Reasons Behind Bad Project Performance at Ge Hungary

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Brief introduction to the topic3
Background and the objective3
The environment3
The problem3
The research objectives3
Review of the relevant literatures3
The research design3
Purpose and strategy of the research3
Applied data collection methods3
Applied methods to analyse data3
Additional consideration3
High level research project plan3
Resource needs3
Project organization3


1Brief introduction to the topic

Projects are run in most organizations to achieve some specific goals within the given timeframe and with dedicated resources. In the Hungarian subsidiaries of General Electric (GE) there are more than one hundred projects run parallel consuming millions of Euros and hundreds of FTEs; thus the quality of project delivery functions are crucial in order to achieve cost efficiency in operations and also quality outcomes.

In the last years there was a raising concern among managers about the many slippages and budget overruns of key projects, while in several cases the promised benefits were not realized after project ends. Understanding the importance of smooth project delivery ability of GE, I – as the Project Management Office Manager of Budapest Bank, GE – propose in this document to initiate a research project to answer questions about reasons of project failures.

In this proposal you will be given a description of

the organizational environment
the problem definition
the formal research questions
the most important professional literatures relevant to this topic •the applied research methods and procedures
the high level research project plan

2Background and the objective

2.1The environment

GE Hungary operates in three entities in Hungary:

1.GE Money Bank
2.Zenon Europe Ltd. (GE Water & Process Technologies)
3.GE Hungary Ltd:

GE enforced a project management culture on these three entities; thus all relevant change initiatives are run in the form of projects. They have: •Defined goal and scope
Allocated resources
Defined timeline

Projects are important means of ensuring competitive advantage for GE in Hungary either through differentiation or increasing operational efficiency. Projects are generally run for: •Increasing automation through new software

Implementing Business Intelligence capability
Opening new sales channels
Implementing new products
Increasing production
Extending infrastructure

The PMO Managers in the three entities are tracking the projects’ progress and they are supposed to record any slippages. In terms of project outcomes, methodologies in all companies require the projects to have an approved cost benefit analyses at the end of the first phase of the project. The realisation of these benefits is then measured back at the final Monitoring Tollgate, which are recorded in meeting minutes and presentations.

2.2The problem

There is a Project Management Office (PMO) in the three entities, which is supposed to track, control and support all projects. Estimation was prepared by PMO Managers of different companies that shows an estimation of resource usage:

In the Hungarian GE companies there are about 100 projects run parallel with consuming about 17 MM EUR and around 930 FTE. It is apparent that project failures have direct implication of the effective usage of these resources and the benefits from products: •More FTEs’ work and more financial resources needed than it would be necessary without struggling with different project issues •Benefits expected from projects will not be realized on time, which could mean lower YE income or even missed opportunity

The appropriate and cost efficient delivery of these projects is key for GE to achieve cost efficiency and good market position.

Based on PMO records, 75% of closed...
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