Apple Inc.

Team A:

PROJ587: Advance Program Management

Professor: Robert Kenmore

Table of Contents

I. INTRODUCTION 2

II. ORGANIZATION'S STRATEGIC PLAN 3

III. ORGANIZATION'S STRATEGIC CAPACITY PLAN 4

IV. PORTFOLIO MANAGEMENT PROCESS 5

V. PROJECT SELECTION CRITERIA 5

VI. PROGRAM MANAGEMENT PLAN 6

VII. CHANGE MANAGEMENT AND CONFLICT RESOLUTION 7

VIII. RESOURCES UTILIZATION: 12

I. Introduction
Steve Jobs and Steve Wozniak founded Apple in 1980. They partnered in early 1970 to

build their first personal computer. They later collaborated with another friend to write a manual

for the product and assist with the creation of a company logo. Apple was the name of the kit and

they begin to sell in 1977.

Apple’s innovation has now grown into an international multibillion-dollar corporation

that employs millions around the world. They manufacture computers, electronics and software

for businesses and consumers, that has remained on the cutting edge of creativity. They are a

leader in the electronic industry, and continue to expand their footprint throughout the world.

Their mission statement is,” Man is the creator of change in this world. As such he should

be above systems and structures, and not subordinate to them”. (Steve Jobs, 1980)

“Apple is committed to bringing the best personal computing experience to students, educators,

creative professionals and consumers around the world through its innovative hardware, software

and Internet offerings” This vision continues to lead the company through their continued record

high profits, and the transitions.

II. Organization's strategic plan
For many years Apple has dominated the technology market with their Mac computers,

IPhones, IPad, and IPods. All this success has been with the assistance of their supply partners

Foxtronn that is a Taiwanese based company. The manufacturing of Apply products has become

concerning since the demands are higher and the deliver is slightly slower. Apple understands

that they need to keep their competitive edge and in order to do this they will need to identify

and procure a new manufacturing partner. It has been rumored that they are looking to hire a

smaller company by the name of Pegetron, who currently produces the IPad Mini’s and some

versions of the IPhone. Apple wants all their suppliers to be in compliance with their Code of

Conduct, and if they are not in compliance, they want to be able to exercise all their legal rights.

Currently they are not experiencing any noncompliance issues; however, they are hopeful this

will never become an organizational or manufacturing problem. “Supplier innovation”, opens

doors for the new supplier to invest in Apple’s technology. (Kumar,A. 2013) This partnership

will be beneficial for Apple and the supplier as they are able to expand their overall production.

This new supply chain will provide Apple with one part of their strategic organizational plan.

Apple also intends to spend $10 billion in Capital Expenditures this fiscal year, $1 billion in

retail stores and the other $9 billion is spent in a variety of areas.

III. Organization's strategic capacity plan

Apple unlike Samsung, and Google, are not able to partner with various handset

manufactures. They have one operating system and all of Apple’s products sync to one another

based off this technology. They want to be able to meet the growing demands from China and

India. Apple would like to ensure they stay on top of all supply chain disruptions should they
arise. They are also looking to this new supplier to lower production costs, the costs of some of

their products as well as freight costs. This will give Apple new bargaining leverage in the

technology business. Once Apple has procured a new supplier, they will have the capacity to

produce more of their products and get back to the business of creating cutting edge technology,

which is what they are very good at. This management of growth is the next phase for Apple.

IV. Portfolio Management Process

Missing

V. Project Selection Criteria

The project selection criteria consists of Customer impact, Process stability, Defect

definition, Data availability, Solution clarity, Benefits, Impact on service quality, Project

sponsorship, Project alignment, Project timeline, Probability of implementation, Investment and

Team availability.

Before apple choose a project, they have to assess if it will impact their customer base

either online or in store. Once this is assessed we then have to check the stability of the process

that it will go through, especially if it’s a new process. A PM has to check the structure and

design of the process. She/he will then have to notify upper management if the process is

defected. She/he then will check for the data it needs to complete the project including print

materials, online materials and IT materials. A PM has to make sure that scope and goal of the

project is clear and they will be able to reach the goal in time. [4],[5]

The project will not be successful if there are no benefits involved. A big company like

Apple has to check for any benefits that will be associated with project. Apple should know what

the outcome would be before starting a project but in some cases project’s intention might be
different. A PM will then have to check if this project will effect on service quality. The level of

project sponsorship is often the difference between project success and failure and Apple needs

an appropriately high level sponsorship. It is necessary that PM checks the corporate strategy if

the project is going to meet the strategy or no. PM also has to make sure that this project is over

lapping another project. PM then has to check if the project timeline is suitable and can be

completed on time. She/he should also check for all the probabilities such as risks that are

associated with the project. The cost and investment plays a big role in project and Apple has to

make sure all his projects are founded before the project starts. Pm then has to make sure he has

the right team needed for this project and they will be available from beginning to end of the

project. [4],[5]

VI. Program Management Plan

The very important step that Apple must take once it has decided to transition into its next

phase is to develop a Program Management Plan or PMP. A Program management plan defines

all deliverables, plans and procedures, the systems that will be used to plan, monitor, control,

make changes, and improve projects. This plan is constantly updated so that it reflects changes to

the organization as well as any changes or advancements in technology that has occurred during

the life cycle of the portfolio’s projects.

The PMP begins with the project information, which is a summary of the program and

includes the names of the projects, a description of the project period, the types of contracts as

well as their value, the delivery dates, the project managers as well as contact information.

The project information section contains information on deliverables, key project events,

goals, the vision, and the project charter.

 The second part of the PMP describes the organizational structure of the project. It includes

the roles, responsibilities, and the level of involvement of the project manager, the subcontracts

manager, project engineers, finance manager, key individuals involved in planning, operations,

procurement, quality assurance, and all who are involved in the project.

The third part of the PMP is the management plan. It contains the statement of work, cost

management, schedule management, various technical management plans such a the systems

engineering management plan, a software development plan, and hardware development plan. It

describe who as applicable, will handle the resource management. A risk management plan,

subcontract management plan, a configuration and data management, and quality management

plans are also defined and described. The final portion of the management plan contains a

description of monitoring and controlling activities.

The fourth section of the PMP deals with the status of the project, describes initial baseline

reviews, independent technical assessments, performance assessment reviews and a review of

milestones. This section of the plan describes metrics that will be used to quantitatively view

the development process. Deviations from any plan can be tracked and actions taken.

[http://www.dot.state.fl.us/trafficoperations/its/projects_deploy/semp/apxe.pdf]

VII. Change management and Conflict Resolution

The introduction of new programs and or projects almost always includes change and

with change comes conflict. Apple will have to have a change management and conflict

resolution program in place.

I have developed a change and conflict resolution model that I affectionately call the

Polius Focus Analysis Model. This seven-step model takes the strengths of the 7S model,

Kotter’s Eight Step model, and The Burke Litwin 12 step model.
The first five steps deal with analysis and preparation, the last two deals with carrying out and

sustaining the change and the results of the change.

The first in this model is to place focus on environment, reasons, need, and urgency.

Focusing and analyzing these factors first helps determine if internal and or external forces is

affecting Apple, reasons why the organization is being affected, what is in need of changing, and

how urgent is the need.

Focus on leadership is step two of my model. In this stage the information gained from the first

stage is brought to the organizational leaders. Stage one may even determine if the problems

driving the need for change stem from ineffective leadership, technological advancements, or

due to competition. A coalition is formed and the hard decisions are made at this stage.

Focus on vision and philosophy is the third stage. This stage can only be accomplished when

leadership is onboard and is backing the change. A new vision and philosophy is then created

and the change team can move to the next step.

Focus on management and on people is the fourth step and has to do with communicating the

change information and gaining feedback. It answers questions as to how the change is being

received and brings unknown or ignored problems to light.

The fifth step, Focus on operating procedures has to do with aligning the new systems, roles,

resources (human and material), and skills, and getting them ready for change.

Step six, Focus on change has to do with carrying out the change, sustaining urgency, and

sustaining the change. Short term wins are celebrated during this stage and individuals and

departments whose actions are in line with the vision of change are rewarded. Errors are

analyzed and corrective actions are taken. Victory is not declared at this stage.
The final stage is to Focus on results. Did Apple achieve its desired goal? Are the changes

embedded in the culture? How is the current climate of the organization? New projects are added

to the portfolio during this stage, and leadership continues to analyze external trends.

Kurt Levin’s unfreezing–changing–refreezing change formula

The unfreezing-changing-refreezing change formula was developed by psychologist

Kurt Lewin. This formula has three simple sounding stages. Unfreeze, Change, and Refreeze.

The Unfreezing stage involves showing what is currently happening in the

organization and getting the point across that change is necessary. It brings on an awareness

of the direction a company is headed and helps all involve to get ready to open their minds

and move away from what they may be comfortable with. It is important to communicate and

create the need for change and prepare and motivate others before the change. In order for a

change to begin to take effect, all involved must undergo preparation for that change. People

are more likely to "unfreeze" from their current way of doing things and become receptive of

new ways to work when they recognize a need for change. When people become “unfrozen”

and all the elements that restrain them have been removed, transition can take place.

Transition is the result of behavioral changes that can help all those involve become more

effective in leading the change.

Lewin believed that the stability of human behavior was based on a quasi-stationary

equilibrium supported by a complex field of driving and restraining forces. He argued that the

equilibrium needs to be destabilized (unfrozen) before old behavior can be discarded (unlearnt)

and new behavior successfully adopted.[ CITATION Bur04 \l 1033 ] The key to unfreezing is

recognizing that change is a dynamic process. Individuals who are involved have to feel safe

from loss and humiliation before they can accept the new information and reject their current
processes.[ CITATION Bur04 \l 1033 ] Once this stage is effectively implemented, all involved

will be prepared for a new business model.

The second stage Change occurs as needed changes are made. This is a difficult stage

because the people involved have left the security and comfort of the way things have always

been done to take on new and unfamiliar responsibilities while still learning about the change.

They need to be trained, supported, coached and motivated. Mistakes are common in this stage

and should be expected and accepted. Clear detailed communication is necessary to prevent

people for losing sight of the desired change and the vision of where the company is heading.

Lewin believed that any attempt to predict or identify a specific outcome from planned change

is very difficult because of the complexity of the forces concerned. He felt that one should seek

to take into account all the forces at work and identify and evaluate, on a trial and error basis, all

the available options. He also recognized that without reinforcement, change could be short-

lived.[ CITATION Bur04 \l 1033 ]

The final stage of this model involves setting in place the new policies, procedures, systems,

and behaviors. In order for the change to be successful, it must be accepted by all. Refreezing

seeks to ensure that the new behaviors, policies, procedures, and systems are safe from failure.

Lewin saw successful change as a group activity, because unless group norms and routines are

also transformed, changes to individual behavior will not be sustained. [ CITATION Bur04 \l 1033 ]

This stage establishes stability when changes are made and accepted. New relationships are

formed, people become comfortable with their new roles, and the change becomes the norm.

John Kotter introduced the eight-step change model in the Harvard Business Review. In

order to achieve success, one must follow the eight stages that Kotter outlined. Skipping steps

will only create an illusion of speed and the results will never be satisfying. [ CITATION Pal082 \l
1033 ] Kotter believes that successful change follows a “see–feel–change” pattern in which

problems need to be presented in a compelling way that captures the attention of others; this

awakens in them feelings about the need for change; and the change itself reinforces new

behaviors.[ CITATION Pal082 \l 1033 ]

Apple’s Project portfolio management where the management processes, methods, and

technology used by project managers and project management offices (PMOs). They analyze and

collective manage a group. PPM is Project Portfolio management, Drawn directly from the

strategic business plan of an organization. There are thee phases of the PPM cycle, which are

preparation, execution, and Performance management.

This chart indicates the preparation, execution, and the performance management of Apple. The

Preparation is where the financial and performance target or each business unit. Also provides

guidelines and a schedule for completing the budgeting process. Execution is where projects are

identified, classified, and appropriately grouped. Than lastly the performance management where

the management plan monitors and manages the success of the project portfolio.

VIII. Resources Utilization:

Resources Utilization is the efficient and effective deployment of an organization's

resources when they are needed. Such resources may include financial resources, inventory,

human skills, production resources, or information technology.

Apple is a big organization and they can’t waste their financial resources just because

they have a lot of resources. The inventory management plays a big role when running a huge

corporation. Apple also has to make sure it hires correct skilled employees and the projects they

are working are their specialties. If IT resources are required, a PM has to make sure that they

are notified in advanced because they might be busy with other projects.

Image below explains the tasks of team member and their responsibility in the project.
Works Cited:

1 Burnes, B. (2004, August 12). Kurt Lewin and the Planned Approach to Change: A Re-appraisal.
Journal of Management Studies , 41 (6), pp. 977-1002.
Palmer, I. (2008). Managing Organizational Change (2nd Edition ed.). McGraw-Hill Learning
Solutions.

2. Farfan, B. Apple Inc. Mission Statement is not very innovative and barely a mission at
all. Retrieved from http://www.retailindustry.about.com/od/retailbestpractices/ig/company-
mission-statements/App.

3. Kumar, A. 2013. Apple’s Procurement Strategy, Spend Matters. Retrieved from

http://spendmatters.com/2013/06/04/apple-procurement/strategy.

4. Tej Mariyappa, Criteria for Selecting Retrieved on October 15th 2013

5. Farfan, B. Apple Inc. Retailers With Best Supply Chain Management - Apple, Amazon,
McDonald’s, Walmart. Retrieved on October 15, 2013 from
http://retailindustry.about.com/od/technologyinnovations/a/Retailers-Best-Supply-Chain-
Management-Apple-Amazon-Mcdonalds-Walmart-Recognition.htm