Case Study Goshe Corporation
SUNY EMPIRE STATE COLLEGE
MBA Program
Strategy and Tactics in Project Management
Case Study - Goshe Corporation
I’ve called this meeting to try to find out why we’re having a difficult time upgrading our EDP [Electronic Data Processing] Department to an MIS [Management Information Systems] Division,” remarked Herb Banyon, executive vice president of Goshe Corporation.
Last year we decided to give the EDP Department a chance to show that it could contribute to corporate profits by removing the department from under the control of the Finance Division and establishing an MIS Division. The MIS Division should be a project-driven division using a project management methodology. I expected great results. I continuously get reports stating that we’re having major conflicts and personality clashes among the departments involved in these MIS projects and that we’re between one month to three months behind on almost all projects. If we don’t resolve this problem right now, the MIS Division will be demoted to a department and once again find itself under the jurisdiction of the finance director.
BACKGROUND
In June 2007, Herb Banyon announced that Goshe Corporation would be giving salary increases amounting to an average of 7 percent companywide, with the percent distribution as shown in Exhibit I. The EDP Department, especially the scientific programmers, were furious because this was the third straight year they had received below-average salary increases. The scientific programmers felt that they were performing engineering-type work and therefore, should be paid according to the engineering pay scale. In addition, the software that was developed by the scientific programs was shortening schedules and lowering manufacturing costs. The scientific programmers were contributing to corporate profitability.
The year before, the scientific programmers had tried to convince management that engineering needed its own computer and that there should be established a separate
MBA Program
Strategy and Tactics in Project Management
Case Study - Goshe Corporation
I’ve called this meeting to try to find out why we’re having a difficult time upgrading our EDP [Electronic Data Processing] Department to an MIS [Management Information Systems] Division,” remarked Herb Banyon, executive vice president of Goshe Corporation.
Last year we decided to give the EDP Department a chance to show that it could contribute to corporate profits by removing the department from under the control of the Finance Division and establishing an MIS Division. The MIS Division should be a project-driven division using a project management methodology. I expected great results. I continuously get reports stating that we’re having major conflicts and personality clashes among the departments involved in these MIS projects and that we’re between one month to three months behind on almost all projects. If we don’t resolve this problem right now, the MIS Division will be demoted to a department and once again find itself under the jurisdiction of the finance director.
BACKGROUND
In June 2007, Herb Banyon announced that Goshe Corporation would be giving salary increases amounting to an average of 7 percent companywide, with the percent distribution as shown in Exhibit I. The EDP Department, especially the scientific programmers, were furious because this was the third straight year they had received below-average salary increases. The scientific programmers felt that they were performing engineering-type work and therefore, should be paid according to the engineering pay scale. In addition, the software that was developed by the scientific programs was shortening schedules and lowering manufacturing costs. The scientific programmers were contributing to corporate profitability.
The year before, the scientific programmers had tried to convince management that engineering needed its own computer and that there should be established a separate
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