Project Scope and the Human Element
As the owner of a small business that designs and makes specialty furniture you were thrilled when you were informed you had received a $50,000 grant from your local municipality for being elected the Small Business of the Year. You gathered your management team together to discuss how the money could best be invested in the company. As a team, you decided to upgrade As the owe your equipment in order to fabricate higher quality furniture and cut costs.
Now you are appalled when you realize the Purchase Orders for this new equipment far exceeds the original amount of the grant. You schedule an emergency meeting with your team to discuss which Purchase Orders can be approved and which need to be canceled.
Your Master Carpenter Rich has entered a Purchase Order for expensive hand tools that he insists are necessary to improve your final product.
Your Shop Floor Supervisor Miguel has entered a Purchase Order for new machinery to increase the volume of furniture that can be produced. He states this will contribute to profitability by increasing sales and that since Rich is the only person who could use the expensive hand tools, “It is a waste of money to buy toys only one person can play with”.
Your Marketing person Sheila would like to open an account with a local web designer to upgrade your presence on Social Media. She thinks this will boost sales and provide the company with a cool website. She says she realizes she had originally agreed to buy upgrades for equipment, but she believes a web site is a form of virtual equipment.
Your brother, who is also your Accountant, believes the money should be invested because sales have been flat or slipping a little, and he would like to make sure you have a cushion if sales continue to fall. He says he only agreed to buy equipment because the Holidays were coming, and he didn’t want an argument at the family dinner table.
The meeting, which began very civilly, has broken down into a shouting match. Miguel stomps out of the room angrily, and your brother is muttering something about talking to Dad about this mess.
In your discussion share how you would respond to this situation. How would you spend the money from the grant? Would you discipline your managers for losing control in the meeting? What would your action plan be for handling this situation? Be sure to cite any external research using APA format.
As part of your reply post to another student offer at least one alternative action plan for resolving the situation described in the scenario.