1. Based on Drago's observations, what do you think are the main issues in Technokrat's project managment?2. What do you think about the awards and incentive? Why havent they had the desired effect?3. What should Drago do? What difficulties is he likely to encounter? .CASE 18.3TECKNOKRAT COMPANYTecknokrat Company, a software consulting firm, has 18 project managers, many of whom startedas systems analysts and developers when the company was founded in 1997.Tecknokrat has a good reputation in terms of quality products and services but has recentlyseen its business and profits fall because many of its projects are completed late and over budget.To reverse the trend, the firm hired Drago Kovacic, a project manager who had been PMO directorof IT at a bank. Drago's mandate is to assist project managers so as to improve project scheduleand budget performance.In his first 2 weeks at Tecknokrat, Drago interviewed the project managers and observed themin practice. He noted the following:They all have their own way of doing things. There are no prescriptions about how to man-age projects.They all work in the sameothers are doing.Some of the managers seem antagonistic toward each other.Some seem to be competing with each other.There is no mentoring. Old-timers feel: whatever I know I had to learn through experience;new-timers have to do the same.Digging further, he discovered some curious company policies:At year-end, the "best project managers in terms of meeting schedules and budgets getawards: best gets $10,000, second best gets $7,000, third best gets $5,000. Every year, foras long as anybody can remember, the same four or five people have won the awards; all ofthem have been with the company over 20 years.The company uses education as an incentive. For each project that exceeds goals orreceives praise from the customer, the manager can attend a local business seminar ofhis choice. The incentive tends to go to a small group of managers that, not coincidentally.includes the same group who gets the year-end dollar awards.●ame office but seldom interact. No one knows much about what theThe ostensible purpose of the awards and incentives is to spur managers to do a better job in termsof meeting project goals.

Tecknokrat Company is facing a significant challenge in terms of project management. Despite having a team of experienced project managers, the company is struggling with project delays and budget overruns. The company has hired Drago Kovacic to improve project management practices and outcomes. However, Drago's initial observations reveal a lack of standardization, collaboration, and effective incentive structures within the project management team.The main issues in Technokrat's project management are lack of standardization, lack of collaboration, and ineffective incentive structures.The project managers operate independently, each with their own approach to managing projects.This lack of standardization can lead to inefficiencies and inconsistencies in project outcomes.Furthermore, the lack of interaction and collaboration among the project managers can prevent the sharing of knowledge and best practices.The company's incentive structures seem to favor a small group of long-term employees, which can demotivate other project managers and create a competitive rather than collaborative environment.The awards and incentives at Technokrat are not having the desired effect because they are not fostering a culture of collaboration and continuous improvement. Instead, they are creating a competitive environment where the same group of long-term employees consistently receive the rewards.This can demotivate other project managers and discourage them from striving for improvement. Furthermore, the incentives are not tied to meaningful measures of project success, such as customer satisfaction or project innovation.Drago should first work on establishing standardized project management practices to ensure consistency and efficiency in project outcomes.He should also foster a culture of collaboration and knowledge sharing among the project managers.This could involve regular team meetings, project debriefs, or a shared knowledge repository.Incentive structures should be revised to reward meaningful measures of project success and to encourage all project managers to strive for improvement.Drago is likely to encounter resistance to change, especially from the long-term employees who have been benefiting from the current incentive structures.He will need to communicate the benefits of the changes and involve the project managers in the change process to gain their buy-in.Tecknokrat Company's project management issues are complex and multifaceted, involving both individual behaviors and company policies. Addressing these issues will require a comprehensive approach that includes standardizing practices, promoting collaboration and learning, and revising the awards and incentives system. Despite the challenges, these changes are necessary for improving project schedule and budget performance and reversing the company's decline in business and profits.