Select one of the types of project management that would suit for the development of the larger touring class motorcycles. Outline the process steps that your company would take in order to develop the motorcycle. Provide a rationale for the response. The matrix organizational structure would best suit for the development of the larger touring class motorcycles for the company. A project manager in a medium sized company, assuming he will have a dual role as also the functional manager, will have its numerous advantages to maintain maximum project control over the resources which includes cost and personnel.
Since this type of organization structure provide rapid response changes and other project needs, conflicts are normally kept to a minimal. The project manager will be able to impose his own policies and procedures that will line up with the objective of the planned project. In a matrix organization, key personnel are put together that can work with a variety of problems, collaborate with one another and can create resolution if such issues may arise (Kerzner, 2013). Confidence and good technical knowledge will develop with the employees that encourage creativity and productivity. Empowerment is the product of dedicated and motivated employees that shares the same drive and interest to complete the job task at hand.
First orders of sequence consist of the selection of the project manager is the assigning of the position by the executives within the company. Once a PM is selected, the project manager will have the option to assemble his team and will give specific job assignments and individual responsibilities to the team selected for the project. The project manager will prepare an outline of the plan to project operating cost such as resources and materials including budget fund necessary to complete deliverables. The planned report will highlight expected deadlines and progress throughout the stages of the project. The outline will include each member’s duties, team expectations, and important dates that will be provided to make sure that everyone a clear understanding of the purpose and goal of the project. Various teams will be assigned to handle designs, assembly, parts requisition and marketing of the new motorcycles to streamline the process and increase in efficiency of the production process.
In the first year of development, the first goal of the team is to initiate a strategic approach such as benchmarking and decision making conducted by the team to developed different motorcycle designs and to determine which design will be produced and manufactured. Once the design is set, the project team start ordering parts and manufacturing of the motorcycles continue during the second and third years. In the fourth and fifth years, marketing and advertising will take place to introduce the new product to the general consumers. Recommend one strategy to the senior executives that the organization might use to balance short and long term needs. Specify the crucial resources that you would need as a project manager to run the existing business interests at the same time that the business changes to the production of touring class motorcycles.
One strategy the company could use to balance short-term and long-term needs is to develop a unique product such as accessories to compliment the newly concept motorcycles and existing inventory of older motorcycles. This provides the company a competitive advantage with other core competitors by providing and developing new products that are highly appealing to the customers that the company only carries. This will also attract loyal customers into the store to get a sneak preview of new parts in the market for their current motorcycles or learn about the new products that will soon be available. Advertising to new customers, advising and making recommendations for existing customers can build rapport and established good relationship can help meet long-term needs and sustain marketability. The marketing teams will be responsible for reaching out to new and existing customers to promote the new product.
Another crucial resource that the project manager will need is the cooperation and corporate unity of the employees within the company. All units within the organization should embrace the same set of values, and the employees then must support these values (Wong, 2013). Without a universal corporate culture in place, project managers will most likely have to deal with battles from other departments within the company to ensure the project will be completed and meet its deadlines. Another crucial resource that the project manager will need is empowerment. Project managers must be empowered to lead and give team members direction on tasks, responsibilities, and deadlines.
Project managers must also be confident in making changes to the scope, schedules, and budgets if necessary (Wong, 2013). Executive level support is another crucial resource that project managers need. This level of support is needed to ensure that other people within the company are receptive to the ideas and provide support to the project. Without top management support, the company’s culture will not be followed and the project manager will feel powerless (Wong, 2013). Suggest the project management leadership style that is most conducive to overseeing the operation of the business growth plan.
The project management leadership style that is most conducive to overseeing the operation of the business growth plan is democratic leadership. Democratic leadership involves the action of encouraging the team members to communicate with each other and be involved in decision making (Kerzner, 2013). Creating an environment that pushes the envelope of creativity results in increase effort and motivation by the employees in the development of the new touring motorcycles. The project manager should encourage the team members to collaborate and engaged in an open discussion in regards to the project to maximize their resources and ensure success. The project manager should be involved in these discussions, and in charge of approving any new tasks or ideas that the project members that may decide on.
Each ideas, recommendations and input should be taken into consideration but the overall design platform will have to be approved by executives. Recommend at least three risk mitigation strategies to address project plan details that might be forgotten or overlooked. Justify the selection. There are three risk mitigation strategies that the company can utilize to address project plan details that might be forgotten or overlooked. The use of mitigation technique are commonly use by business to reduce the adverse affect on any project that may pose a risk. Risk acceptance, risk avoidance and risk limitation are all good examples that one business may use to assess, identify and resolve risk to anticipate and handles such risk that may affect the overall outcome of any plan. The risk acceptance is a common option when the cost of other risk management options such as avoidance or limitation may outweigh the cost of the risk itself.
If the company doesn’t want to spend a lot of money on avoiding risks such as add-on accessories for the new touring motorcycles, the company will still be willing to forego with plan to manufacture the cycles because the overall objective is to produce motorcycles with larger motor. The accessories are only option that a customer may want to have or add. So if the company decided to cancel the plan to produce accessories, it will not affect the project. Risk avoidance is the complete opposite of risk acceptance which is the action that avoids any exposure to the risk whatsoever. Risk avoidance is usually the most expensive of all risk mitigation. The company may opt to not even include the plan of producing accessories because this will be another cost that the company may have to shell out. Especially on a medium size company, financial resources may be limited and any variable factors that my skewed the number is a better option to avoid it.
Risk limitation is the most common risk management strategy used by businesses. This strategy limits a company’s exposure by taking some action. It is a strategy employing a bit of risk acceptance along with a bit of risk avoidance or an average of both. An example of risk limitation would be if the company accepted that a motorcycle drive train may fail and avoiding a long period of failure by having multiple choice of drive train backups to replace the parts. All of these strategies may all be used in conjunction to one another to anticipate and eliminate risk, but in the business world, risk is a common factor and may not be eliminated completely but surely be minimized. Economic factors also affect the budget of the project and will fluctuate during the five year process. Ultimately, the project manager must be prepared for any changes that must be made to maintain the integrity of the project plan.
Jerpi, D. (n.d.). Types of Team Project Organization. Retrieved from http://www.smallbusiness.chron.com/types-team-project-organization-46812.html Kerzner, H. (2013). Project management: A systems approach to planning, scheduling, and controlling. (11th ed.). Hoboken, New Jersey: John Wiley & Sons. Wong, C. (2013, April 17). Gem: The most crucial factors for project success. Retrieved from http://www.projecttimes.com/articles/gem-the-most-crucial-factors-for-project-success.html MHA Consulting, (2013, May 17). Four Types of Risk Mitigation and BCM Governance, Risk and Compliance (GRC). Retrieved from http:// http://www.mha-it.com/2013/05/four-types-of-risk-mitigation/