Case Study: Increasing Sales

00:02 Lamborarri is a calm manufacturing company specializing in the luxury segment with small, stylish cars.

00:10 It is a mid-sized company with a remarkable history.

00:15 The first laboratory was produced more than 60 years ago.

00:21 One of the main strengths of the company is the engineering division.

00:27 Customers that acquire a laboratory are very satisfied, praising how comfortable the cars are, how good the driving experience is, and how durable the product repairs are quite rare compared to other automobiles from the same class.

00:44 Of course, as anything in business, there is a trade off.

00:48 The cars are expensive.

00:52 In recent years, Lamborarri has observed a decline in their sales.

00:58 Considering the great customer satisfaction, the main reason is the extremely competitive market and entrance of new players.

01:06 The decreasing sales and revenue trend is concerning and the top management organise a three day business trip to focus on the issue and decide what to do before it's too late.

01:19 Considering the issue is with sales, the responsibility falls on the sales manager, Sonia, to lead the sessions.

01:27 After the brainstorming session, the management team has selected two initiatives to bring the sales back up and growing again.

01:38 The first is an advertising campaign in partnership with a leading tour agency focused on the high end market segment.

01:47 The company organizes trips to exotic destinations such as the Maldives, Seychelles, Caribbean Sea and South America, offering a five star experience.

01:59 As you can imagine, most of the customers are wealthy, which fits into Lamborarri's target groups.

02:06 A good place to work on the marketing to expand sales.

02:11 The second initiative is to build a showroom in a trendy area of New York City, where the company can organize exhibitions of the new models that are to be released in late 2020.

02:24 There. The company would showcase state of the art automotive technology wrapped in a captivating design.

02:32 The goal is to present this to the end customer in an interactive and engaging way. The showroom will be equipped with the latest visualization technology, including an augmented reality application, which will allow the users to experience the cars in a completely new and appealing way.

02:52 It's October 2019 and Sonia as Key Responsible starts working on initiating the strategic projects.

03:02 For a few weeks.

03:03 They go through a feasibility study estimating the high level budget needed and reviewing the key risks.

03:10 Finally, the Project Charter is created and presented to the CEO.

03:16 Everything looks good and the CEO approves the project to go forward.

03:20 Sonia is named Project Sponsor.

03:23 Great. The most important thing for the sales manager is to identify who can lead the projects, especially the second one.

03:34 The company has been doing various advertisement campaigns, but never something like the showroom. On the way back home while driving her red Lamborarri Sonia thinks of the last few projects and remembers there was a young and very motivated business analyst from the finance department who excelled on all project activities assigned to her.

03:58 She even led a project workstream independently and reached a great result.

04:04 What was her name? Rey. First thing.

04:10 The next morning, Sonia goes to have a quick chat with Rey.

04:15 She explains the project that is about to start and asks if she would potentially be interested in taking the role of project manager.

04:24 Rey can't believe it.

04:26 She always wanted to manage projects.

04:29 She has participated in various ones, but never as a project manager.

04:35 That was the reaction Sonia expected.

04:38 To formalize the assignment and approval from Rey's manager will be needed.

04:44 They are, however, on vacation, returning next week.

04:49 In order to best use the time.

04:51 Sonia suggests that Rey look through the project information and draft some ideas on how she would execute the project.

04:59 Rey keeps her fingers crossed that her manager will approve.

05:03 It is such a great career opportunity.

05:07 She decides to make the most of the next few days and focuses on the tasks until the end of the week. Sonia has sent her the project charter with a business case and other supporting materials attached.

05:20 Rey decides to go through the objective and main activities listed in the scope.

05:25 Exciting idea.

05:27 Showroom cars.

05:28 Fancy gadgets.

05:31 The showroom is supposed to engage the potential buyers by showing them a completely new perspective of interacting with the shiny new laboratories.

05:39 In addition to all the cars on display.

05:42 Visitors will be able to play around with the Lamborarri brand new augmented reality app running on tablets available on location.

05:50 The app would use the device's cameras to automatically detect the new car models when pointed at them and will give the possibility to change the colour rims and body type of the car or to see the engine in x Rey mode and even to design their own custom exterior paintwork.

06:07 And all of this in real time as a follow up.

06:13 Customers would be able to take home any customised model they create by simply entering their email address into the application.

06:21 This, in turn, gives laboratory a natural sales entry point to reach more potential users.

06:29 Rey thinks.

06:31 I will try to imagine how to execute the project.

06:35 Okay, it's October now.

06:37 The opening is planned for next August.

06:40 Sounds like plenty of time.

06:42 Let's see the activities.

06:46 Rey goes one by one, drawing on her notebook as she thinks car manufacturing.

06:53 Okay, that should not be very difficult.

06:55 We are a car company.

06:57 One or two months must be enough.

07:02 Developing the AR application.

07:05 Hmm. I have participated in the website upgrade last year.

07:10 We did fancy things, but it was not very easy.

07:13 We had to coordinate various experts marketing, sales, web developers and finally the management to approve.

07:21 But I think I know how to work in such an environment.

07:25 Hmm. Wait a second.

07:27 I know the montage of visual effects systems in the exhibition spaces will take quite some time. And they need to be montage somewhere, right? So the showroom must be constructed before the vendor can deploy and test the new system. That complicates the work.

07:44 When will the construction be ready? Oh. Did I say construction? Yikes. That's right.

07:51 We need to execute construction.

07:56 She is struck with complete fear.

07:59 I have no experience with that.

08:02 It's something that requires engineers and architects.

08:05 I don't have any engineering background.

08:09 Wait a second.

08:10 That's even worse.

08:11 Ten months to August.

08:13 I remember my friend's family moved to a new building.

08:16 The construction took more than two years.

08:18 How can we do it in ten months? Oh, it will actually be less because we have no construction company hired yet.

08:26 I don't think I'm the person for this project.

08:28 I lack this knowledge and it seems impossible to me.

08:34 Rey continues.

08:36 Staff hiring.

08:38 About ten employees need to be recruited to run the showroom.

08:42 I have never interviewed anyone.

08:44 How can I manage that? I'm not qualified.

08:48 I'm so disappointed.

08:49 I really wanted to become a project manager, but I don't have the needed expertise.

08:55 Construction.

08:56 H.R. Ugh.

09:00 She becomes sad.

09:04 And the following day, she meets with Sonia.

09:07 Sonia brings great news with her, Rey's manager has agreed to allocate her for the next ten months to take on the project.

09:15 However, Rey isn't reacting, as Sonia would expect.

09:19 She seems sad.

09:23 Sonya asks, What's wrong? Rey explains that with great regret, she cannot be a project manager for this project.

09:31 She explains what she analysed and that she clearly lacks engineering skills, HR skills and so on. Sonia then does the strangest thing.

09:41 She laughs and says.

09:44 You are very wrong.

09:46 You will be the project manager and you have the needed skills.

09:52 Rey is simultaneously confused, surprised and slightly happier.

09:57 But how? Sonia continues Well, the role of project manager is to be able to manage any type of work with the help of experts in each field.

10:08 Do you think the construction engineer can manage air and software visual effects pieces, or the HR expert managing the construction? A good project manager has to learn quickly and adapt, but be an expert in only one thing.

10:24 Project management.

10:27 Rey is still confused.

10:30 Sonia asks.

10:32 Do you have software development background? Rey answers. No.

10:38 I graduated in business administration.

10:42 Nevertheless, you managed the website upgrade workstream last year and did pretty well. Sonia exclaims.

10:51 Rey admits. Well, yes, I learned many things.

10:56 It went well.

10:58 Of course it went well.

11:00 Sonia smiles.

11:01 You demonstrated you're a quick learner, very motivated and a great collaborator. You help the different experts work together to achieve the common goal, and that's what you will do now.

11:16 The long gone feeling of self confidence starts coming back to Rey.

11:22 But still construction is so new.

11:25 She asked Sonia for some more information.

11:28 Sonia explains that a vendor has already been selected.

11:33 Rey will need to get in touch and agree the starting date.

11:37 Rey asks. But is it possible at all to create a building from scratch in less than ten months? My friends bought a new apartment.

11:45 Sonia interrupts.

11:47 This is a good concern of yours, Rey.

11:50 It shows you are doing a feasibility check.

11:53 I have done this as a project sponsor.

11:56 As we are building a one story building, the vendor confirmed this can be created on time, but you will need to work on the exact details with their representative.

12:07 Rey lets out a sigh of relief.

12:10 Okay. That seems better now.

12:13 And with recruitment, I guess I would seek the HR department for help.

12:18 Sonia nods approvingly.

12:21 As for the cars, I'm not worried at all.

12:24 It should be fine.

12:27 Sonia's face drops to a serious one.

12:32 What, Rey puzzles.

12:35 Rey, don't underestimate that.

12:38 There are six cars to be manufactured and these are brand new models with new features and designs.

12:45 Anything could go wrong.

12:47 Let me forward an email to you on that topic.

12:50 We had a session to agree the specifics with the head of manufacturing in the marketing manager. These notes will be useful to you.

12:59 Rey gets a bit stressed again.

13:00 Sonia is right.

13:01 How could she have overlooked that? Sonia smiles again.

13:08 Rey Don't worry. I know there are many questions and your experience with projects is limited, but I will not let you go into this adventure unprepared.

13:17 I have subscribed you to the 365 project management course.

13:22 It will start from zero and slowly walk you through all the things a project manager has to do in any project.

13:30 That sounds great.

13:31 Thank you so much, Sonia.

13:32 This is exactly what I need to learn the fundamentals and connect it with the experience. I have so far no problems, Sonia says.

13:42 Good luck with the preparation and I'll see you at the kick-off meeting.

13:48 Rey again is baffled.

13:50 What is a kick-off and when is it taking place? Sonia smiles once more.

13:57 You will have to answer that question, dear project manager.

14:04 Rey takes a deep breath.

14:06 Okay, I must keep the dark side of my thoughts away and stay positive.

14:11 Let's start learning about project management.

14:16 And now let's join Rey and start learning the very best practices in project management to see what the most common errors are and how to eliminate them. See you there.