4 documents

Executing the Project

Question 1.

Case Study 3.1 Keflavik Paper Company

Keflavik Paper is an organization that has lately been facing serious problems with the results of its projects. Specifically, the company’s project development record has been spotty: While some projects have been delivered on time, others have been late. Budgets are routinely overrun, and product performance has been inconsistent, with the results of some projects yielding good returns and others losing money. They have hired a consultant to investigate some of the principal causes that are underlying these problems, and he believes that the primary problem is not how project are run but how they are selected in the first place. Specifically, there is little attention paid to the need to consider strategic fit and portfolio management in selecting new projects. This case is intended to get students thinking of alternative screening measures that could potentially be used when deciding whether or not to invest in a new project.

Questions

1. Keflavik Paper presents a good example of the dangers of excessive reliance on one screening technique (in this case, discounted cash flow). How might

2. Assume that you are responsible for maintaining Keflavik’s project portfolio. Name some key criteria that should be used in evaluating all new projects before they are added to the current portfolio.

3. What does this case demonstrate about the effect of poor project screening methods on a firm’s ability to manage its projects effectively?

Case Study 4.1—In Search of Effective Project Managers

This case involves Pureswing Golf, and illustrates the problems when organizations attempt to locate competent project managers without any systematic plan for identifying and training good potential candidates. They are discovering that the “voluntary approach,” whereby new project managers are solicited seemingly at random from around the company, simply does not work. Many of these individuals likely do not have the skills or a reasonable understanding of what it takes to manage projects effectively.

Questions

1. Imagine you are a human resource professional at Pureswing who has been assigned to develop a program for recruiting new project managers. Design a job description for the position.

2. What qualities and personal characteristics support a higher likelihood of success as a project manager?

3. What qualities and personal characteristics would make it difficult to be a successful project manager?

Question -2

Case 13.3 “Dear Mr. President—Please Cancel our Project!”: The Honolulu Elevated Rail Project

This case is a great current example of a very expensive project that was kicked off because of an assumed need—to relieve congestion in downtown Honolulu through an elevated urban rail system. Critics argue that in addition to having a ballooning cost, the actual planning was poorly conceived, leaving Honolulu with an intrusive and ugly rail system through the downtown area, ruining panoramic views, and impeding traffic. Additionally, advocates underestimated the power needs for the rail system, requiring the transport authority to renegotiate electricity fees for the system. Finally, the original costs that were assumed for the project were calculated during an economic downturn and with the economy booming again, the costs of the project have gone up dramatically. All of these elements’ points to a state Governor who is anxious to be rid of the project and hoping that President Trump will deny additional federal funding, in which case the project will likely be cancelled.

Questions

1. Why are public works projects like the Honolulu Rail project nearly impossible to stop once they have been approved, even if later cost estimates skyrocket?

2. Project Management researchers have charged that many large infrastructure projects, like this one, suffer from “delusion” and “deception” on the parts of their advocates. Explain how “delusion” might be a cause of ballooning budgets in this project. How does “deception” affect the final project budget overruns?

Case Study 14.1—New Jersey Kills Hudson River Tunnel Project

This case illustrates the challenges in making an early termination decision. Often, particularly in the case of public projects, there is a real difficulty in stopping a project once it has gotten “on the books.” As a result, projects with huge cost overruns, like Boston’s “Big Dig” are allowed to continue almost indefinitely. New Jersey Governor Chris Christie made a tough call in deciding to cancel the Hudson River Tunnel project because he was given a number of rosy projections that did not match the actual costs incurred to that date. This is a great case to let students pick sides: should Christie have cancelled the project or not? There are arguments to be made that the need was strong (although others could argue that the need was over-sold). On the other hand, the history of the project to date and the uncertainty about future federal funding made it a real gamble, especially during a time of economic recession.

Questions

1. How would you respond to the argument that it is impossible to judge how successful a project like this one would have been unless you do it?

2. Take a position, either pro or con, on Christie’s decision to kill the ARC. Develop arguments to support your point of view.

3. In your opinion, how clearly must a large infrastructure project like ARC have determined its need, costs, and so forth before being approved? If the criteria are too stringent, what is the implication for future projects of this type? Would any ever be built?