Question

Strategic Project Management

LeBron construction is a family owned mechanical subcontractor business that has grown from $ 5 million in 1988 to $ 55 million in 2018. Although the gross profit has increased sharply the profit as a percentage of sales declined drastically. The Lebron family Board of Directors need to find out “why the decline”?

a. Since Lebron senior pass away in June 2010, Lebron junior has tried unsuccessfully to convince the family to let him sell the business. Lebron junior as company president has taken an average of 8 days of vacation per month for the past year. Although the project managers are supporting to report into Lebron junior they appear to be calling their own shots and are in a continuous struggle.

b. The estimating department consists of one man, Kobe Bryant, who estimates all jobs. The company wins one job out seven that they bid for. Once a job is won, a project manager is selected and is told that he must perform the job within the proposal estimates. Project managers are involved in proposal estimates. They are required however to provide feedback to the estimator so that standards can be updated. This very seldom happens because of the struggle for power. The project managers are afraid that the estimator might be next in the line for executive promotion since he is a good friend of LeBron Junior.

c. The procurement function reports to LeBron Junior. Once the items are ordered the project manager assumes procurement responsibility. Several times in the past the project manager has been forced to spend hour after hour trying to overcome shortages or simply to track down raw materials. Most project managers estimate that approximately 35% of their time involves procurement.

d. Site superintendents believe that they are the true project managers or at least at the same level. The superintendents are unhappy about not being involved in the procurement function and therefore look for ways to annoy the project managers. It appears that the more time the project manager spends at the site the longer the work takes; the feedback of information to the home office is also distorted.

The Lebron family Board of Directors have made the decision to hire you as an Executive Project Management expert to provide an independent opinion.

1.      Provide an assessment of the challenges faced by Lebron Construction from a strategic project management expert to provide an independent opinion.

2.     Provide comprehensive recommendations on the appropriate solutions.

Answer 1

Answer 1:

Assessment of the challenges faced by Lebron Construction from a strategic project management point of view:

• The role of project manager is not adequate and the project manager works for procurements of parts and spent 35% of their time in procurement is not value addition work for the project managers. Hence the role of the project managers need to define and should be focus on project management rather than the functional work executions.
• The Lebron Junior availability for the project management support is a question mark and project managers do not get adequate support from their manager Mr. Lebron Junior. Thus this needs to be resolved and improved.
• The forecasting or estimating department is lacking of adequate resources and this department should be well placed with resources so the project managers get the right level of support for project executions. The bid success rate should be improved.
• The improper support from the site superintendent is not the right approach. The site superintendent should improve on their behavior and support to the project managers so that they can work adequately.
• The project managers need better support, power and freeness so that they can focus on project management and can execute the projects on time.

Answer 2:

Comprehensive recommendations on the appropriate solutions as below

• Improve the resources in the estimating department for large project bid approvals.
• Define the work scope and role for the project managers so that they should not get engaged in procurement processes.
• Ensure to have different manager for project managers or ask the Lebron Junior to provide more time for project managers for routine issue resolutions.
• Improve the behavior of site superintendent to support project managers.