CASE STUDY

Honicker Corporation was well-recognized as a high-quality manufacturer of

dashboards for automobiles and trucks. Although it serviced mainly U.S. automotive and truck manufacturers, the opportunity to expand to a worldwide supplier was quite apparent. Its reputation was well-known worldwide but it was

plagued for years with ultraconservative senior management leadership that prevented growth into the international marketplace.

When the new management team came on board in 2009, the conservatism

disappeared. Honicker was cash rich, had large borrowing power and lines of

credit with financial institutions, and received an AA- quality rating on its small

amount of corporate debt. Rather than expand by building manufacturing facilities in various countries, Honicker decided to go the fast route by acquiring four

companies around the world: Alpha, Beta, Gamma, and Delta Companies.

Each of the four acquired companies serviced mainly its own geographical

areas. The senior management team in each of the four companies knew the culture in their geographic areas and had a good reputation with their clients and

local stakeholders. The decision was made by Honicker to leave each companys

senior management teams intact provided that the necessary changes, as established by corporate, could be implemented Honicker wanted each company to have the manufacturing capability to supply parts to any Honicker client worldwide. But doing this was easier said than

done. Honicker had an enterprise project management methodology (EPM) that

worked well. Honicker understood project management and so did the majority

of Honickers clients and stakeholders in the United States. Honicker recognized

that the biggest challenge would be to get all of the divisions at the same level of

project management maturity and using the same corporatewide EPM system or

a modified version of it. It was expected that each of the four acquired companies

may want some changes to be made.

The four acquired divisions were all at different levels of project management maturity. Alpha did have an EPM system and believed that its approach to

project management was superior to the one that Honicker was using. Beta

Company was just beginning to learn project management but did not have any

formal EPM system although it did have a few project management templates that

were being used for status reporting to its customers. Gamma and Delta

Companies were clueless about project management.

To make matters worse, laws in each of the countries where the acquired companies were located created other stakeholders that had to be serviced, and all of

these stakeholders were at different levels of project management maturity. In some

countries government stakeholders were actively involved because of employment

and procurement laws whereas in other countries government stakeholders were

passive participants unless health, safety, or environmental laws were broken.

It would certainly be a formidable task developing an EPM system that would

satisfy all of the newly acquired companies, their clients, and their stakeholders.

ESTABLISHING THE TEAM

Honicker knew that there would be significant challenges in getting a project

management agreement in a short amount of time. Honicker also knew that there

is never an acquisition of equals; there is always a landlord and tenants, and

Honicker is the landlord. But acting as a landlord and exerting influence in the

process could alienate some of the acquired companies and do more harm than

good. Honickers approach was to treat this as a project, and each company, along

with its clients and local stakeholders, would be treated as project stakeholders.

Using stakeholder relations management practices would be essential to getting

an agreement on the project management approach.

Honicker requested that each company assign three people to the project management implementation team that would be headed up by Honicker personnel. The

ideal team member, as suggested by Honicker, would have some knowledge

and/or experience in project management and be authorized by their senior levels of

management to make decisions for their company. The representatives should also understand the stakeholder needs from their clients and local stakeholders. Honicker

wanted an understanding to be reached as early as possible that each company would

agree to use the methodology that was finally decided upon by the team.

Senior management in each of the four companies sent a letter of understanding to Honicker promising to assign the most qualified personnel and agreeing to use the methodology that was agreed upon. Each stated that their company

understood the importance of this project.

The first part of the project would be to come to an agreement on the methodology. The second part of the project would be to invite clients and stakeholders

to see the methodology and provide feedback. This was essential since the clients

and stakeholders would eventually be interfacing with the methodology.

KICKOFF MEETING

Honicker had hoped that the team could come to an agreement on a companywide

EPM system within six months. But after the kickoff meeting was over, Honicker

realized that it would probably be two years before an agreement would be

reached on the EPM system. There were several issues that became apparent at

the first meeting:

Each company had different time requirements for the project.

Each company saw the importance of the project differently.

Each company had its own culture and wanted to be sure that the final

design was good fit with that culture.

Each company saw the status and power of the project manager differently.

Despite the letters of understanding, two of the companies, Gamma and

Delta, did not understand their role and relationship with Honicker on

this project.

Alpha wanted to micromanage the project, believing that everyone

should use its methodology.

Senior management at Honicker asked the Honicker representatives at the

kickoff meeting to prepare a confidential memo on their opinion of the first meeting with the team. The Honicker personnel prepared a memo including the following comments:

Not all of the representatives at the meeting openly expressed their true

feelings about the project.

It was quite apparent that some of the companies would like to see the

project fail.

Some of the companies were afraid that the implementation of the new

EPM system would result in a shift in power and authority. Some people were afraid that the new EPM system would show that fewer

resources were needed in the functional organization, thus causing a

downsizing of personnel and a reduction in bonuses that were currently

based upon headcount in functional groups.

Some seemed apprehensive that the implementation of the new system

would cause a change in the companys culture and working relationships

with their clients.

Some seemed afraid of learning a new system and being pressured into

using it.

It was obvious that this would be no easy task. Honicker had to get to know

all companies better and understand their needs and expectations. Honicker management had to show them that their opinion was of value and find ways to win

their support.

QUESTIONS.

1. What if Gamma and Delta Companies argue that their clients and stakeholders have not readily accepted the project management approach and they

wish to be left alone with regard to dealing with their clients?

2. Under what conditions would Honicker decide to back away and let each

company do its own thing?

3.How easy or difficult is it to get several companies geographically dispersed

to agree to the same culture and methodology?

4.If all four companies were willing to cooperate with one another, how long

do you think it would take for an agreement on and acceptance to use the new

EPM system?