Product details

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Abstract

This is the second of a two-case series. The two companies started in 1995 to develop a new breakthrough technology for converting iron ore into pure iron. The project was extremely challenging because of its complexity (a three-way joint venture involving three countries) and uncertainty (new technology posing unforeseeable complications). The case describes the difficulties to make the technology work. The teaching objectives are: (1) to understand the nature of unforeseeable uncertainty, and the limits of risk management; and (2) to understand risk profiles and the management style that is appropriate for projects with unforeseeable uncertainty. Rather than relying on planning and execution, such a project requires a flexible approach that gives the team resources and capabilities for problem solving and learning, and the authority to change course.
Industry:
Size:
USD450 million revenues
Other setting(s):
1995-2002

About

Abstract

This is the second of a two-case series. The two companies started in 1995 to develop a new breakthrough technology for converting iron ore into pure iron. The project was extremely challenging because of its complexity (a three-way joint venture involving three countries) and uncertainty (new technology posing unforeseeable complications). The case describes the difficulties to make the technology work. The teaching objectives are: (1) to understand the nature of unforeseeable uncertainty, and the limits of risk management; and (2) to understand risk profiles and the management style that is appropriate for projects with unforeseeable uncertainty. Rather than relying on planning and execution, such a project requires a flexible approach that gives the team resources and capabilities for problem solving and learning, and the authority to change course.

Settings

Industry:
Size:
USD450 million revenues
Other setting(s):
1995-2002

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