An enterprise software company recently designed a new compensation system to enable a large retail company to better manage its employee costs. Additionally, the new system allows employees flexibility in deciding how their pay is structured.
The HR director is tasked by the CEO to implement the new compensation system by the end of the financial year, which requires the project to be completed within a three-month period. The HR director reviews the project charter and believes that, given the scope of the project, the introduction of the new pay system is not achievable within a three-month time frame and shares this concern with the CEO.
The finance director tells the CEO that if the finance department had been tasked with the implementation, then the three-month time frame would be easily achievable. In order to implement the new pay system, the company’s IT director mentions that additional IT capacity is needed at a cost that exceeds the project’s IT budget.
The HR director is concerned that the CEO might not approve the implementation of the new pay system given the cost of upgrading the company’s IT systems. The HR director learns that employees have become aware of the anticipated changes to the pay system and are concerned with the impact it will have on their pay. Through their representatives, the employees contact the CEO to request a meeting to discuss the new system.
How should the HR director respond to the finance director’s claim that the project could be completed within three months?
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