u do “all the right things” to ensure your project’s estimate is on the money, you still can reduce your estimate by as much as 30 percent in total project cost and as much as 50 percent in project duration. How? Pay attention to the “invisible” cost that affects day-to-day project progress: leadership, Management at Castleton, Ind., USA-based Boehringer Mannheim Corp. learned this lesson first-hand.
The firm was attempting to introduce a complex medical diagnostic system product for in-home monitoring of blood glucose levels. The project originally was estimated at three years of development and a budget of approximately $16 million. But Boehringer Mannheim did not have the luxury of 36 months of development if it was going to stop the incredibly rapid market share erosion caused by a “l(fā)eap frog” product – Johnson & Johnson’s One Touch.
When the smoke cleared, this project was completed in only 18 months at a cost of less than $12 million. The company quickly recaptured lost market share after introduction of the deliverable and has gone on to solidify and maintain its market position. The “secret” to this accomplishment was the firm’s emphasis on leadership.
Empowering projects
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