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Schwartz, Peter, and Doug Randall, “An Abrupt Climate Change Scenario and its
Implications for United States National Security,” Global Business Network, Inc.,
October 2003.
Shenhar, A., “Strategic Project Leadership: Focusing Your Project on Business
Success,” Proceedings of the Project Management Institute Annual Seminars &
Symposium, San Antonio, Texas, October 3–10, 2002, CD.
Swanson, S., “All Things Considered,” PM Network, February 2011, pp. 36–40.
Case 2.1
Hector Gaming Company
Hector Gaming Company (HGC) is an educational gaming company specializing in young
children’s educational games. HGC has just completed their fourth year of operation. This
year was a banner year for HGC. The company received a large influx of capital for growth
by issuing stock privately through an investment banking firm. It appears the return on
investment for this past year will be just over 25 percent with zero debt! The growth rate for
the last two years has been approximately 80 percent each year. Parents and grandparents of
young children have been buying HGC’s products almost as fast as they are developed.
Every member of the 56-person firm is enthusiastic and looking forward to helping the firm
grow to be the largest and best educational gaming company in the world. The founder of the
firm, Sally Peters, has been written up in Young Entrepreneurs as “the young entrepreneur to
watch.” She has been able to develop an organizational culture in which all stakeholders are
committed to innovation, continuous improvement, and organization learning.
Last year, 10 top managers of HGC worked with McKinley Consulting to develop the
organization’s strategic plan. This year the same 10 managers had a retreat in Aruba to
formulate next year’s strategic plan using the same process suggested by McKinley
Consulting. Most executives seem to have a consensus of where the firm should go in the
intermediate and long term. But there is little consensus on how this should be
page 61
accomplished. Peters, now president of HGC, feels she may be losing control.
The frequency of conflicts seems to be increasing. Some individuals are always requested for
any new project created. When resource conflicts occur among projects, each project
manager believes his or her project is most important. More projects are not meeting
deadlines and are coming in over budget. Yesterday’s management meeting revealed some
top HGC talent have been working on an international business game for college students.
This project does not fit the organization vision or market niche. At times it seems everyone
is marching to his or her own drummer. Somehow more focus is needed to ensure everyone
agrees on how strategy should be implemented, given the resources available to the
organization.
Yesterday’s meeting alarmed Peters. These emerging problems are coming at a bad time.
Next week HGC is ramping up the size of the organization, number of new products per year,
and marketing efforts. Fifteen new people will join HGC next month. Peters is concerned that
policies be in place that will ensure the new people are used most productively. An additional
potential problem looms on the horizon. Other gaming companies have noticed the success
HGC is having in their niche market; one company tried to hire a key product development
employee away from HGC. Peters wants HGC to be ready to meet any potential competition
head on and to discourage any new entries into their market. Peters knows HGC is project
driven; however, she is not as confident that she has a good handle on how such an
organization should be managed—especially with such a fast growth rate and potential
competition closer to becoming a reality. The magnitude of emerging problems demands
quick attention and resolution.
Peters has hired you as a consultant. She has suggested the following format for your
consulting contract. You are free to use another format if it will improve the effectiveness of
the consulting engagement.
What is our major problem?
Identify some symptoms of the problem.
What is the major cause of the problem?
Provide a detailed action plan that attacks the problem. Be specific and provide examples that
relate to HGC.
Case 2.2
Film Prioritization
The purpose of this case is to give you experience in using a project priority system that
ranks proposed projects by their contribution to the organization’s objectives and strategic
plan.
COMPANY PROFILE
The company is the film division for a large entertainment conglomerate. The main office is
located in Anaheim, California. In addition to the feature film division, the conglomerate
includes theme parks, home videos, a television channel, interactive games, and theatrical
productions. The company has been enjoying steady growth over the past 10 years. Last year
total revenues increased by 12 percent to $21.2 billion. The company is engaged in
negotiations to expand its theme park empire to mainland China and Poland. The film
division generated $274 million in revenues, which was an increase of 7 percent page 62
over the past year. Profit margin was down 3 percent to 16 percent because of the
poor response to three of the five major film releases for the year.
COMPANY MISSION
The mission for the firm is as follows:
Our overriding objective is to create shareholder value by continuing to be the world’s premier entertainment
company from a creative, strategic, and financial standpoint.
The film division supports this mission by producing four to six high-quality, family
entertainment films for mass distribution each year. In recent years the CEO of the company
has advocated that the firm take a leadership position in championing environmental
concerns.
COMPANY “MUST” OBJECTIVES
Every project must meet the must objectives as determined by executive management. It is
important that selected film projects not violate such objectives of high strategic priority.
There are three must objectives:
1.
2.
3.
All projects meet current legal, safety, and environmental standards.
All film projects should receive a PG or lower advisory rating.
All projects should not have an adverse effect on current or planned operations within the
larger company.
COMPANY “WANT” OBJECTIVES
Want objectives are assigned weights for their relative importance. Top management is
responsible for formulating, ranking, and weighting objectives to ensure that projects support
the company’s strategy and mission. The following is a list of the company’s want objectives:
1.
2.
3.
4.
5.
6.
Be nominated for and win an Academy Award for Best Animated Feature or Best Picture
of the Year.
Generate additional merchandise revenue (action figures, dolls, interactive games, music
CDs).
Raise public consciousness about environmental issues and concerns.
Generate profit in excess of 18 percent.
Advance the state of the art in film animation and preserve the firm’s reputation.
Provide the basis for the development of a new ride at a company-owned theme park.
ASSIGNMENT
You are a member of the priority team in charge of evaluating and selecting film proposals.
Use the provided evaluation form to formally evaluate and rank each proposal. Be prepared
to report your rankings and justify your decisions.
Assume that all of the projects have passed the estimated hurdle rate of 14 percent ROI.
In addition to the brief film synopsis, the proposals include the following financial
projections of theater and video sales: 80 percent chance of ROI, 50 percent chance of ROI,
and 20 percent chance of ROI.
For example, for proposal #1 (Dalai Lama) there is an 80 percent chance that it will earn
at least 8 percent return on investment (ROI), a 50/50 chance the ROI will be 18 percent, and
a 20 percent chance that the ROI will be 24 percent.
page 63
FILM PROPOSALS
PROJECT PROPOSAL 1: MY LIFE WITH DALAI LAMA
This project is an animated, biographical account of the Dalai Lama’s childhood in Tibet
based on the popular children’s book Tales from Nepal. The Lama’s life is told through the
eyes of “Guoda,” a field snake, and other local animals who befriend the Dalai Lama and
help him understand the principles of Buddhism.
Probability
80%
50%
20%
ROI
8%
18%
24%
PROJECT PROPOSAL 2: HEIDI
The project is a remake of the classic children’s story with music written by award-winning
composers Syskle and Obert. The big-budget film will feature top-name stars and
breathtaking scenery of the Swiss Alps.
Probability
80%
50%
20%
ROI
2%
2%
30%
PROJECT PROPOSAL 3: THE YEAR OF THE ECHO
This project is a low-budget documentary that celebrates the career of one of the most
influential bands in rock-and-roll history. The film will be directed by new-wave director
Elliot Cznerzy and will combine concert footage and behind-the-scenes interviews spanning
the 25-year history of the rock band the Echos. In addition to great music, the film will focus
on the death of one of the founding members from a heroin overdose and reveal the
underworld of sex, lies, and drugs in the music industry.
Probability
80%
50%
20%
ROI
12%
14%
18%
PROJECT PROPOSAL 4: ESCAPE FROM RIO JAPUNI
This project is an animated feature set in the Amazon rainforest. The story centers around
Pablo, a young jaguar that attempts to convince warring jungle animals that they must unite
and escape the devastation of local clear cutting.
Probability
80%
50%
20%
ROI
15%
20%
24%
PROJECT PROPOSAL 5: NADIA!
This project is the story of Nadia Comaneci, the famous Romanian gymnast who won three
gold medals at the 1976 Summer Olympic Games. The low-budget film will document her
life as a small child in Romania and how she was chosen by Romanian authorities to join
their elite, state-run athletic program. The film will highlight how Nadia maintained her
independent spirit and love for gymnastics despite a harsh, regimented training program.
Probability
80%
50%
20%
ROI
8%
15%
20%
page 64
Project Priority Evaluation Form
PROJECT PROPOSAL 6: KEIKO—ONE WHALE OF A STORY
The story of Keiko, a famous killer whale, will be told by an imaginary offspring, Seiko, who
in the distant future is telling her children about their famous grandfather. The big-budget
film will integrate actual footage of the whale within a realistic animated environment using
state-of-the-art computer imagery. The story will reveal how Keiko responded to his
treatment by humans.
Probability
80%
50%
20%
ROI
6%
18%
25%
page 65
PROJECT PROPOSAL 7: GRAND ISLAND
This project is the true story of a group of junior-high biology students who discover that a
fertilizer plant is dumping toxic wastes into a nearby river. The moderate-budget film depicts
how students organize a grassroots campaign to fight local bureaucracy and ultimately force
the fertilizer plant to restore the local ecosystem.
Probability
80%
50%
20%
ROI
9%
15%
20%
Case 2.3
Fund Raising Project Selection
The purpose of this “case exercise” is to provide you with experience in using a project
selection process that ranks proposed projects by their contribution to an organization’s
mission and strategy.
FUND RAISING PROJECT
Assume you are a member of a class on project management. Each student will join a team of
five to seven students who will be responsible for creating, planning, and executing a fund
raising project for a designated charity. The fund raising project has two goals: (1) raise
money for a worthy cause and (2) provide an opportunity for all team members to practice
project management skills and techniques.
In addition to completing the project a number of deliverables are required to complete
this assignment. These deliverables include
a. Project proposal
b. Implementation plan
c. Risk management plan
d. Status report
e. Project reflections presentation
f. Project retrospective/audit
Approved projects will receive $250 seed money to be reimbursed upon completion of the
project.
“MUST” OBJECTIVES
Every project must meet the “must” objectives as determined by the instructor. There are four
must objectives:
1.
2.
3.
4.
All projects must be safe, be legal, and comply with university policies.
All projects must be capable of earning at least $500.
All projects must be able to be completed within nine weeks.
All projects must provide an opportunity for every member of the project team to
experience and learn about project management.
Among the factors to consider for the last objective are the extent to which there is
meaningful work for every member of the team, the degree of coordination required, page 66
the extent to which the team will have to work with external stakeholders, and the
complexity of the project.
“WANT” OBJECTIVES
In addition to the must objectives, there are “want” objectives that the instructor would like
to achieve.
1.
2.
3.
4.
5.
Earn more than $500 for a charity.
Increase public awareness of the charity.
Provide a resume-worthy experience for students.
Be featured on local TV news.
Be fun to do.
ASSIGNMENT
You are a member of the class priority team in charge of evaluating and approving fund
raising projects. Use the provided proposal evaluation form to formally evaluate and rank
each proposal. Be prepared to report your rankings and justify your decision. You should
assume that these projects would be held at your university or college.
FUND RAISING PROPOSALS
PROJECT PROPOSAL 1: HOOPS FOR HOPE
The project is a three-on-three basketball tournament to raise money for the Down Syndrome
Association. The tournament will consist of three brackets: co-ed, male, and female teams.
There will be a $40 entry fee per team and additional funds will be derived from the sale of
commemorative T-shirts ($10). Winning teams will receive gift baskets consisting of
donations from local businesses and restaurants. The event will be held at the university
recreational center.
PROJECT PROPOSAL 2: SINGING FOR SMILES
The project will hold a karaoke competition with celebrity judges at a popular campus night
spot. Funds will be raised by $5 admission at the door and a raffle for prizes donated by local
businesses. Funds will be donated to Smile Train, an international organization that performs
cleft lip surgery at a cost of $250 per child. The event will feature pictures of children born
with cleft lips, and with every $50 earned a piece of a picture puzzle will be added until the
original picture is covered with a smiling face.
PROJECT PROPOSAL 3: HALO FOR HEROES
The project will be a Halo video game competition to be held over the weekend utilizing the
college’s big-screen electronic classrooms. Teams of four players will play each other in a
single elimination tournament, with the grand prize being a Sony Play Station 4 donated by a
local video game store. Entry fee is $24 per team, and individual players will be able to play
in a loser’s bracket for $5. All proceeds will go to the National Military Family Association.
PROJECT PROPOSAL 4: RAFFLE FOR LIFE
Organize a raffle contest. Raffle tickets will be sold for $3 apiece, with the winning ticket
worth $300. Each of the six team members will be responsible for selling 50 raffle tickets.
All profits will go to the American Cancer Society.
page 67
PROJECT PROPOSAL 5: HOLD’EM FOR HUNGER
Organize a Texas Hold’em poker tournament at a campus dining facility. It will cost $20 to
enter the tournament with a $15 buy-back-in. Prizes include $300, $150, and $50 gift
certificates to a large department store. Fifty percent of the gift certificates will be paid for by
entry fees, while the remaining 50 percent is expected to be donated by the store. All players
will be eligible to win two donated tickets to men’s and women’s basketball games. Funds
raised will go to the local county food shelter.
PROJECT PROPOSAL 6: BUILD YOUR OWN BOX
The purpose of this project is to raise awareness of the plight of the homeless. Students will
donate $10 to participate in building and living in a cardboard city on the university quad for
one night. Building materials will be provided by local recycling centers and hardware stores.
Hot soup will be provided by the team at midnight to all participants. Proceeds go to the local
homeless shelter.
Project Priority Evaluation Form
Design elements: Snapshot from Practice, Highlight box, Case icon: ©Sky Designs/Shutterstock
1 Shenhar, A., and Dov Dvie, Reinventing Project Management (Boston: Harvard Business School Press, 2007),
p. 5.
2 MacIntyre, J., “Stroke of Strategy”, PM Network, November 2006, pp. 32–35.
3 PMI, “PMI’s Pulse of the Profession,” Project Management Institute, March 2012, p. 7.
4 Smith, D. K., and R. C. Alexander, Fumbling the Future: How Xerox Invented, Then Ignored the First Personal
Computer (New York: Macmillan, 1988).
5 For a good, complete discussion on classification schemes found in practice, see: Crawford, L., B. Hobbs, and
J. R. Turner, “Aligning Capability with Strategy: Categorizing of Projects to Do the Right Projects and Do Them
Right,” Project Management Journal, vol. 37, no. 2 (June 2006), pp. 38–50.

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