Prioritizing Projects at D.D. Williamson
July 18, 2014
What are the key components that keep a business or company afloat? Most business owners and CEOs would suggest a business plan, budget, qualified and experienced workers, goals for the business, great leadership, and maybe even trial and error. All of these suggestions are sure contributions to the success of any business, but we must not forget prioritizing.
This case study will help us to see and understand that D. D. Williamson Company made prioritizing very crucial and necessary in the building, growth, and success of the company. Many companies have all the previously mentioned ...view middle of the document...
Instead of 16 projects, they only chose 5 “Vision Impact Projects” or VIPs that would get high level focus and attention from the best senior management team. After implementing the prioritization, the company experienced more growth and achieved more predicted results.
Suggest at least one recommendation to improve the prioritization process.
It is obvious that the company used the project score system, which applies a weighted score to each project that represents the project’s value (Investopedia.com). This was done by choosing the 5 most important projects and giving the most attention to them by the highest qualified management. D.D. Williamson Company should have implemented a financial model along with their projects. These models usually compare the expected project cost to the expected benefits of the projects. Financial models would have helped them to see early on what projects would have benefited the company and could have avoided those money opportunities that were left on the table during the years of 2004-2009. By evaluating the cost of the money put in compared to the money gained or benefited, they could have chosen those VIPs faster than in previous years.
Create a scenario where the implemented process would not work.
John Benton, Senior Vice President, advises Mark, the financial advisor, to create 2 financial models for next month’s Advertising Commercial Project so that he may make an educated decision on which project to take on. Mark meets with his team and comes up with an outstanding budget and plan for the commercial. Included in the financial model compared the advertising times, compared the profit if targeted towards certain ages groups and areas, and even included the investment needed compared to the profit brought in once the commercial hit the airways and prompting people to buy their product. John was so pleased with what the team had done, but the project failed and did not yield the expected benefit or profit. How did this happen? Just like many companies, although the team figured they included all aspects of the financial model, but they forgot wages (pmi.org). Who will promote, who will stay late to create the presentations, what...