What follows are the abbreviated notes from a longer case study prepared by OTB Advisory as part of its organizational change practice (the complete case study contains further information to assess root causes, and separate debriefing notes). This case is based on facts although all of the organizational details have been modified. This case illustrates some of the common management myths and their consequences. If you have questions, would like to obtain further information on the case study, or use it in your organization, please contact OTB Advisory.

OTB Advisory is an accounting and finance advisory, and management consulting firm that helps companies manage enterprise risk and implement change initiatives.

Selected case study facts:

Stellar Consulting is an engineering consulting firm founded several decades ago. It conducts long-term engineering projects for clients involving both engineering design and implementation project management.

Stellar operates in multiple countries and regions within individual countries. Its management structure is decentralized – generally leadership is regional while general managers are assigned responsibility for individual client accounts and related projects. General managers receive a lot of training before they are assigned their roles and are expected to have the skills, expertise and internal/external relationships to independently oversee the projects they are assigned to.

In the summer of 201X, one of the key projects was in trouble. The project was a significant one for a new large client and stakes were high. The project metrics were off with costs significantly over budget, and deliverables lagging behind. The General Manager assigned to oversee the project voiced his (rather vague at the time) concerns to the Regional Leader. He did not have a clear diagnosis of the problems but asked for more resources. He was told to figure out the solution with the resources assigned as that was normal practice for the company, and that the leader was confident the General Manager was competent to do so.

As time progressed, it became apparent that the stress levels within the team were becoming uncontrollable. People at all levels were voicing concerns. The Regional Leader continued to “watch” the situation as an opportunity for the General Manager to practice his skills. No interviews were conducted with any of the team members and the General Manager was not comfortable asking for more help after the message received earlier – he perceived it as “you will not be viewed as competent unless you can execute successfully, on time and on budget, with the team assigned”.  Failure was not an option at Stellar – they were a successful business and prided themselves on being the best.

Selected debriefing notes:

Ultimately, the outcome was as follows:

  • The project was delivered on time, although significantly over budget; the company kept the client but lost money on the overall job. Significant additional resources (at senior and junior levels) were required to complete the job, in crisis mode. The company was not able to bill the client for extra scope and no discussions were conducted with the client regarding scope changes.
  • The client was aware of the issues particularly given the close association with the project team during the course of the project and was highly dissatisfied with the way the project was executed, despite the ultimate outcome that was positive for the client. The client was of the view that the General Manager really “blew it” and requested a change should they continue to do business with Stellar. Stellar complied with the client’s request.
  • The team was also highly dissatisfied with their experience, to the point of several team members leaving the company after the project was completed.
  • As a result of poor team and client outcomes, the General Manager, who was a long-term employee of Stellar, was asked to leave the company.
  • The core root cause of the problem was that this was a very different project for the company, involving components that the entity had not built previous strong expertise in. It was not apparent at the time of project acceptance because the quote was executed by sales without a sufficiently deep understanding of what was involved, and senior leadership, responsible for approving new projects including their financial metrics, was thrilled to receive such a significant project from a large new client. Getting the project involved a lot of work for many people at senior levels within the organization and they were extremely pleased with this win. The disconnects were not identified during project planning or early execution stages. The General Manager or the assigned team did not have deep expertise in some of the key elements of the project. In addition, there were multiple components of the project that were assumed to be integrated at the client level for the purpose of the sales quote and the resulting implementation plan – however, it came to light about mid-way through the project that they were not integrated at all and integration had to be incorporated into the project scope in order to deliver what was promised to the client. No contingencies were built into the implementation plan to deal with such a major unexpected set of facts, and it was not uncovered in time for an effective early response.

Selected questions:

  • Would you assess this as a successful or unsuccessful experience for Stellar? Why?
  • In your view, who at Stellar was tasked with the responsibility and accountability for the project? Please note that responsibility and accountability are different and can be assigned together or separately. Was this assignment effective?
  • What was the job of the General Manager?
  • What was the job of the Regional Leader?
  • What is your assessment of the effectiveness of the management processes within Stellar?
  • What do you think is Stellar’s management’s assessment of the effectiveness of its processes?
  • What do you think happened at Stellar as a result of this experience? Why do you have this view?
  • If you were the Regional Leader at Stellar, what actions would you take after the dust has settled?
  • Can you think of any myths common in management that contributed to the outcomes in this case?