Maximum Megahertz Project Olaf Gundersen, the CEO of WirelessTelecom Company, is in a quandary. Last year he accepted theMaximum Megahertz Project suggested by six up-andcoming youngR&D corporate stars. Although Olaf did not truly understand thetechnical importance of the project, the creators of the projectneeded only $600,000, so it seemed like a good risk. Now the groupis asking for $800,000 more and a six-month extension on a projectthat is already four months behind. However, the team feelsconfident they can turn things around. The project manager andproject team feel that if they hang in there a little longer theywill be able to overcome the roadblocks they areencountering—especially those that reduce power, increase speed,and use a new technology battery. Other managers familiar with theproject hint that the power pack problem might be solved, but “thebattery problem will never be solved.” Olaf believes he is lockedinto this project; his gut feeling tells him the project will nevermaterialize, and he should get out. John, his human resourcemanager, suggested bringing in a consultant to axe the project.Olaf decided to call his friend Dawn O’Connor, the CEO of anaccounting software company. He asked her, “What do you do whenproject costs and deadlines escalate drastically? How do you handledoubtful projects?” Her response was, “Let another project managerlook at the project. Ask: ‘If you took over this project tomorrow,could you achieve the required results, given the extended time andadditional money?’ If the answer is no, I call my top managementteam together and have them review the doubtful project in relationto other projects in our project portfolio.” Olaf feels this isgood advice. Unfortunately, the Maximum Megahertz Project is not anisolated example. Over the last five years there have been threeprojects that were never completed. “We just seemed to pour moremoney into them, even though we had a pretty good idea the projectswere dying. The cost of those projects was high; those resourcescould have been better used on other projects.” Olaf wonders, “Dowe ever learn from our mistakes? How can we develop a process thatcatches errant projects early? More importantly, how do we ease aproject manager and team off an errant project withoutembarrassment?” Olaf certainly does not want to lose the six brightstars on the Maximum Megahertz Project. Olaf is contemplating howhis growing telecommunications company should deal with the problemof identifying projects that should be terminated early, how toallow good managers to make mistakes without public embarrassment,and how they all can learn from their mistakes. Give Olaf a plan ofaction for the future that attacks the problem. Be specific andprovide examples that relate to Wireless Telecom Company. Read thecase study above “Maximum Megahertz Project” (Page 549 from:Larson, E.W. & Gray, C.F. (2010). Project Management:
a) What do you think Olaf Gundersen, the CEO of Wireless TelecomCompany should do? Use what you know from the case and the courseto build the arguments? (The answer will not be graded based onright or wrong but how the arguments are developed.)
b) What are some potential conflicts that could result from thesteps in recommended in a? How could you apply change management orconflict avoidance/resolution techniques to avoid or resolvethese?
c) Based on what you have learned in this class, what could havebeen done so that the project problems would have been avoided? (Ofcourse, you do not have complete information but use what is hereand what you have learned is best practice in managing projects.)(30 points)
d) Costs and deadlines of the projects escalated in the MaximumMegahertz project. Why are accurate estimates critical to projectmanagement? What would you advise Olaf about his problems withestimate? How to develop a process that would result in morerealistic estimates?
e) How should Olaf improve project management in hisorganization?
