Questions for DiscussionWhat were the top 3 factors that contributed to the projects failure?Who do you feel is most at fault? (Pena, Webb, DiFonso, Others?)What might Webb have done differently when he became Mayor?As Gene DiFonso, what would you have done differently to avoid problems faced at the end?How should DiFonso respond to Mayor Webbs decision to impose a $12,000 per day penalty and a $50 million penalty?

Key ProblemsPre-project planning and selection process

Leadership

Project Management and Implementation

Two ProjectsDIA ProjectBAE Sub-Project

Macro Problems with the DIA ProjectOversold by politicians and corporate stakeholdersToo much involvement of local people leading to coordination issuesToo many contractorsFinancial pressures forced short project time-frameBonds had to be repayed from Jan 1, 1994Lack of stakeholder involvement early onToo many changes by stakeholders later on

The BAE projectWhy did BAE take it up?Revenue of $175.6 Million from this project is greater than annual revenue of $100 MillionUnited is a long-term customer and BAE is anxious to help themWhat did DiFonso do to mitigate risk?Several contractual agreements

The BAE ProjectWhy did these agreements not hold-up?Slingers death was an important event. Relationships were changedDuring the project what could DiFonso have done?Contacted Webb directly?Maintained a detailed roster of events leading to delays for claims analysis?What kinds of control systems should he have had?

Project Analysis

Risk CategoryDIA/BAE Status1. Strategic Validity and ImportanceNot economically valid for DIA but perhaps politically necessary2. Project SizeLarge size but many expert consultants were roped in and BAE stood to make good revenues

Project Analysis

Risk CategoryDIA/BAE Status3. Project StructureExtremely complex and needed strong leadership. Perhaps this was missing after Slingers death.Too many changes were madeBAE may not have had expertise in such large projectsBAE should have been involved early onDiFonso did not have enough influence outside BAENot enough time

What should DiFonso do now?Sue the city?Attempt to renegotiate?Use BAEs political connections with United to influence United to put pressure on the city?Accept the citys demands?

**Problems with DIA affect BAE also*Economic figures did not justify the construction of this airport and therefore airlines were not interested stakeholdersAll of these factors were present by the time BAE entered, so it was not going to be easy for them*Discuss changes of scope and coordination issues in 1992*Discuss the events that happened on the projectThe contractual agreements are given in the case itself*Perhaps BAE can still win any of the court cases by relying on the contracts. However the contracts have not allowed them to prevent the problems this has to be done through relationships and these relationships were lost when slinger died

*Certainly there was no teamwork*Overall the project represents a failure in adequate planning, stakeholder involvement and leadership