Lakes Automotive
Explore how Lakes Automotive successfully merged project management methodologies following a major acquisition, balancing employee adaptation and customer satisfaction to achieve seamless integration and continued excellence.
CASE STUDY
Harvard Business School
6/10/20241 min read
Lakes Automotive is a Detroit-based tier-one supplier to the auto industry. Between 1995 and 1999, Lakes Automotive installed a project management methodology based on nine life-cycle phases. For the next 10 years, all 60,000 employees worldwide accepted the methodology and used it. Management was pleased with the results. Also, Lakes Automotive’s customer base was pleased with the methodology and provided Lakes Automotive with quality award recog- nition that everyone attributed to how well the project management methodology was executed.
In February 2015, Lakes Automotive decided to offer additional products to its customers. Lakes Automotive bought out another tier-one supplier, Pelex Automotive Products (PAP). PAP also had a good project management reputation and also provided quality products. Many of its products were similar to those provided by Lakes Automotive.
Because the employees from both companies would be working together closely, a single project management methodology would be required that would be acceptable to both companies. PAP had a good methodology based on five life- cycle phases. Both methodologies had advantages and disadvantages, and both were well liked by their customers.
QUESTIONS:
How do companies combine methodologies?
How do you get employees to change work habits that have proven to be successful?
What influence should a customer have in redesigning a methodology that has proven to be successful?
What if the customers want the existing methodologies left intact?
What if the customers are unhappy with the new combined methodology?
Case Study
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