P M Makes the Difference

Julie M. Wilson, Implementation Manager, Pacific Mutual Life lnsurance Company PMI Proceedings, 1992, pp. 223-31

This case describes a reengineering process at Pacific Mutual Life Insurance Company (Pacific Mutual) and gives an excellent industry background. The project allowed the company to get the right products and services to the mar- ket on time with improved quality. The author stresses throughout the case the importance of blending people, processes, and technology. The case shows how Pacific Mutual is moving toward a more open and innovative culture, and how it has been successful in responding to the needs of its highly segment- ed market by the use of teams, organizational tools, and project management.

This case will allow the students to understand the wide of project management. From the study of this case, students will further understand

the project life-cycle and the product life-cycle

the importance of cross-functional teams and teamwork the importance of understanding the customer needs the faced on the changing of a company's culture.

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1. In Figure 4, the author depicts the new project life-cycle. This life-cycle has six different phases, includmg an "implementation phase." Do you perceive phase as a clearly defined and end, or do you think that this phase is occurring throughout the entire project?

a. The case presents this phase as the of previous phases, when all major tasks have been completed. Thus, implementation would start simultaneously at the of the project. Peter G. Moms in The Management of in Chapter 8, The Management of Pro-

jects, The New Model, that there is a misconception that project imple- mentation only starts after the project is defined and its relationships with external factors are identified. He states: "Implementation starts as soon as a project is conceived."

Organizing

2. The general life-cycle for most products in the life and health insurance market is depicted in Figure 1. Do you see any resemblance between this life-cycle and a generic project life-cycle?

a. In the Guide, section 2.1.2, Characteristics of the Project Cycle, the following characteristics are defined as common to most pro- ject life-cycles: "cost and staffing levels are low at the start, higher to- wards the end, and drop rapidly as the project draws to a conclusion."

From this perspective, it can be said that the two life-cycles share some characteristics. However, the Guide also warns of distinguish- ing between project life-cycles and product life-cycles. A project is un- dertaken to bring a product to the market and is but one phase or stage in the entire life-cycle of the product.

3. The case mentions that previously the term "on-time" meant differing to different groups of workers. Therefore, groups completed tasks based on their own interpretation of what was necessary to complete that task is this problem addressed and solved through the new methodology?

a. This problem is addressed through the use of cross-functional teams.

This strategy allows team spirit to develop and to let members recognize the disadvantages of working as if they were in separate companies.

b. The use of project management techniques also requires that schedule, cost, and technical performance objectives be established for each project.

4. The author states: "Because reengineering doesn't happen overnight, and because competitive conditions are increasing, now is the time for insurers to overhaul their business processes. Changes in the industry are accelerat- ing and will continue to do so as less competitive companies are acquired by larger, more nimble companies." Do either of these statements (or both) apply to other industries with which you are familiar? Explain.

a. Clearly the first sentence applies to many industries. Competition is in- creasing in manufacturing and service sectors. The second statement also applies to many industries. Allow the students to cite examples from their own experiences or from other literature.

5. The author mentions Pacific Mutual's core values of "openness, change, risk accountability, and goal orientation." What barriers would the lack of these values present to a company trying to introduce project man- agement teams?

a. A lack of openness would inhibit teams since project teams must have the information and resources needed to make and implement decisions. Re- sistance to change inhibits any new process including the use of teams and project management. To effectively use a team approach, team members must be willing to take some risks and be held accountable for the deci- sions that are made. No team can function effectively without objectives, goals, and strategies.

b. The instructor can further expand this discussion by letting students provide examples of other barriers to the team process. You may also wish to discuss how these barriers might be overcome.

Project Management

Thanks to the new methodology, Pacific Mutual was able to blend people, processes, and technology successfully. This methodology based its success on the use of cross-functional teams. The students should research and discuss the cultural characteristics prevalent in companies that are using teams.

Implementing Integrated Product