Sunday, September 28, 2008

Assignment Comments - Question #3

3. How should Matulovic respond to his fellow executives who are calling to ask him for special treatment outside the new priority management system?

7 comments:

Lisa said...

Matulovic could suggest or help find alternative sources for funding if the project was not funded and it is something that is
he finds important and something that should not wait for the next budget period.

Sharon said...

The priority management system failed and requires apparent changes in the process. The unsuccessful outcome of priority management process can be likened to a failed project. Faith in the project planning process must be restored. The first step would be for Matulovic to realize that the new priority management has failed. The best recourse would be to hold a meeting and invite the business unit executives whose projects were not funded. These executives should be allowed to discuss their criticisms of the new process. Matulovic can support his fellow executives by soliciting input on how they would improve the process for next year. The priority management process will require improvements for next year. The input from the business unit executives will be helpful in rebuilding the process.



There should be no special consideration at this point to approve projects that did not make the final approval process. This will risk alienating other business unit executives.

Brian said...

I do not think that special treatment requests should be considered by Matulovic, and furthermore he should not be given the authority to grant such request. The ELT should have the only authority to make the final decisions and the new process should be followed without exception. Failure to do so would undermine the integrity of the process and eventually the process would collapse. The process was established so that the company can operate as one unified enterprise wide operation and not show bias to one functional or geographical area. Although some may feel that there area is receiving the short end of the stick respect for the ELT must be demonstrated that they are doing what is right and good for the company as whole.

Carrie said...

I agree with Brian. I don not think that Matulovic should have the authority to grant special treatment for projects. The reason for having an steering committee reviewing projects is to avoid situations like this. If a project feels it should be considered within the current fiscal year, an appeals process could be implemented. Project sponsor could appeal to ETL / Steering committee and present business case and justifications to group. After a consensus or majority decision is reached, decision should be FINAL.

Any backdoor approaches would undermine the entire process.

In my opinion, two key areas need to be included in a revised process - and may still be implemented this fiscal year -
1) An appeals process - Project should have an avenue for appealing decisions to the ETL and be able to present business case and justifications for including project / receiving funding
2) An escalation point / process - For decisions that can not be agreed upon by ETL or projects that have a greater scope than the ETL typically addresses, an escalation point needs to be put in place.

It seems that the overall budget is not sufficient enough to address the needs of critical path / priority projects within the organization. This should be reviewed, assessed and escalated to the parent company, which has set the budgetary constraints.

Carrie said...

Decision process quotes
"In keeping with the ranking of the NRG goals, the DBC recommended funding business unit
projects in order of goal portfolios (funding all projects in the top-ranked portfolio, then moving to
the portfolio with the next highest rank, etc.). The recommendation was approved by the ITSC."

Enterprise Goals
Customer Loyalty, New Vehicle Value, Pre-Owned Vehicle Business, Stable Infrastructure, Optimize Supply Flow

Fact: "Uwe Matulovic, chief information officer (CIO) of Volkswagen of America (VWoA),"

"All the callers had expressed concern
that high priorities for their areas of the company had not been funded. Some had repeated views
expressed during the prioritization process by people who worked for them about supposed
categorization mistakes that penalized their business units. And each of the calls had concluded with
an informal request to insert an unfunded project (or two) into the IT department’s work plan"

"The 10 business units that made up VWoA had proposed more than 40 projects, with funding
requirements totaling $210 million (US). A budget of only $60 million (an amount capped by VWAG,
the parent company of VWoA) made some degree of disappointment inevitable."

"Whispers throughout the company suggested
that the process was “too theoretical” and noted that IT infrastructure projects had been treated
separately, not forced through the same process, which many considered unfair."

"If a project was small and just below the line of funded projects,
maybe IT should figure out a way to get it done. Or maybe he should stand his ground and defend
the new process. Matulovic did not work for the other members of the ELT, but he did have to work
with them. Whatever he decided could certainly affect working relationships, so he would need to
consider his options carefully."

Bipin said...

Matulovic should not allow any back door entry of projects, instead he should instruct the requesters to propose the projects in the open forum of (ELT,BPTO,ITSC & DBC ), where the importance and alighnment to VWOA Goal of the proposed projects can be thoroughly analysed for consideration.

He should not get deviated and give personal commitments or push any projects for selection ,it is the process which he has made should scrutinise the projects for selection.

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