Question 1 (10 marks)

Tarek Abdalah was an experienced project manager of a small machine shop. He had always had complete authority when working with clients on specifications of the project team on the schedule. His boss, however, did not feel comfortable letting Tarek determine project budgets. The boss always did that himself.

A client approached Tarek about designing a piece of surgical equipment. Tarek was excited about this project because his usual job was to design and make parts for the factory equipment. He was excited about the new job and he knew what the surgical tool was intended to do and had figured out what had to be done to design and manufacture it. He had even estimated the labour hour requirement. He wanted to do all the planning discussions with the client, including discussion on the budget.

What do you think Tarek should show to his boss, so that the boss would feel more comfortable letting him determine and monitor the project’s budget? What should Tarek say to persuade his boss?

What Tarek should show to his boss so that the boss would feel more comfortable letting him determine and monitor the project’s budget is a budget that matches the kinds of budgets that his boss creates. If the boss sees Tarek design a budget that is similar in nature for the new project that the boss would make the same decisions regarding the budget himself or herself, this would be more favourably regarded by the boss. As well, Tarek should not promise the client that he will be the one responsible for the budget. Tarek should simply work on a sample budget that replicates the kind of budget that his boss would do and not overstep his boundaries with his boss and with his present boss in order to make sure that he keeps his present employment.

Tarek can earnestly and wholeheartedly discuss with his boss the desire to work on the budgets for the shop. He could also let his boss know that he could continue to work on the budgets and simply oversee the budgets that Tarek creates; however the boss would have the final say in the budgets. Tarek should also point out that with this plan of Tarek’s that he is proposing to the boss that the boss will have more time to focus on the profits of the business and to also work a little less on the budgets and to point his energies potentially towards expanding the shop so that more business can come into the shop.
Question 2 (15 marks)

The Chief Operating Officer of Beirut Airline, Karim Ajam was put in charge after the CEO unexpectedly resigned. Karim was named acting CEO and told by the airline’s Board of Directors that he would be considered for the position permanently if the next few months went smoothly. Karim was very nervous because he knew that the company was on the verge of financial troubles. He was not expecting to make profits that had been projected for the next few months. He knew the ticket selling was down due to recent unrest in the political situation in the city and nationally.

The resigned CEO had hired the consulting group to help identify the cost saving for the airline. The firm hired was unfamiliar to Karim and there were rumours around the company that the lead consultant was a friend of the now resigned CEO.

The Consulting group had been interviewing staff at the company for the last two weeks in order to prepare a proposal for work re-design to cut costs. Karim met with the consultants and they presented him with their proposal. The proposal outlined the cost of the consultants and the projected savings the company could expect after the consultant’s work was finished. Karim was not sure precisely how the savings were determined and what would be the redesign project specific deliverables.

What should Karim do next? What information should he ask the consultant for before accepting their proposal? What project planning tools would you suggest Karim ask the consultant to use to outline the project more specifically and address his concerns?

The next thing Karim should do is to continue to work with the consultants without paying them until they deliver a proposal that is clear and that he fully understands. The time element with working with the consultants may come to a clearer understanding for Karim of how he could work with the consultants, or at the end of the day and throughout this process it could determine to Karim that he does not require the assistance of these particular consultants at all. He is the new CEO. He should exercise his authority in his new role and go with his instincts.

The information that Karim should ask the consultants before accepting the proposal, if he accepts their proposal at all, would be any and every question that he has concerning exactly what are their plans for cutting the costs of the company.

In order for the consultants to more clearly convey their plans to cut the costs of the company, there should be at least a day-long workshop that they conduct with Karim that will clearly lay out their plans through either Prezi or PowerPoint, handouts, slides, video and/or audio. The consultants should make a full presentation and everyone that Karim wants present at this workshop that works with the company should be there so that many, many, many questions can be asked of the consultants so that everyone is on the same page with the plans of the consultant.