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Mountain Peak Inc. is a software development company in Los…

Mountain Peak Inc. is a software development company in Los Angeles, California. Some genius software developers founded the organization. However, none of them had a business management background.  After being mildly profitable during the last three years, they decided to hire an operations manager to help them streamline their projects. 

You have been chosen as their operations management. Your first initiative as an operations manager has been to review the work process. The following is the flow of a standard project and the average duration of each step:

The sales personnel contacts the customer after having received their request (most requests are received over the phone, a second important portion is submitted via their website, walks-in, etc.). [1 week]
Depending on the nature of the project, the developers are selected. [1 week]
A meeting is set up to discuss the project with the customer, developers and salesperson in charge. [1 week]
An estimate and timeline are developed for the project. [1 week]
A second meeting is set up to discuss the timeline and cost. [1 week]
The cost and timeline may be negotiated before the start of the project. [This can add 1 week]
Once the proposal is approved, the developers start their work. A weekly meeting with their supervisor is mandated to follow up on the project and ensure timeliness. [4 weeks]
Once a beta of the software is designed, the customer is invited to a meeting, to test the software, and obtain feedback. [1 week]
The beta is tested at least two weeks to ensure bugs are corrected. [2 weeks]
Once the refined version of the software is concluded, the consumer is invited again for another meeting, and presented with the final version of the product. [4 weeks]
If consumer approves, software is released and payment received. If consumer does not approve, the process loops back to step #9.
 Once software is in use, the salesperson in charge follows up with the customer about one month later to ensure the software is working well. And then every six months.
If at any point, the customer needs help, the salesperson is in charge of conveying the feedback to the developers. 

Your second initiative is to review customer feedback. These are your findings:

79% of the customers complained about the time it takes to receive the software. 
3% of the customers found the development to be too expensive.
10% of the customers felt they were not heard during the initial stages of the process.
65% of the customers felt the way the company handles their business is old fashioned. They felt distrusted because software was only released after receiving payment.
35% of customers found communication to be cumbersome. They could never reach a developer. They always had to go through their sales person.
45% of customers thought the meetings are a waste of their time.

 

Your third initiative was to check with supervisors and HR to collect workplace feedback. These are your findings:

Absenteeism seems to be a problem. Developers are mandated to work from the office, so their work can be supervised. Most developers missed approximately 3 days a month due to personal issues.
Poor project management. Most tasks are not forecast well, and projects are delivered late.
Developers talk too much.
Resources are wasted. For example, there are tons of paper copies made daily.
Office spaces are messy. It is difficult for a developer to find a document. 
Breaks are not taken on time. Most developers take longer breaks.
Facebook, LinkedIn and Instagram are accessed too often.
Employees use nonprofessional attire often.
Scheduling meetings is cumbersome, as it is hard to coordinate availability of all participants.

 

Questions

What is the average time for a software project to be completed (lead time)?
Suggest three ways to improve customer satisfaction.
Suggest two ways to shorten lead time.
What three issues would you tackle first as a manager? Why?
If you were a customer, what would you suggest to Mountain Peak Inc.?
What do you think is the essence of Mountain Peak’s inefficiencies?