PM340 CASE STUDY Coronado Communications

Key Issues

Dynamic change in the Project Management system. New system - each satellite office would be competing with other satellite offices; it also altered from the past technique and now no incentive to use internal resources and instead allow search for cheaper resources from outside CCI.

Harmed CCI's Project Management overall, new technique reduced the cooperation across internal stakeholder groups with common interests.

Incentive/Bonus system changed - from bonuses paid out equally upon the total profitability to CCI to now, the bonuses and salary increases are paid based solely upon the profitability of each satellite office.

New Process - gross revenue increased by 40% but the profit margin was only 9%, down from 15% with the previous process.

New Process - satellite offices were outsourcing their sub-work to the lowest bidder rather than using CCI's internal resources.

CCI had developed a superior enterprise project management methodology with a proven record of success. Now it was up to the individual satellite office to make its own modifications to satisfy the separable needs.

ANSWER THE FOLLOWING Questions:

1. For a company, the size of CCI - with more than twenty-five (25) satellite divisions across the country, how is best to determine if revenue or profit is more important?

2. How can you generate a climate of internal competition while still having a common end goal? Have you witnessed an entity with these traits?

3. Can CCI be fixed? If you are the new appointed CEO what are the first steps, you would establish to fixed the company? How?