CHAPTER 10

Research Design

The Data

Once the framework of spirit was built, our research goal was to test the spirit-building blocks and expression components in real projects and assess their impact on the project outcome. We used an initial database of 200 cases, out of which we selected four cases in different industries, each with completely different goals (Eisenhardt 1989; Yin 2003). The cases were created using multiple sources of evidence: archival data (the written documentation accompanying the project was studied), manuals, interviews with various project personnel (program director, project manager, team members), and direct observation. The interviews lasted between 60 and 90 minutes. Our primary objective in this section was to create an accurate depiction of project spirit, as reflected in the selected case projects. A secondary goal was to enable a fuller understanding of the impact of the building blocks of spirit on its expression.

The cases we selected were BMW’s Z3 roadster project, NASA’s Orbiter Boom Sensor System (OBSS), Project Heritage of Kraft Foods North America (Nabisco), and the construction of the Durst Tower at Four Times Square (FTS). The industries represented by these projects were automotive, space, food, and construction. We also chose these cases because they represented different project types on some of the most common dimensions for project categorization (Shenahr and Dvir 2004). For example, on the technological uncertainty dimension, BMW Z3 and OBSS were rated as medium-tech and the remaining two projects, Heritage and FTS were categorized as low-tech. The novelty of the Heritage project was categorized as a derivative, and that of the other three was categorized as a platform. On the pace dimension, the FTS project began as regular, and then shifted to a fast/competitive, which was the same as Heritage and Z3. On the other hand, OBSS was rated from the start as a blitz project. Interestingly, all projects were completed at unprecedented speed. Finally, the complexity of all cases was categorized as system, and they were all highly successful. A summary of these cases is included in Table 10-1, and the following sections describe them in detail.

BMW Z3 Roadster

The BMW Corporation needed a new corporate image as well as an exciting new product to boost sales from a 1992 slump. The answer to this corporate problem was a new car with a new concept—the BMW Z3 roadster. The sleek, contemporary retro look of the car resulted from the project management techniques employed to produce it. BMW recognized the risks involved in this project up-front, and adopted a flexible, adaptive, and highly communicative management style.

From the management, marketing, and manufacturing perspectives, everything about this car was completely new to BMW. This project abandoned the traditional, individual-oriented functional management approach, and replaced it with a team-oriented matrix management approach and a group-oriented culture. In addition, traditional marketing techniques of print and television ads were replaced with more modern approaches such as film and the Internet. Finally, and perhaps most importantly, the project was used to demonstrate that BMW can build a quality car abroad. The launch of the Z3 roadster was also the launch of the first BMW plant outside of Germany, in Spartanburg, SC.

Table 10-1 Summary of Case Study Objectives

The vision of the Z3, as perceived by its team members, was “to create a product that excites people like the BMW motorcycle had.” It offered the opportunity of breaking away from a serious and tradition-bound corporate image. With the Z3 roadster, they could reach out to a younger, spirited, carefree, wind-in-your-hair type of driver.

The focus for the BMW Z3 project was to foster excitement, optimism, and high morale among its team members. The team was composed of voluntary members, requiring sign-off from their functional department, and thus they were all completely dedicated and self motivated. This project spirit valued individuality and self expression, and all team members were treated as equal contributors, without regard to their position or professional level. Finally, the project received extensive corporate support. This support was emphasized through kick-off celebrations and unrestricted time for members to work on the project.

Orbiter Boom Sensor System (OBSS) Project

Based in the Johnson Space Center in Houston, the Orbiter Boom Sensor System (OBSS) project was one of the critical efforts that enabled NASA to initiate a return-to-flight of the space shuttle program after the Columbia accident in February 2003. The OBSS project created a self-inspection capability to the Orbiter Module (space shuttle) while in orbit. With its new sensor systems installed on the integrated boom, the OBSS extends the existing arm of the Orbiter for an additional 50 ft (15.24 m). This new extension made it possible to inspect the thermal protection system (TPS) of the Orbiter in space, which was one of the actions designed to prevent an accident similar to that of the Columbia Space Shuttle.

One of the greatest challenges of the OBSS project was to meet a compressed time constraint. The project was required to be completed in less than one year. While the team developed some specific approaches to get the project done on time, they encountered organizational procedures and guidelines that did not provide sufficient support to a project with this kind of pace. Due to the fast pace of the project, effective communication among parties in the project was crucial. However, certain contractual agreements between NASA and its contractors created communication bureaucracies, which posed an additional challenge to the project team.

The vision crafted for the project was simply, to “develop a capability for inspecting damage to the Orbiter’s TPS while in orbit.” For the most part, the spirit of the project emanated primarily from the existing Johnson Space Center (JSC) culture and the criticality and time pressure of the mission. Although the culture of the project team was similar to the culture of JSC in general, one major difference was the extremely compressed schedule, and safety concerns. As some team members said, “This was a two-year project which was completed in nine months.” Senior leadership recognized the strain under which all team members were working and gave the team occasional “time outs” as a way of allowing a breather to reflect more objectively on the project. Some team members, however, expressed concern about the need to manage risk as well as avoid complacency that may set in after a time regarding to safety issues.

Project Heritage

In 2002, the Biscuit Division of Kraft Foods North America (Nabisco) identified two labor-intensive cookie production lines that could materially save costs by employing Mexican labor rates, which are substantially lower than in the U.S. The Project Heritage case study dealt with relocating one of these lines from the U.S. to the company’s Monterrey, Mexico facility, which was being vacated in order to consolidate part of the Mexican production to the Mexico City facility. By converting existing lines in the Monterrey, Mexico facility, Nabisco hoped to increase the production capacity to meet the growing U.S. requirements and leave existing U.S. production lines vacant for future expansion into other product production lines.

The individuals interviewed indicated that the project did develop a separate culture and subsequent spirit. Some of the complexities such as language differences, questionable subcontractor skills, and border-crossing barriers created frustration early on, but eventually became a part of the project spirit. In spite of these obstacles, the project spirit that emerged was one of support, trust, cohesiveness, and comradeship beyond the level that was common at the organizational level. It is noteworthy that a separate vision was not developed for this particular project.

Four Times Square—Vertical Transportation Project (FTS)

The construction of the Durst project at Four Times Square represented a significant challenge to the Otis Elevator Company and its parent, United Technologies Corporation. This building introduced a number of “firsts.” It was to be the first new office building to be built in New York, N.Y. in over a decade. It was also the first building to be built in the Times Square redevelopment zone, as well as the first green office building in New York. Finally, the project involved many of the company’s new products and construction techniques and many of the constructors involved in this project had been out of work for a period of time and were glad to be once again employed. These individuals however, lacked the necessary skills required for the construction of this type of project.

The FTS developed a culture of its own from start. The perception was that the project manager was responsible for a big portion of the can-do attitude present in this project. The project manager brought new and innovative ideas from around the country and made them part of this project, promoted the team concept through get-togethers, and marked milestones in the project with small celebrations. The team was given a great deal of latitude when it came to trying new and innovative ideas. What guided the team on this project was safety. The team members, some of whom had worked at other companies where safety was not a great concern, felt that this project team was more concerned with “our people” than just the bottom line. Interestingly, team members in this case too, indicated that the vision illuminated many of the core values that existed in the project, although, a separate vision was not developed for this particular project. The vision was simply stated as in other projects, “to provide the best product available to our customer, delivered on time and within-budget, and provide exceptional customer service for the life of the product.”