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This is a graded discussion: 30 points possible

due May 21 at 2pm

The Leadership Challenge #2 What is the ethical thing to do? - Team QT

TORRES, LUCITO
From PSMBC 102-PSMCM 02 - Leadership, Communication and Ethics

LEADERSHIP CHALLENGE #1

"You are the project manager for a new construction project in another country. The project is
complex and will require the use of precision construction techniques which can only be done
by a selected few specialty contractors. The project schedule and budget are also a bit tight as
the in-house estimating team did not foresee the difficulties and risks involved in the project.
Delay in completion will also mean your company will be liable for expensive liquidated
damages.

Your company cannot afford to lose money on this project as it will further aggrevate the
already fragile health of the co. finances. Further losses, could result in the co. cutting down on
overheads - retrenchments and sending back home many of your country men. The problem
is with the current global COVID pandemic, the global economy is down. There is not much
work opportunity available in the near future in your country or in other countries owing to the
slowdown in projects. One concern is that your and most of your colleagues' families in their
home country are dependent on your remittances for their basic needs, education, housing,
medical needs among others.

Personally your job and future is also on the line in this project. Not only will you not get the
promotion and increase or bonus you have been hoping for if the project is successful and
achieves its target cost budget and profitability. Project failure will mean you ending up in the
same boat as your colleagues - on a plane going home without any clear vision of the future.

Your company sent out invitations to bid to contractors who are the known leaders in this type
of construction technology. During the Job Ex Meeting you discover that your longtime
personal friend is now connected with one of the companies invited and prequalified to bid on
this project bid package. He is in charge for the proposal preparation, and will likely be part of
the implementation team if their company wins.

Your friend got in touch with you after the meeting. During the conversation, he asked you if
you can give him an indication of the budget for this bid work package. Their firm is keen on
getting the project and would not want to overbid. And he adds any other information you
could share that will help them understand better your requirements and the project conditions
will be appreciated. He hopes to take them into consideration in developing their project plan,
schedule, cost estimates and risk plan so as to ensure successful completion. His future in his
new company is also what is at stake.

You and your friend have had a long relationship. You feel you owe him a lot as he has helped
you many times in the past. You feel that he is one of the reasons why you are where you are
right now. You know that the other invited bidders also have the experience in this critial work,
you know that their company is one of the most reliable contractors in this field of work and
has a very good track record of completing the work with quality and on time. So even if your
friend was not connected with the firm, personally you feel your job as project manager will be
made easier and the probability of success will be higher if your friend's firm wins.

As the project manager you do know the budget and you know that price will be the main
criterion but other factors such as schedule, methodology, quality and safety are the non-
financial criteria that will be used for subcontractor selection. You and your team will also be
involved in the commercial and technical proposal evaluation. But the Bids and Awards
Committee (BAC) will be making the final recommendation.

In the past, the company owners' decision was based not only on the recommendation of the
BAC. They also took into consideration other factors such as recriprocal business and long
term relations. During your chat with your friend and from what you also learned the owner of
your friend's co. and some of the owners of your co. have some other business dealings.

You are now in a dilemma as to what to do. You want to help your friend, but you also believe
you have to be fair to the other bidders. You also want to be sure that your project will be a
success as you are concerned about the future of your team members and colleagues, as well
as yours. "

INSTRUCTIONS:

1. You are to lead your team will use the 7-step moral problem solving and decision making
technique to resolve this dilemma.
2. Your team should explain your analysis and cite principles as basis for your assessment
and solutions. You can go beyond the course references and case facts.
3. Try to be as creative as you can, think out of the box in coming up with your recommended
solution(s) that hopefully will result in win-win situation for all.
4. Each team will be given 10 minutes to present their case in the next session. After all 3
teams have presented, Q&A will follow.
5. Team leaders will submit to my TIP email a performance appraisal and rating of each of
his/her team members.
6. Each team member will submit to my email address an appraisal and rating of their team
leader for this team challenge.
7. Criteria for appraisal and rating scale definition will be provided later.
8. The team will get a common score based on the quality and depth of their analysis,
creativity in their decision-making, quality of their report, presentation and managing the
Q&A
 9. Leader and members of respective teams will have scores added based on the feedback I
received through my TIP email.

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