The following appeared in a memo from the vice president of a company that builds shopping malls around the country.
“The surface of a section of Route 101, paved just two years ago by Good Intentions Roadways, is now badly cracked with a number of dangerous potholes. In another part of the state, a section of Route 40, paved by Appian Roadways more than four years ago, is still in good condition. In a demonstration of their continuing commitment to quality, Appian Roadways recently purchased state-of-the-art paving machinery and hired a new quality-control manager. Therefore, I recommend hiring Appian Roadways to construct the access roads for all our new shopping malls. I predict that our Appian access roads will not have to be repaired for at least four years.”
Write a response in which you discuss what questions would need to be answered in order to decide whether the recommendation is likely to have the predicted result. Be sure to explain how the answers to these questions would help to evaluate the recommendation.
When a complex project with many variables is involved, it is natural for managers to want a guarantee of success. After all, if the project is a failure, the indecisive manager is to blame. However, when a project involves something as fluid as the quality of a road, there are no guarantees. Even if the company bought the best equipment on the market and hired the best employees, there is no guarantee that the project will be successful. For example, if the company were to choose a different vendor, the quality of the work could be different. Therefore, the recommendation should not be made until more is known about the company’s most recent projects.
The second consideration is how long the roads are expected to last. It is normal to assume that using the latest technology will result in long-lasting roads. However, there is no guarantee that new technology will be adequate. A competent paving crew may have used better paving methods before, or they may not have invested in the latest equipment. Therefore, an answer to this question may not be helpful. The only fact that can be ascertained is that the company’s road construction crew is competent. All else is speculation.
The third consideration is the cost. When roads are built, they are expected to perform for decades. This means that the cost of repairs for roads constructed in the past four years will be significant. Therefore, the question that needs to be answered is: how much money will the company save by hiring Appian Roadways? The answer will play a vital role in determining whether or not the recommendation should be accepted. If the savings are more than the cost of the repairs, then the company should hire Appian Roadways. If they do not, the company should look elsewhere.
The last consideration is the attitude of the company toward its employees. If the company does not care about the quality of work, it is not likely to do so in the future. If the road construction crew is losing its motivation, it will not produce quality results. Therefore, the company should hire the company that cares about the quality of its work.
If the company has adequately researched the factors listed above, then it has enough information to make an intelligent decision. The company should hire Appian Roadways. The choice will most likely be successful, and the company’s reputation will be enhanced.