Project Managment - Resnet Case

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Question #1:
What was Fay’s role in initiating ResNet? Why did she succeed when other NWA employees in the IS department, who had similar ideas years earlier, did not?

Answer:
Fay Beauchine became VP for Reservations at NWA while the company was using 30 years old technology at their reservation system (PARS). She knew that developing a new information system was critical for implementing a vision, that focused on sales rather than service and she wanted to sponsor this new information system. So from the project management perspective the role she took in initiating ResNet project, was the role of executive sponsor. Her success key factor in ResNet internal marketing was the fact that all previous unsuccessful efforts were made by IS people who were prejudged by the upper management as technology biased. Therefore, a strong and new executive sponsor from outside IT was actually the trigger needed to provide the vision for the project and convince senior management of its importance.

Question #2:
What role did senior managers, Peeter, and Arvid have in initiating ResNet? Did they make good decisions? Explain your answer.

Answer:
Peeter Kivestu was teamed into ResNet by Fay Beauchine as a project director (manager) and he asked Arvid Lee to join the ResNet initiative as a project plan developing leader. The threesome of Fay, Peeter and Arvid played a significant role in project initiation, each in his own “field”. Fay in internal marketing among upper management, while Peeter and Arvid were dealing with project planning and the proof of concept. Peeter and his team estimated a net present value of $37.7 million for the project, based on a five-year system life cycle and an 11.5 percent discount rate. Fay’s success was only partial due to the fact that the NWA financial committee approved the project but forced the team to divide the project into three phases, to minimize the financial and operational risks.

While Fay convinced senior managers at...
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