Case 9: 10 August 2013

Why dont they know what we want?

Analysis Prepared by Group 5:
Espinosa, Melissa Magtibay, Roxanne Kate
Francisco, Marvin Nito, Orenz
Importante, Marlyn Rosapan, Jennifer

I. Synthesis

Edward Ferguson -- the project manager of various IT application programs for the life
and pension department of a European insurance company -- complains that despite
having meetings with the people concerned, projects are still delayed.
Miscommunication is the primary reason why projects are delayed; programmers often
use technical language, while business line users communicate their ideas using
insurance jargons. Projects are also delayed because business line users cannot
convey to programmers what they really want in the programs. Because of these,
prototype application produced by programmers are unsatisfactory and did not provide
the solutions needed by business line users. Several significant changes should be
made by the programmers, which pushes the projects even way behind the schedule.

II. Point of View

The case is analyzed from Edward Fergusons point of view.

III. Statement of the Problem

How can communication between the information technology programmers and the
business line users be improved in order to produce specific applications within the
given project time frame?

IV. Statement of Objectives

1) To finish the current project without further falling behind the schedule.
2) To improve the communication between IT programmers and business line users.
3) To refine the current application development procedures with a goal of ensuring that
future projects will be delivered within the set parameters and schedule .


V. Areas of Consideration

SWOT Analysis of Current Applications Development Process

Strengths
-Free flow of communication since
business line users can directly relay
their concerns to the project manager
-Specialists are present in both the
business and IT side
-IT team equipped with skills to program
needed applications
Opportunities
-Exposing programmers to the entire
business context will allow them to
appreciation the entire business process
-Timely delivery of applications will help
bring in funds to the company because
these will help business users in
prospecting clients
-Improving communication between IT
programmers and business line end-
users
Weaknesses
-Forms used by the IT team leaders to
relay instructions to programmers are
not useful
-Since incremental changes are
communicated verbally and requests
are not documented instead of being
submitted to the IT group, other aspects
of the project may be compromised due
to information asymmetry
-Lack of comprehensive project
definition documentation is making the
project prone to unplanned changes and
shortchanging of given specifications
-Business line end-users generally
uninterested in studying details and
specification of ITs proposed solutions
Threats
-Misunderstandings can cause delay in
projects

VI. Theoretical/Conceptual Framework

The insurance company is currently using the communication channel type called The
Y. In this type of channel, the message is relayed from the sender to an inner circle,
after which the inner circle will relay to the other members of the organization. The usual
problem that is encountered with this type of communication channel is that the other
members of the organization do not receive the entire original message. In the
insurance companys case, the programmers were not presented the whole business
concept which caused the first prototypes to be unsatisfactory for the business
managers.


The Y Communication Channel

To effectively relay information from one group to another, the communication channel
type The Wheel can be applied. In this type, all information will go through one person.
This person will be responsible to communicate to each member or group that is
involved.


The Wheel Communication Channel

Fiedlers Contingency Theory of Leadership was based on the premise that effective
leadership depends on a match between leadership style and situational demands. At
the heart of this theory is the assumption that a leaders style is predominantly either
relationship-oriented or task-oriented and that this style is fixed. This idea suggests that
a leader will need to seek out or be assigned positions that fit his or her style.
1


Leader-member relations: The nature of the relationship between the leader and the
work group.
Task structure: The degree to which tasks performed by subordinates are well defined,
formalized, and standardized.

1
Dyck & Neubert, Principles of Management: Motivation, 2012,( Cengage Learning Asia Pte Ltd)
Position power: The degree of legitimate and reward power vested in the leaders
position.


Leadership Situation Table
2


Another framework used is Alex Bavelas general types of communication channels
These channels illustrate the dynamics of communication in formal organizations and
how it affects the completion time of tasks and projects.

VII. Alternative Courses of Action

ACA #1: Hire additional IT programmers to hasten application programming.
PROS CONS
-Tasks can be delegated to more IT
personnel, hence, the project can be
done on time
-Additional expense due to recruitment
and training costs
-Recruitment and training of new
programmers may further delay the
process
-Miscommunication problem remains
unaddressed.

ACA #2: Accommodate changes required by business line but negotiate for
extension of deadline.
PROS CONS
-Extended time can be used by both
teams to discuss project status, issues
and potential solutions
-Extending deadline will lighten time
pressure on programmers
-Working within a realistic timeframe
-Higher costs may be incurred because of
delays
-Project members may be lax in delivery
due to additional time given


2
http://2012books.lardbucket.org/books/organizational-communication-theory-research-and-practice/section_09_01.html,,accessed
8/8/13
allows schedules reworked and tasks to
be reassigned

ACA #3: Assign a project manager in the business side that will serve as Edward
Fergusons counterpart. The two project managers will work closely to finish the
applications and review the business processes to improve them in the long run.
PROS CONS
- New project manager will enhance the
communication between the two
departments since he speaks the same
language as that of the business line
users. The two project managers can
collaborate to ensure that the
requirements and outputs of each side
are well-communicated to the other.
-Monitoring of project schedule in the
business side will be easier because one
of their own will be focused in making
sure that the timetable is followed.
-Change requests from the business side
will not be missed by the IT side because
the new project manager will make sure
that they are raised.
- Possible delay due to realignment of
responsibilities
- Organizational changes may not be
possible because of employees
preferences

VIII. Recommendation

The group recommends ACA 2 and 3 as these will address the application development
issues both in the short and long terms.

To ensure that the applications will be delivered and delays will be at the very least
minimized, if not eliminated, both the IT team and the business line team must agree to
cooperate to finish the projects without further delays. The group believes that it is
important to build sense of urgency in every team member so that everyone will treat
issues with urgent attention. To address the problem of strained communication
between the two teams, a project manager from the business side must be assigned.
This business project managers main focus is to facilitate communication in behalf of
the business side and act as Fergusons counterpart.

The decision to assign a business project manager stems from the groups analysis that
the teams communication network must be shifted from Y Network to the Wheel
Network. From having the information concentrated on a few, communication must be
facilitated by a sender from both teams so that:

(i) The project managers are aware of all outstanding concerns and can follow
through until they are resolveda task which not all team members can perform.
(ii) Should there be difficulty in communicating ideas due to interdisciplinary terms
that are being used, the project managers can help clarify the details and make
them understandable to all parties involved.
(iii) There is a dedicated point person for all project concerns so that time will not be
wasted in chasing for response for issues raised.

To prevent miscommunication and delays from recurring, a detailed project plan must
be produced and disseminated before development starts. Through proper
documentation signed by involved parties, all specifications and details are finalized and
approved before the IT starts with programming. The task checklist for both parties can
be used to manage and track the project completion. Should changes be made, they
should also be properly documented to ensure that they are accounted for and
considered in the big picture. Documentation also allows project managers to
breakdown expected outputs, deliverables, and milestones expected from members
within the set timetable.

IX. Implementation Plan

The IT and business teams must collaborate closely to implement the following
changes. First, a general meeting that involves all project members must be held. This
meeting will be pivotal as this is when the directions to be taken by both teams will be
set. The following should be achieved in the meeting:

a. Present the current situation on a per project basis. A comprehensive report on the
status of the applications, remaining tasks in the pipeline, and needed changes must be
some of the main points for discussion.

b. The business team must assign a project manager from their side whose primary
focus is to coordinate the business specifications of the applications to be developed
and serve as Fergusons counterpart in the business team. This business project
manager will serve as the overseer of all the business teams ongoing projects and
communication point person.

c. Stringent monitoring by the project managers will be stressed to ensure that all tasks
are done on time and no downstream process will be affected. Checklist will be created
to monitor the development. Schedule of updates will also be set. Escalation of issues
will be encouraged, as the teams would need to push the concerns before the concerns
pull the schedule.

After the meeting, the IT team will be expected to disseminate the development and
testing schedule. The business users will be required to participate in the testing so that
they may provide feedback, which will be acted on by the IT team.

Changes that would be developed and implemented in a longer time horizon are the
improvement of the project plan documentation and the training for project managers
and IT personnel. Project documentation must be improved as is important to plan all
the details of the project and put them in black and white before programming is initiated
to avoid wasting time and resources. And since it can be anticipated that the two teams
would be working together in more future projects, it would be beneficial for all to have
the IT personnel undergo training on finance. This is to equip them with product
knowledge necessary to understand the functions of the programs they develop.
Training would also allow them to suggest improvements on the existing applications
and grasp the big macro setting in which the applications will operate. The project
managed from the business side, on the other hand, can undergo IT-related training so
that he can acquire basic, working knowledge on programming and product
development. This could somehow allow him to serve as the translator between the IT
and business team.

X. Learning Points

We understand that communication is a critical part among the four management
functions. It is very challenging on the part of the manager to maintain good
communication within the organization because moving from one step to the next in the
communication process can be disrupted in the overall context in which the
communication takes place and the media used to transmit the message.

An organization is composed of different departments, groups, or teams.
Miscommunications often take place because of differences. To address this issue, the
group learned that a manager should maintain a constant communication within his
group because communication with good coordination are vital in streamlining
objectives and ensuring that unified visions are achieved in timely manner.