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| MBA
- Project Management
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The development of organizations is highly dependent on their
ability to introduce changes effectively. In this respect,
the role of the project management can hardly be underestimated
since the successful implementation of changes or introduction
of innovations in organizations may be effectively conducted
in terms of project management since, while working on a project
of a specific change, managers can evaluate possible outcomes
of the change and forecast the further development of the
organization. Obviously, today, the effectiveness of management
is one of the major conditions of a successful performance
of any company. Basically, the development and progress of
a company heavily relies on its management since the ability
of a company to use effectively its human resources, time,
costs, etc. defines the effectiveness of its performance and,
therefore, success. In such a situation, the problem of the
development of effective strategies of management arises since
it is impossible to manage an organization effectively without
any strategic background that could define the general development
and the direction of the development of an organization. In
fact, the problem of effectiveness is particularly important
if such issues as the improvement of the existing information
system and optimization of the financial system of the organization
are involved. In this respect, it is possible to refer to
the case of Tektronix, which has successfully implemented
the change and created the solid foundation for the future
development and progress of the company putting it in an advantageous
competitive position in the modern market. Basically, Carl
Neun, the CFO, had managed to introduce the Oracle, the new
system which facilitated the functioning of the company consistently
and increased the effectiveness of its performance. At the
same time, it is important to underline that the speed became
one of the main conditions of the successful outcome of the
introduction of the change, but, on the other hand, it increased
the risk of failure of the change. In such a situation, it
is important to carefully analyze the development and implementation
of the project which actually allowed Tektronix to take a
strong position in the market and opened new perspectives
for the company’s development in different regions of
the world since the new system and the project of the implementation
of the change was successfully applied not only in the USA
but also in Europe and Americas.
First of all, it should be said that in the contemporary business
environment, the question of the project management is closely
intertwined with the development of effective management strategies
and their practical implementation. At the same time, the
concept of the project management is crucial for the understanding
of its impact on the successful functioning of organizations
and the success of Tektronix in the process of the implementation
of the change. In fact, the concept of project management
is consistently larger than just the strategic planning and
implementation of the chosen strategies to improve the performance
of an organization. In actuality, the project management may
be viewed as the basis on which the management of organizations
is constructed. In other words, the project management plays
the fundamental role in the function of contemporary organizations.
On the other hand, the definition of the concept of the project
management evokes certain problems since this concept is so
complicated that there is no universal definition of this
concept that would be accepted by all specialists working
on the problem of the project management (Cerza, 2004). At
the same time, while analyzing the concept of the project
management, it is necessary to dwell upon the major knowledge
areas, including project human resources management and project
communications management. In this respect, it is important
to underline that Tektronix had developed and implemented
the project, which resulted in the introduction of the Oracle
and consistent change of its information and financial system,
involving different areas which were vital for the performance
of the company. To put it more precisely, Carl Neun, while
developing and implementing the project, should take into
consideration the impact of the project on human resources,
the reaction of the personnel on the change, as well as he
needed to define the information system the company could
employ and use successfully. In addition, it was extremely
important that the new information system could facilitate
the work of the personnel in the field of accounting that
could increase the financial effectiveness of the new system
and improve the performance of the organization at large.
On analyzing the project management and its practical implementation
by Tektronix, it should be said that this concept is very
complex and basically involves the major processes and functions
that are related to the management. In actuality, the definitions
of the project management vary considerably and all of them
have nuances which are really important for the definition
of this concept. Basically, the concept of the project management
implies the discipline of planning, organizing and managing
resources to bring about the successful completion of the
specific project goals and objectives (Abrahamson, 1996).
This definition reveals the major points of the concept of
the project management, but, nevertheless, it is hardly possible
to use this definition without defining some terms used in
it. To put it more precisely, it is necessary to point out
that the project, itself, is a finite endeavor undertaken
by an organization to create a unique product or service which
brings about beneficial change or added value. In this respect,
it should be said that the project management, in such a context,
means that the organization should clearly define goals and
objectives of a specific project and implement the project
that will bring out certain benefit to the organization. In
actuality, this means that organizations actually manage the
project and the project management incorporates all the major
managerial functions and processes that are related to the
implementation and fulfillment of the project. In this respect,
it is worth mentioning the fact that Carl Neun, while developing
and implementing his project, used a very effective approach
sharing the work on the project and its implementation with
other managers. For instance, the key figure in the implementation
of the project was Bob Vance, a technology manager with whom
Carl Neun worked in the past and who assisted him in the implementation
of the project. This assistance was extremely important because
Carl Neun apparently lacked technological knowledge without
which the successful implementation of a new information system
and the change of the company’s IT infrastructure would
be practically impossible. Similarly, Carl Neun used the assistance
of other managers in all branches of the company where the
project was implemented. In fact, Carl Neun played the role
of a head, he was a manager who gave directions and controlled
the general implementation of the project, while technical
details, where profound professional knowledge related to
the subject of the change, such as information system and
IT, were under the control of other managers who either were
more experienced in these specific fields or more qualified.
In such a way, Carl Neun successfully implemented his strategy
of sharing responsibilities and functions between the personnel
of the company, namely all those people who worked on the
implementation of the project.
At the same time, it should be said that such a view on the
project management is a bit narrow or even simplified. In
actuality, project management is not limited by the effective
human resource management or sharing functions between the
personnel in the process of the implementation of the project.
In contrast, it is also necessary to take into consideration
multiple issues which can affect significantly the implementation
of the project leading either to its success or failure. In
this respect, the point of view on the project management,
to a significant extent, determines its definition. For instance,
it is possible to view the project management in the context
of knowledge management. In such a context, it is possible
to define the project management as the application of knowledge,
skills, tools and techniques to project activities to meet
project requirements. Basically, this definition gives the
insight concerning the essence of the project managements
as the process of the implementation of certain knowledge
and skills that are at the disposition of the organization,
though it does not really explain the process how the project
management is actually performed. In this respect, it is possible
to define the project management as the process of planning,
monitoring and control of all aspects of the project and the
motivation of all those involved in it to achieve the project
objectives on time and to the specified cost, quality and
performance (Hill and Wilkinson, 1995). In fact, this definition
mainly refers to the process and methodology of the project
management that is very important because it does not only
complements the essence of the concept of the project management
but also reveals the ways in which it can be implemented in
practice.
However, some specialists focus solely on the project as the
major point in the definition of the concept of the project
management. What is meant here is the fact that the project
management may be viewed as a part of a project, which is
basically focused on the supervision and management of the
project. In such a context, it is possible to return to the
definition of the project given above, which states that a
project is a temporary endeavor with a finite completion date
undertaken to create unique product or service (Gitlow, 1997).
In this respect, it is important to underline that projects
bring form or functions to ideas or needs. In such a way,
it is possible to view this definition as a completion to
the definition of the project management given from the point
of view of the knowledge management, since it make the definition
of the project more precise.
Basically, such a view on the project management perfectly
reflects the strategy and attitude of Carl Neun to the implementation
of the project since the management of the introduction of
a new information system, leading to the change of the company’s
IT infrastructure, finance, accounting and even involving
consistent changes in human resource management, was only
a part of the change or project itself. What is meant here
is the fact that Carl Neun did only a part of the project
since the introduction of a new information system and even
the choice of the Oracle was done not by Carl Neun but a small
group of specialists who had managed to assess professionally
the effectiveness of the Oracle and its prospects after the
introduction in the company.
Finally, it is possible to speak about the project management
as a complete set of tasks, techniques, tools applied during
the project execution (Breneman & Taylor, 1996). In fact,
this definition of the project management lays emphasis on
the technical aspect of the realization of the management.
However, in actuality, this view on the project management
is apparently insufficient for the understanding of the essence
of the project management. Instead, it would be more preferable
to combine the views given above and make it more precise
and focused not only on technical aspects of the project management
but also its background and theoretical essence. Only in such
a way, it is possible to fully understand the essence and
significance of the implementation of the project by Carl
Neun in Tektronix and assess its effectiveness as well as
define possible risks that could lead to the failure of the
entire project.
At the same time, it should be said that the successful implementation
of the project is often, to a significant extent, defined
by the preparation to its implementation. In this respect,
the preparation of Tektronix to the implementation of the
project was quite risky, but, on the other hand, the approach
used by Carl Neun became probably the major condition of the
high effectiveness of the project. In fact, the company needed
changes and, what is more, the fast introduction of changes
and implementation of the project developed by Carl Neun and
his assistants was a crucial factor which determined the survival
of the company. Otherwise, the slow implementation of the
project could lead to the rapid deterioration of the position
of the company in the market as well as it could undermine
the balance within the company because the longer the implementation
of the project occurred the higher was the risk of an aggressive
opposition to the implementation of changes in terms of the
project.
In such a situation, the decision of Carl Neun to develop
and implement the project fast was risky but worth trying
because the benefits of the project had outweighed potential
risks. Nevertheless, it is still obvious that the preparation
stage was not very effective and reliable. To put it more
precisely, Carl Neun perfectly realized that the financial,
organizational and technical situation in the company was
approaching a critical point after which there were no way
out but the ruin of the company or, at least, a profound crisis
which could make the company an outsider of the market. This
is why he, as well as the company at large, did not have much
time on the preparation and technically the profound and detailed
and analysis of the Oracle, for instance, and prospects and
outcomes of its implementation in the company along with the
detailed analysis of other, alternative systems and the research
of their strength, weaknesses and prospects in Tektronix would
almost inevitably lead to the loss of time and, therefore,
decreased the effectiveness of the implementation of the change.
In such a context, the decision of Carl Neun to concentrate
solely on the Oracle seems to be correct. However, in case
of the inappropriateness of the Oracle and its inability to
meet the demands of Tektronix, the entire project would be
more likely doomed to failure. Hence, the risk of the failure
was relatively high and the fast implementation of the project
with insufficient preparation procedures could be justified
only by a very difficult situation in Tektronix and its prospect
being ruined before any other, more carefully prepared project
was implemented.
Furthermore, it is important to underline that it was only
a small group of specialists that worked on the analysis of
the Oracle as a system which should be introduced in the Tektronix.
On the one hand, such an approach was quite effective since
it minimize the risk of disputes, if a larger number of people
were involved. Instead, a small group of qualified professionals
could take a decision in a short period of time on the effectiveness
and prospects of the Oracle in Tektronix. In such a way, the
company saved time and probably costs on the analysis, especially
taking into consideration the fact that alternative systems
were not even discussed or analyzed. On the other hand, such
an approach had several drawbacks. Firstly, other systems
could be more effective than the Oracle, but Tektronix, being
limited in time and choice because of the policy of Carl Neun,
could not really make the best choice among the variety of
information systems. In addition, the small group of professionals
analyzing the effectiveness of the Oracle did not reflect
the general opinion of other members of the personnel of Tektronix.
In other words, being unable to influence a decision concerning
the choice of the new system, some managers and employees
could oppose to the implementation of the project, if they
were convinced that the Oracle was ineffective or if they
simply could not work with the new system. In such a way,
the difficulties of the company in the market could be aggravated
by the internal conflict within the company, which could apparently
undermine its stable performance in the time when company
needed solidarity and unity of its personnel to overcome the
crisis.
In this respect, the role of communication was crucial and
Carl Neun should pay more attention to the communication with
the personnel in order to minimize the risk of the failure
of his project. In fact, the project communications management
plays the crucial role for the effectiveness of the project
management at large. In this respect, it should be said that
the project communications management should be viewed on
two levels: technical and cultural. Speaking about the technical
level, it is necessary to point out that the project communications
management should provide ample opportunities for the organization
of an effective communication between all units and all people
working on the project. The communication may be provided
due to the use of modern means of communication which open
practically unlimited opportunities for the communication.
In actuality, with the help of modern technologies, it is
possible to organize the work of different specialists that
are located in different parts of the world on one and the
same project. In other words, employees working on the project
may be physically remote from each other but due to modern
communication they can consult each other and work out common
decisions concerning the project. In such a way, the problem
of distance and time is solved.
On the other hand, it is necessary to remember about interpersonal
communication between people working within the organization,
which plays an important role and defines the extent to which
the implementation of the project is accepted or rejected
by the personnel. In fact, problems in interpersonal relations
may be provoked by problems in communication. As a result,
the entire project may be under a threat, if the organizational
culture and the atmosphere within the organization deteriorate
significantly (Benfari, 1999). Consequently, the project communications
management is very important factor which Carl Neun should
take into consideration, but, in actuality, he paid little
attention to this issue. Nevertheless, the project succeeded
and this may be explained by the speed of the development
and implementation of the change. In fact, people working
in Tektronix did not really have a time to oppose aggressively
to the implementation of the change because it was introduced
and started to work. Hence, employees had to accept the change
and work with a new system, the Oracle. Obviously, such a
blitzkrieg strategy used by Carl Neun proved to be very effective
and it became the major condition of the success of the entire
project.
However, the probability of the failure was very high and
it would be difficult to overcome the effects of the failure.
In such a situation, it would be possible to immediately start
working on the new project, but, taking into consideration
a difficult situation in Tektronix, the best alternative to
the introduction of the Oracle would be the outsourcing of
the provision of IT services. This would save costs and the
company would get a professional IT assistance. Also, it would
be necessary to communicate with employees and convince them
in the necessity of the outsourcing. Finally, it will be necessary
to train the personnel of the company to work with the new
system in order to refuse from outsourcing in the future.
Thus, taking into account all above mentioned, it is possible
to conclude that the development of the project management
is not only a popular trend in the modern business but it
is also an essential condition of the progress of any organization.
In fact, nowadays, the project management is rather viewed
as the major objective of the functioning of an organization
leading to the customer satisfaction. As a result, by means
of the implementation of the project management, a company
can benefit consistently from the increasing of the level
of customer satisfaction. Obviously, the project management
proves to be highly effective because it contributes to the
growing effectiveness and productivity of a company and, at
the same time, enhances its position in the market by means
of developing a positive customer experience that naturally
leads to customer loyalty and, therefore, popularity and recognition
of the company’s brand. In actuality, it is extremely
important to develop effective project management since it
may be viewed as the basis for the development of a successful
organization leading to its commercial success and stable
market performance. The case of Tektronix reveals the fact
that the project management is very complex and sometimes
risky but essential component of the effective performance
of any organization.
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