Association of Project Management: Production Operation Management (Case Study Sample)

Project Management
Name
Institution Affiliation
Project Management
INTRODUCTION
Project Management has been defined as ‘the process by which projects are defined, planned, monitored, controlled and delivered such that the agreed benefits are realised’ (Association of Project Management, 2006, 3). Essentially, it involves the staged approach by which complexity is reduced and efficiency ensured in meeting corporate objectives. It is a discipline that underlies modern economic activity in various industries
Today's globalised economy and especially the threat of increased and much stiffer global competition in all sectors of industry has prioritised innovation, integration and interdependence as critical values of market success. These changes have forced multinational organisations to effect wide-reaching and fundamental changes to adapt to the international business environment. This has led project management as a field of management to the fore as a crucial means of attaining such organisational adaptations. In fact, it has been said that innovation by definition relies on project management to reach favourable outcomes more quickly and with fewer resources. (Wheatley, n. d.)
The incorporation project management as a strategic and tactical tool for the execution of multinational projects, therefore, takes central importance in the modern global village. Nowhere is this more evident than in Lenovo’s growth from a relatively small national computer manufacturer to its present status as a global Fortune 500 company and among the world’s largest vendors of personal computers. This essay, therefore, intends to analyse Lenovo’s incorporation of Project Management into its business operations and the subsequent impact on the company as a global force in the personal computing arena.
Managing projects, however, comes with its fair share of challenges, and, it is imperative that the embrace of project management by any given organisation is conducted in the right way. Research has shown that ‘ubiquitous, international projects are not necessarily leading to organisational successes.’ (Stanleigh, 2006) An analysis of over 10000 multinational projects encompassing 30 countries reported that only about 2.5 percent of multinational businesses achieved project success (Stanleigh, 2006). The efficient uptake of project management must of necessity take a structured form and eschew the kind of haphazard implementation that has resulted in failure in the past.
THE CASE STUDY OF LENOVO
Lenovo developed as a manufacturer of personal computers throughout the 1990’s based in China and producing for a primarily Chinese market. By the end of 1999, the company had gained substantial market share, taking up about 27.3% of the Chinese market which meant it was the market leader. (Pan, 2005, 7) However, the company was only a bit part player in the international market dominated by HP Dell and IBM among others. Stiff competition in the local market, however, meant that the company had to expand and enter the global market for personal computers.
In 2004, Lenovo acquired IBMs personal computing business to actualise the planned entry into the international market. This expansion, coupled with aggressive marketing strategies adopted by Dell and HP in the Chinese market meant that Lenovo had to adapt quickly to the more competitive field. Lenovo’s market share slipped in 2004, mandating better execution and improved core competitiveness so as to increase market share and improve its performance.
To address this, the company has adopted the techniques of project management as a critical tool for maintaining competitiveness to improve their strategic focus and decision making. Project management has become the primary tool for achieving its strategic corporate goals. The uptake of project management by the company encompassed a broad concentration on the specific areas of prioritising of strategic projects, designing a Project Management Office, allocation of resources for implementation and talent growth.
Lenovo employed a project-oriented methodology to corporate strategy development. (Pinto, 2010, 33) Whereas many companies limit the deployment of project management to the tactical level, that is product development projects etc., Lenovo was able to appreciate the important role of project management as a strategic tool. Primarily, this involves making use of project management at the strategic level to select, manage and sustain projects that have the best chance of increasing the businesses competitive advantage, keeping it vibrant in the market and maximising shareholder value. The competition for scarce financial and human resources within the organisation was managed by providing an appropriate framework for rational decision making.
The company identified and organised priority tasks and subjected them to multi-department cooperation projects, referred to as strategic projects. These strategic projects were prioritised and provided with adequate resources as they were intended to facilitate expansion into new markets, enhancing organisational efficiency, integrating strategic resources and improving employee satisfaction and competence.
In fact, one such key project was identified to be the integration of corporate culture between the Chinese based parent company and the newly acquired and American staffed IBM business. The company moved its headquarters from Hong Kong Morrisville, North Carolina, in the United States of America and set up projects to merge corporate culture. This included arranging for training seminars for both American and Chinese executives on the nuances of culture clash between the American and Chinese business environments as well as a focus on the common points of intersection between the business ethos of the two companies. This involved an emphasis on the core idea of innovation.
Additionally, the company established Project Management Office to coordinate strategic projects. From 2004 to the early parts of 2005, Lenovo set up the processes and the organisational structure for its Project Management Office. It also formalised the expected business relationships between strategic leaders and the Project Management Office and budgeted for the Project Management Office to ensure adequate resources were available for its operations. Thence the company amended the regulations of all other departments to ensure conformity with the regulations of the Project Management Office
It has been however noted that one of the key reasons for failures in the implementation of project management is the belief among existing staff that project management is a threat to existing management structures and hierarchies. (Toney, 1996). However, Lenovo’s Project Management Office was well designed not to interfere with the administrative branch of projects. It was established as a department offering training and established regularised procedures. The result was that existing employees of the firm viewed the Project Management Office as a resource that existed for their benefit rather than an administrative interloper. This approach minimised resentment and conflict within the organisation and ensured the success of project management in the company. Lenovo, by such careful design of the office was able to by-pass a pitfall which has doomed many a project management office in the past, ensuring that the office thrived so much so that it won the company’s excellent team award. (Pinto, 2010, 33)
Lenovo also set aside funds for strategic implementation of projects to ensure actual completion and success of the project management process. The company recognised previous failures in lack of providing adequate funding to see of projects. Thus, with the strategic shift of 2004, company management remedied this by allocating additional funds over and above the initial budgetary allocations for project execution. This included a facility for payment of bonuses for staff involved in the projects that had an undoubtedly positive effect on staff morale.
Finally, on talent development, the company instituted some measures to ensure project managers and professionals within the organisation were adequately trained and competent in executing their duties. The organisation sent its top staff members in project management to take the Project Management Professional certification examinations offered by the Project Management Institute and to receive additional training on the application of project management standards. The certification, which is the most influential one of its kind and is globally recognized within the field of project management ensured the synchronisation of staff skills and qualification between the American and Chinese staff after the merger of Lenovo with IBM. This facilitated the management of projects and staff in various countries without having to resort to local ad hoc qualifications in each case. These certified professionals were able to catalyse project management on their return to respective functional departments and, additionally, helped in the training of their colleagues.
Similarly, the company introduced a well-designed hierarchy of project management staff per the position structure established by the human resources department of the organisation. The hierarchy provided for over one hundred full-time project managers and additionally provided a hierarchy whereby such project managers can advance to ensure career development and the retaining of key staff in the company. With the new hierarchy also came a salary review with employee positions being associated with the level of remuneration. This review also served to equalise salaries paid to employees of both IBM and Lenovo, who had been previously paid at differing rates. Here, ...