Program Management for Improved Business Results, 2nd Edition

Appendix B

LorryMer Information Technology

This is a story about the information technology (IT) department within LorryMer Corporation, a leader in the specialized motor vehicle industry in North America. LorryMer specializes in designing, developing, and manufacturing a complete line of technologically advanced motor vehicles. The company has been in business for more than six decades and now operates seven major vehicle manufacturing plants, with one plant in North America. With more than 14,000 employees, its mission is to provide the highest standard of technological innovation and premium quality to its customers.

Saul McBarney, LorryMer's IT program management officer, has been with the company for 25 years. McBarney is proud of the company's history, strategy, and background. “We are unique in terms of listening to the customers. We find out what customers' business needs are first and then develop products for them that meet their needs.”

However, 2009 was a painful year for LorryMer. As a result of economic hardship in the motor vehicle industry, the company's sales and profits dropped, and its losses exceeded $1 billion. In September 2010, the Refrigerated Transporter reported that used automotive prices caused many transportation carriers to extend trade-in cycles because the resale prices on vehicles were less than what was owed.

As a response to the crisis, the company embarked on a major cost-saving initiative in late 2009, which later produced a number of cost-saving ...