Management Approval Was Only Obtained At Headquarters Without Involvement Of Local Management

A project was formulated either at headquarters or in one of the locations of the firm. Staff at headquarters then take the project idea and develop a plan. However, they do so without the knowledge of local conditions or involvement of regional management. This actually happened in southeast Asia where a cement plant was conceived by bureaucrats in the country, giving the aid. The plant was then constructed along with docks and supporting facilities by the foreign government. It failed miserably. The climate in the foreign country was cold; the climate in the other country was very humid. The cement was produced and put on the dock. However, the ship to pick up the cement was delayed due to mechanical breakdowns. The cement hardened on the dock and the dock collapsed. Then the cement in the plant froze up. The plant was worthless.

Impact

What was a good idea turned out to be a bad idea when planned from headquarters. As the preceding example shows, the result can be total failure. More importantly, the experience puts a damper on any future projects.

Prevention

The best approach is to develop the plan as a collaborative effort between the local and headquarters management. Both local and headquarters goals need to be spelled out along with potential issues, roles, and issues.

Action

If a project gets started from headquarters and starts to go bad, one course of action is to kill the project. However, there is often too much invested in the project to do this. There is a lack of will. A better approach is to redirect the project toward local goals.