106 PERFORMANCE MANAGEMENT Shillong the Hill-View Hotel Project in M. Neelakanth, the newly appointed Project Manager scanned the old monthly progress report file. He had been appointed as project manager two da ago on January 25, 2004 to complete the project Initially, he did not want to come to Shillong he wanted to be near his family. Don't worry, Mr. Ekka, DGM (Projects) of Hotel Construction Company (HCC), which was executing the Hill-View project, had assured him. This projects most over nearly 95% complete. Just some minor work and handover formalities and you would be back Mr. Ekka had said as he managed to convince Mr Neelakanth to take up the assignment Mr. Neelakanch's predecessor in the Hill-View project, Mr. Kaustava Gupta, had been transferred to a new project in Bengaluru. Regarded as a high potential candidate by his superiors and pers Mr. Gupts had been sent to a top business school for a Management Development Programme leadership as recognition of his performance on the Hill-View project. Mr. Gupta would soon be taking up a bigger and more challenging assignment in Bengaluru after his leadership training programme Mr. Neelakanth was selected for the Hill-View project as the one on which he was working had been completed and wound up. Thus, he was technically on bench. He was asked to go to Shillong immediately and get briefed from the current project manager, Mr. Gupta. On reporting to the Shillong office, on day one Mr. Gupta introduced him to the client and other officials in the local government bodies. The next day. Mr. Gupta, left for the training programme. Hotel Construction Company Hotel Construction Company was a design and engineering company specializing in hotels. Operating at a nationwide level, HoCC offered entrepreneurs interested in setting up medium and large hotels (from 50 rooms to 250+ rooms) turnkey hotel solutions. HoCC's solutions spanned the entire gamut of activides necessary for setting up a hotel: suggesting possible location sites, preliminary site survey. sod investigation and testing, developing different architectural concepts, structural design and detail ing selection and finalization of contractors, helping the client in obtaining necessary statutory provals, and getting the entire hotel completed in all aspects down to landscaping, HoCC used to proudly claim, All that the client has to do is to keep its employees ready on the project completion date so that we can hand over the keys Hotel Construction Company had benefitted immensely due to the economic boom after 2000. It successfully bid for hotel projects in different parts of the country. It had built a reputation for timely completion of projects with no compromise on quality standards. HoCC paid great attention to completing projects in time, as that was part of their marketing strategy when they approached potential clients Copy 2008 d. 1 N Baghi. The case has been released after enwaring anonymity proprietary in Fat the case does not contain information pertaining to the strategy or any other w de concerted has also been vered that the information as the case is typical in the industry and we y advanlage to the competes The car is entended to be a basis for class dacossion rather d to the organization may e her and of de regarding any organisation or industry. ve handling of sadninvention. This cam neither purports to be 2. Hill-View Project FORMANCE INFORMATION PRESENTATION, INTERPRETATION AND TAKING CORRECTIVE ACTION 187 Construction Company primarily operated in two different divisions-the Design and Eng son (D&E) and the Projects division. Each of the two divisions was headed by a Deputy Manager, who reported to the CEO. The other functions-Marketing, and France and Awere headed by DGMs who reported directly to the CEO. A snapshot of the organization Figure C4.1. Each of the designers (predominantly the managers) co-ordinated with their es the design and detailing work with a pool of freelance designers, architects, and en who would do the finer designing, detailing, and preparation of drawings DOM CEO Making DOM Dy Manager (F&A) Manager (F&A (F&A) DGM Projects) by Manager Manager (Architecture Dy Manager PM (Pt 1) PM (Pret 2 PM (Project) PM (Project 4) PM (P5) Dy Manager Manager (CM Dy Manager Dy Manager Manager PH Manager Dy Manager (HVAC) Manager Dy Manager Costing and Estimation) GURE CLI Organizational structure of HoCC x Once a project was obtained by HoCC, the work of designing and detailing the project was ried out by the D&E division. When the construction specifications and drawings were prepared, they were handed over to the Projects division which would start the execution process. HoCC did maintain workers and other staff on its rolls. The actual execution of the project was done not HoCC staff or workers but through contractors selected by HoCC in a way, the execution work outsourced to contractors. HoCC would select contractors who would work on separate parts of the total project. Figure C4.2 shows the project methodology followed by HoCC Contractors would take the drawings and technical specifications of a particular project from HCC and execute it under the supervision of the project manager who would be present at the site. Contractors were selected on the basis of their technical and financial capability, experience in other projects, and their reputation in completion of projects on time. Hotel Construction Company's project managers sometimes had to work with clients, who nei- her had any prior knowledge of construction nor of project management Project Managers were DOM (DAE) di M # or S ERFORMANCE INFORMATION PRESENTATION INTERPRETATION, AND TAKING CORRECTIVE ACTION 199 GURE C43 Typical structure for a project Hi-View Project, Shillong View Project entailed the construction of a 50 bed hotel in Shillong, the capital of Meghalaya te. It began in January 2003, and had a deadline of March 31, 2004. Mr. Kaustava Gupta had recently joined HoCC as a project manager because of his substantial experience as a site engineer in prior organizations. Hill-View Project was the first independent project for him. Since not many managers wanted to be posted in the north eastern part of the untry, he eagerly took up the opportunity to be the project manager for this project. Though he od not independently managed a project, he had excellent recommendations regarding his project anagement skills from his references in the previous company. That influenced the HoCC decision make him the project manager of Hill-View project. His appraisal based on the progress of Hil-View project was exemplary. This was supported by the client's feedback about his work. (See Annexure C4.1 for appraisal of Mr. Gupta) identified as high performer, he was put on a fast track career path by Mr. Ekka. Since the project was more or less over, Mr. Ekka decided to send Mr. Gupta to attend the management development programme (MDP) at one of the top B-schools in the country without waiting for the project to be ully completed and handed over to the client. This decision was also impacted by the fact that the management programme was about to start and Mr. Ekka did not want Mr. Gupta to miss it. As a replacement, Mr. Ekka selected Mr. Neelakanth to head the project and finish the remaining part of the project Mr. Neelakanth, a civil engineer from a college in Chennai, had worked as a site engineer for the last eight years. Considered highly skilled technically, his lack of being politically savvy was considered by many employees as the prime reason for not being promoted as Project Manager thus far. Mr. Neelakanth Takes Charge As Mr. Neelakanth went through the copy of the last progress report that was sent to the client by Mr. Gupta, he experienced a little discomfort. Here he was taking charge of a project that was said to be almost complete with only 5% of work pending. The outgoing project manager was a ring star in the company. Yet, Mr. Neelakanth looked at the progress report with unease. The more he looked, the more questions cropped up in his mind and more discomfiture set in This project is doomed to be delayed and it may be a messy delay. Neelakanth said to himself Finally he thought of calling up Mr. Ekka and informing him of what he thought of the project. 04. Civil engineer Elec engreer JE (CM) FORMANCE INFORMATION PRESENTATION, INTERPRETATION AND TAKING CORRECTIVE ACTION 187 Construction Company primarily operated in two different divisions-the Design and Eng son (D&E) and the Projects division. Each of the two divisions was headed by a Deputy Manager, who reported to the CEO. The other functions-Marketing, and France and Awere headed by DGMs who reported directly to the CEO. A snapshot of the organization Figure C4.1. Each of the designers (predominantly the managers) co-ordinated with their es the design and detailing work with a pool of freelance designers, architects, and en who would do the finer designing, detailing, and preparation of drawings DOM CEO Making DOM Dy Manager (F&A) Manager (F&A (F&A) DGM Projects) by Manager Manager (Architecture Dy Manager PM (Pt 1) PM (Pret 2 PM (Project) PM (Project 4) PM (P5) Dy Manager Manager (CM Dy Manager Dy Manager Manager PH Manager Dy Manager (HVAC) Manager Dy Manager Costing and Estimation) GURE CLI Organizational structure of HoCC x Once a project was obtained by HoCC, the work of designing and detailing the project was ried out by the D&E division. When the construction specifications and drawings were prepared, they were handed over to the Projects division which would start the execution process. HoCC did maintain workers and other staff on its rolls. The actual execution of the project was done not HoCC staff or workers but through contractors selected by HoCC in a way, the execution work outsourced to contractors. HoCC would select contractors who would work on separate parts of the total project. Figure C4.2 shows the project methodology followed by HoCC Contractors would take the drawings and technical specifications of a particular project from HCC and execute it under the supervision of the project manager who would be present at the site. Contractors were selected on the basis of their technical and financial capability, experience in other projects, and their reputation in completion of projects on time. Hotel Construction Company's project managers sometimes had to work with clients, who nei- her had any prior knowledge of construction nor of project management Project Managers were DOM (DAE) di M # or S ERFORMANCE INFORMATION PRESENTATION INTERPRETATION, AND TAKING CORRECTIVE ACTION 199 GURE C43 Typical structure for a project Hi-View Project, Shillong View Project entailed the construction of a 50 bed hotel in Shillong, the capital of Meghalaya te. It began in January 2003, and had a deadline of March 31, 2004. Mr. Kaustava Gupta had recently joined HoCC as a project manager because of his substantial experience as a site engineer in prior organizations. Hill-View Project was the first independent project for him. Since not many managers wanted to be posted in the north eastern part of the untry, he eagerly took up the opportunity to be the project manager for this project. Though he od not independently managed a project, he had excellent recommendations regarding his project anagement skills from his references in the previous company. That influenced the HoCC decision make him the project manager of Hill-View project. His appraisal based on the progress of Hil-View project was exemplary. This was supported by the client's feedback about his work. (See Annexure C4.1 for appraisal of Mr. Gupta) identified as high performer, he was put on a fast track career path by Mr. Ekka. Since the project was more or less over, Mr. Ekka decided to send Mr. Gupta to attend the management development programme (MDP) at one of the top B-schools in the country without waiting for the project to be ully completed and handed over to the client. This decision was also impacted by the fact that the management programme was about to start and Mr. Ekka did not want Mr. Gupta to miss it. As a replacement, Mr. Ekka selected Mr. Neelakanth to head the project and finish the remaining part of the project Mr. Neelakanth, a civil engineer from a college in Chennai, had worked as a site engineer for the last eight years. Considered highly skilled technically, his lack of being politically savvy was considered by many employees as the prime reason for not being promoted as Project Manager thus far. Mr. Neelakanth Takes Charge As Mr. Neelakanth went through the copy of the last progress report that was sent to the client by Mr. Gupta, he experienced a little discomfort. Here he was taking charge of a project that was said to be almost complete with only 5% of work pending. The outgoing project manager was a ring star in the company. Yet, Mr. Neelakanth looked at the progress report with unease. The more he looked, the more questions cropped up in his mind and more discomfiture set in This project is doomed to be delayed and it may be a messy delay. Neelakanth said to himself Finally he thought of calling up Mr. Ekka and informing him of what he thought of the project. 04. Civil engineer Elec engreer JE (CM) 110 PERFORMANCE MANAGEMENT Questions/Issues for Discussion 1. Do you think that the project is a financial success the way Mr. Gupta's report has portrayed 2. Is the increase in NPV of project a correct parameter for judging the success or failure of a project? 2. If you were in Mr. Neelakanth's position what would you do? a What challenges would you face in trying to communicate the situation of the project to the top management? b. How best should you communicate the real status of the project to the top management c. How would you communicate the problems to the client? 3. What career risks would Mr. Neelakanth face in this organization? How best should he cope with the challenges? 4. If you are a consultant to the company's CEO what changes in their performance management would you propose? Annexure C4.1 New 106 PERFORMANCE MANAGEMENT Shillong the Hill-View Hotel Project in M. Neelakanth, the newly appointed Project Manager scanned the old monthly progress report file. He had been appointed as project manager two da ago on January 25, 2004 to complete the project Initially, he did not want to come to Shillong he wanted to be near his family. Don't worry, Mr. Ekka, DGM (Projects) of Hotel Construction Company (HCC), which was executing the Hill-View project, had assured him. This projects most over nearly 95% complete. Just some minor work and handover formalities and you would be back Mr. Ekka had said as he managed to convince Mr Neelakanth to take up the assignment Mr. Neelakanch's predecessor in the Hill-View project, Mr. Kaustava Gupta, had been transferred to a new project in Bengaluru. Regarded as a high potential candidate by his superiors and pers Mr. Gupts had been sent to a top business school for a Management Development Programme leadership as recognition of his performance on the Hill-View project. Mr. Gupta would soon be taking up a bigger and more challenging assignment in Bengaluru after his leadership training programme Mr. Neelakanth was selected for the Hill-View project as the one on which he was working had been completed and wound up. Thus, he was technically on bench. He was asked to go to Shillong immediately and get briefed from the current project manager, Mr. Gupta. On reporting to the Shillong office, on day one Mr. Gupta introduced him to the client and other officials in the local government bodies. The next day. Mr. Gupta, left for the training programme. Hotel Construction Company Hotel Construction Company was a design and engineering company specializing in hotels. Operating at a nationwide level, HoCC offered entrepreneurs interested in setting up medium and large hotels (from 50 rooms to 250+ rooms) turnkey hotel solutions. HoCC's solutions spanned the entire gamut of activides necessary for setting up a hotel: suggesting possible location sites, preliminary site survey. sod investigation and testing, developing different architectural concepts, structural design and detail ing selection and finalization of contractors, helping the client in obtaining necessary statutory provals, and getting the entire hotel completed in all aspects down to landscaping, HoCC used to proudly claim, All that the client has to do is to keep its employees ready on the project completion date so that we can hand over the keys Hotel Construction Company had benefitted immensely due to the economic boom after 2000. It successfully bid for hotel projects in different parts of the country. It had built a reputation for timely completion of projects with no compromise on quality standards. HoCC paid great attention to completing projects in time, as that was part of their marketing strategy when they approached potential clients Copy 2008 d. 1 N Baghi. The case has been released after enwaring anonymity proprietary in Fat the case does not contain information pertaining to the strategy or any other w de concerted has also been vered that the information as the case is typical in the industry and we y advanlage to the competes The car is entended to be a basis for class dacossion rather d to the organization may e her and of de regarding any organisation or industry. ve handling of sadninvention. This cam neither purports to be 2. Hill-View Project FORMANCE INFORMATION PRESENTATION, INTERPRETATION AND TAKING CORRECTIVE ACTION 187 Construction Company primarily operated in two different divisions-the Design and Eng son (D&E) and the Projects division. Each of the two divisions was headed by a Deputy Manager, who reported to the CEO. The other functions-Marketing, and France and Awere headed by DGMs who reported directly to the CEO. A snapshot of the organization Figure C4.1. Each of the designers (predominantly the managers) co-ordinated with their es the design and detailing work with a pool of freelance designers, architects, and en who would do the finer designing, detailing, and preparation of drawings DOM CEO Making DOM Dy Manager (F&A) Manager (F&A (F&A) DGM Projects) by Manager Manager (Architecture Dy Manager PM (Pt 1) PM (Pret 2 PM (Project) PM (Project 4) PM (P5) Dy Manager Manager (CM Dy Manager Dy Manager Manager PH Manager Dy Manager (HVAC) Manager Dy Manager Costing and Estimation) GURE CLI Organizational structure of HoCC x Once a project was obtained by HoCC, the work of designing and detailing the project was ried out by the D&E division. When the construction specifications and drawings were prepared, they were handed over to the Projects division which would start the execution process. HoCC did maintain workers and other staff on its rolls. The actual execution of the project was done not HoCC staff or workers but through contractors selected by HoCC in a way, the execution work outsourced to contractors. HoCC would select contractors who would work on separate parts of the total project. Figure C4.2 shows the project methodology followed by HoCC Contractors would take the drawings and technical specifications of a particular project from HCC and execute it under the supervision of the project manager who would be present at the site. Contractors were selected on the basis of their technical and financial capability, experience in other projects, and their reputation in completion of projects on time. Hotel Construction Company's project managers sometimes had to work with clients, who nei- her had any prior knowledge of construction nor of project management Project Managers were DOM (DAE) di M # or S ERFORMANCE INFORMATION PRESENTATION INTERPRETATION, AND TAKING CORRECTIVE ACTION 199 GURE C43 Typical structure for a project Hi-View Project, Shillong View Project entailed the construction of a 50 bed hotel in Shillong, the capital of Meghalaya te. It began in January 2003, and had a deadline of March 31, 2004. Mr. Kaustava Gupta had recently joined HoCC as a project manager because of his substantial experience as a site engineer in prior organizations. Hill-View Project was the first independent project for him. Since not many managers wanted to be posted in the north eastern part of the untry, he eagerly took up the opportunity to be the project manager for this project. Though he od not independently managed a project, he had excellent recommendations regarding his project anagement skills from his references in the previous company. That influenced the HoCC decision make him the project manager of Hill-View project. His appraisal based on the progress of Hil-View project was exemplary. This was supported by the client's feedback about his work. (See Annexure C4.1 for appraisal of Mr. Gupta) identified as high performer, he was put on a fast track career path by Mr. Ekka. Since the project was more or less over, Mr. Ekka decided to send Mr. Gupta to attend the management development programme (MDP) at one of the top B-schools in the country without waiting for the project to be ully completed and handed over to the client. This decision was also impacted by the fact that the management programme was about to start and Mr. Ekka did not want Mr. Gupta to miss it. As a replacement, Mr. Ekka selected Mr. Neelakanth to head the project and finish the remaining part of the project Mr. Neelakanth, a civil engineer from a college in Chennai, had worked as a site engineer for the last eight years. Considered highly skilled technically, his lack of being politically savvy was considered by many employees as the prime reason for not being promoted as Project Manager thus far. Mr. Neelakanth Takes Charge As Mr. Neelakanth went through the copy of the last progress report that was sent to the client by Mr. Gupta, he experienced a little discomfort. Here he was taking charge of a project that was said to be almost complete with only 5% of work pending. The outgoing project manager was a ring star in the company. Yet, Mr. Neelakanth looked at the progress report with unease. The more he looked, the more questions cropped up in his mind and more discomfiture set in This project is doomed to be delayed and it may be a messy delay. Neelakanth said to himself Finally he thought of calling up Mr. Ekka and informing him of what he thought of the project. 04. Civil engineer Elec engreer JE (CM) FORMANCE INFORMATION PRESENTATION, INTERPRETATION AND TAKING CORRECTIVE ACTION 187 Construction Company primarily operated in two different divisions-the Design and Eng son (D&E) and the Projects division. Each of the two divisions was headed by a Deputy Manager, who reported to the CEO. The other functions-Marketing, and France and Awere headed by DGMs who reported directly to the CEO. A snapshot of the organization Figure C4.1. Each of the designers (predominantly the managers) co-ordinated with their es the design and detailing work with a pool of freelance designers, architects, and en who would do the finer designing, detailing, and preparation of drawings DOM CEO Making DOM Dy Manager (F&A) Manager (F&A (F&A) DGM Projects) by Manager Manager (Architecture Dy Manager PM (Pt 1) PM (Pret 2 PM (Project) PM (Project 4) PM (P5) Dy Manager Manager (CM Dy Manager Dy Manager Manager PH Manager Dy Manager (HVAC) Manager Dy Manager Costing and Estimation) GURE CLI Organizational structure of HoCC x Once a project was obtained by HoCC, the work of designing and detailing the project was ried out by the D&E division. When the construction specifications and drawings were prepared, they were handed over to the Projects division which would start the execution process. HoCC did maintain workers and other staff on its rolls. The actual execution of the project was done not HoCC staff or workers but through contractors selected by HoCC in a way, the execution work outsourced to contractors. HoCC would select contractors who would work on separate parts of the total project. Figure C4.2 shows the project methodology followed by HoCC Contractors would take the drawings and technical specifications of a particular project from HCC and execute it under the supervision of the project manager who would be present at the site. Contractors were selected on the basis of their technical and financial capability, experience in other projects, and their reputation in completion of projects on time. Hotel Construction Company's project managers sometimes had to work with clients, who nei- her had any prior knowledge of construction nor of project management Project Managers were DOM (DAE) di M # or S ERFORMANCE INFORMATION PRESENTATION INTERPRETATION, AND TAKING CORRECTIVE ACTION 199 GURE C43 Typical structure for a project Hi-View Project, Shillong View Project entailed the construction of a 50 bed hotel in Shillong, the capital of Meghalaya te. It began in January 2003, and had a deadline of March 31, 2004. Mr. Kaustava Gupta had recently joined HoCC as a project manager because of his substantial experience as a site engineer in prior organizations. Hill-View Project was the first independent project for him. Since not many managers wanted to be posted in the north eastern part of the untry, he eagerly took up the opportunity to be the project manager for this project. Though he od not independently managed a project, he had excellent recommendations regarding his project anagement skills from his references in the previous company. That influenced the HoCC decision make him the project manager of Hill-View project. His appraisal based on the progress of Hil-View project was exemplary. This was supported by the client's feedback about his work. (See Annexure C4.1 for appraisal of Mr. Gupta) identified as high performer, he was put on a fast track career path by Mr. Ekka. Since the project was more or less over, Mr. Ekka decided to send Mr. Gupta to attend the management development programme (MDP) at one of the top B-schools in the country without waiting for the project to be ully completed and handed over to the client. This decision was also impacted by the fact that the management programme was about to start and Mr. Ekka did not want Mr. Gupta to miss it. As a replacement, Mr. Ekka selected Mr. Neelakanth to head the project and finish the remaining part of the project Mr. Neelakanth, a civil engineer from a college in Chennai, had worked as a site engineer for the last eight years. Considered highly skilled technically, his lack of being politically savvy was considered by many employees as the prime reason for not being promoted as Project Manager thus far. Mr. Neelakanth Takes Charge As Mr. Neelakanth went through the copy of the last progress report that was sent to the client by Mr. Gupta, he experienced a little discomfort. Here he was taking charge of a project that was said to be almost complete with only 5% of work pending. The outgoing project manager was a ring star in the company. Yet, Mr. Neelakanth looked at the progress report with unease. The more he looked, the more questions cropped up in his mind and more discomfiture set in This project is doomed to be delayed and it may be a messy delay. Neelakanth said to himself Finally he thought of calling up Mr. Ekka and informing him of what he thought of the project. 04. Civil engineer Elec engreer JE (CM) 110 PERFORMANCE MANAGEMENT Questions/Issues for Discussion 1. Do you think that the project is a financial success the way Mr. Gupta's report has portrayed 2. Is the increase in NPV of project a correct parameter for judging the success or failure of a project? 2. If you were in Mr. Neelakanth's position what would you do? a What challenges would you face in trying to communicate the situation of the project to the top management? b. How best should you communicate the real status of the project to the top management c. How would you communicate the problems to the client? 3. What career risks would Mr. Neelakanth face in this organization? How best should he cope with the challenges? 4. If you are a consultant to the company's CEO what changes in their performance management would you propose? Annexure C4.1 New