Acorn Industries (Business & Marketing Case Study)

Acorn Industries
Project Management and Tactics
Acorn Industries
This report is an analysis of Acorn industries with respect to their existing organizational structure, restructuring, and related impact on other business areas. The report begins with the discussion on reorganization and then segues into the section dealing with its impact on project management. The next section gives coverage to the KMIP Program, followed by assessing and formulation of mitigation strategies for key risks identified.
Reorganization
Since the problem facing the organization is talent retention, the problem is mainly rooted in the conflict of interest between the functional manager and the project manager. Therefore, it is desirable to reorganize the entity into a matrix structure based on projects. Each project will have an office to which the general manager will have oversight. According to this new structure, the project manager will closely interact with marketing, HRM, and program manager, as shown in the updated organizational chart below. With only one project allocated at a time, where other departments (including marketing and program manager) will be able to perform their responsibilities more efficiently, it will be easier to evaluate the performance of new hires. Since there is no functional management department to show any resistance or reluctance, new talent will have a clear career-path with lower turn-over intention (Kerzner, 2006). In this way, the updated organizational structure will be a comprehensive solution to all critical issues facing the organization, including talent retention, efficiency, and inter-departmental coordination. The chart is provided as under:
Impact on Project Management
New matrix based structure is likely to improve the efficiency and retention of new talent. The factor contributing to the retention of new talent is the provision of a unobstructed career ladder (previously influenced by functional managers’ lobby). Besides, higher efficiency can stem from the improved performance of each department with simplified view of roles and responsibilities (Kim & Shin, 2017). A potential risk attached to the new structure is the possible resistance from the stakeholders. Among the stakeholders, most vital force is likely to be applied by the functional manager who will ultimately get deprived of their autonomy. However, the risk can be mitigated by planning the effective redistribution of roles and responsibilities among functional manager. However, the management will have to take ...