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?

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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 18.3
TECKNOKRAT COMPANY
Tecknokrat Company, a software consulting firm, has 18 project managers, many of whom started
as 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 recently
seen 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 director
of IT at a bank. Drago's mandate is to assist project managers so as to improve project schedule
and budget performance.
In his first 2 weeks at Tecknokrat, Drago interviewed the project managers and observed them
in 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 same
others 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 get
awards: best gets $10,000, second best gets $7,000, third best gets $5,000. Every year, for
as long as anybody can remember, the same four or five people have won the awards; all of
them have been with the company over 20 years.
The company uses education as an incentive. For each project that exceeds goals or
receives praise from the customer, the manager can attend a local business seminar of
his 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 the
The ostensible purpose of the awards and incentives is to spur managers to do a better job in terms
of meeting project goals.
Transcribed Image Text:. CASE 18.3 TECKNOKRAT COMPANY Tecknokrat Company, a software consulting firm, has 18 project managers, many of whom started as 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 recently seen 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 director of IT at a bank. Drago's mandate is to assist project managers so as to improve project schedule and budget performance. In his first 2 weeks at Tecknokrat, Drago interviewed the project managers and observed them in 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 same others 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 get awards: best gets $10,000, second best gets $7,000, third best gets $5,000. Every year, for as long as anybody can remember, the same four or five people have won the awards; all of them have been with the company over 20 years. The company uses education as an incentive. For each project that exceeds goals or receives praise from the customer, the manager can attend a local business seminar of his 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 the The ostensible purpose of the awards and incentives is to spur managers to do a better job in terms of meeting project goals.
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