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PROJECT MANAGEMENT (Individual Case Study)

“Reson : Making Development Teams Accountable For Short Project Cycles” Instructor: Akaki Kheladze

By: Dwitya Ratna Pramesi
Due date : 05-12-2010

Table of Contents
Executive summary ................................................................................................... 1 1. Reson’s Managerial Challenges at the beginning of the 1990 ........................ 2 2. Managerial responses to the above challenges ................................................. 3 3. Key elements in Reson’s new approach to project management ................... 4   Opening up the organization........................................................................................... 4 All focus on time .............................................................................................................. 4

4. Reasons for low performance in project management.................................... 5

Executive summary
In the beginning of 1990s, Reson A/S, a company specializing in underwater acoustics and high power ultrasonics, faced managerial challenge. They needed to rethink how to manage the development of new products, with the target to reduce the development time from three years to three months. As a result, Reson A/S gained new major customers which needs to be served quickly and effectively with existing technologies. Reson chose two approaches to manage its development projects: 1) opening up the organization; developed the company culture and open communication, 2) making the development teams themselves accountable for short project cycles by giving unlimited trust and unlimited financial resources to the project manager. At the end, Reson was successful to manage the new project, and productivity jumped by 50%

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1. Reson’s Managerial Challenges at the beginning of the 1990

The original business of Reson was built around a world patent in homogenizers amd specialized in underwater acoustics and high power ultasonic; the company started manufacturing main components for underwater measurement systems, such as sensors, in Denmark. In order to move from one highly specialized market, Reson had been modified from 100% family owned business into a corporation. As a result, 49% of the share had been sold to investors with knowledge of high-tech business. In addition, to reduce dependence on the defense industry, the company approached new market by strengthen its competence in electronics that had been made in 1984 with the establishment of a permanent office in the USA. In the early 1990s, Reson decided to set up a second base in Aberdeen, Scotland, which is the center of the oil and gas business. Despite the increase of new major customer to Reson‟s portfolio, Reson was facing new challenge-how to serve new customer‟s needs quickly and effectively with existing technologies. To develop new technologies, Reson needed up to three years, and the new product development phase had to be reduced to three months in order to capitalize on that potential. Reson focused on emphasizing the quick application of existing technologies, which required collaborating with the major customers and adapting supporting technologies to form new products. Steenstrup, Managing Director of Reson A/S, believed that “people‟s behavior has direct implications on the way projects are normally managed”. To cut new product development times to three months, the whole members in organization were going to focus on the specific behaviors contribute to a more efficient project management. To meet this objective, company culture needed to be developed and according to Steenstrup, “culture” meant “the way to exchange ideas between people in an organization”

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2. Managerial responses to the above challenges
In order to meet up with the challenges, Reson was revising the approach to control its development of new products and to ensure a quick and effective job...
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