2002 Salt Lake City Olympics
Section II: Case Study II - The Salt Lake Organising Committee: 2002 Olympics
Our analysis of the case study had the following objectives:
1. To focus on the role of the new management in redesigning the organization to ensure successful execution of the 2002 Winter Olympics;
2. To identify the practices involved in the various stages of the project life cycle;
3. To discover how testing and validation reduce risk and uncertainty when planning a one-time event such as the Olympics.
The bribery scandal and how it underpins the sequence of events
The bribery scandal had a huge impact on the planning of the Olympics as the financial viability of the games depended on the involvement of various stakeholders and their reaction to the scandal could define the ultimate success of the event, for example:
• The SLC Olympics were originally budgeted at $ 1.55 billion, as $ 751 million was expected to materialize from sponsorships. At the time, this figure meant that SLOC would sign up sponsors far in excess of what had been done in prior Winter Games. In the wake of the scandal one delicate negotiation with health-care giant Johnson & Johnson was broken off followed by withdrawals from other sponsors.
• After the scandal the federal government, which was meant to provide funds for transportation and security, pulled back;
• The impact of the scandal on the general public should also be taken into consideration, as people would be expected to purchase tickets and turn the Games into a profitable business venture.
After the scandal SLOC recognised the need to separate the tainted committee of the past from its future; therefore, Mitt Romney was brought in as CEO and Fraser Bullock as COO.
The challenges were correctly identified right from the start of their appointment: $400 million budget deficit, knowledge gap, lack of relevant experience, dysfunctional organisation, staff operating in silos, inexperienced volunteer staff, no operational plan in place.
Our analysis of the case study had the following objectives:
1. To focus on the role of the new management in redesigning the organization to ensure successful execution of the 2002 Winter Olympics;
2. To identify the practices involved in the various stages of the project life cycle;
3. To discover how testing and validation reduce risk and uncertainty when planning a one-time event such as the Olympics.
The bribery scandal and how it underpins the sequence of events
The bribery scandal had a huge impact on the planning of the Olympics as the financial viability of the games depended on the involvement of various stakeholders and their reaction to the scandal could define the ultimate success of the event, for example:
• The SLC Olympics were originally budgeted at $ 1.55 billion, as $ 751 million was expected to materialize from sponsorships. At the time, this figure meant that SLOC would sign up sponsors far in excess of what had been done in prior Winter Games. In the wake of the scandal one delicate negotiation with health-care giant Johnson & Johnson was broken off followed by withdrawals from other sponsors.
• After the scandal the federal government, which was meant to provide funds for transportation and security, pulled back;
• The impact of the scandal on the general public should also be taken into consideration, as people would be expected to purchase tickets and turn the Games into a profitable business venture.
After the scandal SLOC recognised the need to separate the tainted committee of the past from its future; therefore, Mitt Romney was brought in as CEO and Fraser Bullock as COO.
The challenges were correctly identified right from the start of their appointment: $400 million budget deficit, knowledge gap, lack of relevant experience, dysfunctional organisation, staff operating in silos, inexperienced volunteer staff, no operational plan in place.