Case Study 1 1952 Leading Projects in Organizations Overview For the Leading Projects in Organizations course, one running case study with two projects will be used for examples in the course and the Problem-Solving Case exercises. While this case study is fictitious, it is based on real projects experienced by the course developers and instructors. Case Study Background JKLM was established about thirty years ago to provide management consulting services in the Toronto area focusing on the medical services industry. Over the past few years, the company has grown, and it now has a staff of over one thousand people located in offices around the world. About four hundred of these staff are based and work out of their headquarters in downtown Toronto. As JKLM has grown, it has evolved into a project-oriented organization that often takes advantage of the diversity within the company to create virtual teams to work on international customer projects. Although JKLM has been successful, it has grown very quickly, and they have some client, technology, and organizational issues that now need to be addressed. The senior management at JKLM has created a new strategic plan. This strategic plan defines the vision to be "Every person has access to medical services they need" and a mission statement "Use technology to improve the delivery of exceptional medical services." To support the vision and mission statements, JKLM has the following strategic objectives: Strategy Objectives: Improve staff satisfaction in the next 2 years Be recognized as the industry leader in project delivery by every client Introduce two new products in the next 5 years that will represent 10% of JKLM revenues Improve project delivery efficiency by 10% each year Recently, the Board of Directors hired a new President for JKLM. The new President has several key issues to resolve in the next year. His first issue is to reduce the overhead costs within the organization. To do this, the President has launched a strategic initiative, @Work, to move their headquarters from downtown Toronto to near the Toronto airport, which is in the northwest area of the city. The second key issue is working on a troubled project, Project Apollo, with one of JKLM's top clients. Looking at the most recent project status report for Project Apollo, it is all red. The project is missing information on all the key indicators, and the project manager has just resigned. The third key issue the President must address is how to meet the new strategic objective to improve the project delivery efficiency by 10% each year. The Board is anxious to get moving on this objective, but nothing has been planned, communicated or done yet. @Work Program The @Work Program was created to move JKLM's head office from downtown Toronto closer to the airport and to implement a work from home procedure for many of the company's Toronto's staff. Two main reasons for doing this project is to reduce their office rental costs and to improve staff satisfaction by giving them more flexibility in where and when they work. Although the headquarters is moving, JKLM wants to maintain a small office in downtown Toronto for client meetings. To accommodate the work from home procedure, there must be an investment in company laptops. Also, security software must be installed on these company-provided laptops for staff to access

the company's network of shared folders and files. The details of this Program will be described in the Module content and Problem-Solving Cases. To complete the Program, the following projects have been identified: Project Description Project Manager Budget 1 Office New office selection and leasehold improvement of the new space Zabella $600,000 2 Downtown Downtown office selection and leasehold improvement Yahir $100,000 3 Move Relocate staff to the new office Xander $200,000 4 IT Laptop provision and software installation Watson $350,000 5 Training Staff training and support Valerie $150,000 6 Communication Stakeholder communication and change management Ugo $100,000 Total $1,500,000 In the business case, the approved costs were up to $1,750,000. Any cost above this amount will mean that the Program will not meet JKLM's requirement for a program to proceed. The business case identified benefits of $2,000,000 in annual savings from reduced rental costs and higher staff retention resulting in lower costs for hiring staff. Benefit Description Amount Reduced rental costs Reduced rental costs due to less office space and moving out of downtown $500,000 Higher staff retention Improved staff retention due to more flexible working hours and able to work from home $1,000,000 Motivated team Increased productivity through improved motivation with better benefits and more flexible working hours $500,000 Total $2,000,000 For the @Work Program, there are the following stakeholders: Stakeholder Project Role Tara Marking Manager has staff support Project 6 Communication Sergio Project Coordinator for Project 1 Office Rachel Project Manager, working on the business case for PMM10 Program Quan VP with JKLM leading a group with few strategy projects and has staff in the Toronto office Pam @Work Sponsor. JKLM Vice President and head of your Department Apollo Project An existing JKLM client, Saturn, has hired JKLM to provide product development and project management services for a large online medical product introduction in India. JKLM has assigned six staff to the project, plus you as the project manager.

Saturn is based in England, with offices in Hyderabad India, Sao Paulo Brazil, Sydney Australia, Singapore, and Atlanta United States. For this project, they are using resources from their Atlanta and Singapore offices. The JKLM team is also a virtual team with members from the United States, India, Singapore, and Canada. The project, to develop a Z-Wave product, is estimated to be two years in duration. JKLM has signed a fixed-price contract with Saturn for product development and project management services. Travel is not included. If the project is managed well, it will be very profitable for JKLM and will result in additional business from Saturn as it expands its Indian operation. Additional details for this project will be described in the Module content and Problem-Solving Cases. The project team identified the following benefits to JKLM from Project Apollo: Benefit Description Z-wave product Project Apollo requires the team to develop the Z-wave product which JKLM will own and will license to other firms Profits The Project Apollo team is forecasting $1,000,000 profit from the project

Question:-

1. What type of culture does JKLM have and why?