BUSINESS CASE DOCUMENT FOR THE RELAUNCH OF A
NEW HOTEL IN MANCHESTER CITY
John Babatunde Ibiwumi
Student ID: @00686266
Salford Business School,
University of Salford, Salford, UK
Assignment Submitted for Project Management Leadership and Skills:
Planning and Control Module on MSc. in Project Management.
2022
Table of Content
1. INTRODUCTION ……………………………………………………………
3
2. PLANNING AND CONTROL ……………………………………………….. 4
2.1. Mission and Objectives …………………………………………………….4
2.2. Stakeholder Management Plan ……………………………………………5
2.3. Project Activity Plan ………………………………………………………..9
2.4. Resource Allocation & Utilization Plan ………………………………….10
2.5. Project Timeline Schedule ………………………………………………….11
2.6. Risk Management Assessment …………………………………………….12
3. PEOPLE MANAGEMENT ……………………………………………………..14
3.1. Conflict Resolution Strategies …………………………………………......14
3.2. Importance of Sponsor on the Project …………………………………….16
3.3. Project Management Leadership/Management Styles …………………18
4. REFERENCES/BIBLIOGRAPHY ………………………………………………20
1. INTRODUCTION:
This write-up illustrates the Business Case describing the Planning, Control, leadership,
and people management skills for a proposed hotel relaunch project.
Kerzner (2017) states that projects usually begin with the development of a business
case for the project. This occurs most often well before the actual scope of the project
is defined. A business case is a document that provides the reasoning why a project
should be initiated.
The business case provides justification for undertaking a project, programme, or
portfolio. It evaluates the benefit, cost and risk of alternative options offering a
rationale for the preferred solution - (APM Body of Knowledge 7th Edition, p. 44).
A business case is a documented economic feasibility study used to establish the
validity of the benefits of a selected component lacking sufficient definition and that
is used as a basis for the authorisation of further project management activities. (PMI
Book of Knowledge 6th Edition p. 30).
Following the definitions above, it means that the business case is prepared, reviewed,
and approved to determine whether the investment in the project is worthwhile.
The few elements considered in this Business Case for the purpose of this write-up are:

High-level Project objectives

Resources Needed

Timing

Stakeholder Management

Conflict Management

Leadership and People Management Skills

Project risks
2. PLANNING AND CONTROL
2.1.
Mission and Objectives
Gido et al. (2018) explain that a project has a clear objective that establishes
what is to be accomplished. It is the tangible product that the project team must
produce and deliver. The project objective is usually defined in terms of endproduct or deliverable, schedule, and budget. It requires completing the project
work scope and producing all the deliverables within a certain time and
budget.
Gido et al. (2018) goes on to say that the project objective may also include a
statement of the expected benefits or outcomes that will be achieved from
implementing the project. This indicates the reason why the project is being
done. The project objectives which must be SMART (Specific, Measurable,
Achievable, Relevant and Time-Bound) are informed by the success criteria and
benefits desired by stakeholders.
Also, according to Gido et al. (2018), the project objective must be clearly
defined and agreed upon by the sponsor or customer and the project team or
contractor that will perform the project. However, if there is need to modify the
project objectives as the project proceeds because of extenuating circumstances,
it must be agreed upon by the project manager and the customer.
The project objective will also be part of the Project Charter according to
Dionisio (2017)
For the project under consideration in this write-up, the Mission and Objectives
are as follows:
i.
To relaunch the newly acquired Yang Sing Hotel to operate as
Manchester Intercontinental Hotels by making it operational in 240 days
within a budget of US$ 3million.
ii.
To relaunch the hotel as a truly intercontinental Hotels incorporating the
cultures of the following continents of the world – Africa, Middle East,
Asia and Europe.
iii.
To obtain information about guests’ preferences by conducting and
documenting customer market study to be completed within the first
half of the project timeline.
iv.
To promote the hotel new brand by running advert programs on
Manchester Media outlets that has global coverage in a bid to create
wider customer base.
2.2.
Stakeholder Management Plan
Stakeholders are individuals, group, companies, or organizations that may
affect, be affected or see itself to be affected by the decision, activity or outcome
of this project or the way in which the project is managed. We can have
stakeholders who may be either directly or indirectly involved throughout the
project or may function simply as observers.
Gido et al (2018) argues that for a project to be successful and for the project
objectives to be accomplished, Stakeholder engagement and support are very
important. Regular and open communication, trust, respect, open-mindedness,
and a positive win-win attitude are keys to successful stakeholder engagement.
This is because according to PMI Book of Knowledge 7th Edition, a stakeholder
has the capacity to influence a project, its performance, or outcome directly or
indirectly either in a positive or negative way.
2.2.1. Identification of Stakeholders
Stakeholder Management starts with the identification of Stakeholders For this
project of Hotel re-launch, the initial stakeholder list below is developed
because at this stage we cannot have enough information to complete the
stakeholder register:
1. Sponsor
2. Project Manager
3. Project Team
4. Guests of the Hotel
5. People of Manchester City
6. Human Resources Consulting Firm
7. Members of Staff to be recruited
8. IT Consultant
9. Subcontractors, Suppliers and Service Providers
10. Local Chamber of Commerce
11. Government Regulatory Agencies in charge of Hospitality Business
12. Other Hotels in the City of Manchester
As the project continues there will be additional information and
understanding about each stakeholder’s requirements, expectations, and
classification and the stakeholder register with the sample provided will
become more robust (Dionisio, 2017).
PMI Book of Knowledge 7th Edition, Kerzner (2017) and Gido et al. (2018)
agreed that over the lifecycle of a project.
a. Stakeholder list is not constant as some stakeholders can leave whiles new
ones emerge.
b. The degree of a stakeholder’s interest, influence or impact may change.
The stakeholder list is therefore an organic document subject to change.
Table 1: Stakeholder Register
STAKEHOLDER REGISTER
Project Title:
Name
Date Prepared:
Contact
Position/Role Information
Requirement
Expectation
Classification
Note: Stakeholder Register from A Project Manager’s Book of Forms Third Edition by Dionisio,
C. S. 2017.
2.2.2. Stakeholder Analysis
Stakeholders are classified to reflect their level of influence, interest power
or authority on a project using Stakeholder Analysis. This will in turn now
serve as a guide for planning stakeholder engagement for groups of
stakeholders.
According to Kerzner (2017), Stakeholder mapping will be used to display
in grid format the comparison between Power and the level of interest of
the stakeholders. This will indicate the approach to be used in managing
each of the stakeholders such as those who require monitoring only, those
that must be managed closely, those that should be kept informed and those
that must be satisfied.
2.2.3. Stakeholder Engagement
The approach that will be adopted in this Manchester Intercontinental Hotel
Relaunch Project is to use interpersonal skills to engage and communicate
constantly with the stakeholders throughout this project to:
a. Understand them and their expectations
b. Value their opinions
c. Identify ways to attract their support continuously
d. Recognize any stakeholders’ problems early on that can affect the
project.
Using this approach will help us minimize potential negative impact and
maximize positive impacts because everyone will be adapted to the project
and to each other, increasing the likelihood of success.
2.3.
Project Activity Plan
According to Dobson (2015), Project planning involves utilizing all the tools
and processes necessary to define, organize, and develop the course of action
that will accomplish the project objectives. This entails plans to manage
schedule, cost, scope, risk, procurement, quality, human resources, and
stakeholders. The tool used in Project Activity Plan is the Work Breakdown
Structure (WBS) which is a tool for breaking down a project into its components
parts and generating activity list for the project.
Kerzner (2017) stated that the WBS is structured to reflect the sequence of
activities and the way in which project costs and data will be summarized and
eventually reported.
The WBS for this project is illustrated below:
Table 2: Work Breakdown Structure for the Project
1.0.
Conduct Project Kick-off Meeting
2.0.
Carry Out Maintenance Repair on the Hotel Building
3.0.
2.1.
Assess the Building to identify areas that needs repair
2.2.
Carry out Mechanical and Electrical works
2.3.
Carry out Structural Maintenance works
2.4.
Re-paint the Building according to the new colour scheme.
Create Awareness for the new Hotel Brand
3.1.
Launch a New Website
3.2.
Create Ads for social media and other online media platforms.
3.3.
Prepare and hoist electronic billboards
4.0.
Recruit New Staff for Hotel Operation
4.1.
HR Consulting firm receives application from interested
applicants
5.0.
6.0.
7.0.
2.4.
4.2.
Conduct Interview for the applicants
4.3.
Successful applicants communicated
4.4.
Train successful applicants
Set Up Each Department in the New Hotel
5.1.
Set Up Administrative Department
5.2.
Sales and Marketing Department
5.3.
Food and Beverages Department
5.4.
Set up Public Relations Department
5.5.
Set Up ICT Department
5.6.
Security Department
Supply all items needed for the immediate take-off of the Hotel
6.1.
Supply items to furnish the rooms
6.2.
Supply furniture and electronic gadgets for administrative work.
Opening Ceremony for the Hotel
Resource Allocation & Utilization Plan
The resource allocation plan for this project shows how labour and non-labour
resources are attributed to project activities.
A simple tool that can be used to crossmatch the activities with various roles in
a project is the Responsibility Assignment Matrix
According to Nieto-Rodriguez, A. (2021), it assigns the following levels of
responsibility:
i.
Responsible (R): person responsible for carrying out the activity.
ii.
Accountable (A): the owner of the activity.
iii.
Consulted (C): individual/groups that needs to be consulted for input.
iv.
Informed (I): individuals or groups that ought to be informed.
Table 3: Responsibility Assignment Matrix for the Project
Activity
Project
Manager
Conduct Project Kick-
R, A
Human
Resources
Consultant
Marketing
Manager
Procurement
Manager
IT
Consulting
Company
Facility
Manager
Logistics
Manager
R, A
I
I
Off Meeting
Carry out Maintenance
Work on the Building
Create Awareness for
the New Hotel
Recruit New Staff for the
Hotel
Set up each Department
in the hotel
Supply
materials
needed for hotel take-off
Opening Ceremony for
the Hotel
2.5.
A
I
C
I
A
R
A
I
C
R
A
R
I
C
I
I
I
R
C
C
I
I
R
C
I
I
C
C
Project Timeline Schedule: Microsoft Project Software was used to process the
Work Breakdown Structure into Project Timeline Schedule with a duration of
240 days as stated in Project Objective. The figure below shows the screenshot
of the Program of Work.
Figure 1: Project Timeline Schedule for the Manchester Intercontinental Hotel
Opening Project.
2.6.
Risk Management Assessment
Every project has risks which according to BS 6079 (2000, as cited in Maylor,
2010) are uncertainties inherent in plans and the possibility of something
happening (i.e., a contingency) that can affect the prospect of achieving
business or project goals.
Risk Management is an integral technique in project management and an
essential duty of the project manager. Hence if the project manager or the team
neglected to identify or mitigate the project’s risks in time, the project can fail
(Nieto-Rodriguez, 2021).
The Risk Assessment Table is a table that indicates potential risks, their likely
impact, probability of occurrence and the mitigation plan in case of occurrence
(Gido et al., 2018). The following are the five key risks associated with the
delivery of this project:
1. Cash Flow disruptions
2. Unfavourable Weather
3. Price Fluctuation
4. Unexpected Changes at the Last Minute
5. Staffing Problem
A typical Risk Assessment Matrix Table following the template put forward by
Gido et al. (2018) is shown below.
Table 3: Risk Assessment Matrix for Hotel Opening Project
Risk Event
Impact
Cash
Flow Affect
Interruption
execution
of work
Probability Level of Action
on Owner
of
Impact
Trigger
Occurrence
High
Medium Investors
Project
have another Sponsor
on-going
project.
Material
Price
Fluctuation
Cause
Medium
increase in
Budget
Staffing
Problem
Slow down Low
progress of
work
High
Global
Economic
Situation and
effect
of
Pandemic
Medium Resignation of
Staff or a key
Project Team
Mitigation
Plan
Project
Sponsor to
provide
back-up
funding plan
James
– Commit to
Procurement suppliers
Manager
ahead
of
supply with
fixed terms
John
– Assign
Project
another
Manager
Team
member to
Unexpected
Scope
Change
Increased
Low
cost
and
completion
time
Unfavourable Loss
of Medium
Weather
time and
money
High
Unambiguous Project
Stakeholder
Sponsor
expectation
Medium Weather
John
Forecast
Project
within project Manager
period
fill
the
vacuum
Stakeholder
to
be
engaged
consistently
to clarify and
document
expectations.
- Develop
a
plan
to
concentrate
on
indoor
activities
during this
period.
3. PEOPLE MANAGEMENT
3.1.
Conflict Management
At the beginning of this project, the project team will be made to acknowledge
that Conflict is common on project, and it is like a natural phenomenon which
can occur at any stage of the project and at any level in the organization. This
is because this project consists of many people, each with individual ideas,
styles, beliefs, values, personalities, and expectations which may differ most
times. It is also good to note that conflicts can either be healthy and productive
or unhealthy depending on how it is handled. (APM Body of Knowledge, 7th
Edition; Dionisio, C. S. 2018; Dow and Taylor, 2008; Gido, Clements, and Baker,
2018; Kerzner, 2017; PMI Book of Knowledge 7th Edition)
Any conflict arising during this project will be resolved productively by
minimizing the negative impacts and maximizing the positive aspects of the
conflict.
3.1.1. Possible Sources of Conflict on this Project
Relating the discussions of Gido et al (2018) and Kerzner (2017) on sources of
conflict to this project, Conflict can arise in any of the following ways:
1. WORK SCOPE: Conflict can arise from how the scope of work for each
milestone deliverable is developed and the quality expectation for each item
of work.
2. RESOURCE ASSIGNMENTS: How resources are deployed to each task on
the project can also result to conflict.
3. SCHEDULING: Differing opinions on how long each task should take and
the sequence of tasks can result into conflict between the Project Manager
and the Project Team.
4. COSTS: Cost as a major project constraint is a potential source of conflict
among stakeholders. Also, global inflation and impacts of COVID
pandemic can lead to cost overruns that subcontractors, suppliers, and
other service providers will not be willing to absorb.
5. ORGANIZATIONAL ISSUES: Organisational issues like administrative
procedures to establish standard operating procedures for the operation of
the hotel, work ethics and code of conducts for the project team can cause
conflict.
6. STAKEHOLDER ISSUES: This project comprise many stakeholders which
will have conflicting interests, opinions, expectations.
7. PERSONAL CLASHES: Conflict can emerge among members of the project
team because of differences in individuals’ values, attitudes, or
personalities. Not all members can have same level of dedication and
commitment to the progress of the project.
3.1.2. Strategies for tackling conflict on the Project
Depending on the conflicting situation and the parties involved in the
conflict, I will adopt any of the following conflict resolution modes as
identified by Kerzner, (2017), Dionisio, C. S. (2018) and Gido et al (2018) on
the research works of Ralph Kilmann and Kenneth Thomas.
3.2.
i.
Confronting (or Collaborating)
ii.
Compromising
iii.
Smoothing (or Accommodating)
iv.
Forcing (or Competing, Being Assertive)
v.
Avoiding (or Withdrawing)
Importance of Sponsor on the Project
A Project Sponsor is a person or a group with formal authority, influence, and
accountability to provide resources, support for the project towards ensuring
the success of the project. The efforts of the sponsors are ultimately directed
towards the success of the Project and the Project Team. Research has indicated
that an active sponsor is a critical success factor in achieving positive outcomes
from projects. (APM Body of Knowledge, 7th Edition; Kerzner, 2017; PMI Book
of Knowledge 7th Edition; Verzuh, 2016)
Although according to Kerzner (2018), not all projects require sponsor but in
this case a project sponsor is very essential for the following five major reasons:
1. To provide support for the Project Manager in the following ways:
a. Issuing the Project Charter which describes the correct objectives of the
project.
b. Reviewing and approving the Project Plan
c. Advising the Project Manager on regular basis especially on enterprise
environmental and political factors that may affect project execution.
d. Timely identification and resolution of major conflicts and problems.
2. The Sponsor will be needed to be the interface between the Project
Management Team and the top Executive team of the Investment Company
3. The Sponsor will help in facilitating timely executive level decisions that
could enhance the progress of the project delivery especially when such
decision is outside of the authority and Power of the Project Manager and
his team.
4. In this kind of project, a project sponsor will be beneficial in securing
necessary project resources and removing obstacles that can slow the
project execution.
5. Establish close contact with the Project Team to communicate and reiterate
the Project’s objectives, technical objectives, vision, goals and expectation to
the team.
3.3.
Project Management Leadership/Management Styles
The Management Style that will be appropriate for the Project Manager in this
type of Project is adapting a combination of Management and Leadership styles
to suit the project needs. In this project, the Project Manager must realise that
leadership is needed to motivate his team towards a common goal and make
them align their interests and collective efforts and achieve success as a team
rather than as individuals. This style is preferred over a hierarchical, autocratic,
and directive management approach.
According to PMI Book of Knowledge 7th Edition, Leadership comprises the
attitude, talent, character, and behaviours to influence individuals within and
outside the project team toward the desired outcomes. Gido et al (2018) argues
that Leadership is getting things done through others that is inspiring the
people assigned to the project to work as a team to implement the plan and
accomplish the project objective successfully as led by the Project Manager.
There are many leadership styles but there is no single best, the project needs
to adapt his style and approach to the needs of the project and the team and
bring out the best in them.
In applying the leadership style, the project manager must strive to be a person
of trusted character in terms of honesty, integrity and ethical conduct. He
should work around what keeps the team motivated by using appropriate
skills and traits that meets stakeholders needs and expectation on the project.
This will be made possible if the Project Manager creates a culture of effective
stakeholder engagement throughout the project lifecycle.
Leadership will also involve the Project Manager empowering the Project Team
by delegating leadership roles to them within clear guidelines and appropriate
limit.
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