Question

Keflavik Paper Company In recent years, Keflavik Paper Company has been having problems with its project management process. A number of commercial projects, for example, have come in late and well over budget, and product performance has been inconsistent. A comprehensive analysis of the process has traced many of the problems back to faulty project selection methods. Keflavik is a medium-sized corporation that manufactures a variety of paper products, including specialty papers and the coated papers used in the photography and printing industries. Despite cyclical downturns due to general economic conditions, the firm’s annual sales have grown steadily though slowly. About five years ago, Keflavik embarked on a project-based approach to new product opportunities. The goal was to improve profitability and generate additional sales volume by developing new commercial products quickly, with better targeting to specific customer needs. The results so far have not been encouraging. The company’s project development record is spotty. Some projects have been delivered on time, but others have been late; budgets have been routinely overrun; and product performance has been inconsistent, with some projects yielding good returns and others losing money. Top management hired a consultant to analyse the firm’s processes and determine the most efficient way to fix its project management procedures. The consultant attributed the main problems not to the project management processes themselves, but to the manner in which projects are added to the company’s portfolio. The primary mechanism for new project selection focused almost exclusively on discounted cash flow models, such as net present value analysis. Essentially, if a project promised profitable revenue streams, it was approved by top management. One result of this practice was the development of a “family” of projects that were often almost completely unrelated. No one, it seems, ever asked whether projects that were added to the portfolio fit with other ongoing projects. Keflavik attempted to expand into coated papers, photographic products, shipping and packaging materials, and other lines that strayed far from the firm’s original niche. New projects were rarely measured against the firm’s strategic mission, and little effort was made to evaluate them according to its technical resources. Some new projects, for example, failed to fit because they required significant organizational learning and new technical expertise and training (all of which was expensive and time-consuming). The result was a portfolio of diverse, mismatched projects that was difficult to manage.

Further, the diverse nature of the new product line and development processes decreased organizational learning and made it impossible for Keflavik’s project managers to move easily from one assignment to the next. The hodgepodge of projects made it difficult for managers to apply lessons learned from one project to the next. Because the skills acquired on one project were largely non-transferable, project teams routinely had to relearn processes whenever they moved to a new project.

The consultant suggested that Keflavik rethink its project selection and screening processes. In order to lend some coherence to its portfolio, the firm needed to include alternative screening mechanisms.

Question:Explain steps that Keflavik’s should have used when adding a new project to their portfolio.

Answer 1

Project selection and screening must be based on cost to benefits analysis, risk to rewards ratio and return on equity ratio.

Secondly, Keflavik must have Agile methodologies in team collaboration to reduce turnaround time and solve complex challenges faster alongwith Tuckman Model of Five stages of Learning.

As new manager one must implement Tuckman Model in leading teams using following ways:

Forming where groups are formed and aggregated based on experience and expertise
Storming where resistance to change and conflicts are minimised and teams are normalised amd aligned to goals
Norming where individuals and groups efforts are recognised and awarded commensurately
PerForming where groups decisions making is encouraged with minimal intervention
Adjourning is dissemination where evaluation and feedback and acknowledgement is given and teams are disintegrated after tasks gets accomplished.

Secondly the organization is looking for learning and technical expertise is must as well.

Staffing global organisation requires methods like Social Media Hiring, Referral Hiring, and Thid Party Consulting based Hiring which gives quality candidates.

Social media hiring is best for cultural fitments however can be skeptical which is disadvantage as it doesnt give an holistic view.

Referral hiring is another effective way because of trust and Recommendations shown. However it can be disadvantageous if referrences are unchecked and unverified.

Consulting based hiring gives top level candidates based on requirements and expectations. However disadvantages being cost of hiring is very high.

Organisinations must check for quality and skills as well as qualification like global experience, overall countries travelled, cross border cross domain management skills, Leadership skills, International relations management, Team building.

Predeparting on boarding opportunity is very critical for global success and hence candidates must b egiven training in global countries and should be given sufficient time to adapt to its culture and way of doing business and then should be expatriated. Here entire family expenses are taken care of and sufficient financial and administrative support is offered for ease if transition to new nation.

Ongoung training will incorporate learning through peers, transition counselling through past expatriates, reverse mentoring and case studies and collaborative approach like on job training with senuor leaders. Here expatriates are offered regular support to understand working culture, management style and organisation structure and systems.

Repatriation policies like attractive remuneration and total rewards package, career development plan for next 5 years, family health and insurance, children schooling and education support, long term stock options and bonsues, flatter hierarchy.

US employments laws like Equal opportunities as per Civil Rights act Article VI is most important and critical to be considered when in UsA as major emphasis is given on non discrimination policy of hiring. Other Acts being Sarbanes Oxley Act and Foreign Corrupt Practice Act which leaders must be aware of for ethical compliance and demonstrating integrity and honesty.

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