Project Motorcycles – The Comprehensive Project Plan

PROJECT MANAGEMENT

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Question 1

A pure product organizational structure would be the best to handle the new motorcycle project. A pure project is one where a project manager with the help of a project team carries out each task. The project team exercises total control over the project with logistical support from the management of the organization. The process of development of the project would begin with the constituting of a project team, which would compose people from various departments, each who is supposed to offer skills in a certain area. The company would have to appoint the project leader from the members constituting the team. The leader has to be passionate about the new motorcycle and it would be beneficial if they were one of the pioneers of the project (Artto et al., 2008).

Once the team is constituted, the company will explain the project deliverables to the team members and give the project charter to act as a guideline and a checklist. The team then decides on how it will tackle the project and prepares a timeline of events. One advantage of this structure is that the team operates with a high degree of freedom because the team comprises of experts in various fields. The team is therefore likely to be creative in their design of the cruise motorcycle (Artto et al., 2008). However, the management has to insist that the product created has to match or even better, what competitors are offering customers. The project team may be kept once the project is completed so that they can continue making improvements on the product.

Another reason why a pure product structure suits the development of motorcycles is that teams work with deadlines. The motorcycles need to hit the market as soon as possible to ensure the company recoups the funds spent on research in the shortest time possible. The project creates a timeline of events, which will serve as a checklist for the progress made thus far. The communication lines within the team are short because the members report directly to the team leader. As such, it becomes easier for the leader to become of any problems that occur compared to when there is a long chain of command. The leader is also the only one responsible for communicating the project’s progress to the management. This avoids having several contradicting reports about the project. The pure product structure advantageous in that it eliminates the overlapping and duplication of roles within the project because team members are chosen based on their skills and qualifications (Artto et al., 2008).

Question 2

Every organization has to balance between its short-term objectives and long-term needs in order to ensure it remains a going concern several years from today. Often, short-term thinking could lead to an organization jeopardizing wealth maximization in favor of profit in the current financial year. One way senior executives can balance the short term and long-term interests through the preparation of a strategic plan that details the company’s objectives over the next five years. The preparation process should involve all the stakeholders at the company to avoid complaints about being left out. The long-term goals should be complemented by short-term activities within the larger objectives. This will ensure that the short-term pursuits of the company are in line with its larger vision (Peter & Ashley, 2004).

A project manager that wishes to convince other managers to pay attention to the new class of motorcycles the company plans to roll out should hold regular discussions with them. The meetings will give the other managers a chance to contribute to the motorcycle project and thus feel like they are a part of it. Further, they should hold discussions about the changing business landscape so that other managers understand why the business needs to adjust their product line to include the touring motorcycles. Involving managers who have been at the company for long will help preserve the interests of existing product lines (Peter & Ashley, 2004).

A project manager needs several personal attributes to be able to balance the company’s current interests and the interests of the new project. First, the project manager must have good negotiation skills. This will ensure that he is able to identify things that he can compromise on as well as those demands he cannot give in to (Peter & Ashley, 2004). The project manager has to be passionate to ensure the project does not stall due to a lack of attention. The negotiation skills come in handy when the project manager tries to gather political influence for the new project. A project that enjoys political support is likely to receive proper funding as well as talented employees to be a part of the team.

When a company manages to balance its short term and long-term interests, there is likely to be harmony between all company stakeholders. For instance, some shareholders may be interests in dividends received and as such want the company to make as much profit as possible. Others may be interested in the share price of a company and therefore want managers to continue investing in viable projects. Harmony between the shareholders guarantees the company’s long-term stability (Peter & Ashley, 2004).

Question 3

The leadership skills of a project leader are crucial to the success of any particular project. For instance, an assertive leader will ensure that the project gets the necessary funding. The persistence of a leader ensures that the project is completed even if takes several financial years to do so. The leader should also be charismatic to inspire the project team members towards the yearning to complete the project (Josler & Burger, 2005).

The best leadership approach for the project leader should be a democratic style where he or she listens to the input of every team member before making leadership decisions. Teams have people who have specialized in different areas and as such involving them is only wise as it leads to richer decisions. Democracy helps to make team members feel comfortable with roles assigned to them. This is because people will have participated in the creation of roles. In addition, democratic leadership will ensure that team members indeed own the project. As such, they are likely to dedicate extra hours to the project even without the project leader asking for it. In addition, the likelihood of the designs they create being original and innovative is high (Josler & Burger, 2005). Getting team members to own the project grows their hunger for success and willingness to beat designs created by competitors.

Another advantage of democratic leadership is the self-confidence members develop due to being consulted on leadership issues. The members also develop decision-making ability due to being consulted by the project leader. This guaranteed the project continuity even when the current project leader exits (Josler & Burger, 2005). Further, project team members are likely to embrace changes that come about during the life of the project as they are part of the decision-making panel.

The main drawback of the democratic leadership style is that it could slow down decisions even when swift decisions need to be made. The company could end up missing opportunities because of a slow decision process. For instance, potential business partners in the motor cycle project may become wary about working with the company because it appears indecisive in decision-making process.

In addition, no single leadership style can fit all situations. Democratic leadership is best suitable when creativity is required, for instance, at the design stage of the project. The project manager may have to practice a degree of Authoritativeness in some situations. Authoritativeness may help when a leader is following up on task completion by various team members. A coercive leadership style is suitable when dealing with junior persons who are unsure concerning their skills. The leader may use coercive leadership to convince them to try new tasks (Josler & Burger, 2005).

Question 3

The first risk mitigation method is the transfer of risk inherent in taking up a given strategy. Risk transfer involves taking up against any risks that are likely to occur as the project goes on. Normally, a risk management expert is involved in the assessment and identification of possible risks that could befall the project. The risks are then ranked according to the likelihood of occurring and the severity of damage it were indeed to occur. The company then takes up insurance cover against those risks that risk manager thinks are most important. A cost benefit analysis has to be undertaken to ensure that the risk being covered against is bigger than the premiums the company has to pay to the insurance company. The advantage of risk transfer is that the company does not have to abandon a beneficial but risky project (Verbano & Ashley, 2004). It also gives managers peace of mind when making decisions concerning the project.

Another risk mitigation strategy is risk control whereby the company puts in place measures to reduce the severity of loss should a particular risk occur. Risk control is proceeded by the assessment of risks that could occur at each stage during a project. As such, project stakeholders have to be involved in the assessment. The organization then takes measures such as having skilled personnel to handle potentially risky processes. Other risk control actions include engaging the services of consultants when the organization is implementing change or hiring security personnel when the assets of a company are not safe (Verbano & Ashley, 2004).

The last risk mitigation strategy involves the choice between risk acceptance and avoidance. Once a company conducts a risk assessment of the project, it may realize that the severity and likelihood of risks occurring is minimal. As such, it would be too expensive or unnecessary to insure them. The company therefore goes ahead with the project despite the risks involved. This strategy is called risk acceptance because the expected rewards are enough to offset any losses (Verbano & Ashley, 2004). Risk avoidance is utilized when the probability of a risk occurring is high and the potential damages very high. The company therefore avoids accomplishing its objectives using a particular strategy and instead finds new ways of implementing the project. The company can also decide to abandon the project altogether.

References

Artto, K., Kujala, J., Dietrich, P., & Martinsuo, M. (2008). What is project strategy?. International Journal of Project Management, 26(1), 4-12.

Josler, C., & Burger, J. (2005). Project Management Methodology in Human Resource Management. Cupa HR Journal, 56(2), 25.

Peter, M., & Ashley, J. (2004, January). Translating corporate strategy into project strategy: realizing corporate strategy through project management. Project Management Institute.

Verbano, C., & Venturini, K. (2013). Managing Risks in SMEs: A Literature Review and Research Agenda. Journal of technology management & innovation, 8(3), 186-197.