Reference no: EM132541526

Imagine you are a Security Executive overseeing a Security Project Manager. The Project Manager is working on a new CCTV camera installation at a University Campus. The Project Manager is also a close friend who you have worked with for over 5 years. He has 2 school age children and a pregnant wife at home who depend on him to support them financially. He recently was hit hard in the stock market after purchasing a new home so is living paycheck to paycheck with no savings.

The Project Manager prepared the budget for the installation and did not provide a buffer for increased costs. Change orders began coming in almost immediately and the Project Manager approved them without bringing them to your attention. Now three-fourths of the way through the project the approved funding has run out. You discovered the lack of funds when an invoice was unpaid and the vendor brought it to your attention. When you confront the Project Manager he admits that he made a mistake and is not sure how to fix it. He is terrified to lose his job.

The university's dean is questioning why the installation has stopped and wants to know whose fault it is.

Respond to the following questions:

As the Security Executive what would you do?

What would you tell the University Dean?

Would you fire the Project Manager?

Does the Project Manager's personal situation have any effect on you decision?

How could this issue have been avoided?

How important is financial planning in the project management process?