Outsourcing Control

Boeing takes risks with design and manufacturing outsourcing across its integrated supply chain for the 787 Dreamliner and loses control of the process. Regardless of the industry space, manufacturing or information technology, management controls are necessary on the outsourced processes - clear visibility and accountability should not be compromised. Boeing is making adjustments. ...

... "The company’s chief, W. James McNerney Jr., concedes that Boeing lost control of the process by farming out more design and production work than ever and not keeping close tabs on suppliers. He says the company is retaking control. " ...

Via New York Times: 787 Dreamliner

Org Controls

Decentralized and flat organization model distributes controls into the customer-focused workforce. Hierarchy and team roles are minimized while responsibility and accountability to the customer are emphasized. ...

... "Control rests with the front lines, where it adds the most value. It works. Still, customers visiting FAVI are often astounded at what they perceive to be a total lack of control. " ...

Via Idea Hub at American Express OPEN Forum: Design a Flat Organization

Early Controls Increase Project Efficiency

Build in a brief compliance review early in an IT project to avoid costly rework later in the execution phase. ...

... "As stakeholders in the management of risk, when corporate legal departments provide their input in advance, i.e., during the design phase of an IT project, the resulting controls can be most cost-effectively designed and deployed. " ...

Via Metropolitan Corporate Counsel: Compliance Function

Common Causes of Out of Control Projects

List of key indicators of project failure ... some require constant monitoring. ...

... "Many times, project schedules spiral out of control when dates and deliverables aren't aggressively monitored and tracked on a daily basis. " ...

Via TechRepublic: Root Causes for Out of Control Projects

Project Closeout: Think Technology Preservation

Do a good project close-out and preservation is baked in ...

... "For example, the biggest IT project of the 1960s was the introduction of an IBM-based passenger reservations system at Aer Lingus. " ...

Via SiliconRepublic: Preserve digital heritage

The Dell Supply Chain Competitive Advantage

Dell's competitive advantage ... cooking the books ...

... "The investigation raised questions relating to numerous accounting issues, most of which involved adjustments to various reserve and accrued liability accounts. The investigation identified evidence that certain adjustments appear to have been motivated by the objective of attaining financial targets. According to the investigation, these activities typically occurred at the close of a quarter. The investigation found evidence that, in that timeframe, account balances were reviewed, sometimes at the request or with the knowledge of senior executives, with the goal of seeking adjustments so that quarterly performance objectives could be met. The investigation concluded that a number of these adjustments were improper, including the creation and release of accruals and reserves that appear to have been made for the purpose of enhancing internal performance measures or reported results, as well as the transfer of excess accruals from one liability account to another and the use of the excess balances to offset unrelated expenses in later periods. The investigation found that sometimes business unit personnel did not provide complete information to corporate headquarters and, in a number of instances, purposefully incorrect or incomplete information about these activities was provided to internal or external auditors. " ...

Via Dell: Dell Independent Investigation Completed; Will Restate Financials