North American Financial Corporation (NAF) The MLM Project (A) Case Study Solution
Chosen Governance Approach:
After the realization that the MLM project has completely rewritten or modified more than 88% of the existing system or application to rebuild the MLM system in order to fulfill the emerging need requirements of the company, the management has chosen Ceres Opt company to outsource its project, in order to reduce the overall cost of rebuilding the MLM project. So, in short, the chosen governance approach to rebuild the company’s system is appropriate for the company in order to fulfill the emerging market’s needs and requirements.
Position to Reopen the Contract:
Jean Pierre Maltais’s decision to refuse the reopening of the contract is not right. Jean Pierre should reopen the contract, because it is very complex project and needs time to get built Due to the lack of in- house advance technology, MLM project cannot be built internally, which means if it will not reopen with the outsourcing company Ceres Opt, North American Financial Corporation (NAF) will then need to find another outsourcing company, which might be more time taking procedure. That is the reason why it is the right decision to reopen the contract by triggering the terms to increase the staff productivity as well as their overtime hours in order to fulfill the contract on time or for the purpose of minimizing the delay in the project.
Project of Escalation of Commitment:
Yes, this is a case of escalation of commitment, because the negative outcomes are expected from this project due to the unnecessary delays and unexpected incidents, including the rupture of a fiber optic cable in which the central IT equipment were delayed for eight days in the operations. More of it, it also led to the loss of two development servers which had the main function of infiltration of dust in the main server room of the company, which further led towards the failure of the construction contract and the criticism on the high staff turnover rate in Ceres Opt.
Action Plan:
After the detailed analysis of the case study and the reopening of the contract, it has been recommended to the NAF-BP not to refuse the reopening of the contract, because it is a very complex project and it needs time to get built in. Due to the lack of in- house advanced technology, MLM project cannot be built internally, indicating to the fact that if it doesn’t reopen with the outsourcing company Ceres Opt, North American Financial Corporation(NAF) will have to find another outsourcing company which can cause further delays due to the time consumption. That is why it is the right decision to reopen the contract by triggering the terms to increase the staff productivity and increase the staff overtime hours in order to fulfill the contract on time or for the purpose of minimizing the delay in the project..........
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