case summary of BBB company s project failure.

1. SUMMARY
Theory-W Software Project Management: Principles and Examples
BBB Industries is one the largest manufacturers in a small country called Optimia. BBB started
in 1950’s and was sold to larger company during recession periods in the seventies. After that,
BBB started booming, but there was a problem, BBB used old-fashioned methods for production
and couldn’t adjust in time to the dynamic changes in the industry. The company hires new
manager and he had to work with minimum budget. The manager made a survey for the people
working in BBB and made requirements for the new Financial Systems BBB needs. Manager
examined the all reviews of the working people and get the solution that BB Company had no
efficient financial system and lack of information system. The manager sent RFP (Request For
Proposal) to eight different companies. The best solution was chosen, but during the next day
BBB’s General Manager got a phone call from one of the companies called FCC (Fast
Computing Computer), but declined the offer in a polite way. BBB’s General Manager got
another call on the day after that from MMM’s chairman, the leader of both companies. He
basically forced BBB to get the offer from FCC, but they made a special deal. They have to get it
fast and if it’s late, they don’t have to pay anything. Project manager was recommending against
this, but his word had no meaning. BBB started toying around with the requirements to make
sure the FCC’s software comes late and they get it for free. However, this made both parties
unhappy since the product was really late and the manager who was hired for the project felt that
his opinion was not heard. BBB also missed great opportunity to make relationship with another
company. After the case study it was analyzed in the article how it would have been done if
Theory W was used. The case study always had the win-lose contract, so this time it’s analyzed
what happens if everybody is a winner. The most major win-lose scenario was that there was no
payment if FCC was late. FCC should have made proper analysis if the project is possible in the
limited time. The “Plan the Flight and Fly the Plan” part of Theory W helps people see the
shortcomings of the project. The project lacked configuration management, verification and
validation and review plans. The project also missed status monitoring in all but in the most
high-level milestones.