The Pitfalls of Project Status Reporting SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Pitfalls of Project Status Reporting
This is an MIT Sloan Management Review article. All too frequently, executives are caught by surprise when projects -especially complex IT projects -run into trouble. But complex projects do not fail overnight; they fail one day at a time, and generally only after numerous warning signs. The authors have been involved in 14 academic studies about the ways in which individuals report (and misreport) the status of IT projects and how the recipients of those reports respond to the information they receive.The authors' research suggests that understanding the underlying dynamics of project status reporting can help limit the chances of nasty surprises. In particular, they identify five "inconvenient truths" about project status reporting: 1. Executives can't rely on project staff and other employees to accurately report project status information and to speak up when they see problems. Many employees have a tendency to put a positive spin on anything they report to senior management. When the organizational climate is not receptive to bad news, truthful reporting can be inhibited 2. A variety of reasons can cause people to misreport about project status. Executives tend to attribute misreporting to poor ethical behavior on the employee's part. In fact, employees misreport for a variety of reasons; individual traits, work climate and cultural norms all can play a role. 3. An aggressive audit team can't counter the effects of project status misreporting and withholding of information by project staff. Executives may conclude that the best way to address the problem of misreporting is to rely on auditors to make sure that project status reports are accurate. However, once auditors are added to the mix, negative organizational dynamics can lead to a dysfunctional cycle that results in even less openness. 4. Putting a senior executive in charge of a project may increase misreporting. Although having a senior executive as a project sponsor often proves wise politically and can help in securing resources for a project, the involvement of senior leaders does not make it any easier to track project status. 5. Executives often ignore bad news if they do receive it. A number of the authors'studies found situations where employees went to share their concerns about a project with powerful decision makers who had the ability to change the course of the project (or stop it), but were unsuccessful. The authors propose solutions to reduce the risk of being blindsided by any of these inconvenient truths. They include a self-diagnostic survey to help you assess whether you may be at risk for an unpleasant project management surprise.
Authors :: Mark Keil, H. Jeff Smith, Charalambos L. Iacovou, Ronald L Thompson
Swot Analysis of "The Pitfalls of Project Status Reporting" written by Mark Keil, H. Jeff Smith, Charalambos L. Iacovou, Ronald L Thompson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Project Status facing as an external strategic factors. Some of the topics covered in The Pitfalls of Project Status Reporting case study are - Strategic Management Strategies, Leadership and Technology & Operations.
Some of the macro environment factors that can be used to understand the The Pitfalls of Project Status Reporting casestudy better are - – wage bills are increasing, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, geopolitical disruptions, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels,
there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of The Pitfalls of Project Status Reporting
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Pitfalls of Project Status Reporting case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Project Status, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Project Status operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of The Pitfalls of Project Status Reporting can be done for the following purposes –
1. Strategic planning using facts provided in The Pitfalls of Project Status Reporting case study
2. Improving business portfolio management of Project Status
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Project Status
Strengths The Pitfalls of Project Status Reporting | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Project Status in The Pitfalls of Project Status Reporting Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Project Status in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Project Status
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Project Status does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Project Status is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Project Status is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Pitfalls of Project Status Reporting Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Project Status is one of the most innovative firm in sector. Manager in The Pitfalls of Project Status Reporting Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Technology & Operations industry
– The Pitfalls of Project Status Reporting firm has clearly differentiated products in the market place. This has enabled Project Status to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Project Status to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Project Status has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study The Pitfalls of Project Status Reporting - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Project Status is present in almost all the verticals within the industry. This has provided firm in The Pitfalls of Project Status Reporting case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
High switching costs
– The high switching costs that Project Status has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
High brand equity
– Project Status has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Project Status to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the The Pitfalls of Project Status Reporting Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Training and development
– Project Status has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Pitfalls of Project Status Reporting Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Highly skilled collaborators
– Project Status has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in The Pitfalls of Project Status Reporting HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses The Pitfalls of Project Status Reporting | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Pitfalls of Project Status Reporting are -
High operating costs
– Compare to the competitors, firm in the HBR case study The Pitfalls of Project Status Reporting has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Project Status 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Project Status is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Pitfalls of Project Status Reporting can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study The Pitfalls of Project Status Reporting that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case The Pitfalls of Project Status Reporting can leverage the sales team experience to cultivate customer relationships as Project Status is planning to shift buying processes online.
Lack of clear differentiation of Project Status products
– To increase the profitability and margins on the products, Project Status needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Project Status is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Project Status needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Project Status to focus more on services rather than just following the product oriented approach.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Project Status supply chain. Even after few cautionary changes mentioned in the HBR case study - The Pitfalls of Project Status Reporting, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Project Status vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Project Status has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Skills based hiring
– The stress on hiring functional specialists at Project Status has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Pitfalls of Project Status Reporting, it seems that the employees of Project Status don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High bargaining power of channel partners
– Because of the regulatory requirements, Mark Keil, H. Jeff Smith, Charalambos L. Iacovou, Ronald L Thompson suggests that, Project Status is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Capital Spending Reduction
– Even during the low interest decade, Project Status has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Opportunities The Pitfalls of Project Status Reporting | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study The Pitfalls of Project Status Reporting are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Project Status can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, The Pitfalls of Project Status Reporting, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Project Status can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Project Status to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Project Status to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Project Status can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Project Status is facing challenges because of the dominance of functional experts in the organization. The Pitfalls of Project Status Reporting case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Project Status in the consumer business. Now Project Status can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Project Status can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Project Status can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Project Status has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study The Pitfalls of Project Status Reporting - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Project Status to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Project Status can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Pitfalls of Project Status Reporting suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Developing new processes and practices
– Project Status can develop new processes and procedures in Technology & Operations industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Learning at scale
– Online learning technologies has now opened space for Project Status to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Creating value in data economy
– The success of analytics program of Project Status has opened avenues for new revenue streams for the organization in the industry. This can help Project Status to build a more holistic ecosystem as suggested in the The Pitfalls of Project Status Reporting case study. Project Status can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats The Pitfalls of Project Status Reporting External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Pitfalls of Project Status Reporting are -
Environmental challenges
– Project Status needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Project Status can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Project Status business can come under increasing regulations regarding data privacy, data security, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Project Status will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Technology acceleration in Forth Industrial Revolution
– Project Status has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Project Status needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Project Status in the Technology & Operations sector and impact the bottomline of the organization.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Regulatory challenges
– Project Status needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Technology & Operations industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Project Status can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study The Pitfalls of Project Status Reporting .
Increasing wage structure of Project Status
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Project Status.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Project Status needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Project Status can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Project Status with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Weighted SWOT Analysis of The Pitfalls of Project Status Reporting Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study The Pitfalls of Project Status Reporting needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study The Pitfalls of Project Status Reporting is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study The Pitfalls of Project Status Reporting is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of The Pitfalls of Project Status Reporting is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Project Status needs to make to build a sustainable competitive advantage.
