monitoring and controlling the risks. Other sources of risk can be poor communication between the project manager and the sponsor. Keeping the sponsor appraised of the projects progress and challenge allows for input, perspective and support
The infamous blackout of 2003 caused the energy industry to be interested in risk and risk management. The article by PR newswire describes the awakening of the energy industry to the need for planning and risk analysis solutions (Journal).
The chief executive officer was not aware of the infightings regarding the components of eRPD. The list of critical factors(simulation) and the project requirements document should guide the project team. However, if these are not defined, it can precipitate a contentious atmosphere as is the case with the RPD team. Rosenthal & Caper (2004) stress the importance of user reviews, early in the project. They state for instance that” ethnographic research, carefully planned and implemented, is an effective method. They further state " It provides for user-centered perspectives early in the product innovation cycle.” This supports the argument for a user-focused eRPD platform. They argue it is difficult to imagine, user desires or concerns. For instance Panasonic wanted to design an electric shaving machine for women. It enlisted an industrial design and product development company. This company performed substantive ethnographic surveys to determine user perspectives for the product.
Evaluate the Alternatives
eRPD oversight committee could use team building initiatives to make the team grow into as more collaborative outfit. The organizations' top management could provide support for the project management leadership. The product development process incorporates results of end user reviews from the ethnographic studies. The time lags and network diagrams can be effectively used to schedule projects. It is recommended that RPD develop a contingency plan for risk evaluation and management. Linking project objectives with strategy and freezing the project requirements can help eliminate uncertainty. Flexibility however, should be built in to allow for changes, if it makes sense to make change. The freezing will limit unnecessary debate regarding requirements. Sufficient incentives need to be provided for the oversight committee members. However the issue of control of eRPD, could be a symptom of turf wars within the organization. The politics of these turf battles could undermine the project. The project manager needs skill and tact in handling these turf wars. The project sponsors could support the project manager and provide the resources needed. This will provide needed politic capital to get through implementation. Of greater importance is the need to consider a permanent project management office in lieu of the current oversight committee.
Narrowed List of Alternatives
Establish business case for a permanent project management office. Design a contingency plan for emergency crisis response. Establish project risk management action that includes risk assessment and risk control regimes. Establish better project budgeting and scheduling systems. Have custom project management tools (software). Through ethnographic surveys, Incorporate end user review discoveries in eRPD development.
Identify and Asses Risks
With regard to establishment of project management office, the risk of functional assimilation with existing departments is low because the departments will no longer have to share out their personnel to critical projects. A dedicated office will minimize thinning of project facing time because of staff reassignment.
Labor costs may be a source of concern, if the organization is in the midst of cost cutting. However, cost justifications may mitigate this argument. The high risk that new team may not assimilate to the organization culture applies to all new employees. However, rigorous vetting during hiring exercise can reduce this risk. This ensures new hires are as a close a fit as possible. Low risk of project associates having trouble, with regard to implementation of project management tools. This can be overcome by use of training and careful selection of the tools. Again caution needs exercising when selecting a relevant system as opposed to a “state-of-the-art” system. Medium risks of poor return on investment, of the software tools can be mitigated as well. Again functionality rather than esthetics should be the criteria.
The high costs of licensing such software or even developing custom software is prohibitive. Careful cost benefit analysis should reveal opportunities and threats.
The third solution is to develop a corporate crisis response contingency plan. The project management team’s risk reduction strategy should incorporate aspects of this plan. Project risks may be unique to the nature of project. However their consequences can affect the organization. Middle management buy-in should be easy considering recent end-user media backlash. Reservations regarding implementation costs are overcome by the potential opportunity costs of not having a plan. High risks of the unforeseen event whose probability, though highly unlikely can significantly affect the project if it occurs. No amount of planning can overcome the unimaginable event. Mitigation can involve any of a variety of methods chief of which are rewarding positive behaviors and actions. In addition, review previous crises for improvements.
Make the Decision
RPD will need to establish a permanent project management office. The result would be more efficient handling of projects because of full-time dedicated staff. Additional advantages could be increased dedication to meeting timelines. A higher level of motivation will be experienced because the staff will not feel they have other functional duties competing for their attention. Some negatives to consider however, for instance costs of establishing a new functional unit can run into hundreds of thousands or millions of dollars. Assimilation involves understanding the current organizational culture and selecting a team that reflects and builds upon strengths. RPD can redefine functional relationships across departments. This involves a shift in cultural attitude. Opposition however should not be strong, considering the chaos that the alternative portends. Khanna (2003) gives an example of Bombardier’s successful implementation of project management offices (PMO’s) and how 95% of its projects are successful. Khanna argues that “a PMO can better leverage technologies for project management and provide better quality control over the implementation period.” An oversight committee is enamored by departmental commitments and associated limitations.
Patanakul, P., Lewwongcharoen, B., & Milosevic, D. (2010). In their empirical study of the efficacy of project management tools, indicated the necessity of tools in certain key phases of a project. With such tools teams develop additional skills. The project management portfolio of skills can be applied to future projects. Concerns regarding the learning curve involved are legitimate. However, the learning curve is not a negative aspect. Rather a necessary part of the skill building process. Skill is a human capital resource and therefore a good thing for a project management team.
Crisis and risk management planning are crucial from a strategic viewpoint. Financial risks of not having a plan cannot be quantified. It helps to be prepared for events, such as recent interaction with the media regarding eRPD. According to John, L. n (n.d). The nature of crises is “unpredictable” and “indefinable in advance.”
Planning enhances the ability to cope with pressures emanating from a crisis. Alfonso & Suzanne (2008), discussed the roles of communication strategies and incident command strategies that web-based (read RPD) corporations can put in place. This allows them to respond effectively to public relations crises.
Develop and Implement the Solution
The establishment of the project management office shall be handled by Michelle Cavanaugh, Chief Operating Officer. She will be assisted by Harlan Davis, Project Manager. Sam Remington, Chief Executive Officer shall be on the team as well. He will provide needed visibility and emphasize the strategic importance to the new office. The C- level leadership's acceptance and cooperation will help establish the new department. Also Mark Peter, Chief Information Officer will bring his expertise on systems development to bear on the development of this new office. Sam Remington’s presence in this team should balance the subtle animus between Mark Peter and Harlan Davis. Michelle Cavanaugh shall provide the sense of urgency and good execution that she has become renowned for. Timeline is set for six months beginning February 1st, and completed August 29th.
The development of project management software tools shall be charged to Mark Peters, Chief Information Officer and the three project managers; Harlan Davis, Sarah Jones, and Jan Peters. They will consider in their recommendations, end user convenience, ease of applicability, and versatility. The timeline is three months beginning, September 30th. This gives them time to incorporate recommendations arising from the business case report for a project management office.
Paul Mericore, Senior Vice-President Marketing and Communications has a long-standing association with RPD. He will bring an understanding of the organizational culture into strategic plans for crisis management. He is also experienced in public relations matters. During crises, chief executive officers are the face of the organization. Therefore, Sam Remington’s input is crucial. Sam will work with Paul in developing the plan. The timeline for this plan is two months starting March 2nd. Report should be ready by May 30th.
Evaluate the Results
Growth shall be measured in number of new subscribers. This shall be measured as percentage change. Target is subscriber base growth of 6% (article TD Ameritrade).
In addition net income growth target of 6% with review. Dedicated project management tools effectiveness shall be measured by the ratio of successful projects, before and after implementation. Target value is more than one.
Crisis management plan effectiveness shall be measured in financial impact terms. The target is ratio of the cost incurred to resolve crises. This ratio compares previous costs and current costs for before and after contingency plans respectively. The target result is a value greater than one.
Conclusion
The eRPD portal, when fully developed, has potential to drive new business for RPD. Technology and Internet commerce are rapidly changing however. Therefore, adjustments and upgrades will be expected. In addition, customers are knowledgeable, discerning, and flighty. Consequently RPD must be flexible and nimble to adapt to changing environment. RPD organization must be ready to adapt to new and relevant technologies. Cross-functional collaboration efforts must be effective. Infighting and cajoling for control should give way to teamwork. RPD needs to figure out a system of incorporating end-user concerns and expectations into the development of eRPD. Effective project management requires use of well selected project management tools. The project team will require training in the use of such tools.
A cost benefit analysis before implementation can justify the expense. A metric analysis after implementation can justify future allocations.
Two specific areas of skill would be project scheduling, project risk management, and project budgeting estimates. It is hoped the selection of the project management tool consider how well these two areas are practiced. Technology strategies should aid in cost cutting as well as meet end-user suitability. Client facing technology must be simple and anticipatory of his or her expectations. Finally a public relations crisis can be a nightmare if not handled expediently. Therefore, contingency plans must be available to minimize these and other unforeseeable risks to both the organization and its projects.
References
Alfonso, G., & Suzanne, S. (2008). Crisis Communications Management on the Web: How Internet-Based Technologies are Changing the Way Public Relations Professionals Handle Business Crises. Journal of Contingencies & Crisis Management, 16(3), 143-153. doi:10.1111/j.1468-5973.2008.00543.
"Conference Explores Best Practices in Establishing and Managing a Program Management Office (PMO) Within an Organization." PR Newswire 8 Feb. 2005. Academic OneFile. Web. 23 Jan. 2011.
Gevers, J. P., van Eerde, W., & Rutte, C. G. (2001). Time pressure, potency, and progress in project groups. European Journal of Work & Organizational Psychology, 10(2), 205-221. doi:10.1080/13594320143000636
John, L. n. (n.d). Crisis management is a matter of planning; FSDs are increasingly being asked to formalize their contingency plans. Here are some resources to make that easier. (EDITOR'S Page). Food Management, 41(5), 10. Retrieved from EBSCOhost.
Johnson, B.R. (2005). Principles of Security Management. 1st edition. Prentice Hall.
Kerzner, H. (2009). Project Management: A Systems Approach To Planning, Scheduling And Controlling. 10th edition. The John Wiley And Sons.
Marchewka, J.T. (2006). Information technology Project Management: Providing measurable organizational value. 2nd edition. The John Wiley & Sons.
Meredith, J.R., & Mantel, S.J. (2003). Project Management: The John Wiley & Sons.
Meier, S. R. (2008). Building and Managing an Effective Project Team. Defense AT&L, 37(5), 38. Retrieved from EBSCOhost.
Patanakul, P., Iewwongcharoen, B., & Milosevic, D. (2010). An empirical study on the use of project management tools and techniques across project life-cycle and their impact on project success. Journal of General Management, 35(3), 41-65. Retrieved from EBSCOhost.
Poonam Khanna. (2003, September). The office project mayhem built. Computing Canada, 29(17), 18-19. Retrieved January 23, 2011, from ABI/INFORM Complete. (Document ID: 411072021).
Rosenthal, S. R., & Capper, M. (2006). Ethnographies in the Front End: Designing for Enhanced Customer Experiences. Journal of Product Innovation Management, 23(3), 215-237. doi:10.1111/j.1540-5885.2006.00195.x
Since the Blackout, Energy Industry Interest in Risk Analysis and Planning Solutions Rises to 465% of pre-Blackout Levels. (n.d). Newswire, R. Retrieved from EBSCOhost.
TD Ameritrade income grows 6%. news.yahoo.com/s/ap/20110118/ap_on.../us_earns_td_ameritrade -
Tesch, D., Kloppenborg, T. J., & Frolick, M. N. (2007). IT Project Risk Factors: The Project Management Professionals Perspective. Journal of Computer Information Systems, 47(4), 61-69. Retrieved from EBSCOhost.
www.businesswire.com/news/home/20100803007273/en/Barnes-Noble-Evaluate-Strategic-Alternatives
Table 1
Issues and Opportunities Identification
Table 2
Stakeholder Perspectives and Ethical Dilemmas
Table 3
Analysis of Alternative Solutions
Table 4
Risk Assessment and Mitigation
Table 5
Pros and Cons of Alternative Solutions
Table 6
Optimal Solution Implementation Plan
Table 7
Evaluation of Results
